The Chapter 13 bankruptcy “means test” in Florida serves a different purpose compared to the Chapter 7 means test. While Chapter 7’s means test determines eligibility based on income, Chapter 13’s assessment focuses on evaluating your financial capacity to repay debts through a structured plan.
✅ Purpose of the Chapter 13 Means Test
In Chapter 13 bankruptcy, the means test is utilized to:
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Assess Disposable Income: Determine the amount of income available after necessary expenses to allocate toward debt repayment.Establish Repayment Plan Duration: Decide whether your repayment plan will span three or five years, based on your income relative to Florida’s median income.
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Calculate Monthly Payments: Ensure that your proposed monthly payments are feasible and align with your financial situation.
📊 How It Works in Florida
When filing for Chapter 13 in Florida, you’ll need to complete specific forms:
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Form 122C-1: Statement of Your Current Monthly Income and Calculation of Commitment Period.
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Form 122C-2: Calculation of Your Disposable Income.
These forms require detailed information about your income, expenses, and debts. The court will analyze this data to determine your ability to make regular payments under a Chapter 13 plan. If your income is below Florida’s median, your plan may last three years; if above, it may extend to five years.
🏠 Florida-Specific Considerations
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Homestead Exemption: Florida offers a generous homestead exemption, potentially protecting the full value of your primary residence, which can influence your repayment plan.
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Exempt vs. Non-Exempt Property: The value of non-exempt assets may affect the amount you must repay to unsecured creditors.
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