Do I Qualify for Chapter 7 Bankruptcy in Florida?
Written by Blake Stewart | Florida Bar No. 84716 | Admitted 2010 | Florida Bankruptcy & Estate Planning Attorney
Chapter 7 bankruptcy can wipe out credit card balances, medical bills, and most other unsecured debt — often within three to four months. But not everyone qualifies. Florida residents must pass the federal means test before a Chapter 7 case can proceed.
What Is the Chapter 7 Means Test?
The means test is the federal formula used to determine whether a debtor's income is low enough to qualify for Chapter 7 relief. Congress created it in 2005 to ensure that Chapter 7 — which discharges debt without any repayment obligation — is available to people who genuinely cannot afford to repay their creditors.
The test has two steps. Most people who qualify do so at Step 1 and never need to go further.
Step 1: Compare Your Income to the Florida Median
The first step compares your household's average monthly income over the six full calendar months before your filing date to the current Florida median income for a household of your size. Add up all gross income your household received during those six months, divide by six, then multiply by twelve to produce your annualized income. That number is what gets compared to the Florida median.
As of April 1, 2026, the Florida median income figures are approximately:
| Household Size | Annual Median Income |
|---|---|
| 1 person | $68,085 |
| 2 people | $85,000 |
| 3 people | $102,000 |
| 4 people | $114,756 |
| 5 people | $125,856 |
| 6 people | $130,000+ |
For households larger than six, add approximately $11,100 for each additional person. The U.S. Trustee Program updates these figures every April and November — the numbers in effect on the day you file are the ones that apply.
If your annualized household income falls at or below the figure for your household size, you pass Step 1. Your case proceeds as a Chapter 7 without any further income analysis.
What Counts as Income for the Means Test?
The means test captures most sources of income, including wages, salaries, bonuses, overtime, self-employment income, rental income, interest, dividends, pension payments, and regular contributions made by others toward your household expenses.
Social Security income is excluded entirely. This includes retirement benefits, SSDI, and SSI. If Social Security is your primary or only source of income, you pass the means test automatically with respect to income.
Veterans' disability compensation and certain other government benefits are also excluded under federal law.
Step 2: The Expense Deduction Calculation
If your income exceeds the Florida median, you are not automatically disqualified. Step 2 uses Official Form 122A-2 to subtract a specific set of allowed monthly expenses from your current monthly income. These deductions include:
- ›IRS national and local standards for food, clothing, housing, utilities, and transportation
- ›Your actual secured debt payments (mortgage, car loan)
- ›Priority debt payments such as back taxes or domestic support obligations
- ›Health insurance premiums
- ›Childcare and other qualifying expenses
After subtracting these deductions, if your remaining monthly disposable income falls below $151.25, the bankruptcy court presumes the case is not abusive and allows the Chapter 7 to proceed.
Many Brevard County residents who initially appear to be over the income limit qualify for Chapter 7 after the Step 2 calculation. High housing costs, financed vehicles, health insurance premiums, and domestic support obligations are among the most common deductions that bring disposable income below the threshold.
Exceptions to the Means Test
Two groups of filers are exempt from the means test entirely:
Primarily business debts. If your debts were incurred in connection with running a business for profit rather than for personal or household purposes, you do not need to pass the means test to file Chapter 7.
Disabled veterans. If you are a disabled veteran with a disability rating of at least 30 percent and you incurred the debts at issue while on active duty or performing homeland defense activities, you are also exempt from the means test.
What Disqualifies Someone from Chapter 7?
Beyond the means test, a few other factors can affect eligibility:
- ›If you received a Chapter 7 discharge within the past eight years, you cannot file Chapter 7 again until that period expires.
- ›If you received a Chapter 13 discharge within the past six years, there is a similar restriction in most circumstances.
- ›Prior bankruptcy cases dismissed within the past 180 days under certain conditions can also affect your ability to file.
- ›A bankruptcy court may dismiss a Chapter 7 case found to be filed in bad faith or for purposes of abuse.
None of these scenarios apply to most people who contact us. The majority of callers who are unsure whether they qualify are good candidates for Chapter 7 once the full picture is reviewed.
What Happens If I Do Not Qualify for Chapter 7?
If your income is too high to qualify for Chapter 7 after both steps of the means test, Chapter 13 bankruptcy may still provide significant relief. Chapter 13 allows you to repay debts through a court-approved three-to-five-year repayment plan while keeping your property, stopping foreclosure, and catching up on mortgage or vehicle arrears.
Chapter 13 has no income ceiling. Anyone with regular income and debts below the statutory limits can file.
Florida Exemptions: What Property Can You Keep?
Passing the means test tells you whether you can file. Florida's exemption laws determine what property you keep when you do.
Florida is an opt-out state, meaning most debtors use Florida's state exemptions rather than the federal list. Florida's homestead exemption is one of the strongest in the country, protecting the full equity in your primary residence from creditors with no dollar cap, subject to acreage limits. This is one reason many Florida Chapter 7 cases result in no assets being liquidated at all.
Other Florida exemptions protect wages, retirement accounts, life insurance cash value, and a motor vehicle up to a certain equity amount. A review of your specific assets and liabilities is the only way to know exactly what is protected in your case.
Where Are Brevard County Bankruptcy Cases Filed?
Bankruptcy cases for Brevard County residents are filed in the United States Bankruptcy Court for the Middle District of Florida, Orlando Division. The meeting of creditors — a brief, routine hearing — typically takes place approximately 30 days after filing. Stewart Law handles filings and appearances in the Orlando Division regularly for clients throughout Brevard County.
Frequently Asked Questions
What is the Chapter 7 means test?
The means test is the federal formula used to determine whether a debtor's income is low enough to qualify for Chapter 7 relief. Congress created it in 2005 to ensure that Chapter 7 — which discharges debt without any repayment obligation — is available to people who genuinely cannot afford to repay their creditors. The test has two steps. Most people who qualify do so at Step 1.
What income counts toward the means test?
The means test captures most sources of income, including wages, salaries, bonuses, overtime, self-employment income, rental income, interest, dividends, pension payments, and regular contributions made by others toward your household expenses. Social Security income — including retirement benefits, SSDI, and SSI — is excluded entirely. Veterans' disability compensation and certain other government benefits are also excluded under federal law.
What if my income is above the Florida median?
You are not automatically disqualified. Step 2 of the means test uses Official Form 122A-2 to subtract a specific set of allowed monthly expenses from your current monthly income — IRS national and local standards for food, clothing, housing, utilities, and transportation, plus actual secured debt payments, health insurance premiums, childcare, and other qualifying expenses. If your remaining monthly disposable income falls below $151.25, the bankruptcy court presumes the case is not abusive and allows the Chapter 7 to proceed. Many Brevard County residents who initially appear over the income limit qualify after the Step 2 calculation.
Who is exempt from the means test entirely?
Two groups are exempt. First, if your debts are primarily business debts — incurred in connection with running a business for profit rather than for personal or household purposes — you do not need to pass the means test. Second, if you are a disabled veteran with a disability rating of at least 30 percent and you incurred the debts at issue while on active duty or performing homeland defense activities, you are also exempt.
What else can disqualify someone from Chapter 7?
Beyond the means test, a few other factors can affect eligibility. If you received a Chapter 7 discharge within the past eight years, you cannot file Chapter 7 again until that period expires. If you received a Chapter 13 discharge within the past six years, there is a similar restriction in most circumstances. Prior bankruptcy cases dismissed within the past 180 days under certain conditions can also affect your ability to file. None of these scenarios apply to most people who contact us.
What if I do not qualify for Chapter 7?
Chapter 13 bankruptcy may still provide significant relief. Chapter 13 allows you to repay debts through a court-approved three-to-five-year repayment plan while keeping your property, stopping foreclosure, and catching up on mortgage or vehicle arrears. Chapter 13 has no income ceiling — anyone with regular income and debts below the statutory limits can file.
What property can I keep if I file Chapter 7 in Florida?
Florida is an opt-out state, meaning most debtors use Florida's state exemptions rather than the federal list. Florida's homestead exemption protects the full equity in your primary residence from creditors with no dollar cap, subject to acreage limits. Other Florida exemptions protect wages, retirement accounts, life insurance cash value, and a motor vehicle up to a certain equity amount. A review of your specific assets and liabilities is the only way to know exactly what is protected in your case.
Where are Brevard County bankruptcy cases filed?
Bankruptcy cases for Brevard County residents are filed in the United States Bankruptcy Court for the Middle District of Florida, Orlando Division. The meeting of creditors — a brief, routine hearing — typically takes place approximately 30 days after filing. Stewart Law handles filings and appearances in the Orlando Division regularly for clients throughout Brevard County.
General legal information only. Not legal advice. Statutes and income figures current as of publication date; consult an attorney for guidance specific to your situation. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Statutes Referenced: 11 U.S.C. § 707(b) · 11 U.S.C. § 522 · 11 U.S.C. § 528 · Fla. Const. Art. X, § 4 · Official Form 122A-1 · Official Form 122A-2
Not Sure If You Qualify?
The means test has many moving parts. Many people who assume they don't qualify are surprised to learn they do. Call us — we'll run the numbers with you.
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Find Out If You Qualify — Before You Assume You Don't
The means test is a calculation with many moving parts. Income timing, household composition, the type of debts you carry, and your allowable expense deductions all affect the outcome. Many people who assume they do not qualify are surprised to learn they do. Stewart Law offers consultations for Brevard County residents and clients throughout Florida.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.