Applicability of the Means Test and Business Debts
The bankruptcy code provides that if a debtor has primarily business debts, the means test is not applicable in a Chapter 7 bankruptcy. To determine whether or not a debtor must take the means test, he/she will have to take a look at the type of debts they have and their family income. The debts must be primarily consumer based and their household income is more than the Florida state median income level for the debtor's size household.
For example, if 1 earner makes more than $3,281.92/month, then that debor must take the "mean's test."
Once again, if the debtor's debts are primarily business related, the debtor does not have to take the mean's test. There is no presumption of abuse despite the debtor's household level of income.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
