By Michael A. Ziegler, Esq. | Ziegler Diamond Law
If you’re considering Chapter 7 in Florida, the “means test” is the threshold question. It’s the federal income test that determines whether you can file Chapter 7 at all — or whether the court will push you into Chapter 13 instead. The math is mechanical, but the rules are picky. Most people I sit down with assume they make too much money to qualify. Most of them are wrong. I’ve filed Chapter 7 cases for Floridians earning $80,000, $120,000, and higher. The means test isn’t about the headline number — it’s about what’s left after the allowed deductions.
Here’s how it actually works in the Middle District of Florida.
What the means test is
Congress added the means test to the Bankruptcy Code in 2005 to push higher-income debtors into Chapter 13 instead of letting them wipe out their debts in Chapter 7. The test has two parts:
- Florida median income comparison. Does your household income (averaged over the last 6 months) fall below the Florida median for your household size? If yes, you’re presumed eligible for Chapter 7 and you stop there.
- Disposable income calculation. If your income is above the Florida median, you go through a longer Form 122A-2 calculation that deducts allowed expenses to determine how much “disposable income” you have left. If disposable income is low enough, you still qualify for Chapter 7.
The first test catches a lot of Florida debtors. The second test catches even more — once you start adding up housing, transportation, healthcare, taxes, and secured-debt payments, the disposable income that’s actually available for unsecured creditors is often near zero.
The Florida median income figures
The U.S. Trustee Program updates median income figures twice a year. As of the most recent revision applicable to Middle District of Florida filings, the annual median income figures are roughly:
- 1-person household: ~$60,000
- 2-person household: ~$75,000
- 3-person household: ~$88,000
- 4-person household: ~$103,000
- Each additional household member: adds approximately $10,000
The exact figures change every six months. Your attorney will pull the current numbers from the Justice Department’s Census Bureau Median Family Income page at the time of filing — those are what control. Don’t use ballpark numbers for the actual filing decision.
What counts as “income” on the means test
The means test uses a specific definition: “current monthly income” averaged over the 6 calendar months before the filing month. So if you file in June, the income window is December through May. The averaging matters — a recent commission, severance, or bonus included in the 6-month window can push you above the median even if your annual income is below it.
“Income” for means-test purposes includes:
- Wages, salary, tips, bonuses, commissions
- Self-employment net income (gross minus business expenses)
- Rental income
- Interest, dividends, royalties
- Pension, retirement, annuity payments
- Unemployment income (in most cases — Social Security excluded)
- Child support and alimony received
- Regular contributions from non-household members (a parent paying part of your rent counts)
“Income” specifically excludes:
- Social Security retirement and disability benefits
- Tax refunds
- One-time payments (settlements, inheritances received outside the window)
- Payments to victims of war crimes or terrorism
The Social Security exclusion is significant. Many retirees in Florida who appear to “make too much” because of pension plus Social Security actually pass the means test easily once Social Security is pulled out.
If you’re above the Florida median: Form 122A-2
If your 6-month-average income exceeds the Florida median for your household size, you don’t automatically lose. You move to the longer disposable-income calculation on Form 122A-2.
This form lets you deduct:
- IRS National Standards for food, clothing, personal care, and household supplies (a fixed monthly amount based on household size)
- IRS Local Standards for housing and transportation (vary by Florida county)
- Out-of-pocket healthcare expenses (with documentation)
- Health insurance and HSA contributions
- Taxes — federal, state, FICA, Medicare
- Mandatory payroll deductions — union dues, mandatory retirement contributions
- Child support and alimony you pay
- Court-ordered payments
- Childcare costs
- Education expenses required for employment
- Charitable contributions (up to 15% of gross income)
- Secured debt payments — mortgage, car loans, even if you’re surrendering the asset
- Priority debt payments — recent unpaid taxes, domestic support arrears
After all deductions, the form spits out a number called your “monthly disposable income.” If that number is low enough — currently below about $9,075 over 60 months ($151/month), with a hard ceiling at about $15,150 over 60 months ($252/month) — you still qualify for Chapter 7.
Most above-median Florida debtors I work with end up passing the disposable-income test. The IRS standards plus a Florida mortgage plus a car payment plus health insurance eats most of the headline income.
Common ways the means test math goes wrong
The means test is the most common place I see do-it-yourself Chapter 7 cases fall apart. The recurring mistakes:
- Using gross income instead of the 6-month average. The form is unforgiving about the period. Get it wrong and you’ll calculate the wrong number.
- Including Social Security as income. It’s excluded, but many calculators include it by default.
- Listing the wrong household size. “Household” for means-test purposes includes everyone who lives with you and shares expenses, not just legal dependents. Adult children, parents living with you, or roommates who share rent and utilities may all count.
- Missing IRS Local Standards for housing. The IRS publishes specific allowed housing expense ranges by Florida county. Pinellas, Hillsborough, Polk, Orange, Lake, and Duval each have their own numbers. Using the wrong county number changes the calculation.
- Forgetting secured-debt deductions. Even if you’re surrendering the car, you can deduct the loan payment for the next 60 months on the means test. That single deduction has saved a lot of cases.
- Filing in the wrong month. Timing matters. If you got a bonus in February and you want it out of the income window, filing in September instead of August can change the result.
What happens if you fail the means test
If the means test shows you have enough disposable income to fund a Chapter 13 plan, the U.S. Trustee will move to dismiss your Chapter 7 case or push you into Chapter 13. That’s not the end of the road. Chapter 13 has its own advantages — keeping a house in foreclosure, stretching out tax debt, dealing with non-dischargeable obligations. But it’s a different process with monthly plan payments for 3 to 5 years.
A clean Chapter 7 filing requires the means test to be passable. If it’s borderline, your attorney should know it before you file — not after.
Frequently asked questions
What’s the Florida median income for a household of one?
Roughly $60,000 annually as of the most recent revision. The exact number updates every six months. Your attorney should pull the figure at the time of filing.
Does overtime count on the means test?
Yes. Overtime, commissions, bonuses, and tips all count as “current monthly income” if they hit your bank account during the 6-month window.
What if my income spiked recently because of a one-time event?
The 6-month average is the average. A one-time event in month 1 is one-sixth of a one-time spike. If the spike pushes you over median, timing the filing for after the spike rolls out of the window may help.
Is the means test the same in Chapter 13?
The same form (Form 122C-1 and 122C-2 instead of 122A) is used in Chapter 13 to determine your “applicable commitment period” (3 or 5 years) and your required plan payment. The math is similar but the consequence is different.
Can I retake the means test if I fail the first time?
Not in the same filing. If you file Chapter 7 and the means test fails, the case is either converted to Chapter 13 or dismissed. You can re-file later if your income changes — but new bankruptcy timing rules apply.
If you’re trying to figure out whether you qualify for Chapter 7 in Florida — or you’ve already started the form and the numbers aren’t adding up — call us at (727) 538-4188 for a Free Debt Freedom Strategy Session. We run the math with the current Florida figures and tell you straight whether Chapter 7, Chapter 13, or something else is the right move.
For the full walkthrough of what happens after you file, see our pillar guide: Your 341 Meeting in Florida: What Actually Happens. And if you want to understand what the trustee will look at in your bank records, we’ve got that covered.
This article is general information, not legal advice. For Florida residents, contact Ziegler Diamond Law for a Free Debt Freedom Strategy Session.
