The bankruptcy "means test" is the eligibility screen that decides whether an individual with mostly consumer debts can file a Chapter 7 liquidation — or must instead use a Chapter 13 repayment plan. Congress created it in 2005 to keep higher-income filers from erasing debts they could afford to repay. The test is federal (11 U.S.C. § 707(b)), but it is calibrated to local conditions: it uses the Florida median income for your household size.
This guide explains how the Florida means test works, step by step. It is general legal information, not legal advice; the calculation is detailed and the figures change, so a Florida bankruptcy attorney should run it for your situation. For context, see our main guide to Bankruptcy in Florida and the comparison of Chapter 7 vs. Chapter 13 in Florida.
Step one: the Florida median-income comparison
The means test begins by measuring your current monthly income — the average of your gross income over the six full calendar months before filing — and annualizing it. That annual figure is compared to the Florida median income for a household of your size, as published periodically by the U.S. Trustee Program.
If your annualized income is at or below the Florida median, you pass the means test automatically. The presumption of abuse does not arise, and you may proceed with Chapter 7 without further calculation. Because the median varies by household size, the same income can pass for a family of four but fail for a single filer. The median figures are updated regularly to track Florida's economy, so always use the current numbers.
Step two: the disposable-income calculation
If your income is above the Florida median, you are not automatically disqualified — you move to the second part of the test, sometimes called the "means test calculation." Here you subtract a series of allowed expenses from your income to determine your monthly disposable income. Many of these expense allowances are set by national and local IRS standards (for housing, transportation, food, and the like), while others — such as actual secured-debt payments and taxes — are based on your real numbers.
If the disposable income left over is low enough, you still pass and may file Chapter 7. If it is high enough to repay a meaningful share of your unsecured debts over five years, the law presumes abuse, and you generally must file Chapter 13 instead (or have the Chapter 7 case dismissed). The thresholds that trigger the presumption are dollar figures in 11 U.S.C. § 707(b)(2) that adjust for inflation periodically.
What income counts — and what does not
Current monthly income includes wages, salary, tips, bonuses, business and rental income, and regular contributions from others toward household expenses. It generally excludes Social Security benefits and certain payments such as some veterans' and war-crime reparations benefits. Notably, the income is measured over the six months before filing, so a one-time bonus or a recent job loss can significantly change the result — sometimes making the timing of a filing important.
Because Florida has no state income tax, a Florida filer's allowed tax deduction in the calculation reflects only federal and payroll taxes, not state income-tax withholding. This is a subtle difference from filers in high-income-tax states and can affect the disposable-income result.
Who is exempt from the means test?
The means test does not apply to everyone. It is aimed at individuals whose debts are primarily consumer debts. Filers whose debts are primarily business debts are generally exempt from the test. There are also special provisions for disabled veterans whose indebtedness arose primarily during active duty or homeland-defense activity, and for certain reservists and National Guard members. If the means test does not apply, eligibility for Chapter 7 is judged under broader "abuse" standards instead.
Means test at a glance
| If your income is… | Result |
|---|---|
| At or below the Florida median | Pass — eligible for Chapter 7; no further calculation |
| Above the median, low disposable income | May still pass after the expense calculation |
| Above the median, high disposable income | Presumed abuse — generally must file Chapter 13 |
| Primarily business debts | Means test usually does not apply |
What happens if you fail the means test?
Failing the means test does not mean you cannot get bankruptcy relief — it means Chapter 7 is off the table and Chapter 13 is the path. In Chapter 13, the disposable income identified by the means test largely sets the minimum you must pay unsecured creditors over a five-year plan. Many filers who fail the Chapter 7 test still discharge a large portion of their debt through Chapter 13 while keeping their property. See Chapter 7 vs. Chapter 13 in Florida for how the chapters compare.
Frequently asked questions
What is the current Florida median income for the means test?
The figures vary by household size and are updated periodically by the U.S. Trustee Program, so you should check the current Florida numbers rather than rely on an old chart. A larger household has a higher median, making it easier to pass.
Does Social Security count in the means test?
Generally no. Social Security benefits are excluded from current monthly income for the means test, which can help recipients pass. Most other regular income — wages, business income, rental income, and regular contributions toward household expenses — does count.
I am above the median — can I still file Chapter 7?
Possibly. Being above the Florida median triggers the second-stage disposable-income calculation (11 U.S.C. § 707(b)(2)). If, after subtracting allowed expenses, little disposable income remains, you may still qualify for Chapter 7. A Florida bankruptcy attorney can run the full calculation.
Can the timing of my filing change the result?
Yes. Because income is measured over the six months before filing, a recent bonus, severance, or job change can shift you above or below the median. Sometimes waiting a month or two changes the outcome, which is one reason to plan a filing carefully with counsel.
Find a Florida bankruptcy attorney
The means test is the gateway to Chapter 7, and the difference between passing and failing can come down to household size, the six-month income window, and which expenses you are allowed to claim. A Florida bankruptcy attorney can run the calculation, advise on timing, and determine whether Chapter 7 or Chapter 13 fits. Many offer free consultations through The Florida Bar's lawyer referral service or a local legal aid office.