Many so-called credit repair agencies throughout South Florida have been preaching that you must pay your bill because it is impossible for you to file bankruptcy in Miami nowadays! Yes, it may be harder now for people with high income and assets to file bankruptcy under the new changes to the means test because many were abusing the system as usual and now all have to pay the consequences. The fact remains bankruptcy still one of the most used legal instrument to get rid of debt and if you are overwhelmed wit debt you should file bankruptcy and get a new start in life debt free.
Today the government uses the Family Income Table, commonly known as the Means Test, which provides the maximum permissible gross family income amounts, to determine who may qualify for bankruptcy protection and who may file for what type of bankruptcy case. The law changes as the “applicable median family income” is updated each year as published by the Census Bureau according to State and family size. Data is also further adjusted according to the Consumer Price Index for All Urban Consumers (CPI).
New changes to the bankruptcy means test do to become effective after November 30, 2013, will make it harder for single individuals without dependents to file for a Chapter 7 bankruptcy case. According to the information released by the United States Department of Justice, U.S. Trustee Division, the new means test will allow individuals who are single, or married, filing separately, to qualify for a Chapter 7 bankruptcy case if they make up to $41,334.00, down from $41,915.00 as established by the Department of Justice. Fortunately, these changes do not negatively affect those with total family income for families with more than one earner. These upcoming changes mean that attorneys must scrutinize any cases that may be filed in the future. Since the changes will affect both single earners and joint filers, clients are urged to consult with their attorneys before these changes take place. Those attempting to file cases on without attorneys are warned about these changes. Regardless, an experienced bankruptcy attorney may still utilize the long-form of the Means Test, if applicable; to keep clients who may otherwise need to file for a different type of bankruptcy case, in a chapter 7 case. If you need any further information, call Miami bankruptcy attorney Alberto H. Hernandez, Esq. at (305)820-0334.