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Automatic Stay – This is the stay of any action against the debtor that goes into effect immediately upon the filing of a case, WHETHER OR NOT THE CREDITOR HAS NOTICE OF THE STAY. Punitive and compensatory damages are available for intentional violation of the stay.

Avoidance – The negation of a transfer of an interest in property of the debtor. Done by the trustee or the debtor, depending on the circumstances. Includes preferences and fraudulent transfers.

Claim – Any right to payment or right to an equitable remedy existing as of the bankruptcy; defined BROADLY.

Consumer Debt – Debt that is incurred primarily for family, personal or household use

Discharge – A remedy that provides an injunction against any in personam efforts to collect against a pre-bankruptcy debt.

Exemptions – The right of a debtor to keep property even though creditors are not being paid in full.

Means Test – The calculation to determine whether a client whose income exceeds the Median income for their state and family size can qualify for Chapter 7.

Median Income – The income, identified by the Office of the United States Trustee, above which a debtor will need to take the Means Test to determine whether they qualify for Chapter 7.

Petition – This is the petition that is filed by (voluntary) or against (involuntary) a debtor to commence a bankruptcy case.

Preference – The estate’s right to recover payments made by the debtor prior to the bankruptcy filing.

Proof of Claim – The document that is actually filed to evidence a claim. Entitled to prima facie validity unless challenged.

Trustee – The Chapter 7, Chapter 11, Chapter 13 or United States Trustee.

The Chapter 7 filing fee is currently $335 regardless of market. Attorney’s fees will range anywhere between $750 on the low end to $2,000 on the high end. Yes, the cost of the lawyer is in addition to the filing fee.

In order to file a Chapter 7 case, you must go through a qualification test called the Means Test. There are two ways that someone can quality for through the bankruptcy Means Test in Florida. The first way is that a person can immediately qualify by showing that their income for all of the income coming into a persons household is below the median income in Florida for a their family size. The other way to pass the Means Test and qualify for a Chapter 7 filing in Florida is to go through the detailed Means Test which will examine in depth a household’s average monthly income and compare it to the person’s regular monthly expenses in order to show that there is basically no disposable income left at the end of the month.

Household Size	Monthly Income	Annual Income
1	$4,220.08	$50,641.00
2	$5,134.92	$61,619.00
3	$5,643.08	$67,717.00
4	$6,757.58	$81,091.00

You can also use the Florida Means Test calculator to show the necessary calculations. Using the calculator will figure out what constitutes reasonable monthly expenses across many different types of categories. It is important to be as accurate as possible for the best chance of filing a successful Chapter 7 Florida bankruptcy. You want to include all your expenses for all categories. There can be expenses that are not monthly but are annual, such as for school supplies or a car repair that you may be able to average them out to expense them on a monthly basis.

There is a possible that you will go “pass” either of the Means Test avenues ( (the income limits and the full calculation) and not qualify to file a Chapter 7 case when filing a Florida bankruptcy. Also keep in mind that if you do not immediately qualify through the Means Test, if you have substantial changes about to happen to your household (such as a new child or getting laid off) that may make the difference between qualifying and not. If you have a job that is seasonal such as working during Spring Break, re-evaluating your expenses and income after working seasonal can change your qualification.

If you are not able to pass the Means Test, then you may have to explore filing a Chapter 13 case may be an alternative solution for you. 

The laws about bankruptcy exemptions are much more complicated than the example above. For example, some debtors will not qualify for the exemptions of any state and must use federal bankruptcy exemptions. 

The Florida homestead exemption is different in  bankruptcy. While these numbers can change, under current bankruptcy law, the Florida homestead exemption is available in bankruptcy up to $146,450 unless debtors occupy their current Florida homestead property and previous Florida homestead properties for a continuous 40-month period. Joint bankruptcy debtors can protect $292,900 of a jointly-owned homestead.

Also, a debtor’s transfer of cash into his homestead within 10 years of filing bankruptcy that is intended to defraud creditors may be challenged by the bankruptcy trustee if the transfer was intended to defraud creditors. Bankruptcy law has no effect upon Florida’s unlimited homestead exemption in state court proceedings.