Final answer:
The Vaughns' eligibility for Chapter 7 bankruptcy cannot be determined solely by their income and expenses, as they must pass the Means Test, which accounts for state-specific median income thresholds and detailed expense calculations. Professional legal advice is essential for an accurate assessment.
Step-by-step explanation:
The student's question centers around whether the Vaughns qualify for Chapter 7 bankruptcy based on their income and expenses. To determine this, one must consider the Means Test, which compares their income to the median income for a similar-sized household in their state. Given that the Vaughns make $58,000 per year, which is higher than the median annual income in Florida of $47,778, they might not initially seem to qualify. However, after subtracting their monthly expenses of $4,600, which annualizes to $55,200, they might have insufficient disposable income, potentially making them eligible for Chapter 7. Bankruptcy eligibility can be complex, depending on various factors, including income, expenses, and state thresholds, so consulting with a bankruptcy attorney for personalized advice is highly recommended.