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THE MEANS TEST IS KINDER AND GENTLER FOR NJ BANKRUPTCY

On Behalf of | Apr 19, 2022 | bankruptcy, Chapter 13, Chapter 7

How many of you are afraid that you don’t qualify for chapter 7 bankruptcy?

Effective April 1,2022, the numbers for the means test have increased again in New Jersey. If you live alone and have substantial credit card debt, if you earn $75,321, you will qualify for a chapter 7 bankruptcy. (The means test is a formula calculating your income over the last six months). If a husband and wife have $100,000 in credit card debt or any other unsecured debt, they can earn $92,669 to qualify for a chapter 7 under the means test formula. If the husband and wife who have over $100,000 in unsecured debt have a child living with them, they can earn $117,697 under the means test to file. Finally, the median income for a family of four is $140,657. Each additional person in the household adds another $9,900.

In addition, under a present bill passed by the Senate, people will get relief since the total amount of debt which makes you eligible for chapter 13 is $2,750,000 instead of dividing it into secured and unsecured which increased on April 1, 2022. This will sunset two years after it becomes law. This will help people file chapter 13 who used to be excluded if they had too much unsecured debt or too much secured debt and had to either file chapter 7 and lose property or chapter 11 which is much more expensive.

Thus, with the increase in bankruptcy exemptions which became effective on April 1,2022 and the higher number for the means test, a NJ bankruptcy for chapter 7 will be available to many more people.

As a result of the higher means test numbers in New Jersey, it will also benefit consumers who need to file a chapter 13 bankruptcy in New Jersey since in several cases they may be able to get the benefits of reorganizing debt that they are behind such as a mortgage, motor vehicle or back taxes while reducing or eliminating unsecured debt in their chapter 13 NJ Bankruptcy.

If you are behind on your debts and are barely making it due to the price of gasoline, food and other outrageous expenses due to inflation, it is urgent that you contact Taieb Law for a FREE consultation so he can advise you of your rights under the bankruptcy code. Then you can file a bankruptcy petition to help geta fresh start, clean the slate and save your property.

If you can’t sleep and are overwhelmed, call us and we will help you resolve your individual problem like we have helped over 7,000 people over the last 37 years.

If you are sick, stressed out, or losing sleep over your debt, we can help you save your property and get a fresh start by filing a bankruptcy for you. For more information go to www.bankruptcywithcare.com or call us at 856-600-0819 for your FREE initial consultation.

AGAIN, PLEASE NOTE WE ARE OPEN FOR BUSINESS TO HELP YOU EITHER IN OFFICE OR VIRTUALLY. PLEASE ALSO NOTE THAT STEVEN N. TAIEB, ESQUIRE HAS BEEN VACINATED. ALSO, CREDITORS MEETINGS ARE BEING CONDUCTED VIA TELEPHONE OR ZOOM AT THE PRESENT TIME.

Steven N. Taieb, Esquire has been a New Jersey Bankruptcy Attorney for 37 years and is board certified in consumer bankruptcy law by the American Board of Certification which is accredited by the American Bar Association.

We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy Code.