When an individual feels as though they are drowning in debt that seems like it will never be able to be paid, they may want to consider filing for bankruptcy. This is especially true if the debtor is feeling overwhelmed by calls from creditors and is in jeopardy of having their assets repossessed. When it comes time to actually file for bankruptcy, the individual will have to take the means test, which will be the determining factor of which type of bankruptcy the individual is eligible to file for. The means test for consumer bankruptcy will inform the debtor whether they can file for Chapter 7 or Chapter 13.
The means test compares the debtor’s annual household income with the average household income in the county in which they reside. For example, in Bergen County, New Jersey, the annual household income between 2012 and 2016 was $88,487, according to the U.S. Census Bureau. If the debtor’s annual income is greater than the median, they will be eligible for Chapter 13 bankruptcy. If it is lower than the median, they can file for Chapter 7.
If you have questions about bankruptcy in New Jersey, contact our firm today.
Our firm understands that so much of your future is on the line in matters of divorce, family law, bankruptcy, and estate planning. Before taking any sort of legal action, it is important to discuss your legal matter with an experienced attorney. Contact The Radol Law Firm to discuss any divorce and family law matters you may be faced with.