Anyone filing bankruptcy has, since October of 2005, been required to submit to means testing in order to “qualify” for a chapter 7 bankruptcy or determine a payment plan in a chapter 13. Their household income, determined by the amount received in the six months leading up to the month of filing, is compared to the median income in their state for a family of their size. If the amount is below the median, they are fine; if they are above it, further scrutiny is required.
Naturally, being below the median is preferred, and that may be easier to do for some filers here in New Jersey starting next month. That is because median incomes are adjusted periodically, often at this time of year, and that can be helpful or harmful depending on the direction the numbers take.
How Will the Numbers Change?
So let’s take a look at the numbers as they are now and how they will change, as determined by family size:
- One Person: $61,243 to $61,274
- Two People: $71,994 to $73,099
- Three People: $90,863 to $89,983
- Four People: $107,452 to $110,956
- Each Person Over 4: $8,100 Additional
So as you can see, the single person does not fair much better, and the couple with one child (or other dependent) actually loses out a bit. The family of four actually sees the biggest jump of 3%.
What all of this means is that if you are considering bankruptcy you need to talk to an attorney to see if these changes would make waiting to file more beneficial. It could be the difference between being able to file a chapter 7 or being pushed into a chapter 13!
Thinking About Filing?
If you live in southern New Jersey and are considering filing bankruptcy, please feel free to call me at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.
If you have more questions about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.
If you are looking for more information on how bankruptcy might help you with your divorce, then you should download my free book, Top Questions Divorcing Couples Ask About NJ Bankruptcy.