Anyone considering bankruptcy here in New Jersey and wanting to qualify for a chapter 7 needs to be thinking about his or her income. This is because i order to do so, you have to prove that you do not have the financial means to pay back at least a portion of your debt.
This is the essence of "means testing," a concept that has been around in bankruptcy law since October of 2005. If your gross household income is below the median for your household size, or it is but your expenses deplete all of it, you can file for chapter 7. But if you "fail" the test, you are looking at a chapter 13 repayment plan.
But these median income numbers change and are adjusted periodically by the U.S. Trustee's office. An adjustment is coming up on April 1, 2016, so anyone still considering filing should take a look, since the amounts are going up (although not by much),
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: $61,274 to $61,347
- Two People: $73,099 to $73,186
- Three People: $89,983 to $90,090
- Four People: $110,956 to $111,088
- Each Person Over 4: $8,400 Additional
So as you can see, they all go up, but by less than 1%. So unless your income is very borderline under the current numbers, this change won't make much of a difference for you. But if it does, 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.