People filing for bankruptcy these days have to go through a process called "means testing." This process can make it difficult for upper income people to file a chapter 7 to wipe out their debt rather than a chapter 13 repayment plan.
If your gross household income is under the median for your household size, you will have a much easier time of it. Luckily, it is about to get easier with those medians going up!
These median incomes are adjusted periodically, and that is about to happen again on April 1, 2014. Here are the new numbers:
- One person: $60,317 to $61,200
- Two people: $70,150 to $71,178
- Three people: $85,575 to $86,828
- Four people: $103,946 to $105,469
- Each person over four: $8,100
Even if you are still over the median for gross income, though, you may still be able to file for chapter 7 if your expenses under means testing show that you would not have enough money to pay your creditors after your bills have been paid. These numbers may make it more advantageous to wait to file.
If you live in South Jersey and are considering filing bankruptcy, please feel free to call my office at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case
If you are looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.