Chapter 7 Bankruptcy in New Jersey: Are You Eligible?

         

 Many individuals struggling with debt suffer in silence due to shame and fear. For those overburdened by debt, Chapter 7 bankruptcy is an important protection afforded to all individuals under U.S. law. If you face regular phone calls from collection agencies, it may be time to speak to a Chapter 7 attorney in New Jersey. Visit the Law Office of Stuart M. Nachbar at www.snanj.com today.

            One of the main questions asked by individuals considering Chapter 7 bankruptcy is whether they qualify. Here are some basic eligibility requirements:

1.      Individuals must pass the means test or have low income. According to the United States Department of Justice, in order to qualify for Chapter 7 bankruptcy, a debtor must first pass the means test if his or her income is above the state median. Only individuals whose income is higher than the state median are required to file the means test. If your annual income is lower than $60,000 in New Jersey, you won’t need to file the means test form. If your income is higher than the median, you must document monthly income and monthly expenses. If you cannot pay your debts, you may qualify.

2.      Your debts must qualify. Certain debts cannot be discharged in Chapter 7 bankruptcy. Alimony debts, child support payments, student loans, and certain taxes are not dischargeable under Chapter 7. If you are not certain whether a debt qualifies, it may be wise to speak to a Chapter 7 bankruptcy lawyer in New Jersey who can assist you.

3.      You must undergo approved credit counseling. According to the United States Courts, before your Chapter 7 bankruptcy will be discharged, you must undergo credit counseling. A credit counseling agency can offer you debt management strategies.

If you meet basic eligibility requirements, you may be able to discharge most of your debts. For most individuals who seek Chapter 7 bankruptcy, the process allows them to get a clean financial slate and move forward. You may also be able to keep certain things, like your car or your house if you reaffirm these debts and can keep up with payments after your bankruptcy. In order to ensure that all paperwork and bankruptcy procedures are properly followed, it is often recommended that you seek the counsel of a Chapter 7 bankruptcy lawyer in New Jersey.

Finding a good lawyer who can work with you closely through the process is essential. You’ll want to find an attorney like Stuart M. Nachbar, Esq. in New Jersey who is compassionate, who listens, and who has the time to give your case the attention it deserves. A good lawyer will review your legal options and be honest about any of the drawbacks to bankruptcy. Chapter 7 is a serious financial decision that will affect your credit record for years to come, so it is important that you get legal advice before taking any major step. In some cases, other kinds of bankruptcy may be more appropriate, and your lawyer can let you know if this is the case.