To qualify for Chapter 7 bankruptcy, debtors in New Jersey may need to pass a means test. The means test is designed to determine if an individual has enough disposable income to pay his or her creditors. It is important to note that those who are looking to have business debts discharged generally don't need to pass it. However, those who are subject to this step will begin the process by gathering as much personal financial information as possible.
Bankruptcy may be an ideal way for debtors to eliminate most of their outstanding debt balances. However, it is rare to see student loan debts discharged through bankruptcy. For a judge to consider discharging student loans in a bankruptcy case, an individual would need to pass the Brunner Test. To pass this test, an individual needs to show that he or she put forth a good faith effort to repay what he or she owed.
New Jersey homeowners facing financial difficulties could find themselves suffering even greater losses as a result of a tax break that expired. Since 2008, people who had their mortgage debt forgiven through a foreclosure or short sale could claim an exemption from being taxed on the forgiven debt. They could exclude up to $2 million in forgiven mortgage debt from their taxable income. However, this exemption, like other temporary tax breaks, expired at the end of 2017 and has not been extended. Therefore, a homeowner who was unable to pay the mortgage until ending the situation with a foreclosure or short sale may be taxed on the amount of the forgiven debt.
New Jersey residents and others who are thinking about filing for bankruptcy should know that it can cost up to $4,000 or more to do so. Filing fees and attorney fees represent the bulk of that cost, and individuals will also likely need to pay for credit counseling and debtor education courses. Individuals who are filing for Chapter 7 bankruptcy will pay a $335 filing fee while those who are filing for Chapter 13 bankruptcy will pay $310.
Bill collectors and collection agencies in general tend to be aggressive and persistent. There are not very many good ways to stop them in New Jersey, but filing for bankruptcy could help. In fact, there are certain benefits associated with bankruptcy that could stop a variety of collection or repossession actions against you.
If you feel overwhelmed with medical expenses and credit card debt, you are not alone. and are struggling to keep up with your monthly mortgage payment, you are not alone. Many Amercians struggle to keep up with their monthly mortgage payment, while juggling other expenses and find it difficult to make ends meet. Bankruptcy allows you to discharge these debts and start over again with a clean financial slate. Chapter 7, otherwise known as liquidation bankruptcy, allows you to part with most of your loan obligations. Yet, there may be items that you do not wish to part with once your bankruptcy is finalized.
If you are like many other Americans, you may have medical bills that you are struggling to pay. In fact, more than two million people in the United States are overwhelmed with medical debt and many consider bankruptcy as a way to get out of the mess. Medical bills can deplete savings accounts, cause credit card debt and make it hard for you to pay your mortgage or buy everyday items you need to get through life. What is the root cause of these unruly medical expenses?
When you file Chapter 7 bankruptcy in New Jersey, you expect that the court will discharge virtually all of your consumer debt, including your credit card debt. For the most part this is true. However, you need to be aware that it is not necessarily true when it comes to your recent credit card debt.
When you file for Chapter 7 bankruptcy, there are a host of issues that may be running through your mind. You may feel overwhelmed while attempting to complete all of the tasks required to file for bankruptcy, such as completing a credit counseling course and filling out all of the bankruptcy documents. Once you have completed the paperwork, the court will schedule a meeting of creditors.
Unless you have previously filed for bankruptcy in New Jersey, you may have lots of questions about the process and what type of bankruptcy filing might be right for you. At Goldman & Beslow, LLC, we understand that, ultimately, whether you will be able to move forward with a Chapter 7 bankruptcy filing will depend on how you fare on what is known on the bankruptcy means test.