Chapter 7 Bankruptcy-$349 (All of NJ)
1. What types of debt can be discharged in a Chapter 7 bankruptcy case?
a. credit card debt
b. medical bills
c. personal loans
d. utility bills
e. payday loans
f. dmv surcharges
g. federal taxes in some circumstances
h. student loan in some circumstances (additional fee)
2. How often can a person file for Chapter 7 bankruptcy?
Pursuant to the changes made to the bankruptcy laws in 2005, you can only file for bankruptcy every 8 years.
3. What is the "means" test and how do I know if I pass it?
Bankruptcy law has an eligibility requirement called the "means test" to determine whether a person qualifies for Chapter 7 bankruptcy. Debtors whose "current monthly income"-their average income over the 6 months before they filed for bankruptcy-exceeds their state's median income must take a means test. In the means test, debtors calculate their disposable income by subtracting certain allowable expenses and deductions from their current monthly income. If they have enough disposable income to fund a Chapter 13 repayment plan, their Chapter 7 case will be a "presumed abuse" of the bankruptcy laws and will be dismissed or converted to Chapter 13.
4. What is the first step?
The first step is to obtain all three of your credit reports from www.annualcreditreport.com and save a copy directly to your computer. The next step is to complete the first credit counseling class at: http://www.consumerbankruptcycounseling.info/. You need the certificate of completion in order to file for bankruptcy. I can be reached at (732) 609-5016 for more information.
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