When you’re drowning in debt and constantly being hounded by debt collectors, filing bankruptcy may seem to be the best solution to your problems. However, a bankruptcy can stay on your credit report for up to 10 years and make it difficult to get personal or home loans. If you’re considering a bankruptcy, consult with a bankruptcy attorney to find out for which type you’re qualified.
Chapter 7 Bankruptcy
If you’re looking to discharge some of your debts and don’t mind liquidating some of your assets to do so, then a Chapter 7 bankruptcy may be a good option for you. A Chapter 7 bankruptcy lawyer in Wanaque, NJ can explain the different types of bankruptcies to you and see if you qualify for a Chapter 7.
Chapter 7 Means Test
To be able to file a Chapter 7 bankruptcy, you must pass a “means test.” This test is mainly for people in higher income brackets as people whose incomes are below the state’s median will qualify for a Chapter 7 and taking the test isn’t necessary. A Chapter 7 bankruptcy lawyer will have information on calculating your median income based on the size of your family. For instance, if it is just yourself, then the median income is $60,317 and for a family of three, it is $85,575.
If your income is above the median, you will need to take the means test unless:
* Most of your debt is not consumer debt.
* You’re a disabled veteran whose debt was incurred during your time in active duty or in defense of the homeland.
To get more information, you can browse site and contact an attorney to get more information about filing for a bankruptcy. A chapter 7 bankruptcy lawyer can help you with the means test and file the bankruptcy if you qualify for it.