Robert Manchel

If an individual has decided to file for chapter 7 bankruptcy protection and meets the criteria, in most situations it is advisable to not continue to pay their credit card debt. First and foremost, if a person meets the criteria of a chapter 7, he cannot afford to pay the debt anyway. Furthermore, a chapter 7 discharge eliminates all credit card debt, regardless of the amount due. Therefore, the payment made to the creditor will not benefit the debtor.
Typically, the aforementioned explanation also applies to chapter 13 debtors, as well. However, in the unusual case, where the debtor is required to pay all credit card debt through the chapter 13 bankruptcy plan, it may be advisable to keep current with the credit card debt, prior to the filing.
If a person is current with credit card debt payments, stops making payments, and decides to not file for bankruptcy protection, this will likely result in increased interest and penalties.
Typically, each creditor will review the debt incurred by each debtor for fraudulent conduct. If the creditor believes that a debtor incurred debt with no ability or intent to pay the debt, such creditor may file a complaint with the court, requesting to exclude the debt from the bankruptcy discharge or elimination. A creditor may deem a debt to be fraud, if a substantial debt was incurred prior to the filing, with no payments made to the creditor.
Robert Manchel, a New Jersey bankruptcy attorney, can be reached at (866) 503-5655, to answer your questions.

The “Means Test” or “Current Monthly Income Test” compares the debtors’ household’s income, for the six months prior to the bankruptcy filing, to the median median income of New Jersey residents of the same size household, to determine disposable income.
Believe it or not, the U.S. Department of Justice’s records reflect that the median income of New Jersey residents is higher than any other state in the country. I believe that the large median income is mainly due to the high income earning individuals residing in North Jersey, that work in Manhattan.
What does this “mean” to New Jersey bankruptcy debtors? One criteria for a chapter 7 bankruptcy filing is that the debtor’s household’s income is less than the average income of the same size household in New Jersey. Since New Jersey’s average state income is high, it is easier to meet this criteria. A New Jersey resident earning the same income as a Pennsylvania resident, may meet New Jersey’s criteria, with the PA. resident failing the PA. criteria, based on the different state’s median income statistics.
This also benefits New Jersey chapter 13 debtors, whose monthly trustee payments are based, in part, on the debtors’ household’s disposable income, which is calculated based on the state’s average income and expenses.
Robert Manchel, a bankruptcy lawyer in NJ, can be reached at (866) 503-5655, to answer your questions and discuss your bankruptcy protection options.

We will name the spouse that is filing bankruptcy the “debtor”. Only the debtor’s assets are relevant and must be included on the bankruptcy petition and not the non filing spouse’s assets. For example, if the non filing spouse owns 100% of a vehicle, the asset need not be included on the petition. However, if the debtor has any interest in any property, the property must be listed on the petition.
This means that if any assets are jointly owned, the asset must be included on the petition. In the event that a debtor owns 50% of any real estate or personal property, and the property is included on the petition, the trustee and the court will determine the value of the asset to the bankruptcy estate based on the debtor’s 50% interest, only.
On occasion, there may be issues as to whether real estate or property that is titled only in the name of the non filing spouse, is considered owned by both spouses, including the debtor. For example, a bankruptcy trustee may take the position that a house titled in the name of the non filing spouse, only, is, in fact, owned 50% by the debtor, because the house was purchased with both of their funds, equally, and they pay the mortgage equally with both of their funds. Also, if the debtor files during the divorce process, the debtor may be entitled to certain marital property that is not titled in the debtor’s name.
Please call New Jersey Attorney Robert Manchel, whose practice is limited to bankruptcy, to discuss your options for bankruptcy protection at (866) 503-5655.