New Jersey Bankruptcy Blog

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.

Immediately upon the filing of any bankruptcy case, no creditor may contact the person filing bankruptcy (debtor) by any means.
Immediately upon the bankruptcy filing, the Automatic Stay Provision of the bankruptcy code, is in effect. The Automatic Stay prohibits any and all communication between the creditor / debt collector and the debtor.
This means that the creditor may not attempt to collect a debt by letter, voice mail, telephone, or though a third party. Any intentional or repeated violations, may permit the debtor to obtain sanctions against the creditor or debt collector, from the bankruptcy court.
The bankruptcy court generates notices to every creditor that was listed on the bankruptcy petition. The creditor should receive the bankruptcy notice within ten days of the filing. Typically, every creditor and debt collector knows that after the bankruptcy petition is filed, they are prohibited from communicating with the debtor.
However, companies may continue to violate the Automatic Stay based on their failure to properly note their file of the bankruptcy filing.
Robert Manchel, an experienced New Jersey Lawyer who limits his practice to bankruptcy, is available to answer your questions regarding bankruptcy protection at 1 (866) 503-5655.