@StraffiStraffi: Spirit Airlines files for bankruptcy

Spirit Airlines files for bankruptcyhttps://t.co/UQzxiPpuL0

— Straffi & Straffi Attorneys at Law (@StraffiStraffi) November 18, 2024

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@StraffiStraffi: Red Lobster Files For Bankruptcy, Leaving NJ Locations In Doubt

Red Lobster Files For Bankruptcy, Leaving NJ Locations In Doubt https://t.co/R8zyxVbr8f

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@StraffiStraffi: Paterson's Art Factory owner, facing foreclosure, files for bankruptcy

Paterson's Art Factory owner, facing foreclosure, files for bankruptcy https://t.co/C7smoaF7mS

from Straffi & Straffi Attorneys at Law https://twitter.com/StraffiStraffi/status/1856313289862738121

What is the Bankruptcy Threshold Adjustment and Technical Corrections Act?

Understanding the recent changes in bankruptcy law is crucial for individuals and businesses facing financial difficulties. With new legislative updates affecting debt thresholds and filing processes, it’s important to know how these changes might impact your ability to seek relief. These adjustments bring both new opportunities and potential challenges for debtors trying to manage their financial situations.

For those in New Jersey considering bankruptcy, it is essential to have a knowledgeable attorney by your side to help you explore your options. The experienced team of New Jersey bankruptcy lawyers at Straffi & Straffi Attorneys at Law may be able to provide the guidance you need to make informed decisions about your financial future. Contact Straffi & Straffi at (732) 341-3800 to schedule a consultation and discuss your bankruptcy options today.

Legislative Intent and Background

The BTATC Act was designed to build upon and extend temporary measures established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which expired in 2022. The intent of the new legislation was to continue supporting individuals and small businesses that were still recovering from the financial strains exacerbated by the pandemic. One of the main drivers behind the BTATC Act was to increase the accessibility of bankruptcy protections by raising the debt thresholds for filing under certain chapters of the Bankruptcy Code. 

For example, the Act increased the aggregate debt limit for Chapter 13 filings to $2.75 million, which includes both secured and unsecured debts. This change allows more debtors to qualify for Chapter 13, which can be particularly beneficial in states like New Jersey, where high housing costs and business expenses often lead to significant debt levels.

Moreover, the Act reinstates definitions and provisions that were in effect under the CARES Act from March 27, 2020, to March 27, 2022, including adjustments to the definition of a “debtor” for Subchapter V of Chapter 11 bankruptcy cases. This reinstatement permits businesses to retroactively apply for relief under Subchapter V, even if they initially filed under a different provision, thereby enhancing flexibility and fairness for struggling small businesses.

Key Objectives Behind the Act

The BTATC Act is underpinned by several key objectives aimed at making the bankruptcy process more accessible, fair, and responsive to current economic realities:

• Expanding Access to Bankruptcy Relief: By increasing the debt limits for Chapter 13 bankruptcy and adjusting definitions for Subchapter V, the Act allows a wider range of debtors to qualify for bankruptcy protections. This is particularly important in New Jersey, where debt levels can often exceed the previous thresholds due to high costs associated with real estate, business operations, and living expenses.
• Clarifying Bankruptcy Code Provisions: The Act aims to correct ambiguities in the Bankruptcy Code that could lead to inconsistent applications of the law. For example, it clarifies that the increased debt limits under Subchapter V are subject to inflation adjustments and will revert after a two-year period unless extended. These corrections help to create a more predictable legal environment for both debtors and creditors in New Jersey.
• Addressing Inflation and Economic Conditions: Recognizing the impact of inflation and economic fluctuations, the Act adjusts certain debt limits to reflect current financial realities better. This adjustment helps to ensure that the bankruptcy process remains viable and effective for those who need it most, including individuals and businesses in New Jersey facing economic hardship due to factors such as rising costs and reduced revenue streams.

By focusing on these objectives, the BTATC Act aligns bankruptcy laws with the practical needs of today’s debtors, offering them a more equitable path to financial recovery. For those in New Jersey, the Act provides critical updates that help mitigate the economic challenges unique to the state’s financial landscape.

Key Objectives	Description
Expanding Access to Bankruptcy Relief	Increases debt limits for Chapter 13 and adjusts Subchapter V definitions, allowing more debtors in New Jersey to qualify for protections.
Clarifying Bankruptcy Code Provisions	Corrects ambiguities in the Bankruptcy Code, ensuring consistent applications of the law and adding inflation adjustments to debt limits.
Addressing Inflation and Economic Conditions	Adjusts debt limits to reflect current economic conditions, aiding individuals and businesses in New Jersey facing financial challenges.

Main Provisions of the Bankruptcy Threshold Adjustment and Technical Corrections Act

The Bankruptcy Threshold Adjustment and Technical Corrections Act (BTATC Act) introduced significant temporary changes to bankruptcy filing thresholds and procedures when it was enacted on June 21, 2022. The Act aimed to accommodate debtors impacted by economic disruptions by raising debt thresholds and making technical corrections to existing bankruptcy laws. However, several of these provisions were designed to sunset two years from the date of enactment, and as of June 21, 2024, these provisions have expired, reverting the affected sections of the Bankruptcy Code to their previous state. 

Changes in Debt Thresholds for Bankruptcy Filings

The BTATC Act temporarily increased debt limits for bankruptcy filings under both Subchapter V of Chapter 11 and Chapter 13. For Subchapter V, the Act raised the aggregate debt limit to $7.5 million, allowing a broader range of small businesses to qualify for this streamlined bankruptcy process. This was especially beneficial for businesses in New Jersey, where operating costs are relatively high, and many businesses carry substantial debt. However, with the expiration of this provision on June 21, 2024, the definition of a “debtor” under 11 U.S.C. § 1182(1) no longer includes this increased threshold and reverts to the definition of a “small business debtor” in section 101(51D) of the Bankruptcy Code.

For individual bankruptcy filers in New Jersey, the BTATC Act temporarily adjusted the debt eligibility limits under Chapter 13. During the Act’s effective period, there was a single debt threshold of $2.75 million, encompassing both secured and unsecured debt. However, as of June 21, 2024, the previous limits have been reinstated, distinguishing between secured and unsecured debts: less than $465,275 for unsecured, noncontingent, liquidated debt, and less than $1,395,875 for secured, noncontingent, liquidated debt under 11 U.S.C. § 109(e). This reversion may limit the number of New Jersey debtors eligible for Chapter 13, especially those with higher combined debt levels.

Corrections to Bankruptcy Code Language and Procedures

The BTATC Act also included several technical corrections to the Bankruptcy Code that clarified the definitions and procedures related to bankruptcy filings. Notably, 11 U.S.C. § 1182(1) was amended to clarify that the exclusion from the definitions of “small business debtor” and “debtor” applies specifically to an affiliate of a corporation subject to reporting requirements under sections 13 or 15(d) of the Securities Exchange Act of 1934, rather than to an affiliate of “an issuer.” This clarification aimed to prevent confusion over the eligibility of certain entities for Subchapter V bankruptcy protection.

Additionally, with the expiration of the BTATC Act provisions, Interim Rule 1020, which was adopted by courts as a local rule while the Act was in effect, is now inapplicable. This change also affects Official Form 101 (question 13) and Official Form 201 (question 8), which will revert to their prior versions as established after the enactment of the Small Business Reorganization Act (SBRA) in February 2020. For bankruptcy practitioners in New Jersey, these changes necessitate a return to the pre-BTATC Act forms and procedures, affecting how cases are filed and processed in the state.

Impact on Individual Bankruptcy Filers

The Bankruptcy Threshold Adjustment and Technical Corrections Act (BTATC Act) introduced changes that have significantly impacted individual bankruptcy filers, especially in New Jersey. The Act temporarily modified the eligibility criteria and debt thresholds for bankruptcy under Chapters 7 and 13, creating more opportunities for individuals to qualify for bankruptcy relief. With the sunset of some of these provisions on June 21, 2024, individuals filing for bankruptcy will need to navigate both the temporary benefits they may have enjoyed under the Act and the reverted rules now in effect. 

Effects on the Means Test for Chapter 13 Filers

The BTATC Act significantly altered the landscape for Chapter 13 bankruptcy filings by temporarily setting a unified debt threshold of $2.75 million for both secured and unsecured debts. This change allowed more individuals to qualify for Chapter 13, which can be particularly advantageous in New Jersey.

With the sunset of the Act’s provisions, the means test for Chapter 13 has reverted to the pre-existing limits: less than $465,275 for unsecured debt and less than $1,395,875 for secured debt. This reversion affects many New Jersey filers who could have qualified under the higher, consolidated threshold but now face tighter eligibility criteria. For those individuals whose debts exceed the reverted limits, Chapter 13 may no longer be an option, forcing them to explore alternative bankruptcy chapters or other debt relief measures.

Advantages for Debtors Under the Updated Provisions

During the period when the BTATC Act was in effect, debtors in New Jersey benefited from several temporary changes that made it easier to file for bankruptcy under Chapter 13. The increased debt thresholds allowed more individuals to qualify, especially those with higher combined debt levels typical in New Jersey’s high-cost living environment. Additionally, the streamlined provisions reduced the complexity and barriers to filing, offering a clearer path to restructuring debts without liquidating assets.

These changes provided a critical lifeline for debtors who faced significant financial distress during the economic downturns prompted by the pandemic. However, with the expiration of these provisions, the advantages have been curtailed, and debtors must now reassess their options under the reverted rules, which may offer less flexibility in managing their debts.

Influence on Small Business Bankruptcies

The BTATC Act also had substantial implications for small businesses facing bankruptcy, particularly in a dynamic and economically diverse state like New Jersey. By temporarily increasing debt limits and simplifying procedural requirements, the Act aimed to make the bankruptcy process more accessible and efficient for small business debtors. As these provisions expire, small businesses in New Jersey must adjust to the pre-existing rules that now govern their bankruptcy options. 

Revised Debt Limits for Small Business Debtors

One of the most impactful provisions of the BTATC Act was the temporary increase in the debt limit for small business debtors filing under Subchapter V of Chapter 11, raising it to $7.5 million. This change enabled a broader range of businesses in New Jersey, many of which carry substantial debt due to high operating costs, to qualify for a more streamlined bankruptcy process. However, with the Act’s expiration, the debt limit has reverted to the definition outlined in section 101(51D) of the Bankruptcy Code, which is significantly lower.

For small businesses in New Jersey, this reversion means that fewer entities may qualify for Subchapter V bankruptcy, which offers a more debtor-friendly reorganization process. Instead, many businesses will now have to consider the more traditional and potentially more cumbersome routes under Chapter 11, which may involve more prolonged and costly proceedings.

Simplification of the Bankruptcy Process for Small Businesses

The BTATC Act also made the bankruptcy process simpler for small businesses by reducing administrative burdens and offering clearer guidelines. This simplification included less stringent reporting requirements and a more straightforward path to confirming a reorganization plan, which was especially beneficial in New Jersey’s competitive and often volatile business environment. The temporary provisions allowed small businesses to remain operational while restructuring their debts, providing them with the flexibility to adapt to changing market conditions.

With the sunset of these provisions, small businesses must now navigate the previous, more complex procedural requirements, which could involve additional legal and administrative costs. This shift could deter some businesses from seeking bankruptcy protection under Subchapter V, particularly if they fall close to the newly lowered debt limits.

Effects on Business Reorganization and Debt Management

During its effective period, the BTATC Act provided small businesses with enhanced opportunities for reorganization by temporarily relaxing certain restrictions and thresholds. This flexibility allowed many New Jersey businesses to restructure debts, renegotiate contracts, and emerge from bankruptcy in a stronger financial position. The streamlined procedures under Subchapter V helped businesses expedite the reorganization process, minimizing disruptions to operations.

However, as these provisions have expired, the options for business reorganization and debt management have reverted to their prior state. Small businesses in New Jersey may find it more challenging to qualify for Subchapter V bankruptcy or to achieve a swift and efficient reorganization under the traditional Chapter 11 framework. This change could lead to longer, more costly proceedings and reduce the overall effectiveness of bankruptcy as a tool for business recovery and debt management.

Get Experienced Bankruptcy Advice from Straffi & Straffi Attorneys at Law

The Bankruptcy Threshold Adjustment and Technical Corrections Act brought important changes to bankruptcy law that could affect your eligibility and options for debt relief. As these provisions have now expired, understanding how the current rules apply to your situation is essential. Whether you are an individual or a small business owner in New Jersey, staying informed about the implications of these changes can help you make the best decisions for your financial future.

If you have questions or need professional guidance regarding bankruptcy in New Jersey, the experienced attorneys at Straffi & Straffi Attorneys at Law are ready to help. Our team may be able to provide personalized advice based on the most current laws and help you explore the best path forward. Contact Straffi & Straffi at (732) 341-3800 to schedule a consultation and take the first step toward resolving your financial concerns.

from Straffi & Straffi Attorneys at Law https://www.straffilaw.com/what-is-the-bankruptcy-threshold-adjustment-and-technical-corrections-act/

What is the Means Test for Chapter 7?

The means test for Chapter 7 bankruptcy is a crucial tool used to determine whether an individual qualifies for this type of debt relief. It calculates whether your income, after allowable expenses, falls below a certain threshold, allowing you to discharge unsecured debts like credit cards and medical bills. The means test ensures that only those truly in need can file for Chapter 7 bankruptcy. This process helps the court assess your financial situation and decide the best course for your debt resolution.

If you’re considering filing for Chapter 7 bankruptcy in New Jersey, understanding the means test is the first step. At Straffi & Straffi Attorneys at Law, our experienced team of New Jersey Chapter 7 bankruptcy attorneys can guide you through the entire process, thoroughly evaluating your financial situation, assisting you through the bankruptcy proceedings, and providing post-discharge advice such as what you cannot do after filing Chapter 7. Contact us today at (732) 341-3800 to discuss your options and see if a Chapter 7 filing is right for you.

The Purpose of the Chapter 7 Means Test

The means test is a standardized method used in New Jersey and across the U.S. to determine whether an individual qualifies for Chapter 7 bankruptcy. Its primary function is to distinguish between those who can repay their debts and those who truly need debt relief through a Chapter 7 discharge. For those considering Chapter 7 in New Jersey, passing the means test is the first essential step toward financial relief.

Why the Means Test Exists

The means test was introduced as part of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) to limit the number of high-income individuals who could discharge debts through Chapter 7 bankruptcy. Before the means test, many individuals who had the financial means to pay back some of their debts were still discharging them entirely. Now, the test ensures that those with higher incomes are directed towards Chapter 13, which involves a structured repayment plan.

In New Jersey, this test is especially important because it compares your household income to the state’s median income levels. If you pass the test, you are presumed eligible for Chapter 7. If not, you may need to explore other bankruptcy options, such as Chapter 13.

How the Means Test Determines Eligibility

The means test evaluates your ability to repay debt based on your income and expenses over the past six months. It’s a two-part process that begins by comparing your income to New Jersey’s median income levels. If your income is below the median, you automatically qualify. If it’s above, the test goes further by calculating your disposable income after deducting certain expenses.

Key aspects of how the means test works:

• Calculating Your Income: The test requires you to average your household income over the six months preceding your bankruptcy filing. This includes all forms of income, such as wages, rental income, and other earnings.
• Comparing to New Jersey’s Median Income: The New Jersey median income levels are updated regularly and depend on the size of your household. For example, a household of four will have a higher median income threshold than a single individual.
• Allowable Expense Deductions: After calculating your income, the test allows you to deduct specific living expenses from your income. These include necessary expenses such as:
  • Housing and utilities: Based on IRS guidelines for your region.
  • Transportation costs: Including car payments and fuel costs.
  • Food and clothing: Necessary living costs determined by national standards.
  • Health care costs: Expenses such as insurance premiums and medical bills.
• Final Disposable Income Calculation: After all deductions, your remaining disposable income is calculated. If it falls below a certain amount, you qualify for Chapter 7. If it exceeds the allowed threshold, you may need to file for Chapter 13 instead.

This process makes sure that Chapter 7 bankruptcy is reserved for individuals who genuinely cannot afford to pay their debts while giving a structured path (Chapter 13) to those who can pay back at least a portion.

Key Aspect	Description
Calculating Your Income	The test averages your household income over the six months prior to filing, including wages, rental income, and other earnings.
Comparing to New Jersey’s Median Income	Your income is compared to New Jersey’s median levels, which vary based on household size. If your income is below the median, you qualify automatically for Chapter 7.
Allowable Expense Deductions	Certain living expenses such as housing, utilities, transportation, food, and healthcare are deducted from your income based on IRS guidelines and national standards.
Final Disposable Income Calculation	After deductions, your remaining disposable income is calculated. If it’s below the threshold, you qualify for Chapter 7; if above, you may need to file for Chapter 13.

How to Calculate Your Income for the Means Test

Accurately calculating your income is the first and most critical step in passing the Chapter 7 means test in New Jersey. The test requires that you assess your household income over the last six months to establish an average monthly income. This income calculation is pivotal because the results determine whether you will proceed further with Chapter 7 or need to explore other bankruptcy options like Chapter 13.

Sources of Income to Include

When reporting your income for the means test, it’s important to include all relevant sources. In New Jersey, the entire household’s income is considered, even if your spouse is not filing for bankruptcy with you. This includes not only your primary job earnings but any other income streams you or other household members may have. Key sources of income that must be reported include:

• Wages and salary
• Self-employment income.
• Rental income
• Unemployment benefits
• Pension or retirement income
• Side jobs or gig work

It’s crucial to be thorough when calculating income because leaving anything out can lead to inaccurate results and potentially disqualify you from filing for Chapter 7 bankruptcy.

Calculating Your Monthly Income

To calculate your monthly income for the means test, you must look back at your income over the previous six full months before filing for bankruptcy. This approach ensures that the means test reflects a more accurate average of your financial situation, especially if your income fluctuates. Begin by gathering all relevant income documentation for each of the six months, such as pay stubs, bank statements, and other records that show your earnings. Once you have this information, total your income for each individual month. This is particularly important if your earnings have varied during this time, as it will help create a clear picture of your overall financial state.

After calculating the total income for each month, you will add up the six-month totals and divide the result by six. This calculation provides your average monthly income, which will be used in the means test to determine your eligibility for Chapter 7 bankruptcy. If you have experienced significant fluctuations in income due to bonuses or pay cuts, the six-month average helps smooth out these changes, providing a more consistent figure. In some cases, waiting an additional month before filing could bring your average income down, potentially improving your chances of passing the means test, especially if your income has recently decreased.

Median Income Limits for New Jersey

Once you have calculated your average monthly income, the next step is to compare it to the median income levels for New Jersey. The state’s median income levels are updated regularly, and they vary depending on the size of your household. For instance, as of April 2024, the median income limits in New Jersey are as follows:

• 1 person: $83,102
• 2 people: $100,763
• 3 people: $130,239
• 4 people: $157,404
• 5 people: $167,304
• 6 people: $177,204
• 7 people: $187,104
• 8 people: $197,004
• 9 people: $206,904

If your average annual income, based on the six-month average, is below these thresholds for your household size, you automatically pass the means test. However, if your income exceeds these limits, the means test will continue to the next stage, where your expenses will be deducted to determine whether you can still qualify for Chapter 7 bankruptcy.

Deducting Expenses from Income

Once your income has been calculated, the next phase of the means test involves deducting allowable expenses. These deductions reduce your income and help determine whether you have enough disposable income left to pay your debts. New Jersey uses IRS guidelines for allowable expenses, ensuring that deductions are based on national and local standards for necessities such as housing, utilities, transportation, and food. These deductions are critical because they can determine whether you pass or fail the means test.

Allowable Living Expenses

Allowable living expenses are based on both national and local standards, and they cover essential costs for maintaining a basic standard of living. These expenses include:

• Food and groceries
• Clothing and personal care
• Out-of-pocket healthcare costs

The IRS sets fixed amounts for these expenses based on the size of your household. Even if you spend less in some categories, the full allowable amount will be deducted to provide an accurate reflection of your necessary living costs.

Necessary Business or Employment Costs

If you are self-employed or incur significant costs related to your job, the means test allows you to deduct necessary business and employment expenses. These expenses must be directly related to producing income and may include:

• Office supplies
• Travel expenses
• Equipment costs
• Utilities

These deductions help paint a more accurate picture of your disposable income, especially if a significant portion of your earnings is reinvested in maintaining or operating your business.

Housing and Utility Expense Guidelines

Housing and utility expenses are some of the largest deductions allowed under the means test. These deductions are based on local standards and depend on where you live in New Jersey, as housing costs vary significantly across the state. The allowable expenses include:

• Rent or mortgage payments: Based on the average cost of housing in your area.
• Property taxes and home insurance: Necessary costs to maintain your residence.
• Utility costs: These include gas, electricity, water, and trash collection fees, as well as telecommunications such as phone and internet services.

The IRS caps these deductions based on your specific location in New Jersey, making sure that they reflect actual costs without inflating your allowable expenses. For example, housing costs in northern New Jersey are typically higher than in other parts of the state, so the allowable expenses for those areas may be greater.

What It Means to Pass the Means Test

Passing the means test indicates that you meet the financial eligibility requirements for Chapter 7 bankruptcy. It means that after accounting for allowable expenses, your disposable income is not sufficient to cover your outstanding debts. Passing the test allows you to proceed with filing Chapter 7, which can discharge most unsecured debts such as credit card balances, personal loans, and medical bills. For those in New Jersey, passing the means test can be particularly advantageous if they are facing high consumer debt with little to no disposable income left at the end of each month.

Once you pass the means test, the next steps in the Chapter 7 process include submitting the necessary bankruptcy forms and schedules, attending the mandatory credit counseling session, and meeting with a bankruptcy trustee. Your non-exempt assets (if any) may be liquidated to pay creditors, but some assets are protected under New Jersey’s bankruptcy exemptions, allowing you to keep essential property while discharging eligible debts.

Steps to Take if You Fail the Means Test

Failing the means test can be disheartening, but it doesn’t necessarily mean that bankruptcy relief is out of reach. There are several options you can explore if you fail the means test. One of the first steps is to review your financial situation for any “special circumstances.” Special circumstances are exceptional conditions that may justify a higher income or unusual expenses that skew the means test results. Common examples include:

• Serious medical conditions that incur substantial medical expenses.
• Active military duty, which may affect your income or financial obligations.

If you believe special circumstances apply, you will need to provide detailed documentation, such as medical bills or military orders, to the bankruptcy court. Additionally, you must submit a written explanation justifying why these expenses or income adjustments should allow you to pass the means test despite initially failing.

If no special circumstances apply or the court rejects your claim, your next option is Chapter 13 bankruptcy. Under Chapter 13, you create a structured repayment plan to pay back creditors over a 3-5 year period. While this doesn’t discharge your debts immediately like Chapter 7, it allows you to repay what you can over time while protecting assets like your home or car from being sold off.

Alternatives to Chapter 7 Bankruptcy

If you fail the means test and decide that Chapter 13 isn’t suitable for your financial needs, there are other alternatives you can consider to manage your debt outside of bankruptcy. These alternatives may provide more flexible ways to handle your debt while avoiding the legal and financial ramifications of bankruptcy.

Debt Negotiation

One alternative is negotiating directly with your creditors to create a more manageable payment plan. Many creditors are willing to work with debtors to reduce interest rates or extend payment terms, especially if they are aware that bankruptcy is a possible outcome. You may be able to settle your debts for less than the full amount owed.

Debt Consolidation

Debt consolidation involves taking out a single loan to pay off multiple debts. This option may help by combining several high-interest debts, such as credit cards, into one loan with a lower interest rate and a single monthly payment. This can simplify your debt repayment process and potentially save you money in interest over time.

Debt Management Plans (DMPs)

Another alternative is enrolling in a debt management program through a credit counseling agency. A DMP consolidates your debt into one monthly payment, and the agency works with your creditors to negotiate lower interest rates or waive certain fees. This can be a good option for those who want a structured plan to pay off their debts over time without resorting to bankruptcy.

Ultimately, even if you fail the means test for Chapter 7, there are various options to explore that can help you reduce or manage your debt. Chapter 13 remains the formal alternative within bankruptcy, but debt negotiation, consolidation, and management programs provide viable paths to avoid the lengthy and complex process of bankruptcy altogether.

Exemptions to the Means Test

Not all individuals filing for Chapter 7 bankruptcy are required to pass the means test. Certain groups of debtors qualify for exemptions, allowing them to bypass this step entirely. One significant exemption applies to individuals with primarily non-consumer debts, such as business or investment-related debts. If the majority of a debtor’s obligations are classified as non-consumer, the means test is not applicable, simplifying the bankruptcy process.

Another important exemption applies to disabled veterans who incurred debt while on active duty or performing homeland defense activities. To qualify for this exemption, the veteran must have a disability rating of at least 30%, and more than half of the debt must have been accumulated during active service. This guarantees that veterans who have served the country and are facing financial difficulties due to their service are not required to pass the means test when seeking bankruptcy relief under Chapter 7.

These exemptions are designed to provide relief to individuals facing financial challenges due to specific circumstances, streamlining their access to debt discharge through Chapter 7 bankruptcy.

Contact Straffi & Straffi Attorneys at Law for Chapter 7 Bankruptcy Legal Assistance

Understanding and completing the means test is a key part of filing for Chapter 7 bankruptcy. It determines whether you qualify for debt relief based on your income and expenses. Straffi & Straffi Attorneys at Law provides quality legal assistance to New Jersey residents through this process, helping ensure all steps are handled with care.

If you’re unsure about your eligibility for Chapter 7 or need help with the means test, contact Straffi & Straffi Attorneys at Law at (732) 341-3800. Our team of New Jersey Chapter 7 bankruptcy lawyers is ready to help you take control of your financial future.

from Straffi & Straffi Attorneys at Law https://www.straffilaw.com/what-is-the-means-test-for-chapter-7/