CHANGES IN BANKRUPTCY
Despite misleading information to the contrary, Congress did not repeal federal bankruptcy law with the Bankruptcy Reform Act of 2005. Changes were made to certain creditor requirements, including the process for determining which type of bankruptcy one may qualify for, Filing for bankruptcy remains, however, a viable option for those seeking debt relief.
At the law firm of Broege, Neumann, Fischer & Shaver, LLP, we provide experienced guidance through the changes in bankruptcy law to clients in Manasquan and Monmouth counties, and surrounding areas of New Jersey. We help you understand how changes in the laws apply to you and the options available for filing bankruptcy today.
Contact us to discuss your situation with one of our experienced bankruptcy attorneys.
The Means Test
The purpose of the means test is to determine if your current monthly income is above or below the median monthly income for a household of similar size in the state where you live. If your income is below the median you may file for Chapter 7. If your income is above the median – and you meet the debt payment requirements – you must file Chapter 13 bankruptcy. The means test does not exclude anyone under the new bankruptcy law; it simply lets you know which form of bankruptcy you qualify to file under.
Unpaid Income Taxes
Whether you file for bankruptcy under Chapter 7 or Chapter 13, the bankruptcy law changes now require you to show proof of income by providing federal tax returns from the previous tax year. If you have not paid income taxes for the previous tax year, you must file a tax return for that year before you can proceed with your bankruptcy filing.
Mandatory Credit Counseling
Before filing for bankruptcy, you must attend a government-approved credit counseling program. Once the bankruptcy court proceeding is complete and protection from creditors takes effect, but before any qualifying debt is dismissed, you must also attend a government-approved financial management education course. The goal is to give you the tools to effectively manage your income and expenses moving forward.
Protect Your Home and Your Financial Future
In addition to assistance with bankruptcy filing under the new laws, our bankruptcy law attorneys can help you avoid foreclosure on your home with a range of approaches, including:
- Loan workouts
- Mortgage modification agreements
- Deeds in lieu of foreclosure
- Short sales
Start looking forward to a brighter future. Contact a New Jersey bankruptcy lawyer at our firm today.
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.
Call Us Now at (732) 223-8484 for More Information or to Schedule an Appointment.
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Broege, Neumann, Fischer & Shaver, LLC
25 Abe Voorhees Drive
Manasquan, NJ 08736
Toll Free: 877-571-5074
Manasquan Law Office