Periodically the New Jersey’ Department of Labor and Workforce Development (NJDOL) will update the median income figures for the various household sizes reported on a person’s tax returns. NJDOL has recently provided the new median income figures which go into effect on April 1, 2024. The median income plays an important part of many different financial fields, particularly in the realm of bankruptcy proceedings. For example, median income figures are part of the analysis of Chapter 7 bankruptcy eligibility. Contact us so we can schedule you to consult with one of our experienced Bankruptcy attorneys.
Chapter 7 Bankruptcy Eligibility Requirements (2024)
Chapter 7 Bankruptcy is what people most often think of when contemplating filing for bankruptcy: having your debts wiped away. However, there is a threshold issue to be addressed prior to filing for a Chapter 7 Bankruptcy, which are the eligibility requirements, and with the upcoming updates to New Jersey’s median income figures, let’s review how that may impact the eligibility requirements.
First, there are certain types of debt that cannot be discharged through Chapter 7, which include priority tax debt, student loans and criminal fines. If you had filed for bankruptcy recently, then your ability to file again may be impacted. Depending on the Chapter of Bankruptcy filed under and if a discharge was obtained, one may need to wait up to 8 years to refile. Dismissals of prior bankruptcies, depending on the circumstances and/or whether the dismissal was voluntary or not, could result in a person being ineligible to file for Chapter 7 bankruptcy in New Jersey. With all the complications and moving pieces with bankruptcy eligibility, please contact our firm to schedule a consultation with a Bankruptcy Attorney.
Chapter 13 Bankruptcy Eligibility Requirements (2024)
When one is ineligible for a Chapter 7 Bankruptcy or if the debtor owns a property with too much equity, a Chapter 13 Bankruptcy may be a better option to address their debt. Similar to Chapter 7, there are factors that must be met to be eligible to file for Chapter 13. One such requirement is having a stable source of regular income, these include sources such as employment, self-employment, rental income, family contributions, etc. Certain debts may have to be paid back in a Chapter 13, like mortgage arrears or tax debt and other debt may not need to be paid back in full or at all. Thus, having stable income is necessary to show that is feasible to fund the Chapter 13 plan. Our bankruptcy attorneys can help analyze your situation and guide you through a bankruptcy filing.
Median Income in New Jersey (Updated as of 4/1/2014)
1 Person: $83,102.00
2 People: $100,763.00
3 People: $130,239.00
4 People: $157,404.00
Additional Person $9,900.00
5 people: $167,304.00
6 people: $177,204.00
Put simply, if you are under the median income for your household size, you would be eligible for the filing of a Chapter 7 petition. If you are above the median income, it means that further calculations would need to be performed to make that determination. Contact our office to discuss your options with one of our New Jersey Bankruptcy Attorneys.
