Ewing Bankruptcy Lawyer Helping You Find Financial Relief
Overwhelming debt can consume every aspect of your life, creating constant stress about unpaid bills, creditor harassment and the fear of losing your home or possessions. When financial problems spiral beyond your control, bankruptcy may offer the fresh start you need to regain stability.
From our Ewing, New Jersey office, our skilled attorneys of the Law Offices of Sklar Smith-Sklar provide compassionate representation for individuals and families facing financial hardship. Our New Jersey bankruptcy attorneys understand the challenges you face and work closely with you to develop personalized solutions based on your unique circumstances.
The Bankruptcy Means Test: What Is It?
The means test is a mandatory calculation that determines whether you qualify for Chapter 7 bankruptcy in New Jersey. At Law Offices of Sklar Smith-Sklar, we’ll guide you through this requirement by carefully analyzing your financial situation. The means test evaluates several key factors:
- Your household’s average monthly income over the past six months
- How your income compares to New Jersey’s median income for your household size
- Allowable monthly expenses including housing, transportation, food and health care
- Your disposable income after deducting permitted expenses
If your income falls below New Jersey’s median, you automatically pass the means test and qualify for Chapter 7. If your income exceeds the median, we calculate your disposable income to determine eligibility. Failing the means test doesn’t end your bankruptcy options – it typically means Chapter 13 bankruptcy becomes your path forward.
Our attorneys thoroughly review your income, expenses and financial documents to ensure accurate means test calculations and help you choose the bankruptcy option that best fits your circumstances.
What Are Your Bankruptcy Options In New Jersey?
New Jersey residents facing financial hardship typically choose between two primary bankruptcy options. Chapter 7 bankruptcy eliminates most unsecured debts, including credit cards, medical bills and personal loans, through liquidation. This process typically concludes within three to six months, allowing you to discharge qualifying debts and move forward.
Chapter 13 bankruptcy creates a court-approved repayment plan lasting three to five years, allowing you to catch up on mortgage or car payments while managing other debts. This option helps you keep valuable property while restructuring your financial obligations into manageable monthly payments.
How Will Bankruptcy Affect Your Credit Score?
Bankruptcy significantly impacts your credit score, but understanding these effects helps you plan for financial recovery. Chapter 7 bankruptcy remains on your credit report for 10 years from the filing date, while Chapter 13 bankruptcy stays for seven years. Your credit score will drop substantially immediately after filing, though the exact decrease varies based on your starting score. However, many people filing for bankruptcy already have damaged credit from missed payments and defaults. Bankruptcy stops the ongoing credit damage from unpaid debts and provides a clear path forward.
What Does Life Look Like After Bankruptcy?
Rebuilding your finances after bankruptcy requires patience and discipline, but thousands of people successfully recover each year. Focus on creating a realistic budget that prevents future financial problems, establish an emergency fund and monitor your credit reports for accuracy. Many individuals begin rebuilding credit within one to two years after bankruptcy discharge by obtaining secured credit cards and making timely payments.
Will I Lose Everything If I File For Bankruptcy?
When you file for Chapter 7 bankruptcy, it is true that you will need to sell nonessential assets like secondary homes or cars, jewelry, heirlooms and other valuables; but you will also be able to keep necessary assets like your primary home and vehicle and other essential assets.
When you file for Chapter 13 bankruptcy, you do not have to sell your assets so long as you can stay on your repayment plan and repay your debt according to that arrangement.
Will Bankruptcy Clear All Of My Debt?
While filing for bankruptcy can clear a lot of debt, it cannot eliminate all of it. Secured debt (debt with collateral attached to it) like mortgages, car loans, and student debt, cannot be discharged. With the extra available income you may have after discharging qualifying debt, you may be able to afford the remaining debt better.
Can I File For Bankruptcy Without A Lawyer?
There is no legal requirement to file for bankruptcy with the help of an attorney. However, with our legal guidance, we can answer your questions, increase the odds of a successful application, complete any necessary paperwork, and help you avoid critical mistakes in your application process.
Contact Our Ewing Bankruptcy Lawyers Today
If you are ready to learn more about how bankruptcy can provide the financial relief you need, contact us today. Call our Ewing office at 609-568-7877 or email us through our online contact form to schedule your initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.