General Bankruptcy Information

The bankruptcy code indicates that every 3 years, commencing on the First of April, various exemption dollar amounts are adjusted for inflation. On April 1, 2013, the following federal exemptions were adjusted:
The debtor’s exemption in their residence was $21,625., which was adjusted to $22,975.
The debtor’s exemption in one motor vehicle was $3,450., which was adjusted to $3,675.
The debtor’s exemption for the aggregate value, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use was $11,525, which was adjusted to $12,250.
The debtor’s exemption for the aggregate interest in jewelry was $1,450, which was adjusted to $1,550.00.
The debtor’s exemption for the aggregate interest in any property, was $1,150, which was adjusted to $1,225.
The debtor’s exemption for the aggregate interest in any property, is an amount up to $11,500.00 of the unused portion of his residential exemption, that is stated above. This exemption was adjusted from $10,825.00. This means that the debtor can apply up to $11,500.00, of the amount that is not used from their $22,975 residential exemption, in any property.
The debtor’s exemption for tools of the trade, was adjusted from $2,175.00 to $2,300.00.
The above list does not include all of the federal exemptions that were adjusted.
New Jersey Bankruptcy Lawyer Robert Manchel can speak with you regarding your options for bankruptcy protection. Call (866) 503-5655 to schedule your free consultation.

Blacks Law Dictionary provides the following definition of an asset, “Property of all kinds, real and personal, tangible and intangible, including, inter alia, for certain purposes, patents and causes of action, which belong to any person including a corporation and the estate of a decedent. The entire property of a person, association, corporation, or estate that is applicable or subject to the payment of his or her or its debts.”
An asset is not only something that is presently possessed, both intangible and tangible, but a present right of something of value in the future. The present right to sue someone for money or property is a present asset.
For example, a bankruptcy debtor that is injured in an auto accident, who is entitled to money for his injuries creates a present asset. The asset was created on the date of the accident, not the date that money was received for the loss. Therefore, if such auto accident occurred prior to the bankruptcy filing and prior to receipt of the funds, the right to sue for the money is considered an asset of the bankruptcy estate.
Another example is the right to receive an inheritance. If the bankruptcy debtor is a beneficiary of the estate of someone who died prior to the bankruptcy filing, the right to the money and/or property are assets of the debtor’s bankruptcy estate. It doesn’t matter if the debtor did not yet receive the money or property.
You can contact Robert Manchel at (866) 503-5655 if you have questions about debt and what options you have.

Who may Avoid the Bankruptcy Means Test(Current Monthly Income Test)
The result of the Means Test determines if a person may file for chapter 7 protection and the amount that must be paid to unsecured creditors in a chapter 13. Please note that there are other criteria that determine whether a person may file for a chapter 7, and/or the amount that must be paid to unsecured creditors in a chapter 13.
The following bankruptcy debtors may avoid having to complete the Means Test analysis:
Debtors, whose debt is mostly non-consumer debt. Consumer debt is debt that was incurred by an individual primarily for personal, household or family purpose.Therefore, if most of an individual’s debt is business related, including business credit cards, the debtor need not complete the Means Test. Other non-consumer debt include personal injury and other tort claims and taxes. Thus, if any of these non-consumer claims make up most of your debt, you need not complete the means test.
A debtor that is a disabled veteran is exempt from the means test.
Military reservists and National Guard members that are on active duty or performing homeland defense are exempt. This exemption continues for 540 days after active duty is terminated.
Robert Manchel, New Jersey bankruptcy lawyer, may be contacted at (866) 503-5655 to discuss your options about filing for bankruptcy protection.

If an individual has decided to file for chapter 7 bankruptcy protection and meets the criteria, in most situations it is advisable to not continue to pay their credit card debt. First and foremost, if a person meets the criteria of a chapter 7, he cannot afford to pay the debt anyway. Furthermore, a chapter 7 discharge eliminates all credit card debt, regardless of the amount due. Therefore, the payment made to the creditor will not benefit the debtor.
Typically, the aforementioned explanation also applies to chapter 13 debtors, as well. However, in the unusual case, where the debtor is required to pay all credit card debt through the chapter 13 bankruptcy plan, it may be advisable to keep current with the credit card debt, prior to the filing.
If a person is current with credit card debt payments, stops making payments, and decides to not file for bankruptcy protection, this will likely result in increased interest and penalties.
Typically, each creditor will review the debt incurred by each debtor for fraudulent conduct. If the creditor believes that a debtor incurred debt with no ability or intent to pay the debt, such creditor may file a complaint with the court, requesting to exclude the debt from the bankruptcy discharge or elimination. A creditor may deem a debt to be fraud, if a substantial debt was incurred prior to the filing, with no payments made to the creditor.
Robert Manchel, a New Jersey bankruptcy attorney, can be reached at (866) 503-5655, to answer your questions.

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.