The means test is complicated—don’t try to save a few bucks by completing it on your own. An experienced attorney will make certain you take all the right steps.
Not all of your monthly expenses may be deducted to determine your disposable income. For example, you can’t take deductions for most retirement plan contributions or for any contributions you may to your child’s college education.
Taking deductions for expenses that you can’t document in writing is a risky proposition. If you can’t prove the deduction, you could face allegations of bankruptcy fraud.
The larger your household size, the more disposable income you’ll be able to have and still meet the means test. However, you’ll have to include all income earned by anyone designated as a household member, so there may be little or no benefit.
Child support can only be deducted from your income if you have actually paid it. Likewise, you only need to include it in income if it has actually been received.
At the office of Howard N. Sobel, we provide personal bankruptcy counsel to men and women throughout the state of New Jersey. Contact our office online or call us at 856-424-6400 to set up a free initial consultation. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
Named a New Jersey SuperLawyer Every Year since 2008, Including 2022
How Long Will a Bankruptcy Affect Your Credit? Will It Ever Drop Off Your Credit Report? For many, one of the biggest fears associated with bankruptcy is the perception that it will permanently destroy your credit, that you’ll never be able to get a loan or...
Read MoreDoes the Automatic Stay Mean You Don’t Have to Pay Your Debts? When you file for personal bankruptcy, whether you’re seeking to permanently discharge debts in Chapter 7 or want to set up new payment arrangements through Chapter 13, the automatic stay imme...
Read More