The bankruptcy means test is a significant factor in determining who can file for debt forgiveness through Chapter 7 bankruptcy. See http://www.csmonitor.com/Business/Saving-Money/2016/0718/Why-the-bankruptcy-means-test-matters. It takes into account your income, expenses and family size as well as the state you live in to determine whether you can eliminate the debt or whether you have enough disposable income to repay some or all of your debts. Regarding the relevance of the state you live in, as an example, a family of four residing in Northeast Philadelphia Pennsylvania will need to have less income than a family of four residing in Pennsauken New Jersey because the statewide income is less in Pennsylvania then in New Jersey.
Bankruptcy is an option for individuals that cannot pay their credit card debt or medical bills. Bankruptcy gives individuals more time to pay their bills. It also stops collection agencies from contacting creditors about their debts.
During the holiday season, consumers regularly pull out their credit cards to pay for their purchases. After the holiday season is over, those same consumers will be forced to face the reality of their spending. Overspending during the holidays often pushes residents in New Jersey, and all across the United States, into a debt situation from with they cannot escape. Fortunately, personal bankruptcy is an option for those who are facing insurmountable debt, but, as there are limits on how often bankruptcy can filed, it is important for consumers to know what to do after their bankruptcies are discharged.
The most common type of debt that people seem to be trapped under involves home loans and credit card debt, but medical debt issue is a significantly growing concern. According to a recent survey, 1.7 million people in New Jersey and across the United States filed for personal bankruptcy because of unpaid medical bills in 2013. During the recession, many people earned less while the cost of healthcare steadily increased.
Many people cannot bypass getting into debt at some point in their lives. Families in New Jersey and across the United states are saddled with more than $7,000 in credit card debt on average, plus the debt from mortgages and student loans. In cases where the debt is even higher, many people turn to personal bankruptcy to help them get back on their feet again. Here are some tips to help with crawling out of the mountain of debt and getting back onto stable financial footing.
Throughout the United States, a significant number of people have fallen into the credit card debt and feel that they have no way out. Creditor harassment can pile additional stress onto New Jersey families, only making matters worse. There are several different bankruptcy options for people who are confronting unmanageable financial obligations. Chapter 7 is one option, though it may not be the right option for everyone because it is not as effective at protecting property. Filing for Chapter 13 is another option that potentially allows more flexibility in maintaining certain assets.
When financial times are tight, a person may have to make the decision on what gets paid and what doesn't. Large amounts of credit card debt can seem nearly impossible to pay off. Filing for personal bankruptcy may be a way for a New Jersey resident to start over again, because the alternative of not paying can bring on some serious repercussions. If there aren't some kind of payment arrangements made with a creditor in situations where debt can not be paid off in the allotted time frame, the process that a person could go through can be damaging to his or her credit and can potentially result in legal action.
As the economy took a downturn, many people began to pull out their credit cards to pay bills or just to make ends meet. Many people in New Jersey and across the United States fell on hard times and landed in piles of credit card debt. However, there are some possible ways to negotiate with a credit card company to attempt to make the debt a little easier to pay back. In cases where this isn't possible, filing for personal bankruptcy may be a beneficial solution.
There are numerous people living in Cherry Hill who are just barely scraping it by financially. These individuals are particularly vulnerable to debt problems. If an illness that involves costly medical bills surfaces, or some other kind of financial emergency occurs, these individuals may be tempted to use credit cards to get through the financial problem. Once credit card debt begins to snowball out of control, though, it can be very difficult to climb out of it again. This is where personal bankruptcy may be particularly useful -- to get a fresh start, regain one's financial bearings and simply live again.
A lot of young men and women in New Jersey who have just finished college will be venturing into the world of financial responsibility for the first time. These individuals are especially vulnerable to getting mired in credit card debt. However, rather than learning such debt lessons the hard way, parents can help prepare their children in advance with some important pieces of advice. If followed, it could be a way for the young to circumvent the need for personal bankruptcy protection later in life.