Once it is determined a person is over the median income level, the means test allows debtors to overcome the presumption of abuse by deducting allowances or deductions from their income. If after going through the means test there is a negative or slight surplus in income you many now be eligible for a chapter 7 bankruptcy. Some examples of deductions that offset income are mortgage/rent expense, non-mortgage related housing costs, car expenses, life insurance, food expense, clothing expense, day care, commuting expenses, charitable deductions, costs taking care of elderly parents, excessive health care costs, higher than normal food expenses because of health reasons.
You really have to take the time and go through whether you are taking all allowable deductions. Our NJ Attorneys frequently meet with many clients that have been told previously by other attorneys they were ineligible for a chapter 7 bankruptcy; but, after going through their deductions carefully it was determined that they were in fact eligible for a chapter 7 bankruptcy.
If you need help with chapter 7 bankruptcy in New Jersey contact us for a FREE Consultation.