Understanding the New Jersey Means Test

To qualify for a Chapter 7 bankruptcy in New Jersey, you must meet certain eligibility requirements regarding your current income. One of those requirements is the means test. In other words, the test takes into account your financial means and income. Those who make too much money may not be able to file for Chapter 7 bankruptcy. Remember that debtors [...]

2018-07-12T18:12:29+00:00Blog, Chapter 13, Chapter 7|

Download our Free “Bankruptcy and Divorce Survival Guide”

Bankruptcy and Divorce - Survival Strategies In New Jersey, Bankruptcy and Divorce are both common and scary words.   At Lucid Law we see many clients who are either in the process of or have recently completed a divorce.  Divorces are emotionally draining and, in New Jersey, they can be very financially draining as well.   Our "Bankruptcy and Divorce [...]


Hope you had a nice Thanksgiving weekend. We just learned that we can bring guests to our CLE tomorrow being held at 1411 Broadway. (All guests will receive free NY and NJ CLE credit.) Details are below. The catch: you need to e-mail Eileen O’Connor (copied) asap if you can attend. Date: 11/29/16 Time: 1-4 p.m. Location: Withum, Smith and [...]

2017-07-03T13:57:03+00:00Bankruptcy, Blog|

Do you have a “20 Days” claim for goods sold to a debtor? Read this article to find out what your rights may be!

"Don't Reclaim! Get Paid on Your 20 Day Claim!" Have a claim for goods sold to a debtor just before bankruptcy was filed? This article may interest you! Often business people are aware that they can file a motion to reclaim goods that were shipped to a debtor shortly before the debtor filed a chapter 7 or a chapter 11 [...]

Bankruptcy and Beyond

I was recently invited to speak to a group of businesswomen in Hunterdon County. The presentation addressed some important FAQ's about consumer bankruptcy cases. Questions like: Do I qualify? What will happen to my credit? Can't I just negotiate with my creditors instead of filing for bankruptcy? The complete power point is attached. It is a presentation designed to help [...]

New Supreme Court Justice’s first published opinion is a “win” for the Credit Card companies.

Recent Supreme Court decision, Ransom v FIA Card Services, reminds consumer debtors and their attorneys to watch how they calculate their deductions for the "means test"!  A debtor in bankruptcy who owns a vehicle and does not have a loan or lease payments may not deduct the expense of having that vehicle for purposes of calculating eligibility for a chapter 7 bankruptcy or [...]

Chapter 7 Means Test – Prospective Client Q&A

Prospective Client Question: If one's income is more than the means test in NJ, can they still file a chapter 7? Debt is substantial (many times my income) and includes debt that is non-dischargeable. Do own home but am way behind in payments. Answer: The short answer is: maybe. There is a complex form used to determine if you have [...]

Having Trouble Making Your Chapter 13 Plan Payments?

When I discuss Chapter 13 plans with my clients I know that it is important to be realistic. After all, five years is a long time. You file your petition and receive a confirmation of your plan. Meanwhile, life continues with all of its ups and downs. Your car might break down, you may find yourself with medical bills you [...]

A note about – Reaffirmation Agreements

I recently had a friend send me an email sharing her post-chapter 7 frustration with her mortgage company. The mortgage lender ("Lender") sent her a "reaffirmation agreement" during her bankruptcy case. Just FYI, this is fine; they are not violating the automatic stay by sending such a request. Her attorney did not explain the reaffirmation request to her and months [...]

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