Household debt is rising as mortgage and credit balances grow. Learn what this means for consumers and how Stuart M. Nachbar, PC can help.

Millions may see student loan debt canceled under new rules. Learn how this update affects you and get guidance from the Law Office of Stuart M. Nachbar, PC.

The IRS can now access more than your bank account. Learn what this expansion means for your assets and how the Law Office of Stuart M. Nachbar, PC can help you.

Pedestrian Accidents Attorney in Livingston, New Jersey: Your Rights After a Serious Injury

Workers’ Compensation Attorney in Livingston, New Jersey: Know Your Rights After a Workplace Injury

Auto Accidents Attorney in Livingston, New Jersey: Fighting for the Compensation You Deserve

How to Qualify for Chapter 7 Bankruptcy in New Jersey If you're overwhelmed by debt and looking for a way to regain control of your finances, Chapter 7 bankruptcy may be an option. Often referred to as “straight bankruptcy” or “liquidation bankruptcy,” Chapter 7 allows eligible individuals to eliminate most unsecured debts and get a fresh start. At Stuart M. Nachbar, P.C. , we help individuals across New Jersey understand whether they qualify for Chapter 7 and guide them through the process. Here's what you need to know if you're considering filing in New Jersey. What Is Chapter 7 Bankruptcy? Chapter 7 is a legal process designed to help people eliminate certain debts they can no longer afford to repay. Once the case is successfully completed, qualifying debts—such as credit cards , medical bills , personal loans , and collection accounts —are discharged, meaning you're no longer legally required to pay them. Unlike Chapter 13 bankruptcy, there’s no repayment plan in Chapter 7. However, you must meet certain eligibility requirements before filing. Step 1: The Chapter 7 Means Test The most important factor in determining eligibility for Chapter 7 is the means test , a formula used to compare your income to the median income in New Jersey for a household of your size. How It Works: If your monthly income is below the state median, you automatically pass the means test and can file for Chapter 7. If your income is above the median, additional calculations will determine whether you have enough disposable income to repay your debts through a Chapter 13 plan instead. 2025 Median Income Estimates (Subject to Updates): 1-person household: approx. $77,000 2-person household: approx. $93,000 3-person household: approx. $115,000 4-person household: approx. $135,000 Note: These figures are adjusted periodically. An attorney can help calculate your eligibility based on updated income limits and your specific financial data. Step 2: Review of Income and Expenses Passing the means test isn’t the only requirement. Your actual income, expenses, and financial obligations are reviewed to confirm that you are not able to repay your debts. This includes: Monthly income from all sources Rent or mortgage obligations Utility costs Food, transportation, and healthcare expenses Family size and dependents If your disposable income is low enough after accounting for allowable living expenses, you likely qualify for Chapter 7. Step 3: Asset and Property Review Chapter 7 may involve liquidating non-exempt assets to pay creditors, but most New Jersey filers keep all of their property by using federal or state exemption laws . Commonly Protected Assets: Equity in a primary residence (with limits) Vehicles (up to a certain value) Retirement accounts Household goods and clothing Tools of the trade Public benefits and wages (to a degree) Choosing between New Jersey exemptions and federal bankruptcy exemptions can impact what you’re able to keep. A review of your property helps determine how to file while minimizing loss. Step 4: Mandatory Credit Counseling To file for Chapter 7, you must complete a pre-bankruptcy credit counseling course through an approved agency. This course usually takes about 90 minutes and must be completed within 180 days before filing. Step 5: Filing with the Bankruptcy Court Once you meet the income and eligibility requirements and complete the counseling session, your bankruptcy petition can be filed with the U.S. Bankruptcy Court for the District of New Jersey . Upon filing, the automatic stay goes into effect—immediately stopping creditor collection efforts, lawsuits, wage garnishment, and foreclosure proceedings. Who Should Consider Chapter 7? You may benefit from Chapter 7 bankruptcy in New Jersey if: You have high unsecured debt like credit cards or medical bills You’re being sued or facing wage garnishment You’ve fallen behind on bills with no realistic way to catch up You don’t own significant assets that could be at risk You want a fast resolution (most cases close in 4–6 months) Who Might Not Qualify? You may not qualify for Chapter 7 if: You earn too much income and don’t pass the means test You filed Chapter 7 within the past 8 years You have assets you wish to protect that aren't covered by exemptions You have debts that cannot be discharged (such as child support, most taxes, or student loans) In these cases, Chapter 13 bankruptcy may be a better fit. Need Help Determining If You Qualify? Filing for bankruptcy is a significant legal decision—but with the right guidance, it can be a clear and manageable process. At Stuart M. Nachbar, P.C. , we help clients determine if they qualify for Chapter 7 and explain their options with clarity and honesty. If you’re ready to stop the cycle of debt and take back control, we’re here to help.

As student loan payments resume, many borrowers are feeling the pressure of higher monthly bills. While bankruptcy still doesn’t discharge student loans in most cases, it can provide a financial reset that helps manage other debt and free up income. This article explores the implications of the payment hike and how strategic planning, including bankruptcy considerations, may help borrowers stay afloat.

What Debts Are Discharged in Bankruptcy? If you're struggling to keep up with bills and considering bankruptcy, one of the first questions you may have is: What debts can actually be eliminated? Bankruptcy offers powerful financial relief, but not every type of debt qualifies for discharge. At Stuart M. Nachbar, P.C. , we work with individuals and families across New Jersey to help them understand their legal options. Below, we explain how debt discharge works in bankruptcy, which obligations are typically wiped out, and which ones remain after the process ends. Understanding Debt Discharge When a debt is discharged in bankruptcy, you are no longer legally required to pay it. Once the bankruptcy court enters a discharge order, creditors are permanently barred from collecting the debt, contacting you, or pursuing legal action related to it. The types of debt that can be discharged vary depending on whether you file under Chapter 7 or Chapter 13 , and on how the debt is classified—secured or unsecured. Common Debts That Are Discharged Most consumer bankruptcy cases involve unsecured debts , which are not tied to collateral. These are generally the easiest to discharge. Credit Card Balances Unpaid credit card bills, including late fees and penalties, are usually eligible for discharge. Medical Bills Hospital charges, doctor's fees, and other healthcare-related debts are typically wiped out. Personal Loans Unsecured loans from banks, credit unions, or even personal acquaintances (if properly documented) can be eliminated. Utility Bills Past-due electric, water, gas, and phone bills may be discharged. Keep in mind that future service may require a deposit. Collection Accounts Debts that have been transferred to collection agencies—such as credit card or utility balances—can be discharged in most cases. Repossession Deficiencies If your vehicle was repossessed and you still owe money after the sale, the remaining balance can often be eliminated. Debts That Are Not Typically Discharged While bankruptcy can eliminate many types of debt, some obligations are excluded under federal law. These non-dischargeable debts include: Student loans , unless you can prove undue hardship through an adversary proceeding Recent income taxes and most other tax debts Child support and alimony Court-ordered fines and criminal restitution Debts related to fraud or willful misconduct Personal injury judgments from DUI-related accidents Although these debts remain after bankruptcy, filing can still provide indirect relief by freeing up income previously allocated to unsecured obligations. Differences Between Chapter 7 and Chapter 13 Discharge In a Chapter 7 bankruptcy , the discharge typically occurs about three to six months after filing. It’s designed for individuals with limited income who cannot afford to repay their debts. In Chapter 13 bankruptcy , debt discharge comes after completion of a repayment plan, which usually spans three to five years. Chapter 13 may also allow for partial repayment of certain debts that are not dischargeable in Chapter 7. Protecting Your Rights During the Process In order to have a debt discharged, it must be properly listed in your bankruptcy paperwork. Inaccurate or incomplete documentation could prevent certain debts from being discharged—even if they are otherwise eligible. Working with an attorney who understands the bankruptcy process in New Jersey can help ensure that you protect your assets, meet court requirements, and include all eligible debts. Find Out What Bankruptcy Could Do for You Discharging debt through bankruptcy can provide the clean break you need to regain control of your finances. Understanding which debts qualify—and which do not—is an essential step in deciding whether bankruptcy is right for you. At Stuart M. Nachbar, P.C. , we provide honest, straightforward guidance for individuals across New Jersey. If you’re ready to explore your legal options, we’re here to help. Contact us today to schedule your free consultation and take the next step toward financial relief. Visit www.snanj.com or call our office to get started.