Chapter 7 - Please help

[Anonymous]

Hello Everyone,

I am married and living with two kids in NJ .Single income and my salary is118K.Me and my wife both own the house and doesn't have much equity in it .I would say 15K equity .I financed the car .My car pay off is still 7800$ , my car KBB value is around 8000$.So Planning to keep my house and car.

I was involved in accident at fault and other party is suing me for more than 300K.I have only 15K in my  Auto insurance.I  also bought crypto currency from my credit cards for about 30000$ .The current value of  those  are about 4000$-5000$.

I am current on mortgages,car and credit card payments.  

I don't have enough savings  in my bank account.Please let me know If I can file chapter 7 and include the civil case and credit card debt in the chapter 7 Bankruptcy.Going through a lot .Please suggest me if Chapter 7 will wipe out my debt.

[Fx6cowboy]

Sounds like you’re going through a lot, sorry to hear. Truthfully, I would contact a Bk attorney regarding all of this. Most shouldn’t charge you to tell you your options. At least mine didn’t which help me file due to the no pressure approach.

I do know however that the type of Bk that you can file depends on your income, 0 up to a certain number can file a chapter 7. Anything above “this number” would require you to file for a chapter 13. The “number” is different in every state so as for you in NJ I wouldn’t know because I am in Texas. Hope this helps, good luck!

[Anonymous]

So you don’t meet the salary for a Chapter 7 in NJ, the maximum for a family of four is $103,946.
You may still pass the means test though.
Bankruptcy will not discharge restitution either.
The means test is very complex, and I’m not familiar with your states rules and I do not want to give you legal advice online.
As the other poster suggested, I’d sit down and talk to an attorney. Most don’t charge to just have a consultation with them. Most will tell you if you’re eligible for a Chapter 7 or not without charging you a cent.
Good luck and I’m really sorry all this is happening to you.

[despritfreya]

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@Anonymous wrote:
So you don’t meet the salary for a Chapter 7 in NJ, the maximum for a family of four is $103,946.

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OP - You are below median income. The correct amount for a family of 4 in NJ is $122,474.00. See:

https://www.justice.gov/ust/eo/bapcpa/20181101/bci_data/median_income_table.htm

The claim for the collision may be dischargeable.  See 11 USC 523(a)(9)

Discuss your options with an attny. Consultations are usually free or very low cost.

Des.

[Anonymous]

Thank you for the support .I  spoke to  BK lawyer  and he said we can file chapter 7 .Doing paperwork now.Fingers crossed.

[Anonymous]

Good luck with your Chapter 7. Please keep us updated.
Bankruptcy is always a difficult decision but provides much needed relief for the honest debtor. You’ll feel so much better.