Military Service and Bankruptcy in New Jersey

Saturday , 5, October 2013 Comments Off on Military Service and Bankruptcy in New Jersey

Bankruptcy in Neptune NJ.

Military service presents a unique opportunity to serve our country. However, sometimes while performing those duties which call during times of service, difficult financial stresses may appear on the home front. Our Country’s representatives have enacted laws to help those in the military who are overwhelmed by debt in the United States.

Here in New Jersey we have many military bases including McGuire Air Force Base, Fort Dix, Fort Monmouth, Picatinny Arsenal, Loran Support Unit, Training Center Cape May, Naval Air Engineering Station and Naval Weapons Stations Earle. Generally speaking if you have more income those households the same size in the same county in New Jersey, there is a presumption that you cannot file a Chapter 7 bankruptcy.

As a bankruptcy lawyers in New Jersey we have filed numerous Chapter 7 bankruptcies for individuals and families alike who were beyond the income limits of the means test by working the test’s numbers downward to get our debtors under the presumption. Those same debtors went on to receive a discharge of their debts.

Veterans and Active duty military have unique set of exemptions to help them with the means test. The means test (income test) does not apply to certain Disabled veterans. If your disability is rated at least 30% and more than half of your debt was incurred while you were on active duty or performing a homeland defense activity, you don’t have to take the means test. This means you get to file for Chapter 7 bankruptcy regardless of how much income you make. For our reservists and national guardsmen, Congress has made a special exemption from the bankruptcy means test.  For members of the Reserves or National Guard, who file bankruptcy while on active duty, or within 540 days after release from active duty, they are excluded from all forms of means testing. Active duty servicemen and servicewomen are not excluded from the means test. However, active duty personnel serving in a combat zone are also excused from completing pre-bankruptcy credit counseling. Furthermore, active duty personnel receive protection under the Service members Civil Relief Act (SCRA).  The SCRA protects active duty military personnel from default judgments and evictions, and can even reduce the service member’s interest rates.

The New Jersey personal bankruptcy attorneys at Riviere Cresci & Singer LLC can answer any questions you may have concerning filing Bankruptcy, or any general bankruptcy questions. If you live in New Jersey, including Howell, Jackson, and Mount Holly, Browns Mills, Willingboro call us for a free consultation to find out how we can help you.