66 East Main Street, 3rd Floor Little Falls, NJ 07424

Do I Earn too Much to File for NJ Bankruptcy Protection?

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I have been representing debtors in bankruptcies for over 27 years.

There are common misconceptions about earnings:

Bankruptcy is only for the unemployed”       or       “I earn way too much to qualify for  bankruptcy”.

The truth is you cannot earn too much which makes you ineligible for bankruptcy. In fact, in a bankruptcy reorganization for individuals (Chapter 13), there is a requirement that the debtor have sufficient income to cover his/her basic living expenses.

Most of my clients are employed.  Many of my clients had rather high incomes yet still qualified for bankruptcy.     By high incomes I mean $100,000 to $200,000 per year. One of my clients actually earned over $300,000 per year.

How is this possible?

There are several chapters of the bankruptcy code which accomplish different goals for clients. Those different chapters have different requirements.

Under the right circumstances, clients save more money in a reorganization than they would in a liquidation (Chapter 7). In other words, they save more money by paying some back to creditors than they would if they paid back nothing.

The reasons for filing bankruptcy vary amongst my clients.

Due to the many scenarios by which someone can file for bankruptcy and the different types of bankruptcies, it is essential that a client makes an appointment (free consultation are offered by me) to go over your specific questions, situation, goals and match the client to the proper financial solution.

Call me:   Ralph A. Ferro, Jr., Esq. (201) 446-5904 and I will meet with you to review what is best in your particular financial situation…