Contact Us
Please fill out the form below and our attorney will contact you.
Our Offices
Ratings & Reviews
-
Mr Zimmerman was helpful and kind and prompt . He always answers his phone and that is refreshing . I will be using him for my bankruptcy in the future. He is one of the good ones . He is an outstanding attorney who truley care . He made ev...
Show More -
Mr. Zimmermann is a fantastic bankruptcy attorney who handled my case with care, efficiency and urgency. We were able to beat a judgement against me in the nick of time, and I truly feel a sense of relief due to the services of Mr. Zimmerma...
Show More -
This Lawyer will go above and beyond for you. As well as show tremendous empathy for those who are vulnerable and scared. His compassion to help civilian's shows through his actions and with his word. When he says he is going to call he cal...
Show More -
I’ve worked with Mr.Zimmerman on two different legal issues. In both instances he was fantastic! He is extremely knowledgeable and compassionate and able to breakdown a course of action into language anyone can understand. I would highly re...
Show More -
I highly recommend Mr. Zimmermann as an attorny. I recently purchased an investment property and boy was he helpful. He was easily available, very clear in explaining various concepts, laws and regulations, and provided very helpful tips o...
Show More
- posted: Feb. 02, 2025
Chapter 7 bankruptcy is the best way for many people to get out from under overwhelming financial obligations and make a fresh start. Not everyone can receive this form of debt relief though. To be eligible pursuant to Chapter 7, a filer must qualify under what is known as the means test. This test examines an individual’s income and expenses to determine if debt discharge is appropriate.
For debtors living in nontraditional households the means test can present unique challenges. Current standards don’t necessarily fit adults who live with their parents, people with roommates and those who reside with extended family members. The means test assesses whether a debtor‘s income falls below the state’s median income for a household of their size. If income exceeds this threshold, the test assesses allowable expenses to determine if the filer has too much disposable income to receive Chapter 7 relief. These expenses are based on Internal Revenue Service standards and local living costs.
Some of the ways debtors living in nontraditional households might encounter difficulties include the following:
Shared expense reporting — A debtor contributing to shared rent, utilities or groceries may find it challenging to document their exact portion if expenses are not formally divided.
Unsupported dependents — Expenses for non-nuclear family members, such as aging parents or siblings, may not be recognized as allowable deductions unless the debtor can prove financial dependence.
Income calculation — Adults in serious debt sometimes live with their parents to cut down on expenses, but doing so could mean that parental income is included in their means test analysis.
Failing to qualify under the means test may force debtors into Chapter 13 bankruptcy, which requires a repayment plan over several years.
If you’re currently living with someone besides a spouse or your children, there are ways to help clarify your financial situation while your eligibility for Chapter 7 bankruptcy is being reviewed. Keep detailed records of your income and expenses, including receipts for utilities and groceries in a shared apartment and rent that you might be paying to your parents while living with them. An experienced bankruptcy attorney can look at your particular circumstances and see how they align with means test criteria.
The Law Offices of James C. Zimmermann represents New Jersey residents in Chapter 7 bankruptcies and other debt relief matters. For a consultation, please call 973-764-1633 or contact us online. We have locations in Vernon, Wayne, Pompton Lakes, Hackensack and Nutley.
