Bankruptcy FAQ · Monmouth County Debt Relief Attorneys
Many people who are eligible for bankruptcy needlessly struggle month after month or lose their home or business from waiting too long. Of course there are downsides to bankruptcy, but also lots of myths and bad information out there.
At Klafter & Mason, L.L.C., we offer a free initial consultation to address your questions or concerns about bankruptcy. Contact us to explore whether you are a candidate for bankruptcy court protection and a fresh financial start.
Filing For Bankruptcy In New Jersey · Frequently Asked Questions
Bankruptcy is a set of federal laws that provide immediate protection from creditor actions and forgiveness or partial forgiveness of debts.
What is Chapter 7 bankruptcy? For individuals or couples who qualify under the income criteria, Chapter 7 bankruptcy or "straight bankruptcy" cancels certain debts outright.
What is Chapter 13 bankruptcy? For individuals who are not candidates for Chapter 7 discharge, Chapter 13 bankruptcy offers a reprieve from creditors and interest while you pay back part of your debts over time.
Can my business declare bankruptcy? Yes. In Chapter 11 reorganization, the business partially repays debts under a plan approved by creditors. Small-business owners may also opt to shut down the entity under Chapter 7 so that they are not personally liable for debts of the business. We can explore your commercial bankruptcy options.
Are all debts discharged in bankruptcy? No. Bankruptcy discharges unsecured debts such as credit card debt, medical bills, utility bills and judgments. It does not apply to secured debt (such as a mortgage) or certain obligations such as student loans, child support or criminal fines.
Can I discharge past due taxes? It depends on the facts of your case. Income tax arrears from at least three years back may be discharged, but recent income taxes, property taxes and other tax obligations cannot. We can determine if your taxes are eligible.
Do I have to be flat broke to file bankruptcy? No. The purpose of bankruptcy is to help you get out of debt before you lose everything. Many hardworking people with decent incomes obtain debt relief through Chapter 7 or 13.
Do I have to give up all my property? In Chapter 7 bankruptcy, some assets are forfeited to pay creditors. However, most assets are protected under the bankruptcy exemptions, including retirement savings, equity in your home or vehicle, and personal possessions. Most clients keep all of their assets.
What assets are not exempt? In a Chapter 7, you may not be able to keep a boat, a second home, expensive jewelry or other luxuries. We can determine before you file bankruptcy which assets are covered.
Can bankruptcy stop foreclosure? Yes. If you can keep up with the current payments, filing for Chapter 13 halts foreclosure proceedings and allows you to pay the arrears over time.
Can bankruptcy stop repossession? Chapter 13 prevents repossession or may allow you to get your repossessed vehicle back. Chapter 13 can also reduce the remainder of your car payments to an affordable level.
Can bankruptcy stop debt collection or garnishment? On the day that your bankruptcy petition is filed, all creditor actions and creditor harassment must stop, including phone calls, lawsuits, liens or wage garnishment.
What is bankruptcy credit counseling? Before you can file your bankruptcy petition, you must show proof that you have completed an approved credit counseling course. Before your debts are discharged, you must also complete a financial management course on budgeting and using credit. The classes are not expensive and take only a few hours. They can be taken in person, by phone or by Internet.
Will bankruptcy ruin my credit rating? Most people contemplating bankruptcy already have poor credit scores. Bankruptcy does not blacklist you or prevent you from getting credit. Within a year or two, you can qualify for credit cards, car loans and even home loans. Any impact is short-lived — bankruptcy actually allows you to rebuild good credit. See Life After Bankruptcy.
Manalapan New Jersey Lawyer For Consumer Bankruptcy
Attorney Gary Mason has practiced in consumer and small-business bankruptcy law for more than 20 years. The law firm of Klafter & Mason, L.L.C., represents debtors in Monmouth County and surrounding counties of New Jersey. Arrange a free consultation today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.