Filing For Chapter 7 Bankruptcy in New Jersey?
Our Leading Chapter 7 Bankruptcy Lawyers Can Explain How
It is common for individuals to feel overwhelmed by mortgages, household bills, car loans and credit card debt. When a person faces these financial stressors coupled with an unexpected job loss or medical crisis, debt can spiral out of control and maybe even put, an entire family at risk. In some cases, filing for Chapter 7 bankruptcy may be the answer to your debt problems, which we will explain below. However, in other cases, a Chapter 13 bankruptcy — or other forms of non-bankruptcy debt relief — might be the solution. Filing for bankruptcy in New Jersey itself can be a hard decision to make, but it helps to have wise legal counsel guiding you down the appropriate path
You can learn about all your options in a free, no- obligation consultation with the Chapter 7 bankruptcy lawyers at Garland & Mason, L.L.C. We have decades of experience in working side by side with clients to provide legal services tailored to their individual needs. Our attorneys possess an extensive knowledge of New Jersey bankruptcy laws and can help you determine the best route forward to deal with your debts and get a fresh start.
How Does Chapter 7 Bankruptcy Work?
Chapter 7 bankruptcy involves the liquidation of a debtor’s nonexempt assets to satisfy debts owed to creditors. Certain property is exempt from bankruptcy liquidation. We recommend talking to Chapter 7 a bankruptcy lawyer to help you identify and maximize your exempt assets as well as advise you of the potential risk of losing non-exempt assets.
Bankruptcy exemptions keep your assets safe from liquidation. Creditors cannot use these assets to satisfy their claims. At the conclusion of Chapter 7 proceedings, the debtor receives a discharge effectively and forever eliminating all eligible debt.
There are many advantages to filing Chapter 7, such as:
- You have an automatic “stay” order put in place the moment you file the bankruptcy petition, which stops threatening letters and telephone calls from creditors. The automatic stay also stops foreclosure, giving you and your attorney time to decide what is best moving forward.
- Within four to six months, the bankruptcy court will likely discharge most unsecured consumer debt, including credit card debt, unsecured lines of credit and medical expenses. Even just having most of your debt discharged frees up more income and allow for an easier time paying bills going forward.
- Filing for Chapter 7 bankruptcy in New Jersey puts an end to a downward debt spiral. Before Chapter 7, a credit score has little chance of improving, but filing gives hope that you improve and rebuild your credit score over time.
How Do You Become Eligible for New Jersey Chapter 7 Bankruptcy?
After October 2005, eligibility requirements changed for Chapter 7 bankruptcy. Previously, anyone could file for Chapter 7 bankruptcy protection. However, the amended US Bankruptcy Code now contains eligibility requirements based on median household income standards, known as the Chapter 7 means test. If a person’s household size and income is below the average for the state of New Jersey, the person can file Chapter 7. If the person does not fall below the average, the second part of the means test requires a complicated financial analysis based on disposable income and unsecured debt. For this reason, we strongly recommend that you seek the guidance of an experienced Chapter 7 bankruptcy lawyer to help you through this difficult process.
Also, please note that just because a person may be eligible to file for Chapter 7 bankruptcy does not mean that is in that individual’s best interest to do so. Your situation might call for — or benefit most from — a different financial solution. For instance, you may possess certain non-exempt assets, such as significant equity in your home, that may be at risk in a Chapter 7 bankruptcy. Under those circumstances, you may be better served by filing a Chapter 13 petition. For more information on different types of bankruptcy or other financial solutions, please consult with a New Jersey bankruptcy attorney.
Call Chapter 7 Bankruptcy Lawyers in New Jersey for a Free Consultation
Bankruptcy is not the right solution for everyone, but the benefits of bankruptcy may make it the right one for you. While your credit score will take a hit, you will finally have the chance to get out from under your debt and start over. You need an experienced hand to help you through filing for Chapter 7 bankruptcy in New Jersey to achieve the best possible resolution. Our law firm offers you our experienced counsel and support.
For Chapter 7 bankruptcy information, contact our Manalapan firm or call us at (732) 358-2028 to schedule a free initial consultation. Our Chapter 7 bankruptcy lawyers can answer your questions and will help you find the right path to a fresh financial start.