Chapter 7 is a liquidation bankruptcy meaning it can eliminate most types of unsecured debt. Examples of unsecured debt are credit cards and medical bills. Individuals, married couples, corporations, and partnerships can all file a Chapter 7 bankruptcy if eligible.
Chapter 13 is a reorganization or repayment bankruptcy that allows the debtor to enter into an interest-free debt repayment plan to pay back all or some of the debtor's debts over a 3 to 5 year period. The length of the plan will depend on the debtor's property, income, and expenses. During this time, creditors must abide by the plan and are not permitted to collect from you or contact you.
One crucial aspect of a Chapter 13 bankruptcy is that you must have a regular income, for you will be required to pay both your monthly living expenses and repayment to the court for your consolidated debts.
A Chapter 13 bankruptcy is very powerful because it provides a mechanism for debtors to prevent foreclosures and sheriff sales and stop repossessions and utility shutoffs while catching up on their secured debt.
As soon as you come to our office for a free consultation and hire us as your New Jersey bankruptcy lawyer, creditors will no longer be permitted to contact you or your friends and family members. After hiring our firm, you will be able to give our firm's name and number to any future creditors who call. The sooner you come to our office and meet with one of our New Jersey bankruptcy lawyers, the sooner the harassment will stop.
One of the biggest fears people have when first discussing filing a bankruptcy is the possibility of losing their homes. Bankruptcy is meant to help you get a fresh start, not hurt you. There are several different ways to deal with homes in bankruptcy proceedings; listed below are some explanations.
If you are current on your mortgage payments and file a Chapter 13 bankruptcy, you will not lose your home as long as you can continue to keep current with the mortgage payments. If you file a Chapter 7 bankruptcy and are current on your mortgage payments, whether or not you will lose your house depends on the amount of equity you have in the property as well as the amount of the homestead exemption to which you are entitled. Homestead exemptions vary from state to state, so it is best to contact one of our New Jersey bankruptcy lawyers at (201) 489-5500 to discuss your specific situation.
If you are behind on your mortgage payments, typically, the best way to keep your house is to file a Chapter 13 bankruptcy. However, you will need to resume making your regular mortgage payments and repay your missed payments through the Chapter 13 repayment plan. There is a much greater chance you will lose your house if you file a Chapter 7 bankruptcy and are behind on your payments.
Since everyone's situation is different, we strongly recommend that you contact our office at (201) 489-5500 or [email protected] and speak to one of our New Jersey bankruptcy lawyers to discuss your specific set of circumstances.
Depending on whether you file a Chapter 7 or a Chapter 13 bankruptcy, there are ways for you to keep your vehicle. In a Chapter 7 bankruptcy, you must be current with your car payments if you want to keep your vehicle. If you are not current when you file, you must be able to catch up on your payments, usually in a short amount of time.
If you are filing a Chapter 13 bankruptcy and are current with your car payments, you can continue making the same payment outside the bankruptcy plan. If you are behind on your car payments, one of our New Jersey bankruptcy lawyers can help you arrange for the payments to be included in your Chapter 13 repayment plan. Either way, you will be able to keep your car.
Today, the most effective way to get relief from student loans is through a Chapter 13 repayment bankruptcy. Student loans cannot be discharged in a Chapter 7 bankruptcy. Using a Chapter 13 bankruptcy, our New Jersey bankruptcy lawyers may be able to consolidate your student loan debt into a repayment plan. This will ease the burden of possible garnishments as well as harassment from student loan agencies. Call our office today at (201) 489-5500 to speak with one of our New Jersey bankruptcy lawyers on easing this burden.
As for tax debts, they are generally dischargeable only if you file bankruptcy more than three years after you have filed a timely and accurate tax return. If your tax return had been filed late, the tax debt is generally dischargeable only if you file bankruptcy more than two years after filing an accurate return. However, tax matters can be complicated, and it is best to contact one of our experienced New Jersey bankruptcy lawyers at (201) 489-5500 or [email protected] to discuss all your options thoroughly.
Yes, all of your creditors must be listed in your bankruptcy, along with their names and addresses. This is important so that all of your creditors can receive notice of the bankruptcy and, if you are repaying your creditors through a Chapter 13 bankruptcy, can get their share of the money that is being repaid. Not listing all of your creditors is in violation of the law.
If you forget to list a creditor, you should contact your attorney as soon as you realize the creditor has been left out. At that time, you can provide your attorney with the creditor's name and address and the type and amount of the debt. Omitted creditors can often be added to the bankruptcy; however, your attorney will advise you on how things will proceed. Our experienced New Jersey bankruptcy lawyers can help you handle this issue if it arises.