A New Jersey Consumer Bankruptcy Attorney Can Help You Get a Fresh Start
If you are struggling under the weight of your unmanageable debts, you have likely thought about filing for protection under the bankruptcy code. Since many people have a stigma associated with declaring bankruptcy, they often wait beyond the time when their financial situation could first benefit from it, waiting instead to feel as if they are ready emotionally to do so. If you are dealing with financial stress, you should speak with a New Jersey consumer bankruptcy attorney promptly to maximize the benefits of the bankruptcy process.
Despite the stigma around bankruptcy, filing for consumer bankruptcy is not a bad thing. Bankruptcy laws exist specifically to provide financial relief to people in your situation. While filing for bankruptcy does have some consequences, if filing for bankruptcy is your best option, the benefits will far outweigh the time-limited negative side effects of the process.
Types of consumer bankruptcy for individuals
Bankruptcy is simply an available legal option that can help you to have a fresh financial start. Corporations have long relied on bankruptcy as a tool to be used in conducting business. There is no reason why you shouldn’t view it in the same manner if your financial circumstances demand it.
The primary types of bankruptcy that are available to individual consumers are Chapter 7 and Chapter 13 bankruptcies. Chapter 7 is called a liquidation bankruptcy, while Chapter 13 is called a reorganization. Chapter 11 provides another avenue of reorganization, but it is only an option for individuals in rare situations.
Chapter 7 bankruptcy
Chapter 7 bankruptcy is the most common type of consumer bankruptcy for individuals. With this type of bankruptcy, the debtor files a petition for relief with the bankruptcy court. Upon filing, the court issues an automatic stay, which is an injunction ordering the debtor’s creditors to halt all actions to collect on the owed debts.
People file for protection under this chapter in order to discharge their debts. If you do so and a discharge of your unsecured debts is granted, you will not be required to repay them, and your creditors can make no further attempts to collect them from you. There are a number of different types of debts that are not able to be discharged. These include child support, alimony, recent tax debts, personal injury awards because of accidents involving drinking and driving or criminal restitution resulting from the debtor’s illegal and malicious acts.
Chapter 13 bankruptcy
Individuals may also choose to file for reorganization under Chapter 13 of the bankruptcy code. In order to be eligible for reorganization, the debtor is required to meet certain criteria. These include having a regular income and the ability to make the payments that are required under a repayment plan lasting between 3 and 5 years. Chapter 13 also has a ceiling on the amount of debt a person can have in order to file under it.
When you file a Chapter 13 bankruptcy petition, an automatic stay is issued, immediately halting all collection efforts. You will propose a repayment plan through which you will repay at least a portion of your debts. The plan is presented to the creditors, and they are able to object to it and suggest changes. Once the court approves a plan, the creditors must accept it. If you successfully complete your repayment plan, the remaining debts that are left over will be discharged.
One great benefit of Chapter 13 is something that is called lien stripping. Lien stripping refers to a process through which second mortgages or home equity lines of credit may be stripped away from the home in certain situations. This is not always possible, but it is available if you owe more on your first mortgage than your home is worth. At the end of your repayment plan, the second mortgage or home equity line of credit would be discharged along with your other remaining unsecured debt balances, meaning you would never have to repay it.
What to Expect During Your Free Initial Consumer Bankruptcy Consultation
We know that dealing with debt can be overwhelming, and we also know that many people find it stressful to contact an attorney. We work hard to make the process as simple and stress-free as possible, and this starts with providing a free initial consultation where New Jersey consumer bankruptcy attorney Georgette Miller will explain everything you need to know.
During your free initial consultation, Ms. Miller will provide the answers to questions such as:
- What type of consumer bankruptcy should I file?
- If I already filed for bankruptcy once, can I file again?
- Can just I (or my spouse) file for bankruptcy in New Jersey?
- Can I keep my home if I file a consumer bankruptcy?
- Can I keep any other assets if I file a consumer bankruptcy?
- Will I be free and clear of all debts after filing for bankruptcy under Chapter 7?
- What should I do if I am already being sued or facing collection?
If you have additional questions, you should not hesitate to ask them. When you are considering a consumer bankruptcy, it is extremely important to make informed decisions. Ms. Miller will be happy to answer all of your questions; and when your free initial consultation is over, you will feel confident that you are making the right decision about your next steps.
Talk to a New Jersey Consumer Bankruptcy Attorney for Free
The bankruptcy code is in place in order to protect debtors and creditors alike. If you file under the correct chapter and do everything properly, bankruptcy can provide you with immediate relief while also being cost effective. To make sure that everything is filed in the required manner, it is important to work with an experienced New Jersey consumer bankruptcy attorney. Call Georgette Miller and Dilworth Paxson today at 866-340-2596 or tell us how we can reach you online to schedule your free initial consultation.