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When is Bankruptcy Officially Over in New Jersey?

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When is Bankruptcy Officially Over in New Jersey?

Bankruptcy law

Bankruptcy can be a daunting prospect just as much as overcoming a significant amount of debt. The bankruptcy code is a set of federal laws, so no matter what type of bankruptcy you are filing you will have to follow the federal code. Bankruptcy can be complex, and that is why you need to have an experienced bankruptcy attorney help you with your bankruptcy filing in New Jersey. 

There are different types of consumer bankruptcy, and the duration of your bankruptcy as well as the steps you take leading up to and during the bankruptcy period will depend on what chapter or the bankruptcy code you file under. Bankruptcy proceedings can take as little as a few months up to a number of years. Georgette Miller & Associates will discuss your particular situation and finances, your goals for overcoming your debt, and eligibility under the bankruptcy code and will recommend a bankruptcy solution to meet your needs. No matter how long your particular bankruptcy process lasts, Georgette Miller & Associates can help you achieve your debt relief goals.

Filing for Chapter 7 Bankruptcy – A Shorter Process

A Chapter 7 bankruptcy resolves debt and provides financial relief through liquidation. In a Chapter 7 bankruptcy, the filer’s eligible debts are discharged by converting their nonexempt assets into cash to pay the creditors. The bankruptcy trustee will make the distributions to the creditors on your behalf. 

Chapter 7 bankruptcies typically last a few months. First, you would need to have an analysis of whether Chapter 7 is the correct provision of the Bankruptcy Code to file under. You will need to provide your bankruptcy attorney with accurate information on your income, assets and your eligible debts. In some instances, a person wishing to file under Chapter 7 may be compelled to file under Chapter 13. Georgette Mill & Associates can answer your questions about eligibility and make the appropriate bankruptcy chapter recommendation for you, leading you through the entire bankruptcy process with the bankruptcy court.

After completing the analysis and initial filing associated with Chapter 7, your creditors who have an unsecured debt against you that would be discharged will be informed of your filing. This is for a number of reasons. First, when you file for Bankruptcy, you are protected from further collection efforts by your creditors, and they will face penalties if they violate this part of the bankruptcy code. If a creditor violates the automatic stay, you need to let your bankruptcy attorney know right away so appropriate action can be taken with the bankruptcy court. Additionally, your creditors have an opportunity to object to the discharge of the debt, but they must make their objections within 60 days. 

Once you have filed for Chapter 7, the bankruptcy trustee will need to liquidate the eligible assets and make the distributions to the creditors. Though each creditor may not receive the total amount you owe from these distributions, the debts will be discharged, or in other words, no be longer your obligation. 

Consumers Filing for Chapter 13 Bankruptcy

Some individuals who may wish to file for Chapter 7 Bankruptcy may not be eligible due to their income level being high with the ability to make payments on outstanding debt. In this instance, the bankruptcy filer may be directed into a Chapter 13 Bankruptcy which focuses on reorganization rather than liquidation. In Chapter 13, the individual filing for bankruptcy submits a plan to the Bankruptcy Trustee to repay the outstanding debts over a period of three to five years while they continue to pay their current expenses. That is why there is an evaluation of income and expenses –  to ensure that the bankruptcy plan is feasible to accomplish and complete. 

While some people do not want to be beholden to such a long repayment period, it may be the proper bankruptcy solution for you under the law. At the completion of the Chapter 13 plan, those debts are discharged and are no longer your responsibility. The automatic stay also applies to Chapter 13 filing, which will offer you protection from creditors during the duration of your bankruptcy. By working with a knowledgeable bankruptcy attorney, you can preserve your assets and plan for your future with a Chapter 13 filing.

Businesses and Consumers Can Seek Debt Relief Under Chapter 11

Chapter 11 is another reorganization chapter of the bankruptcy code. Chapter 11 of the Bankruptcy Code is not as frequently utilized by individuals due to the Bankruptcy Code determining the appropriate chapter of filing, usually directing individuals to Chapter 7 or Chapter 13. However, Chapter 11 is available to both businesses and consumers alike, though it will be a lengthy process.. 

The reorganization process under Chapter 11 is typically used by businesses and allows the flow of income and expenses to continue in the midst of repayment of debts under the bankruptcy plan. If you own a business, this could benefit you and your business to keep you afloat while restructuring and reorganizing. If you are filing for Chapter 11 as an individual, you can still receive some of these benefits, but you should discuss this with your bankruptcy lawyer. 

Chapter 11 has more complexities and requirements to meet and navigate, the most significant requirement being the consent of the creditors to file under this chapter. If the creditors do not consent to the plan, the debtor and their attorney will need to seek other alternatives for debt relief, whether by pursuing a different plan or by making an appeal to the creditors to accept a settlement deal. Getting the creditors to agree to your Chapter 11 filing or an appropriate settlement can be a challenge. Due to the complexities of these negotiations and planning with multiple creditors, a Chapter 11 can take years to complete. Your bankruptcy attorney can help you through this process.

Schedule Your Free Consultation

You can receive answers to your bankruptcy questions by contacting Georgette Miller & Associates online or by calling 866-964-6529. We will help you select the correct Bankruptcy Solution for you.