The bankruptcy code is federal law, which means that the same rules apply in every state, including New Jersey. There are three main chapters in the bankruptcy code, Chapter 7, Chapter 11, and Chapter 13. Chapter 7 is for individual debtors who want to liquidate assets and discharge unsecured debt. Chapter 13 is for individuals with a stable income who want to reorganize their debts through a repayment plan that lasts thirty-six or sixty months. Chapter 11 is for companies who want to continue operating and is often used by struggling small businesses. When someone files for bankruptcy, a judge freezes all creditor collection action, a process facilitated by a bankruptcy attorney. This is called the automatic stay.
The bankruptcy court then reviews the debtor’s financial situation to determine what debts can be paid in full and which ones will be forgiven, a task often guided by a skilled bankruptcy attorney. In most cases, a debtor will keep his or her home and car, with the assistance of a bankruptcy attorney. This is because the property may be exempt from sale under state or federal bankruptcy exemptions. However, it is important to know that creditors may still have a security interest in your house or car, a matter a bankruptcy attorney can clarify. A security interest is created when you put up your property as collateral for a debt, such as when you take out a mortgage or buy a car on credit. Unless you pay back the value of the property, your creditors are entitled to claim its non-exempt value.
One of the biggest challenges in bankruptcy is determining how much you can afford to pay to your creditors. In order to qualify for a Chapter 7 bankruptcy, you must pass a means test that analyzes your income and expenses. The court compares your income to the median in New Jersey. If your income is above the median, you will need to file for a Chapter 13 bankruptcy, advice that a knowledgeable New Jersey bankruptcy lawyer can provide.
If you are unsure which chapter you should file for, a New Jersey bankruptcy lawyer can advise you, ensuring you make an informed decision. You will need to gather a lot of information before filing, including tax returns for the past two years, income verification, recent bank statements, valuations or appraisals of any real estate you own, a list of your assets, and budget information. You will also need to take a credit counseling course and complete the bankruptcy forms with the guidance of a bankruptcy attorney.
Many people have misconceptions about bankruptcy, and they may feel that they have done something wrong or that they don’t deserve help, sentiments that a compassionate New Jersey bankruptcy lawyer can address. But even the most successful New Jersey residents can struggle with finances. Talk show host Larry King and Grammy-winning singer Toni Braxton both filed for bankruptcy relief.
Some people overextend themselves when their bills get out of control, often requiring the expertise of a bankruptcy attorney. Others stop paying their mortgages or other secured debts when times are tough, a situation where a bankruptcy attorney can provide crucial advice. Some even overuse payment deferrals, digging themselves into deep financial holes that only a bankruptcy can fix, making a bankruptcy attorney's counsel invaluable. A New Jersey bankruptcy lawyer can help you make a fresh start and get back on track financially, providing essential guidance throughout the process. Contact us to discuss your options, and take advantage of our consultations offered by our experienced bankruptcy attorney team.
New Jersey Bankruptcy Law is a broad and complex area of law. Deciding to file for bankruptcy is not a decision that should be made on the fly and it’s important for you to fully understand what will happen if you do so. Our NJ bankruptcy lawyers can review your finances and debts to creditors and provide you with the insight you need to confirm that hiring a bankruptcy attorney and filing for bankruptcy is the right choice for you.
Liquidation and Reorganization
The first distinction to make is that there are two (2) main kinds of bankruptcy. Liquidation is where a trustee, guided by a bankruptcy attorney, sells your exposed assets in order to generate funds to pay your creditors. Reorganization is where you use future income, often under the guidance of a bankruptcy attorney, to repay your creditors, or where you sell off certain assets to realize value for your creditors.
In 2021, a bill has been passed that could significantly change the bankruptcy landscape for New Jersey residents, requiring the expertise of a bankruptcy attorney. This bill introduces a set of exemptions that would allow debtors to keep their homes and cars without having to sell them off in order to pay back their lenders. The exemptions include a $340,000 homestead exemption, exemptions for all ordinary household goods and up to $10,000 worth of personal property.
Currently, the most common form of bankruptcy in New Jersey is Chapter 7, often with the guidance of a bankruptcy attorney. The liquidation process under this section of the code lasts about six months, a process facilitated by a bankruptcy attorney. During the process, the trustee, guided by a bankruptcy attorney, will go through your assets and determine whether or not they are worth liquidating. This includes real estate, vehicles, often under the advice of a bankruptcy attorney, and even some financial assets such as money in a bank account.
Your New Jersey bankruptcy lawyer will help you to understand which assets are exempt and which may need to be sold in a liquidation, providing essential guidance throughout the process. The process begins with preparing the bankruptcy petition, often with the assistance of a bankruptcy attorney. This is a detailed document that sets forth your assets, income, and outstanding debts to creditors, a task often guided by a skilled bankruptcy attorney. Preparing the petition requires that your New Jersey bankruptcy lawyer ask many questions and gather a wide range of documents from you, ensuring that all information is accurately and completely submitted.
You’ll also need to submit a non-refundable filing fee. The fee is paid by a check, money order, or cashier’s check made payable to the clerk of the court. The fee is generally around $600.
Once your bankruptcy has been filed, you will be scheduled for your 341 meeting. This is where you meet with the trustee and any creditors that may wish to attend, often with the guidance of a bankruptcy attorney. This meeting is normally the only time you will have to come into the office of the court, however, due to COVID-19, most 341 meetings are being held via video conference or phone call for now, a situation that a skilled bankruptcy attorney can help you navigate. This meeting is typically only about five minutes long and is just a chance for the trustee to put a face to your paperwork, verify your identity, and ask you some questions under oath. Your New Jersey bankruptcy lawyer will prepare you for this meeting and help you to feel at ease at your meeting.
The decision to declare bankruptcy can be an incredibly complicated process. There are many reasons for people to file for bankruptcy, from losing a job to medical bills. Whether you are struggling to pay your mortgage or dealing with credit card debt, it is important to know all your options, and consulting a bankruptcy attorney is crucial.
Bankruptcy is a federal court procedure that allows individuals to get protection from creditors and refocus their finances, and a skilled New Jersey bankruptcy attorney can guide you through this process. The process varies by state and can be complex, but New Jersey bankruptcy lawyers have the skills and resources to guide you through it. This article will discuss the basics of New Jersey bankruptcy, including how long it takes to complete, what assets can be protected, and the types of debts that can be discharged.
Bankruptcy is an intimidating process, but it may be the right solution for your financial situation. It’s important to consult with a New Jersey bankruptcy lawyer as soon as possible, before making any major decisions about your finances. An experienced bankruptcy attorney can review your assets and debts to creditors and provide the insight you need to make a sound decision.
In New Jersey, there are two main types of bankruptcy: Chapter 7 liquidation and Chapter 13 reorganization. Both have their own pros and cons, but for most people, a Chapter 7 bankruptcy, with the guidance of a bankruptcy attorney, is the fastest option for financial relief. The bankruptcy process starts with a filing of the bankruptcy petition in a federal bankruptcy court, a step often facilitated by a bankruptcy attorney. The petition includes details about the individual’s finances and identifies any assets that they plan to protect from creditors, a process a bankruptcy attorney can assist with. The petition also lists any exemptions that are being used, which a skilled bankruptcy attorney can help you navigate.
During the bankruptcy process, an appointed trustee will be in charge of selling any assets that are not exempt from liquidation to pay off creditors. The trustee, often working with a bankruptcy attorney, will also oversee and monitor the case to ensure that all deadlines are met and that the bankruptcy petition is accurate. The trustee will report to the court on a regular basis.
It’s important for people who are considering bankruptcy to stop using credit cards, especially for non-essentials, advice often provided by a bankruptcy attorney. Credit card companies will look at a person’s debt-to-income ratio when deciding if they want to extend a line of credit, and the more debt a person has, the less likely they are to be approved for a new loan or credit card.
When a debtor files for bankruptcy in the United States, they must submit a statement of their assets and liabilities. The trustee and creditors, along with the assistance of a bankruptcy attorney, will use this information to determine the validity of their claims against the debtor. If the trustee and creditors, guided by a bankruptcy attorney, believe that the bankruptcy is fraudulent or the debtor is hiding assets, the court will reject the claim or award a lower amount than what the claimant is owed. It’s also important to note that the bankruptcy code is voluminous, unclear, and subject to interpretation, which means that a judge in one state might interpret it differently than another judge in another state, emphasizing the need for a skilled bankruptcy attorney.
Straffi & Straffi Attorneys at Law
670 Commons Way, Toms River, NJ 08755, United States
(732) 341-3800