NJ BANKRUPTCY LAWYER ANSWERS QUESTIONS

New Jersey Bankruptcy Frequently Asked Questions

Is filing a bankruptcy right for me?

If you find yourself overwhelmed by debt; credit cards, medical bills, car payments, mortgages, or facing wage garnishments at work, and you are unsure what to do, bankruptcy may be the best option for you. An attorney experienced in bankruptcy law can help you determine if bankruptcy is right for you. It is important that you know what your options are, whether you are seeking a fresh start through a Chapter 7 or a structured repayment through a Chapter 13. You are not powerless to the ruthless collection efforts of your creditors. An experienced bankruptcy attorney can help you get back on track.

Will Filing a Bankruptcy Ruin My Credit Permanently?

Absolutely Not! In fact, filing a bankruptcy may be just what you need to help get your credit back on track. Within months of filing for a bankruptcy you will likely receive multiple offers for new credit. If you currently have a secured debt, such as car payment or a mortgage, you will have the option to reaffirm that debt and have it survive the bankruptcy. Maintaining these secured debts gives you a head start in the process to rebuild your credit. The important thing to remember is, it is the decisions you make after filing a bankruptcy that ultimately determine your future credit. If you have any questions as to how filing a bankruptcy can help improve your credit score in the long run, contact an experienced bankruptcy attorney as soon as possible. In many situations not doing anything is the most devastating decision of all.

Is a Chapter 7 Right For Me?

A Chapter 7 is known as the Fresh Start Bankruptcy. In a chapter 7 all unsecured debt, credit cards, medical bills, etc., are discharged. You have the option to continue any secured debts, such as car payments and mortgages, and keep the property that is securing those debts. Yes, it is possible to keep your home and your car and still receive a fresh start. The important thing to remember is not everyone qualifies for a Chapter 7, you may be disqualified if you make to much money or have too many assets. If your creditors are calling your house non-stop or they are taking your money out of your pay check each week call a bankruptcy attorney as soon as possible. You can take back control of your life.

When does filing a Chapter 13 Make Sense?

If you make too much money to qualify for a Chapter 7 but still face the same unrelenting pressure from your creditors Chapter 13 may be right for you. If you have fallen behind on your mortgage, and the bank refuses to cooperate in a modification, a Chapter 13 can help you get back on track. Contact a bankruptcy attorney today to see of a Chapter 13 payment plan makes sense for you.

What do I need to do to begin the bankruptcy process?

The first step is to determine which debts are causing you the most problems. Perhaps it is the credit card companies or maybe it is the bank holding your mortgage. Either way, compile a list of all your debt. Next, you will need to list your current income and expenses. You will be required to show proof of income for the past 6 months so start putting together your pay stubs. Filing your tax returns are a must, get copies of your returns for the past 2 years.

Are all debts dischargeable in a Bankruptcy?

Bankruptcy cannot relieve you of all debts. The following are generally non-dischargeable:

Alimony and child support

Drunk driving judgments

Criminal fines

Criminal restitution

Debts incurred by fraud or intentional wrongdoing

Back taxes less than three years old

Student loans

Recent large purchases of more than $550 for luxury goods made within 90 days of filing

A bankruptcy lawyer familiar with your state’s law can review the list with you to give you a full understanding of the debts covered and not covered.

Will I have to Go to Court?

Generally, the only appearance you will ever have to make is at the 341 Meeting of Creditors. This non-adversarial meeting will put you face to face with the trustee who is assigned to review each and every bankruptcy filing. The purpose of the meeting is to allow the Trustee and any creditors to ask you questions about your filing to determine if you are eligible for a discharge. With the help of a bankruptcy attorney, this meeting will simple and painless.

What does a trustee do?

The trustee’s responsibility is to:

Administer the bankruptcy

Run the first meeting of creditors (called the section 341 meeting)

Collect and sell non-exempt property (Chapter 7) or collect and pay debt according to a repayment plan (Chapter 13)

Confirm that all of your information contained in your petition is accurate and complete

How long does bankruptcy stay on my record?

A bankruptcy can remain on credit reports from seven to 10 years. Declaring bankruptcy is a serious decision. That is why it is important to consult an experienced bankruptcy attorney so you fully understand the bankruptcy options and their consequences.

Will filing for bankruptcy end those calls from creditors and collection agencies?

During the time you are working out a plan or your trustee is gathering and preparing your assets to sell to satisfy your debt, bankruptcy code dictates that your creditors must stop all collections against you. Once the bankruptcy petition is filed, you are protected. If a creditor still tries to collect directly from you after that point, you should immediately notify the creditor in writing that you have filed bankruptcy and provide them with the case name, number and filing date or a copy of the filed petition. If the creditor still continues collection attempts, you may be entitled to take legal action.

I have previously filed a bankruptcy, can a file again?

You cannot file for Chapter 7 bankruptcy if you have filed for Chapter 7 or Chapter 11 bankruptcy within the previous eight years. You cannot file for Chapter 13 bankruptcy if you have been granted Chapter 7, Chapter 11 or Chapter 12 discharge within the past four years or Chapter 13 discharge within the past two years.

How can I file for bankruptcy?

We highly recommend you hire an attorney to file the required petitions. You must file a petition with the U.S. Bankruptcy Court in the district that has jurisdiction over you or your company. It must be signed under oath under penalties of perjury, and it must list all assets, the value of each and the amount of all debts.

Get the answers you need

To get the information you need to make important bankruptcy decisions, call Simon Law Group at 800-709-1131 or contact our firm online to set up a free and confidential consultation.NJ BANKRUPTCY LAWYER ANSWERS QUESTIONS