Bankruptcy

What is Bankruptcy?

Chapter 7 Bankruptcy: Getting from filing to debt relief is almost instantaneous. The full chapter 7 bankruptcy process takes roughly 3 to 6 months. However, as soon as you file, you will stop defaults, garnishments, repossessions, and lawsuits that would hurt your credit. Some people worry bankruptcy will hurt their credit, however, it is possible to rebuild your credit in 1 to 2 years through a program like 7 steps to a 720 credit score. 

Some people think that they are too broke to file for bankruptcy. However, we offer payment plans so that you do not need to pay until after your bankruptcy has been filed. You could even put the court filing on a payment plan.

If you are facing foreclosure, a chapter 7 bankruptcy could help stop the sale of your home at auction and even set you up to eventually file a chapter 13 bankruptcy to arrange for repayments of your home. This is jokingly called a chapter 20 bankruptcy. 

This allows a debtor to discharge his or her unsecured debt through the chapter 7 before paying their secured debts in the chapter 13 bankruptcy.

Piles of statements and bills with no end in sight can be overwhelming, especially if you’re far behind in payments. Trying to pinch every penny to no avail is no way to live. The constant calls from creditors only add to the stress and anguish of not being able to move ahead. You’ve tried credit counseling and other financial alternatives to ease your debt burden, but the debt is still accumulating.

If you’ve exhausted all of your options, it may be time to consider bankruptcy. Bankruptcy does not have to be an arduous process, and you do not have to go through it alone. Enlisting the help of a bankruptcy attorney can help make the transition easier with little to no stress.

When figuring out the right bankruptcy option, most individuals find that they are able to file a Chapter 7 bankruptcy. Filing a Chapter 7 bankruptcy can help eliminate a lot of debt. In some cases, people are able to eliminate all of their debt and start fresh. In order to determine whether Chapter 7 is the right option, it is wise to consult with a knowledgeable Chapter 7 bankruptcy attorney in New Jersey.

Filing a Chapter 7 bankruptcy has the potential to discharge all unsecured debts such as credit cards, personal loans, and medical bills. However, some debt may not be entirely eliminated or discharged, such as mortgages, student loans, car payments, tax debt, child support, and alimony. Exemptions may apply, and individuals filing for Chapter 7 may be able to keep some or all of their property, including their home and car. State and federal laws protect certain property from the bankruptcy process through exemptions. It is important to talk to an experienced Chapter 7 bankruptcy attorney in New Jersey to discuss exemptions and the debts that can be eliminated or discharged regarding your specific circumstance.

The office of Patel & Soltis, LLC, can help you navigate and file your Chapter 7 Bankruptcy, whether you’re located in Jersey City, NJ; Hackensack, NJ; Freehold, NJ; Newark, NJ; Brooklyn, NY; or New York City, NY.

Filing Chapter 7 Bankruptcy

It is best to seek the assistance of a Chapter 7 bankruptcy attorney in New Jersey to help file your case. Many issues can arise if you decide to file your own Chapter 7 with the court. Inaccurate or missing information can delay the process and become costly. The court may also deny your case altogether due to missing paperwork or incorrect procedures. People who file on their own tend to hire an attorney after realizing how challenging and overwhelming the legal process can be.

In order to file in New Jersey, a debtor must meet the state’s residency requirements. The requirements ask that the debtor must have resided in New Jersey for at least 180 days. Some people, however, may be allowed to meet the residency requirement in 91days. Aside from residency requirements, in order to qualify for Chapter 7, an individual or married couple must pass a means test. The means test indicates whether a person or married couple qualifies financially to file for Chapter 7. The means test takes into consideration the debtor’s income against the state’s median income level. If the income is below the median level, then filing for Chapter 7 is possible. If the debtor is above the median level, they may not be eligible to file Chapter 7, but can possibly file for Chapter 13 bankruptcy instead. An expert Chapter 7 bankruptcy attorney in New Jersey can help determine whether you qualify to file a Chapter 7.

If you qualify for Chapter 7 and your bankruptcy has been filed with the court, an automatic stay applies. An automatic stay prohibits creditors and collection agencies from contacting you during bankruptcy. In other words, creditors and collection agencies cannot contact you to collect a debt. This is music to many ears as individuals already going through a financial hardship don’t have to deal with harassing debt collection calls while going through bankruptcy. Furthermore, once the bankruptcy discharges all debt, the automatic stay becomes a permanent discharge injunction. A permanent discharge injunction prohibits a creditor whose debt has been discharged from taking any action to collect that debt.

A Chapter 7 bankruptcy can substantially lessen your financial burden while keeping creditors and collection agencies off your back. Moreover, many people filing for Chapter 7 are able to keep their house and car due to exemption laws set forth by the state and federal government. Every case is unique, and the best way to know whether your debt can be discharged is by contacting a Chapter 7 Bankruptcy attorney in New Jersey to assess your case.

Whether you’re in New Jersey or New York, Patel & Soltis, LLC serves the following areas: Jersey City, NJ; Hackensack, NJ; Freehold, NJ; Newark, NJ; Brooklyn, NY; Bronx, NY or New York City, NY.