Many people think that filing bankruptcy means you’ve done something wrong. However, even the most successful individuals have had to file for protection from debt.
To qualify for Chapter 7 bankruptcy, you must pass a “means test.” This is based on your household income as compared to the median income of similar-sized households in New Jersey.
Experience
For individuals with debt from credit cards, medical bills and other unsecured debt, bankruptcy can provide a fresh start. Our New Jersey bankruptcy lawyer performs a complete analysis of your current financial status to determine eligibility for Chapter 7 or other chapters that offer unique protections and advantages.
Many of your personal assets are exempt from liquidation, including household goods, vehicles and even some investments and pensions. Your monthly income such as wages, 401K and pension payments are protected as well. In most cases, a successful Chapter 7 filing eliminates unsecured debt in a matter of months and allows you to keep most of your property.
When you file, you will attend a meeting with your attorney, creditors and the trustee. Currently, due to COVID-19, the meeting is conducted via video conference or phone. During the meeting, the trustee will put a face to your paperwork, check your ID and ask questions under oath. You must also take a financial management course from an approved provider before the court grants your discharge.
Reputation
Some people who are in financial trouble are afraid that a bankruptcy filing will lead to them having to sell their assets. The truth is that most of the time, debtors in New Jersey who file for Chapter 7 bankruptcy can keep their property and reduce their debt load to manageable levels.
When you hire a NJ bankruptcy attorney for your financial needs, they will make sure you understand your legal rights and the options available to you. They will also make sure that you meet the requirements to qualify for Chapter 7. For example, some people who assume they do not meet the income requirements may actually be able to file for bankruptcy after a lawyer completes the means test calculations for them.
Your lawyer will help you determine which of your assets the court will allow to be exempt and which will be seized. They will also help you decide which debts to discharge and which will remain outstanding once the bankruptcy process is complete.
Fees
A bankruptcy attorney’s fees will vary, so be sure to discuss them with your potential lawyer. The fee you pay should reflect the attorney’s level of expertise in your case, and your needs. You should never hire a bankruptcy attorney simply because they charge the lowest fees.
A Chapter 7 bankruptcy allows you to get rid of most, if not all, of your unsecured debt. During the process, a trustee takes control of any non-exempt assets and sells them for the benefit of your creditors.
You must pass a means test to be eligible to file for Chapter 7. Our firm can review your financial history and income to help determine whether you qualify for this type of bankruptcy.
You must also attend a meeting with your creditors, called the 341 meeting. Typically, this is the only time you’ll need to go to court. Due to the impact of COVID-19, many meetings are now held via video conference or by phone.
Representation
A good bankruptcy lawyer can help you navigate the legal system and protect your rights. They will explain the different types of bankruptcy available, the legal implications and help you choose the best option for your situation. They will also be able to advise you on other financial options that may be available to you.
A seasoned New Jersey bankruptcy attorney can provide you with the fresh start you deserve. A successful bankruptcy will eliminate many of your debts and prevent creditors from harassing you for payment. However, filing for bankruptcy will impact your credit rating for several years. Our Cinnaminson, NJ bankruptcy lawyers will help you review your short and long-term goals to determine whether or not bankruptcy is right for you.
Before you file for bankruptcy, you will have to take a credit counseling course approved by the New Jersey Bankruptcy Court. The cost for this course is usually $338, but you can apply to have the fee waived.
