Berlin, NJ Bankruptcy Lawyer
Life can present significant challenges, and at times, taking on debt may be necessary for survival. However, if the burden of debt becomes overwhelming, filing for bankruptcy can offer some relief.
There may be various reasons why you find yourself in a position where filing for bankruptcy becomes necessary. However, it is often the best decision for your long-term financial well-being. Fortunately, there are different options available when filing for bankruptcy. Depending on the assets you possess, either Chapter 7 or Chapter 13 bankruptcy can provide tailored solutions to your specific circumstances.
Call our bankruptcy attorneys at Young, Marr, Mallis & Deane at (609) 755-3115 for a free case review.
How Our Berlin, NJ Bankruptcy Lawyers Can Support Your Case
Filing for bankruptcy can be a tough decision, and individuals in Berlin may be unsure if it is the right choice for their financial situation. Our bankruptcy lawyers can provide assistance in various ways during these trying times. We will assess your case to determine the most suitable bankruptcy claim to file and advise you on which debts can be discharged. Depending on the type of bankruptcy you file, you might need to relinquish some property, but specific exemptions are available to safeguard your assets.
Determining the Bankruptcy Claim to File
If you are facing bankruptcy in Berlin, there are a few options available to you, depending on your situation. For those who have little money to pay back creditors but have assets that can be sold to cover their debts, Chapter 7 bankruptcy may be an option. However, this option could put your home and other valuable property at risk of being sold.
Another option is to file for Chapter 13 bankruptcy, which is better suited for those with a stable income who can make regular payments. This option allows you to keep your property after filing, but you must meet certain qualifications regardless of which option you choose.
Obtaining Automatic Stays
Once your bankruptcy filing is approved, you will usually receive an automatic stay which will instantly halt any creditor harassment. This means that creditors will not be able to contact you through phone, email, or any other means, and they will not be able to initiate any new collection attempts. The automatic stay will provide you with the much-needed relief to focus on sorting out your finances. Additionally, any lawsuits against you that are related to the debts in your bankruptcy case will need to be paused. If your bank accounts have been frozen, they will be unfrozen as well.
Choosing the Right Exemptions for Your Case
If you decide to file for bankruptcy in Berlin, you have the option of choosing between two types of bankruptcy exemptions: the state or federal exemption system. If you opt for the New Jersey exemptions, you can protect up to $1,000 worth of general personal property using a wildcard exemption. However, if you choose federal exemptions, you can apply $1,475 to any property and any unused portion of a homestead exemption up to $13,950. Depending on which exemption system you select, some of your property may be deemed off-limits to creditors.
If you are married, you have the opportunity to benefit from both options. In Berlin and throughout New Jersey, when filing for bankruptcy, married couples filing jointly can claim a full set of exemptions for each individual. Collaborating with our experienced bankruptcy attorneys can increase your chances of utilizing your exemption options effectively for you and your family.
Filing Chapter 7 and Chapter 13 Bankruptcy in Berlin, NJ
When it comes to filing for bankruptcy in Berlin, there are two options available, Chapter 7 and Chapter 13. While both options can assist with debt relief, each chapter offers distinct advantages and can significantly affect your assets. Thus, it is important to assess your circumstances and determine which plan is more suitable for your needs.
Chapter 7 Bankruptcy
If you are looking for a fast and straightforward way to settle your debts, Chapter 7 bankruptcy might be the right option for you. This type of bankruptcy, also known as “liquidation,” involves selling the petitioner’s assets to pay back their creditors. You may worry about losing important property that is essential to you and your family. However, there are exemptions offered by both the federal government and the state of New Jersey to protect certain types of property. These exemptions prevent the petitioner from being left completely destitute after bankruptcy proceedings. It is important to note that only one set of exemptions can be applied to your case.
Filing for Chapter 7 bankruptcy is not a guaranteed option. To qualify, petitioners must first pass a “means test” that assesses their income to determine if they are unable to pay off their debts without bankruptcy relief. If you are considering filing for Chapter 7 bankruptcy, our team of experienced bankruptcy attorneys can assess your case and advise you on the best course of action. We can also provide assistance in preparing your Chapter 7 bankruptcy claim.
Chapter 13 Bankruptcy
If someone wants to keep their property while filing for bankruptcy, Chapter 13 is usually a better option. It enables the petitioner to keep their assets if their repayment plan is approved by the court. The plan will outline how they will pay off their debts and what resources they have available to achieve this goal. One advantage is that the debts are usually consolidated under the plan, which can result in lower monthly payments at a lower interest rate. Nevertheless, the plans can last from three to five years, and missing payments can harm the case.
To be eligible for Chapter 13 bankruptcy, similar to Chapter 7, you need to pass a means test. To do this, the court will assess your situation to ensure that you have enough income to fulfill the conditions outlined in your payment plan.
Debts You Can Potentially Discharge Through Bankruptcy in Berlin, NJ
When filing for bankruptcy in Berlin, you will want to know which debts can be discharged and which cannot be discharged. This means that you will not be held legally responsible for them anymore and can concentrate on managing the debts that cannot be discharged. If you opt for Chapter 7 bankruptcy, your assets will be sold to settle and discharge your debts. On the other hand, with a Chapter 13 bankruptcy repayment plan, your debts will be discharged upon completion of your monthly payments.
In a bankruptcy case in Berlin, certain debts may be eligible for discharge, including credit card bills, medical bills, student loans, alimony, child support, and homeowners association fees. However, the specific types of debts that can be discharged will vary based on the type of bankruptcy you file and meet the requirements for. Once discharged, these debts will be eliminated and no longer owed. Other debts, like student loans and child support payments, might not be able to be discharged through a bankruptcy filing.
Our Berlin, NJ Bankruptcy Lawyers Can Help
For a free case review, contact our bankruptcy lawyers at Young, Marr, Mallis & Deane today at (609) 755-3115.