Cherry Hill, NJ Bankruptcy Attorney
Financial difficulties can strike at any point in our lives. However, there are things in life that are “non-negotiables” at all points in life, even in the face of money problems. For example, Cherry Hill is considered one of the best places to live in the United States. If you live in the Cherry Hill area and you’re facing financial difficulties, the prospect of losing your home and other assets can be real. New Jersey is currently the state with most foreclosures nationwide.
The Cherry Hill law firm Young Marr & Associates has attorneys skilled in helping seek debt relief and a fresh start. Your information is protected and confidential, and your initial consultation is totally free of charge. We handle Chapter 7 and Chapter 13 cases throughout Southern New Jersey. We have multiple locations including offices conveniently located in Marlton and Mount Holly, New Jersey. Call us at (609) 236-3519 to schedule a free consultation with our Cherry Hill bankruptcy attorneys.
How Do I Start Filing A Bankruptcy Petition in NJ?
Filing for bankruptcy has a negative reputation because the process can be intimidating. Bankruptcies appear in credit scores for 10 years. Also, the judicial process may seem overwhelming, but people who say bankruptcy is bad typically don’t understand the process. You could file for bankruptcy, liquidate all or part of your debt, and keep your home. Once you have discharged all or part of your debt, you may find opportunities to rebuild your finances. Credit scores may turn into a subsidiary concern in relation to the bigger picture of your financial future.
The first step to take if you’re considering filing bankruptcy is to determine if your monthly debt payments are higher than your take-home pay. If the answer to this question is no, then filing for bankruptcy can be a good decision.
Seeking more loans may not be the best option if you can’t make ends meet, since bills accumulate over time. Recognizing this difficulty early on can be helpful if you have a mortgage payment and keeping your home is very important to you. If you have credit card debts, these are likely growing at an interest rate average of 13% or more. Quick accumulation of interest rates can have devastating financial consequences.
What is a “Bankruptcy Petition” and “Debt Relief”
The term “bankruptcy petition” refers to the request for a court to “discharge” or purge the debt allowable under the U.S. Bankruptcy Code. “Debt relief” means the debt will be cleared in compliance with the laws. Bankruptcy laws provide two debt classifications: dischargeable and non-dischargeable.
Typically, secured debt is non-dischargeable while there are types of non-secured debt that can be discharged. Secured debts are backed or linked to an asset known as collateral. The asset can be a car or a home. A home can be foreclosed or re-claimed if you don’t pay. Unsecured debt is not attached or connected to an asset like credit cards.
While most unsecured credit card debt can be discharged partially or in full, not all unsecured debts qualify to be cleared right after the bankruptcy petition is filed. However, there is unsecured debt that has to be scrutinized before discharge is granted. For instance, student loans are debt that will only be discharged upon a showing of “undue hardship.” The undue hardship exception ordinarily applies to situations when the debtor is too sick or too disabled to be able ever to repay the debt. Undue hardship is known to be approved when the debtor’s disability is permanent – as defined under state and federal laws.
Tax debt typically cannot be discharged, and future payments will not be excused with a bankruptcy filing. However, there are parts of tax debt that may be excused, like penalties and interests known as “personal liabilities.”
What Should I Do if I Can’t Pay Monthly Bills in New Jersey?
If you’re contemplating filing for bankruptcy, you must choose between Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code.
A Chapter 7 Petition can be a more appropriate alternative when there is a limited number of assets. If you file for Chapter 7, your car and home can be protected. If there are other assets at stake, there are state and federal exemptions that can be applied to some assets. The person designated to supervise the filing is known as a “trustee.” Trustees are typically lawyers appointed to mediate between creditors and debtors as to the amounts of debt canceled.
A Chapter 13 Petition generally permits individuals to keep all of their property if they are able to keep up with a payment plan with their earnings or income. Chapter 13 tends to be appropriate when the limited or partial discharge of unsecured debts will allow the individual to make ends meet. This payment plan has to be submitted to the court. The trustee will supervise the execution of the payment schedule. The judge and judicial clerks will also monitor the plan since bankruptcy rights have to be protected at every stage of the petition. The Chapter 13 Plan repayment schedule ordinarily lasts between 36 and 60 months.
Does Filing for Bankruptcy Stop Collection Calls?
An “automatic stay” is a legal term that means “stop.” If you are behind in payments, it’s likely you receive calls and letters from creditors. When you file for bankruptcy, you usually receive an “automatic stay” that stops these calls and letters. If you continue to get calls, those collectors may be breaking the law.
Call Your Cherry Hill, NJ Bankruptcy Attorney Today and Protect Your Home
It’s important to consult with a knowledgeable, experienced bankruptcy lawyer when determining if bankruptcy is best for your situation. The lawyers at Young, Marr, Mallis & Associates can help you make an informed and financially sound decision. If you’re overwhelmed with collectors’ phone calls, letters, and the fear of losing your home, then this is the time to speak to a bankruptcy attorney. Young, Marr, Mallis & Associates are proactive and will file an emergency bankruptcy filing on the same day if necessary. Call our law offices today at (609) 236-3519 to schedule a free legal consultation.