Cinnaminson, NJ Bankruptcy Lawyer
Finances can become complicated and overwhelming very quickly. A few bad financial decisions might land you in more debt than you can handle, and bankruptcy could be the solution to your problems.
Bankruptcy is often a good option for those with high debt and insufficient income to pay them off. Most individuals file for bankruptcy under either chapter 7 or 13 of the federal code. The best option depends on your debts, assets, and overall financial circumstances. You can meet with our bankruptcy attorneys to determine if filing for bankruptcy is a good choice. Often, people must meet specific criteria to qualify for bankruptcy, and not all debts might be discharged even if you can file. While bankruptcy can have some negative consequences, an attorney can help you prepare yourself so you can escape your debts.
If you are in dire financial straights with seemingly no way out, our Cinnaminson, NJ bankruptcy attorneys can help you explore bankruptcy as a legal option. For a free case evaluation, call Young, Marr, Mallis & Deane at (609) 755-3115.
Why You Should Think About Filing for Bankruptcy in Cinnaminson, NJ
Filing for bankruptcy often means a person’s financial situation is so bad or unsustainable that they must seek legal assistance to make their debts go away. While filing for bankruptcy can be challenging and a bit embarrassing, it is not a punishment or legal penalty. In fact, filing for bankruptcy should be considered a solution to your problems rather than a consequence.
You should consider filing for bankruptcy if your debts significantly outpace your income and assets. In many cases, people file for bankruptcy because they are laid off from work and cannot find another job to help them keep up with mortgage payments, cars, school tuition, and other necessary debts.
One common misconception about bankruptcy is that people must be flat broke to file. The truth is, you can have money in the bank and still file for bankruptcy. Even people with healthy savings in the bank might need to file for bankruptcy if their debts are too large to pay. Our Cinnaminson, NJ bankruptcy attorneys can help determine if filing for bankruptcy is right for your situation.
Legal Options When Filing for Bankruptcy in Cinnaminson, NJ
Bankruptcy law is a bit more complicated than many people realize. Issues of bankruptcy are not governed by state law. Instead, federal law controls bankruptcy cases. Although, certain state laws might affect what kind of assets might be liquidated in a bankruptcy case.
There is also more than one way to file for bankruptcy. Individuals commonly file under either chapters 7 or 13, and both have different strings attached. Our Cinnaminson, NJ bankruptcy attorneys can help you figure out which option best fits your needs.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is one of the most common ways people file for bankruptcy. Chapter 7 bankruptcy is sometimes referred to as liquidation bankruptcy because it involves liquidating various assets to pay off outstanding debts. Unfortunately, this means that people filing for chapter 7 bankruptcy risk losing assets like houses, cars, and other properties.
Bankruptcy should not be treated as an easy means to get rid of debt without paying. Courts may reject cases if they believe claimants seek to abuse bankruptcy laws for personal gain. Often, courts will evaluate your case based on a means test. They will examine your income, expenses, and family size, among other factors. Not only that, but you are ineligible for chapter 7 if you previously filed for chapter 7 or 13 bankruptcy in the past 6 years.
One of the biggest advantages of chapter 7 bankruptcy is that debts are often discharged relatively quickly, often in only a few months. Not only that, but once you file for chapter 7 bankruptcy, collection calls and letters must cease, and you can no longer be harassed by creditors seeking payment.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy can also help people trying to get out from under massive debts, although it works differently than chapter 7. Chapter 13 bankruptcy emphasizes reorganization rather than the liquidation of assets. Rather than liquidate your assets to pay off debts, we can help you develop a payment plan to reduce your debts over time, pending approval from the court.
Chapter 13 bankruptcy is a good option for people with a regular income but very high debts. To be eligible, your unsecured debts should not exceed about $400,000, and your secured debts should not exceed about $1.2 million. You also must not have filed for chapter 13 bankruptcy within the past 2 years or chapter 7 within the past 4 years.
Chapter 13 bankruptcy might be preferred if you have significant assets (e.g., your home and vehicles) that you do not want to lose. Unfortunately, depending on your payment plan, it often takes several years before debt can be discharged. Our Cinnaminson, NJ bankruptcy attorneys can help you figure out which bankruptcy chapter is a good fit for your case.
How a Lawyer Can Help You with the Potential Consequences of Bankruptcy in Cinnaminson, NJ
While bankruptcy is not a punishment, and it might be a solution to your financial problems, it is not without some drawbacks. Perhaps the most significant drawback is bankruptcy’s effect on your overall credit rating. Our Cinnaminson, NJ bankruptcy attorneys can help you explore your legal options, including possibly filing for bankruptcy.
When a person files for bankruptcy, it is often reflected on their credit report for many years. People who file for bankruptcy often have difficulty opening new lines of credit, taking out loans, or making large purchases even years after they filed. An attorney can help you go over your short- and long-term goals to figure out of filing for bankruptcy might hinder you more than help you.
Call Our Cinnaminson, NJ Bankruptcy Lawyers for Help Today
If you are in significant debt and cannot figure a way out, our Cinnaminson, NJ bankruptcy lawyers can assist you. Filing for bankruptcy might be the solution you are looking for. For a free case evaluation with our team, call Young, Marr, Mallis & Deane at (609) 755-3115.