Delran, NJ Bankruptcy Lawyer
People often consider bankruptcy an absolute last resort, but it is not the punishment that people often make it out to be. While filing for bankruptcy can take a big toll on your credit, it might be the solution to your financial troubles.
While you might be reluctant to explore bankruptcy options, it might be a good idea, depending on your financial situation. Filing for bankruptcy definitely has some downsides, but it can help you discharge debts and start over fresh with a clear financial slate. Numerous bankruptcy chapters are worth exploring, but Chapters 7 and 13 are among the most popular. Talk to your attorney about your finances and assets to determine which chapter is best for you. One of the biggest advantages of bankruptcy is that courts will issue an automatic stay. This essentially freezes any legal proceedings against you for unpaid debts, including lawsuits and mortgage foreclosures.
If you are considering bankruptcy and have questions, call our bankruptcy lawyers at Young, Marr, Mallis & Associates at (609) 755-3115 and schedule a free evaluation of your case.
Is Filing for Bankruptcy in Delran, NJ a Good Idea?
It is not uncommon for people to think of bankruptcy as a terrible thing that must be avoided at all costs. This is an inaccurate view of bankruptcy because the process is not a punishment but a remedy to money troubles. While nobody wants to be in a position where they need to file for bankruptcy, speaking to an attorney about it might be a good idea if you are struggling with debt.
Filing for bankruptcy might be a good idea if you have unpaid debts you cannot keep up with. For example, people who need bankruptcy might have fallen behind on payments for mortgages, credit cards, or medical debt. Filing for bankruptcy may allow you to sell off assets to pay down debts or restructure your finances to pay back creditors on a payment plan.
The beauty of bankruptcy is that the court can discharge certain debts. When debts are discharged, you are no longer legally liable for paying them. Debts, including hospital bills, credit cards, and some unsecured loans, can often be discharged. Debts related to alimony, child support, or debt owed to the government often cannot be discharged.
Our bankruptcy attorneys can help you come up with a plan to pay the debts that cannot be discharged. Meanwhile, we can work with the courts to hopefully have other debts discharged so you do not have to pay them.
Options You Have When Filing for Bankruptcy in Delran, NJ
People often talk about bankruptcy as if it is a singular course of action. In reality, there are numerous ways in which someone might a bankruptcy case. Different bankruptcy chapters are available for people and businesses in different conditions or circumstances. An attorney can review bankruptcy options that might help you before you settle on the one right for your case.
Chapter 7 Bankruptcy
A common option for many bankruptcy filers is Chapter 7 bankruptcy. This particular chapter is designed for individuals, not businesses, and helps people repay debt by liquidating various assets. For example, your home, vehicle, and other properties might be sold off, and the proceeds used to pay back creditors.
Generally, the person filing for bankruptcy does not choose which of their assets are liquidated and which are saved. A trustee is appointed to your case, and they may review all your assets and properties. While we might be allowed to have certain assets excluded, some assets might not be protected.
This can be a great option for those without many valuable properties or assets or are okay with letting them go. If you would rather hang on to your assets, talk to your lawyer about other options. Additionally, Chapter 7 bankruptcy cases tend to be relatively quick, with many completing in only a few months.
Chapter 13 Bankruptcy
If you have valuable assets, like your home or other properties, you want to keep, you should talk about the possibility of filing under Chapter 13 with your attorney. This chapter does not require liquidating any property. Instead, you must devise a payment plan with your attorney to pay down some of your debt over time.
The payment plan should be aggressive yet feasible. As such, many people must work very hard to stay current with their plans. There is very little room for spending on anything other than what is included in the plan. Not only that, but payment plans under this chapter tend to last for a few years. If you can maintain the plan set by you and your lawyer and approved by the court, you might be able to make it through bankruptcy proceedings with your home and other assets intact.
Advantages of Filing for Bankruptcy in Delran, NJ
Bankruptcy is known for its negative impact on a person’s credit and financial future. However, what is not talked about nearly as much is the advantages that bankruptcy can provide. One of the most prominent benefits of bankruptcy is the automatic stay imposed by the court.
An automatic stay is an order the court imposes that puts all legal proceedings about your debts from creditors on hold. If a creditor wants to initiate foreclosure proceedings, the automatic stay prevents them from doing so. On top of that, the automatic stay required creditors to stop contacting you about repayment. For people constantly being harassed by creditors and collections agents, this can be a huge relief.
While the automatic stay is in place, you and your attorney have time to sort through your bankruptcy proceedings while everything else is on hold. For some, this is the difference between losing their home and getting back on their feet.
Call Our Delran, NJ Bankruptcy Lawyers to Discuss Your Financial Situation
If you are thinking about bankruptcy, call our bankruptcy lawyers at Young, Marr, Mallis & Associates at (609) 755-3115 and schedule a free assessment of your potential case to answer any questions.