Edison, NJ Bankruptcy Lawyer
Worrying about those unpaid bills piling up can become a nightmare once creditors start taking legal action against you. Credit card companies could sue you for the money you owe, obtaining judgment liens against your property or freezing your bank accounts. You could lose your car to repossession, making it challenging to get to work and earn an income. If you have fallen behind on your mortgage payments, you may be facing foreclosure – or worse, your home could be scheduled for sheriff sale. All of these pending legal proceedings seem like a rushing tidal wave of financial stress that you may feel unable to navigate. At Young, Marr, Mallis & Associates, our Edison Township attorneys recognize how paralyzing overwhelming debt can be. We also know there are options.
Bankruptcy is a federal system designed to help individuals facing severe financial distress stop the pending legal action, eliminate debt, or restructure debt. Bankruptcy can help you get your head above water. Call Young, Marr, Mallis & Associates at (609) 755-3115 to speak with one of our Edison Township bankruptcy attorneys. Your initial consultation is entirely free.
Edison Township Bankruptcy Cases
At Young, Marr, Mallis & Associates, we realize that the bankruptcy process can be intimidating and complicated. We view our initial consultation as a way to provide you some valuable information about bankruptcy and us with information about your current financial situation. Doing so allows us to help determine whether bankruptcy is your best option.
There are different types of bankruptcies, known by the number for their chapter in the Bankruptcy Code. To properly advise which chapter is best for your particular needs, we will thoroughly analyze your financial situation, take a complete inventory of your assets and real estate, and help you set your ultimate goal.
Filing for Chapter 7 or Chapter 13 Bankruptcy in Edison, NJ
Chapter 7 and Chapter 13 bankruptcies both offer different benefits and disadvantages depending on the specifics of your situation. If you have limited income and most of your debt is unsecured, then Chapter 7 is usually the best option. A relatively short process, Chapter 7 offers a fast and efficient way to eliminate debt. While you may be required to sell some of your property to pay your creditors, the vast majority of people who file Chapter 7 will be able to protect all of their property through exemptions provided by the Bankruptcy Code and state law. Our Edison Township bankruptcy attorney will guide you through the process.
If you are facing foreclosure or have too much income for Chapter 7, then Chapter 13 provides the mechanisms to save your home and possibly eliminate some of your debt. Through a proposed bankruptcy plan, you will be required to pay a monthly payment to a court-appointed trustee who will distribute those funds to your creditors. When faced with overwhelming debt, Chapter 13 might offer a more economical option than a consolidation loan or settlement negotiation. More importantly, in many instances, Chapter 13 is the only option to stop a sheriff sale.
Benefits of Filing for Bankruptcy in Edison
No matter what type of bankruptcy you file for, there are some immediate and long-term benefits that will come into effect. The most powerful of these tools is an automatic stay. At the moment you file your bankruptcy petition, a legal wall goes up between you and your creditors called an automatic stay. This protective mechanism prohibits all collection activities against you. This can be incredibly helpful for stopping collections calls and other legal proceedings.
Stopping Collection Calls and Letters
An automatic stay prohibits all collection calls and letters. Once your creditors have received notice that you have filed for bankruptcy, they must stop calling you and cannot send bills or collection letters. This includes making phone calls to family members. Also included in this prohibition is withdrawing automatic deductions from any of your bank accounts. If you do continue to receive calls from your creditors, notify your Edison Township bankruptcy lawyer. Depending on the severity of the violation, the court might sanction your creditor and award you compensation.
Stopping Foreclosure and Sheriff Sales
Legal proceedings, including mortgage foreclosures and collection complaints, are stopped by an automatic stay. The immediate benefit of staying a sheriff sale is that the property cannot be sold. This gives you an opportunity to continue to work with your lender or pay the money you are behind through Chapter 13.
Stopping a foreclosure action offers a similar benefit, as it stays the foreclosure action and protects your property from sheriff sale. Additionally, stopping a foreclosure instead of a sheriff sale means that the proceedings were stayed before a judgment was entered. This will limit the amount of extra costs and attorney fees your lender can add to your mortgage deficiency. In some instances, limiting these additional costs could make the payments under a bankruptcy plan much more manageable.
When a creditor obtains a judgment against you for an outstanding debt, a judgment lien is entered against real estate located in New Jersey. With a judgment in hand, a creditor can also act against your bank accounts and personal property to satisfy the outstanding debt through a writ of execution. If your bankruptcy is filed timely, your automatic stay will stop a judgment from being entered. If the writ of execution is in place, the automatic stay can unfreeze your bank accounts and stop your creditor from selling your personal property. Additionally, bankruptcy will terminate any wage garnishment you have, as this is also a legal process for collecting debt.
Stopping Vehicle Repossession
Filing for bankruptcy could also help you retrieve a repossessed vehicle. If it was not sold, a repossessed car must be returned once you file for Chapter 13. This allows you to pay the money you are behind through your bankruptcy plan while keeping the car. If you file for Chapter 7, you might be able to renegotiate the terms of your loan, purchase the car for the fair market value, or have any car loan debt discharged.
For a Free Consultation, Call Our Edison, NJ Bankruptcy Lawyer
If you are facing collection lawsuits or your home is in foreclosure, our Edison Township bankruptcy lawyers can assist you in stopping the legal proceedings against you. Call the experienced lawyers at Young, Marr, Mallis & Associates to see how bankruptcy can help you. Call (609) 755-3115 to schedule a free, confidential consultation.