New Brunswick, NJ Bankruptcy Lawyer

The internet opens a world of encyclopedic knowledge at the swipe of a mouse. You can find articles, blogs, and testimonials offering financial advice on how to deal with debt and creditors. Many websites advocate for consolidating loans or they recommend companies that will negotiate with creditors on your behalf. There is even a substantial amount of information on the web concerning the pros and cons of bankruptcy.

At Young Marr & Associates, we are aware of the waves of information about bankruptcy adrift on the internet. We also know that much of it is inaccurate. Our New Brunswick, NJ bankruptcy attorneys have over twenty years of experience and will carefully explain how filing for bankruptcy could be beneficial in your situation. Call Young Marr & Associates at (609) 755-3115 to speak with an attorney. Your initial consultation is completely confidential and completely free.

Filing for Bankruptcy in New Brunswick

Bankruptcy is a complicated federal system designed to assist individuals and businesses overwhelmed with debt. There are various types, or “chapters,” of bankruptcy available that provide a range of benefits from eliminating debt to providing the tools to restructure your financial liabilities. The chapter that is right for you will depend on the specific facts of your situation.

The first time you meet with one of our seasoned New Brunswick bankruptcy attorneys, they will review your financial situation, work with you to establish reasonable goals, and fully explain the bankruptcy process. Deciding to file for bankruptcy is not always easy. At Young Marr & Associates, we recognize the anxiety associated with economic distress and the idea of bankruptcy. However, after evaluating your debt, monthly income, monthly expenses, family size, and assets, we will confidently guide you through the decision-making process and advise you on whether filing for bankruptcy would be right for you.

Filing for Chapter 7 in New Brunswick, NJ

Chapter 7 is the most common type of bankruptcy, designed for people with limited income and assets. The process is relatively short, usually taking five to six months to complete, and it allows you to eliminate the majority of your debt.

You may have read online that Chapter 7 is a “liquidation bankruptcy,” requiring you to sell your property to pay your creditors. This is technically accurate: a court-appointment trustee could take control of your assets and liquidate them to pay your debt. However, the Bankruptcy Code provides several exemptions that usually allow you to keep certain property. Our experienced attorneys at Young Marr & Associates are familiar with these exemptions and know how to utilize them to protect your property.

Once you receive your discharge at the end of the bankruptcy proceedings, the vast majority of your debt will be eliminated, including medical bills, personal loans, and credit card debt. However, not all debt is dischargeable. As a matter of public policy, the government has designated certain debts such as most taxes, alimony, child support, and criminal restitution as nondischargeable.

Student loans are treated differently in bankruptcy. While generally nondischargeable, a separate lawsuit could be filed petitioning the court to discharge that debt. The requirements for obtaining a discharge in this manner are stringent, and this kind of discharge is rarely granted.

Filing for Chapter 13 in New Brunswick, New Jersey

The significant difference between Chapter 7 and Chapter 13 is the requirement to submit a bankruptcy plan in Chapter 13 bankruptcy. You will have to pay all or a portion of your debt back over a three- to five-year period during a Chapter 13 bankruptcy. The amount you must pay will depend on the type of debt, your income, and other factors. Our New Brunswick bankruptcy attorneys will review the details of your case to propose a feasible plan that meets all requirements.

When your income is too high to qualify for Chapter 7, you will have to file for Chapter 13 instead. Even though you might be required to pay your unsecured debt, Chapter 13 could still be more beneficial than loan consolidation or settlement negotiations with your creditors. The Bankruptcy Code uses a complex calculation based on your monthly income and allowed expenses that will be used to determine what you should pay towards your unsecured debt. In many cases, this is substantially less than the total amount you owe. Also, if your reason for filing Chapter 13 was simply to stop a mortgage foreclosure, there might be no requirement to pay unsecured creditors.

When your home is in foreclosure or scheduled for a sheriff sale, Chapter 13 could be the only option to save your house. Filing for bankruptcy will stop any collection actions against you through a legal mechanism known as an automatic stay. This wall of protection prohibits any conduct by your creditors to collect on your debt, including moving forward with a foreclosure or selling your home at a sheriff sale.

After Chapter 13 stops your sheriff sale or mortgage foreclosure, you will be required to begin making payments to your lender. Unusually, your proposed bankruptcy plan will consist of two provisions related to your mortgage default. The first will require you to make your regular monthly mortgage payment directly to your lender, and the second provision will require a monthly payment to a court-appointed trustee to cover your mortgage delinquency.

Call Our New Brunswick Bankruptcy Attorney for a Free Consultation

The Bankruptcy Code provides a means to eliminate your debt while protecting you from your creditors. At Young Marr & Associates, our experienced New Brunswick, NJ bankruptcy attorneys will guide you through the complicated process. We recognize the anxiety associated with financial distress and will provide you the respectful, compassionate representation you deserve. Call (609) 755-3115 to schedule a free, confidential consultation.