Newark, NJ Bankruptcy Lawyers

Bankruptcy is not a penalty for poor financial choices but a solution to monetary troubles and debt. An attorney can help you explore various bankruptcy options to find one that works for you.

You might have multiple bankruptcy options worth exploring with an attorney. Some of the most common ways to file bankruptcy for individuals include Chapters 7 and 13. An attorney can help you figure out which path is right for you. People file for bankruptcy for a variety of reasons, including mortgage foreclosures, collections lawsuits, and insurmountable medical debt. An experienced lawyer can help you assess your options. How you file for bankruptcy might determine whether you can keep any of your assets and what your life might be like when legal proceedings are over.

Call Young, Marr, Mallis & Associates at (609) 755-3115 to make an appointment for a review of your case free of charge with our bankruptcy lawyers.

Finding the Bankruptcy Option in Newark, NJ That Works for You

There are multiple federal chapters under which a person can file for bankruptcy. Different chapters are designed to serve different purposes and help people in different financial situations. For example, some chapters are designed to help businesses declare bankruptcy, others are meant for individuals, and still others are designed for both. Below are arguably the most commonly selected methods of filing for bankruptcy for individual people.

Chapter 7

Chapter 7 bankruptcy is one of the most commonly claimed options when individuals file for bankruptcy. This kind of bankruptcy is sometimes referred to as liquidation bankruptcy because it emphasizes selling off assets and properties to pay debts. Generally, a bankruptcy trustee will be put in charge of your case, and they will liquidate various assets you own and use the proceeds to pay creditors.

There are some pros and cons to this chapter. One advantage is that the process is relatively short. People who file for Chapter 7 are usually in bankruptcy proceedings for a few short months before some debts are paid and others are discharged. This chapter might also be a good idea for those who do not have many valuable assets to lose or who do not mind parting with their assets.

Unfortunately, some people have properties or assets they want to hang onto, making Chapter 7 a risky option. While there are ways to exclude certain assets from liquidation, you might not be able to save everything you own.

Chapter 13

Chapter 13 bankruptcy is another very common choice among people filing for bankruptcy. Unlike Chapter 7, Chapter 13 does not involve the liquidation of assets. Instead, you and our bankruptcy attorneys must develop an aggressive, effective, and feasible payment plan to help you repay your debts over time.

People with assets they wish to hold onto, such as a home or other properties, usually prefer to file under Chapter 13 as it might allow them to keep their assets. However, this chapter tends to take much longer. Many people remain on payment plans for several years before the court discharges other debts. Your case might be at risk if you cannot keep up with your payment plan or deviate from the payment plan.

Reasons You Might Want to Discuss Bankruptcy with a Lawyer in Newark, NJ

People are sometimes embarrassed about approaching a lawyer to talk about filing for bankruptcy. There is sometimes a rather unfair perception of people who file for bankruptcy as being financially irresponsible. While this is sometimes the case, bankruptcy often involves conditions beyond the control of the bankruptcy filer.

Mortgage Foreclosure

One common reason that many people file for bankruptcy is mortgage foreclosure. First, many people who are facing mortgage foreclosure are often entangled in other monetary troubles and debt. Second, filing for bankruptcy before the foreclosure process is complete might help you buy more time to fix your financial situation.

When you file for bankruptcy, the court issues an automatic stay that takes effect immediately. This stay places a freeze on any legal proceedings against you related to unpaid debts. Not only that, but creditors must cease contacting you or trying to collect on debts. This pause on the foreclosure proceeding might give you the time you need to catch up with missed mortgage payments.

Collections Lawsuits

Not everyone who files for bankruptcy is facing foreclosure. You might be a renter and have no other assets and still be in need of a bankruptcy lawyer. Many people file for bankruptcy because of staggering credit card debts.

Often, people become overwhelmed by credit card debt because of unfortunate circumstances that spiral out of control. Perhaps you were in between jobs and relied on credit cards to pay for necessities like groceries and utilities. Maybe the job market was not favorable, and it took you a long time to find work. During that time, you might have racked up significant credit card debt, and the minimum payments might be more than you can keep up with.

Credit card debts are often eligible for discharge by the courts in bankruptcy proceedings. When debt is discharged, you are no longer liable for repayment.

Medical Debt

Unfortunately, many people file for bankruptcy because of medical debt. Nobody should risk their health to save money. Medical bills are infamous for being high. People without health insurance are often responsible for the entire cost of treatment, which can be extremely expensive. Many people who needed extensive medical care for serious conditions report tens of thousands or even hundreds of thousands of dollars in medical bills.

Medical bills, like many other debts, can be discharged through bankruptcy. Although bankruptcy can negatively impact your credit for some time, it can also allow you to start over fresh without medical debts.

Contact Our Newark, NJ Bankruptcy Attorneys for Help Today

Contact our team at Young, Marr, Mallis & Associates at (609) 755-3115 to schedule an appointment for a review of your case free of charge with our bankruptcy attorneys.