North Hanover Township Bankruptcy Lawyer
Filing for bankruptcy is never anyone’s goal, but sometimes it needs to be done. Bankruptcy is not a punishment for being in debt. Instead, bankruptcy is a possible solution to your debt problems.
One of the trickiest parts about bankruptcy is knowing when you should file. Nobody likes to admit they have money troubles, and an attorney can help you determine if bankruptcy might be helpful to your situation. Generally, bankruptcy is worth looking into if you have very high debts you cannot afford to pay with your income. While there are multiple bankruptcy chapters under the federal code, the most common chapters used by individuals are chapters 7 and 13. Each chapter takes a different approach to bankruptcy, and your lawyer can determine which chapter works best for you. One of the biggest benefits of filing for bankruptcy is having certain debts discharged and no longer being liable for repayment.
Financial troubles are not uncommon, especially in today’s economy. If you need help escaping debts and harassment from creditors, contact our North Hanover Township bankruptcy lawyers. For a free case review, call Young, Marr, Mallis & Deane at (609) 755-3115.
When to File for Bankruptcy in North Hanover Township
There are multiple reasons a person might want to consider filing for bankruptcy. High debts and insufficient income tend to be at the heart of most bankruptcy claims, although there are plenty of other reasons. There is no shame in filing for bankruptcy. It is a solution to your problems, not a punishment, Our North Hanover Township bankruptcy lawyers can review your case and determine if filing is appropriate for your situation.
High debts and insufficient income are the most common reasons people file for bankruptcy. Having significant debts does not always stem from financial irresponsibility. Perhaps you were laid off from work and have had a hard finding a new job, and in the meantime, you and your family have had to live on credit. In other cases, people become seriously ill and rack up high medical bills they cannot afford to pay.
You should also consider filing for bankruptcy if you believe your assets might be repossessed if you cannot make more payments. Filing for bankruptcy is not foolproof, but it might help you protect certain assets, like your home and vehicle.
Bankruptcy Options in North Hanover Township
Bankruptcy is often talked about as if it were a single legal action. In reality, there are various ways a person can file for bankruptcy. The best options for your case depend on your unique situation and should be discussed with a lawyer. Mostly, individuals filing for bankruptcy often file under chapters 7 or 13.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is one of the country’s most commonly claimed forms of bankruptcy. It often applies to individuals but may also be used for businesses in financial trouble. Chapter 7 is often called “liquidation bankruptcy” because the main focus is on liquidating assets and using the proceeds to pay down certain debts. Our North Hanover Township bankruptcy attorneys can help determine if chapter 7 works for you.
The good thing about chapter 7 bankruptcy is that it happens relatively quickly. Most people who file have their assets liquidated, certain debts paid down, and other debts discharged within a few months. The downside is that you might have to liquidate assets you do not want to lose. For example, you might lose your home, car, or other properties.
Chapter 7 bankruptcy tends to be a better option for people with high debts, lower income, and fewer assets. Renters and people who do not own property might be a good fit for chapter 7. You must also satisfy the Means Test. This test measures your annual household income and compares it to the average income for households across New Jersey. You may qualify if your household income is below the state average. Your income, your spouse’s income, and whether you have children or dependents are considered.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also common for individuals and takes a different approach than chapter 7. Under chapter 13, you do not have to liquidate assets to pay off debts immediately. Instead, you and your attorney devise a payment plan to help you pay off your debts over time.
People on a court-approved payment plan often spend a relatively long time paying off debts before eligible debts can be discharged. Most people can expect to be on a payment plan for at least a few years before they can have any debts discharged. There is also a risk of missing payments on your plan. However, it might be worth the time and effort for those with significant assets they do not want to lose.
Debts That Can Be Discharged in North Hanover Township
Discharging debts is one of the biggest benefits of filing for bankruptcy. When a debt is discharged, the bankruptcy court issues an order that releases you from personal liability for certain debts. This means that you no longer have to pay back the debt, and creditors and collectors are not allowed to harass you for repayment. While having debts discharged is great for people facing significant debts, not all debts are eligible.
Only certain debts may be discharged. Some more common dischargeable debts include credit card debt, private personal loans, and medical bills. Although certain debts can be discharged, the creditor might still ask for payment if the debt is secured, such as with a valid lien. When debts are discharged depends on how you file for bankruptcy. Under chapter 7, debts are often discharged within a few months. Under chapter 13, the discharge might occur after you complete your payment plan, which can take several years.
Certain debts cannot be discharged. Common debts not eligible for discharge include back taxes or other tax debts, alimony payments, child support, and federal student loans. The common denominator for many un-dischargeable debts is that they are owed to the government. Our North Hanover Township bankruptcy lawyers can help you develop an effective and strategic plan to pay back debts that cannot be discharged while avoiding those likely to be discharged.
Call Our North Hanover Township Bankruptcy Lawyers for Help
If you are in a bad financial situation with no way out, our North Hanover Township bankruptcy lawyers can assist you with your debts. For a free case review to determine if bankruptcy is a good choice, call Young, Marr, Mallis & Deane at (609) 755-3115.