Pennsauken, NJ Bankruptcy Lawyer

Sometimes in a person’s life, their debts and financial instability have become such that they need a restart. While filing for bankruptcy cannot make these issues disappear, it can significantly help you to begin rehabilitating your financial well-being.

In these post-Covid times, there are numerous reasons why an individual might consider filing for bankruptcy. Filing for bankruptcy can help put a stop to creditors’ calls and any pending litigation against you regarding your financial circumstances. Depending on your income and assets at the time of filing, you can apply for either Chapter 7 bankruptcy or Chapter 13.

If you are in a bad financial situation and feel like you have no options, our bankruptcy lawyers in Pennsauken can help you get on the road to financial recovery. For a free case evaluation, call Young, Marr, Mallis & Deane at (609) 755-3115.

Reasons to File Bankruptcy in Pennsauken, NJ

While filing for bankruptcy can be one of the most terrifying decisions a person will need to consider, there are many reasons why it could be the right choice for you and your financial future. Most people consider filing for bankruptcy in Pennsauken because they feel as if they are being crushed under high debts and lack of income. Many people feel embarrassed if they even have to consider filing for bankruptcy, but there is no reason to be. Bankruptcy is a perfectly valid way to address your financial difficulties and shows maturity in dealing with a serious situation.

High debts are at the heart of most bankruptcy cases. Contrary to popular belief, however, these debts only sometimes arise out of financial irresponsibility. Times can get incredibly tough on people, and some need to rely on credit cards to get them through. For instance, if you were injured or sick or laid off from your job, you might have compiled debts that you cannot handle on your own.

Another important reason to file for bankruptcy in Pennsauken is to protect your property from being repossessed by your creditors if you cannot make your scheduled payments. While bankruptcy is not a magic wand that can wave all your debts away, it can provide you significant room to begin repairing your financial circumstances. Our bankruptcy lawyers can explain the benefits of filing for bankruptcy in your case and the best way to protect your assets.

Types of Bankruptcy You Can File in Pennsauken, NJ

Most people tend to think that there is only one process when you file for bankruptcy. However, there are actually two types of bankruptcy individuals can file for in Pennsauken, Chapter 7 and Chapter 13 bankruptcy. Each type of bankruptcy claim is intended to help individuals in different ways, and each has its own consequences once the request has been approved. Speak with our bankruptcy lawyers to learn which type of bankruptcy is appropriate for your financial circumstances.

Chapter 7 Bankruptcy

Commonly referred to as “liquidation bankruptcy,” Chapter 7 bankruptcy is one of Pennsauken’s most commonly filed types of bankruptcy. While individuals usually utilize it, businesses in financial trouble can also claim Chapter 7 bankruptcy. Chapter 7 is called liquidation because some of your assets will be sold off, or “liquidated,” so the proceeds can be used to pay the debts that caused you to file bankruptcy.

The main benefit of filing for Chapter 7 bankruptcy is that the process moves relatively fast. In most cases, your assets will be liquidated, and certain debts discharged within a couple of months. However, it is very possible that you will lose property that you would rather not, like houses, cars, and other property that could be sold to satisfy your debts.

If you have a high amount of debt compared to a low amount of income and do not own private property, filing Chapter 7 bankruptcy might be the right move for you. To qualify for Chapter 7, you must pass a means test showing that your annual household income is lower than the average income for all households in New Jersey. Factors like your and your spouse’s income, and any children or dependents you can claim, will be used to determine your annual household income. If that number is lower than the New Jersey average, your Chapter 7 bankruptcy claim will be approved. Our bankruptcy lawyers can help you determine if filing for Chapter 7 bankruptcy will provide you with the financial relief you need.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy tends to be a better option for those individuals with private property and other assets that they do not want to be repossessed to pay down their debts. Chapter 13 bankruptcy does not require liquidating your assets like Chapter 7. Instead, individuals filing for Chapter 13 bankruptcy must develop a repayment plan detailing how they will pay off their debts over a certain number of years.

Many of these repayment plans range from two to five years, but you can expect to be on your plan for a considerable amount of time. Keep in mind, though, that any repayment plan you devise will need to be approved by the court before it can go into effect. The court will usually assess your household income to ensure you can maintain the scheduled payments in your plan and still afford to live and eat. If it seems likely that you will miss a payment or the plan is unreasonable in light of your finances, the court will most likely reject your claim for Chapter 13 bankruptcy. Our bankruptcy lawyers can help you determine if filing for Chapter 13 bankruptcy is appropriate in your situation and craft a repayment plan that secures you and your family’s financial future.

Our Pennsauken, NJ Bankruptcy Lawyer Can Help

If your financial problems are overwhelming your life and you are considering filing for bankruptcy, our bankruptcy lawyers are ready to provide you with a free case review to see what options are available to you. Contact Young, Marr, Mallis & Deane today at (609) 755-3115.