Voorhees, NJ Bankruptcy Lawyer

Life can be extremely challenging, and sometimes debt must be taken on to survive. If your debts have become too much for you to manage, filing for bankruptcy can give you some relief.

Several reasons might have brought you to the point where it is necessary to file for bankruptcy, but it is often the right choice to make for your long-term financial health. You have options when filing for bankruptcy. Depending on the assets you own, Chapter 7 or Chapter 13 bankruptcy offer different solutions adjusted to your circumstances.

If you are considering filing for bankruptcy to help get control of your mounting debts, our Voorhees bankruptcy lawyers can help you determine the best way to secure your and your family’s financial future. For a free case review, contact Young, Marr, Mallis & Deane today at (609) 755-3115.

When to File for Bankruptcy in Voorhees, NJ

Filing for bankruptcy is never easy and can be intimidating for some even to contemplate. However, filing for bankruptcy can provide you relief in many different situations and help you secure your financial future in Voorhees. Often, individuals considering filing for bankruptcy are reeling under mounting debt and aggressive collection attempts. Some might feel like they have no options or are concerned about how their reputation will be regarded if they do file for bankruptcy. While these feelings are valid, they should not stop you from taking control of your financial health. Deciding to file for bankruptcy is not only the right decision in most cases but also the responsible one.

Bankruptcy is provided by law because it is meant as an option to help those whose debts and financial commitments have overwhelmed them completely. The most common reason to file for bankruptcy in Vorhees is excessive debts. In many cases, people run into difficult times and must rely on credit to get them through challenging times. If you became ill or suffered an injury, you might not have had income for some time, sending you further into debt while you provide for your family.

Those wanting to protect their assets from creditors might also find relief by filing for bankruptcy in Voorhees. Filing for bankruptcy can help by giving you some protection from collection attempts and additional lawsuits to claim your property, allowing you the time to plan how you will set your finances right. While bankruptcy might not protect all your property, it is much preferable to leaving your assets exposed to further legal action. Our Voorhees bankruptcy attorneys can help determine if filing for bankruptcy is the right option for you and your family.

Bankruptcy Options Available in Voorhees, NJ

In New Jersey, there are two options when filing for bankruptcy. Individuals can either file for Chapter 7 or Chapter 13 bankruptcy. Each one has its own intended benefits, which can protect very different things. Which one you should file for will depend on the circumstances of your case, namely, what assets you might need to protect and the debts you wish to discharge. Our bankruptcy attorneys can review your case to determine the type of bankruptcy that suits your situation.

Filing for Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” is an option in Voorhees that many in financial trouble take advantage of. This type of bankruptcy is termed liquidation because the individual’s assets are sold to help satisfy their debts. Chapter 7 bankruptcy is available to individuals but also businesses that are struggling with debt.

Filing for Chapter 7 bankruptcy can provide relief quickly, which is one of its main advantages. During this process, some of your property will be sold off, or “liquidated,” while certain other debts will be discharged. The major disadvantage of filing for Chapter 7 bankruptcy is that the property sold might not be the property you want to lose. This can include cars, homes, and anything else valuable enough to help satisfy your debts.

Chapter 7 bankruptcy is most appropriate in cases where the individual filing for bankruptcy owns relatively little property but has an extreme amount of debt. However, you must pass a means test to qualify for Chapter 7 bankruptcy. This test assesses your annual household income and compares it with the average New Jersey household income. If your income is lower than the state average, your Chapter 7 bankruptcy filing will be accepted. However, any income your spouse earns, dependents you claim, and other economic factors will be used to determine your average household income. Our bankruptcy lawyers can help you prepare your Chapter 7 bankruptcy filing if it is the best option to help you out of debt.

Filing for Chapter 13 Bankruptcy

The other option in Voorhees is filing for Chapter 13 bankruptcy. Chapter 13 bankruptcy is best suited for individuals with assets they do not want to be sold off to satisfy their debts. Unlike Chapter 7 bankruptcy, your property is not liquidated to pay down your debts under Chapter 13 bankruptcy. You can typically keep your property if your Chapter 13 bankruptcy filing is approved, but you will need to develop and submit a detailed repayment plan that illustrates how you will make good on your debts.

Most repayment plans range from two to five years, depending on the individual’s circumstances. However, the court has the final say in whether your repayment plan is feasible.  If, after reviewing your personal finances and household income, the court determines that you will likely miss a payment at some point, it will reject your Chapter 13 bankruptcy application. Thus, it is critical to ensure that all your finances have been properly reviewed and identify and address potential concerns down the road. Our bankruptcy attorneys can help you determine if Chapter 13 bankruptcy is suitable and draft a repayment plan that is sure to help pull you out of financial danger.

Our Voorhees, NJ Bankruptcy Lawyers Can Help

If you feel like you have no options because of your financial situation, our Voorhees bankruptcy lawyers can help you back on the path to financial recovery. Call Young, Marr, Mallis & Deane at (609) 755-3115 for a free case assessment.