Piscataway, NJ Bankruptcy Lawyer
Thanks to the internet, we have an endless amount of information at our fingertips. Websites offer financial advice regarding how to deal with debt, creditors, or balancing a budget when your expenses are more than your income. You can read about everything from debt consolidation loans to companies that will negotiate with creditors on your behalf. You may even find some information about bankruptcy that scares you or that you do not quite understand.
At Young, Marr & Associates, we know there is a lot of information out there about bankruptcy. We are also aware that much of it is not accurate. Our bankruptcy attorneys have over two decades of experience and will carefully explain all of the potential benefits and drawbacks that filing for bankruptcy may have for you. While bankruptcy is not the best option for everyone, we know it can be a powerful tool to eliminate debt and provides a fresh financial start in many cases. If bankruptcy is right for you, our Piscataway, NJ bankruptcy lawyers will work with you with respect and compassion. Call Young, Marr & Associates at (609) 755-3115 to speak with an attorney. Your initial consultation is completely confidential and totally free.
Information about Piscataway Bankruptcy Cases
Bankruptcy, though complex, was designed to allow individuals and businesses the opportunity to either eliminate debt or reorganize their finances to regain their financial freedom. Several types or “chapters of bankruptcy are available, each offering different benefits and protections. Your specific circumstances and goals will help us determine which chapter is most beneficial to you.
When you meet with one of our experienced Piscataway bankruptcy attorneys, they will help you understand how you can use the Bankruptcy Code to your advantage. The decisions of whether to file for bankruptcy and which chapter to file under are not always easy. We will carefully analyze your current financial situation along with your goals to help determine the best course of action. After evaluating the type of debt you have, your monthly income and expenses, your family size, and what assets you have, we will help you determine which chapter best fits your needs.
Filing for Chapter 7 in Piscataway, New Jersey
If you have a limited income, mostly unsecured debt, and property eligible for protection through certain provisions of the Bankruptcy Code, Chapter 7 may be the best option for you. Chapter 7 is a “no-asset” or “liquidation” bankruptcy. This means that some of your property may have to be turned over to a court-appointed trustee to sell to pay a portion of your creditors, but you might be able to keep the rest.
While it is true that Chapter 7 may require you to sell some property, in many cases your property will be protected by exemptions written into the Bankruptcy Code. New Jersey allows a debtor to use either federal or state exemptions, and the choice will affect your entire case. At Young, Marr & Associates, we will assist you in making this critical decision.
One of the benefits of Chapter 7 is the short length of the process. Usually, you can receive a discharge in five to six months from the date you filed your case. Furthermore, that discharge will eliminate most unsecured debts such as medical bills, personal loans, and credit card debt. However, it is important to note that not all debt is dischargeable, including alimony, child support, criminal restitution, most taxes, and, in nearly every case, student loans.
Filing for Chapter 13 in Piscataway, New Jersey
Chapter 13 is a “reorganization bankruptcy” that requires proposing a repayment plan. If your income is too high to qualify for Chapter 7 or your home is in foreclosure, Chapter 13 might be your best option.
The Bankruptcy Code provides a mechanism called the “means test” for determining how much you should pay to your creditors over five years. This economical calculation evaluates your monthly income along with some actual and allowed expenses to figure out how much disposable income you have each month to pay to your creditors. In many circumstances, even though you are not eliminating all of your debt, you are only required to pay a small portion of the total amount. This payment plan may be more beneficial than a debt consolidation loan or settlement with your individual creditors.
If your home is in foreclosure or scheduled for a sheriff sale, Chapter 13 may be the only option to save your house. When you file for bankruptcy, a legal wall goes up, stopping all collections or creditor’s actions against you. Called an “automatic stay,” this protective wall will prevent creditors from calling you, sending you bills, or garnishing your wages, and it will stop any legal actions against you. This means that Chapter 13 will halt any foreclosure proceedings and stop a scheduled sheriff sale.
Once Chapter 13 stays the foreclosure or sheriff sale, you can begin paying back the money you owe through your bankruptcy plan. After filing for bankruptcy, you will begin making payments to a court-appointed trustee under the terms of your proposed plan. Additionally, you will start paying your normal monthly mortgage payment. You must provide documentation to the bankruptcy court proving you can afford these payments. Our Piscataway bankruptcy attorneys will work with you to ensure your plan is feasible and adheres to the Bankruptcy Code.
Call Our Piscataway Bankruptcy Attorney for a Free Consultation
Bankruptcy can be complicated, and misleading information on the internet may make it hard to be sure bankruptcy is the right option for you. At Young, Marr & Associates, we will help you understand what bankruptcy is and how it can assist you in alleviating the stress of overwhelming debt. Call (609) 755-3115 to speak with an attorney. Your initial consultation is free and confidential.