Living in New Jersey can be costly. If debt becomes overwhelming for some individuals, bankruptcy may offer a fresh start. The Garden State is home to many reputable bankruptcy attorney who can guide individuals through the process of filing for relief. However, there are some basic things that you should understand before you contact a New Jersey bankruptcy attorney to assist with your case.
The role of a bankruptcy attorney is crucial when navigating the New Jersey bankruptcy laws. The New Jersey bankruptcy laws differ from federal bankruptcy law in several ways. One of the most significant differences relates to exemptions. Exemptions are sums of money or items that a debtor may keep and which creditors cannot access in bankruptcy. While the law sets forth a list of federal exemptions, New Jersey residents also have the option to use an alternative set of state-specific exemptions in addition to or instead of the federal ones. If a debtor chooses to use the state exemptions, they are not allowed to mix and match the federal and the state exemptions.
Additionally, New Jersey has a state law that prevents debtors from hiding assets by making it illegal for them to transfer or conceal property without receiving “reasonably equivalent value” in exchange for it. If you are considering filing for bankruptcy, you should be aware that the laws governing exemptions, transfers, and concealment can have a major impact on your case, which is where the expertise of a bankruptcy attorney comes in.
When you file for bankruptcy, the court automatically freezes all creditor collection actions at the outset of the case. This includes foreclosures, lawsuits, and wage garnishment. There are some exceptions to this, including criminal and some aspects of matrimonial cases, but for the most part, the initial filing of your bankruptcy petition will prevent creditor action against you, as explained by a bankruptcy attorney.
In order to qualify for Chapter 7 bankruptcy, a debtor must pass the means test. This test compares your household income to the median income for households of a similar size in the state of New Jersey. If your household income is below the threshold, you can proceed with your bankruptcy, a key aspect that a bankruptcy attorney can guide you through. If it is not, you will have to choose Chapter 13 bankruptcy instead.
A couple may decide to file for Chapter 7 bankruptcy jointly, even if one spouse is earning more than the threshold amount. However, it is important for both spouses to understand the impact of the decision before filing, a matter that a bankruptcy attorney can provide valuable insights on. A married debtor should consult with a bankruptcy attorney about this issue.
Although a joint bankruptcy will not have any impact on the individual’s credit score, it will stay on a person’s record for 10 years. If you are interested in learning more about how the bankruptcy laws apply to your situation, it is highly advisable to speak with an experienced New Jersey bankruptcy lawyer. Contact a local bankruptcy attorney to schedule your consultation today.
Whether you are considering filing for bankruptcy or already have a case pending, there are several things you should know. The first step is finding an experienced New Jersey Bankruptcy Attorney to evaluate your situation, decide which type of bankruptcy to file, and guide you through the process. Then, you need to gather the necessary information and complete all required forms. This can take a long time and it is essential to get everything right to avoid errors which could delay or even derail your case.
One important piece of bankruptcy information is how property exemptions work. Both state and federal law provide for certain amounts of assets which you can retain and which your creditors cannot touch. The amount of property you can keep depends on how much income you earn and the types of property you own, as explained by a knowledgeable bankruptcy attorney.
You will need to provide information about all the assets you own and the debts you owe. This includes not only current assets, but also future inheritance income which you may receive. This information is gathered during the preparation of your bankruptcy petition, a process in which an experienced New Jersey bankruptcy attorney can provide valuable guidance. Our experienced New Jersey bankruptcy attorneys will help you to accurately and thoroughly complete this very complicated document. Errors can result in the dismissal of your bankruptcy or, in the worst-case scenario, having the bankruptcy discharge denied.
To qualify for Chapter 7 bankruptcy, you must pass a means test. The mean income guideline is based on the median income for the state in which you live. In general, you must earn less than this amount to be eligible to file for bankruptcy if your debts are mostly consumer debts. If your debts are primarily business related, you will not qualify for Chapter 7, a key factor that a bankruptcy attorney will explain.
When filing for bankruptcy, you will need to take a credit counseling course. This is usually available at low cost through a local non-profit organization. If you cannot afford to take the course, it is possible to apply for a waiver, which a bankruptcy attorney can help you with.
After completing your credit counseling, you will need to prepare the bankruptcy petition and other required forms. There are several different forms that must be filed with the United States Bankruptcy Court for the District of New Jersey. These forms are found on the Bankruptcy Court’s website and require a lot of detailed information about your finances. Errors can result in the bankruptcy filing being dismissed or, in the worst-case scenario, resulting in criminal penalties, something that a skilled bankruptcy attorney can prevent.
You will also need to list any debts you plan to eliminate from your bankruptcy. This includes unsecured debts such as credit card debt and medical bills, as well as secured debts such as mortgage and auto loans. However, some debts survive bankruptcy, including alimony and child support obligations, criminal penalty fines and fees, tax debt from unfiled returns and recent taxes, and private student loans.
If you are struggling to pay your bills, it may be time to explore your bankruptcy options. New Jersey residents can file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy to get the relief they need. However, filing for bankruptcy can have negative impacts on your credit score that will last for years. Therefore, it is important to weigh your options carefully before deciding whether to contact a bankruptcy attorney in New Jersey and file for bankruptcy.
When you meet with one of our experienced bankruptcy lawyers, we will help you determine if bankruptcy is the right choice for your unique financial situation. We will evaluate your debt, income, and assets to see if you are eligible to file for Chapter 7 bankruptcy. We will also review your bankruptcy alternatives, if available. We understand that bankruptcy is a serious decision and we take the time to fully explain all of your options to you.
To qualify for Chapter 7 bankruptcy, you must pass the “means test.” The means test measures your household income over the past six months and compares it to the median income of households in New Jersey. If you make less than the median income, you may be able to file for Chapter 7 with the assistance of a bankruptcy attorney. Otherwise, you will have to pursue another type of bankruptcy.
In a Chapter 7 bankruptcy, the court-appointed trustee will sell your nonexempt assets to pay off your debts. However, if you have substantial equity in your home or car, the bankruptcy trustee might forgo selling those assets. In addition, you can protect certain property from liquidation by transferring ownership to family members, as advised by your bankruptcy attorney.
If you choose to file for Chapter 13, your bankruptcy trustee will oversee a repayment plan with the guidance of your bankruptcy attorney. A successful repayment plan can result in the dismissal of your unsecured debts, including credit card debt and medical bills. However, you cannot discharge alimony, child support, and tax debt in Chapter 13.
A New Jersey bankruptcy attorney represents small businesses and individuals across the state. Our firm is well-versed in all areas of bankruptcy law and has a reputation for excellence in the field. We are committed to helping you obtain the financial relief that you deserve with the assistance of a skilled bankruptcy attorney.
To learn more about bankruptcy solutions in New Jersey, contact our office to schedule an initial consultation with a bankruptcy attorney. You can reach us by phone or through our online contact form to get started.
Straffi & Straffi Attorneys at Law
670 Commons Way, Toms River, NJ 08755, United States
(732) 341-3800