Egg Harbor, NJ Bankruptcy Lawyer

When your debts significantly outweigh your ability to pay, it can feel like you are drowning in late payments and final notices. Filing for bankruptcy can help you get out from under your debts and start over with a clean slate.

Contrary to popular belief, filing for bankruptcy is not a punishment for being in debt. On the contrary, it is a solution to debt problems and might help improve your financial situation. There is more than one way to file for bankruptcy, and an attorney can help you determine which bankruptcy chapter works for your case. Certain chapters are designed for individuals, while others are meant for businesses. Even though you might be in debt, that does not necessarily mean you qualify for bankruptcy. You should speak to an attorney about your financial situation to determine if you qualify.

Bankruptcy is not the end of the world. Rather, it is a chance for a fresh start. Contact our Egg Harbor, NJ bankruptcy lawyers to discuss your options and determine if filing for bankruptcy is a good decision. Call Legal Care New Jersey at (732) 838-9769 to schedule a case evaluation free of charge.

Is Filing for Bankruptcy in Egg Harbor, NJ a Bad Thing?

Filing for bankruptcy is not necessarily a bad thing. It might be better understood as a solution to a bad situation rather than some legal punishment or penalty. Filing for bankruptcy helps people in significant debt erase some debts and better manage others to repair their financial situation. While filing for bankruptcy is not without consequences, it often comes with more benefits than drawbacks for people experiencing crippling debt.

Depending on which bankruptcy chapter you file under, you may be able to discharge many of your outstanding debts while retaining some of your assets and property. When a debt is discharged, the court issues an order releasing the debtor from personal liability for the debt. Essentially, this means you do not have to pay discharged debts.

Not all debts can be discharged, but filing for bankruptcy can help you reorganize and better manage the debts that cannot be discharged. There are also bankruptcy options for businesses that can help your company stay afloat while debts are reorganized. Our Egg Harbor, NJ bankruptcy lawyers can help you determine which form of bankruptcy works best for your situation.

Different Chapters of Bankruptcy in Egg Harbor, NJ

Although people often speak about bankruptcy as a single legal action, there are numerous ways in which a person can file for bankruptcy. Certain chapters are meant for individuals filing for bankruptcy, others are designed for businesses, and others are meant for both. Speaking with our Egg Harbor, NJ bankruptcy attorneys about your financial situation is important, as certain chapters might be better for you than others. Although there are numerous bankruptcy chapters under federal law, the following three are the most commonly claimed.

Chapter 7

Chapter 7 bankruptcy is one of the most popular chapters for individuals and businesses alike. Many people are drawn to chapter 7 because it allows many debts to be discharged. Unfortunately, those with significant assets risk losing them as they might be sold off to help pay down debts. Chapter 7 bankruptcy may benefit people with large debts but very few assets. For example, people who rent rather than own a home might want to consider filing for chapter 7 bankruptcy.

Another appeal to chapter 7 bankruptcy is that it often takes the least amount of time. Debts are often discharged, and assets are dealt with in a matter of months. Our Egg Harbor, NJ bankruptcy lawyers can help you get started on your bankruptcy case.

Chapter 13

Chapter 13 is designed specifically for individuals and differs somewhat from chapter 7, which also caters to individuals. Under Chapter 13, people can file for bankruptcy while retaining many personal assets, like their houses, vehicles, and other properties. The downside is that filing for chapter 13 bankruptcy often takes a long time, and people are often on payment plans for several years.

While Chapter 7 bankruptcy often takes only a few months to complete before debts are discharged, people filing for chapter 13 bankruptcy must remain on payment plans for several years before any debts can be discharged. The trade-off is that personal assets like homes or vehicles are usually not liquidated. Additionally, you and your attorney can develop a payment plan that works best for you, pending approval from the court.

Chapter 13 is also ideal for people with average to healthy income but very high debts. Your payment plan might allow you to pay your debts off over time under a manageable plan rather than exhaust your finances. Chapter 13 focuses more on reorganizing debt, allowing people to continue living their lives largely uninterrupted.

Do I Need a Lawyer to File for Bankruptcy in Egg Harbor, NJ?

It is possible in some cases to file for bankruptcy without a lawyer. However, this is not necessarily the best choice, especially if your finances and debts are complicated. An attorney is necessary to help you navigate the complex and often lengthy process of filing for bankruptcy. Your attorney can also help you determine which bankruptcy chapter best suits your needs. Our Egg Harbor, NJ bankruptcy lawyers can help you start the filing process and take control of your finances.

When filing for bankruptcy, plans must be devised and assets protected. The average person might not understand which of their assets are vulnerable to liquidation and which are protected. Furthermore, people might lack the financial and legal knowledge to develop a payment plan or strategy that helps them eliminate debt without compromising their lifestyle. Before filing for bankruptcy, you should speak to a lawyer in depth about your situation. Proceeding on your own might open you up to unnecessary risks.

Speak to Our Egg Harbor, NJ Bankruptcy Lawyers About Your Case Today

If you are in debt that feels like it is growing out of control, our Egg Harbor, NJ bankruptcy lawyers can help you get your life back. For a free case assessment to get started, call Legal Care New Jersey at (732) 838-9769.