Fort Lee, NJ Bankruptcy Lawyer

If you are overwhelmed by debt and making minimum monthly payments is becoming more and more difficult, you should speak to an attorney about filing for bankruptcy. Bankruptcy is not the most pleasant experience, and it can be embarrassing if friends or family know about it, but it might be the solution you need. In many cases, bankruptcy petitioners get a fresh start, and our legal team can help.

The bankruptcy process begins with a petition filed with a federal bankruptcy court. Once your petition is accepted, the court may impose an automatic stay that stops creditors from harassing you about unpaid bills. While it is possible you might lose valuable assets or property, like your home, this is not always the case. Depending on how you file, you might be able to keep your property. If you are unsure about bankruptcy, consider your debts compared to your income. If making payments is just not possible, bankruptcy might be the way to go.

Get a free, confidential case assessment by calling (609) 755-3115 and speaking to our bankruptcy attorneys at Young, Marr, Mallis & Associates.

What Happens During the Bankruptcy Process in Fort Lee, NJ?

The bankruptcy process is notoriously challenging, and many people find it difficult to put their financial history on display in court. However, doing so might be the best way to get out from under your debt. A bankruptcy case begins with a petition filed in the appropriate court. While each state has bankruptcy courts, bankruptcy is a federal matter, and bankruptcy courts are federal courts. Our bankruptcy attorneys will make sure your petition is filed with the correct court in your area.

Your petition should describe your financial situation and explain why you qualify for bankruptcy. Not everyone’s petition is accepted. Bankruptcy is not supposed to be an easy way out of debt, and courts are very discerning when it comes to which petitions get approved. The information in your petition may also depend on which bankruptcy chapter you file under. As described in more detail below, there are several chapters to choose from, and they each have their own eligibility criteria.

If and when the court accepts your petition, the judge will impose something called an automatic stay. According to 11 U.S.C. § § 362(a), an automatic stay means that creditors and lenders you owe money to cannot initiate legal action about unpaid debts. This includes legal action like lawsuits and mortgage foreclosures. Additionally, creditors and lenders must refrain from contacting you about payment while the automatic stay is in place.

Depending on how you file, your property and assets might be liquidated. Alternatively, you might have to come up with an aggressive payment plan that will last several years to help you pay back your debts. Petitioners often see numerous debts discharged at the end of their bankruptcy cases. When debts are discharged, it means the petitioner is no longer liable for payment.

Will I Lose My Home if I File for Bankruptcy in Fort Lee, NJ?

One question that many bankruptcy petitioners have is about their homes. More specifically, people want to know if they will lose their homes if they file for bankruptcy. It is not uncommon for people to file for bankruptcy because they are on the verge of foreclosure on their house. While various assets and properties may be liquidated in some cases, this is not the case for everyone, and many petitioners end up keeping their homes after the bankruptcy process is over.

Whether you lose your home depends on how you file for bankruptcy. In some cases, the court focuses on liquidating assets to pay debts. In such a case, your house might be at risk, as the bankruptcy trustee appointed by the court may liquidate assets whether you want them to or not. The best way to protect your home is to contact an experienced attorney. In some cases, houses can be saved. In others, people might have to let go of their homes.

If you are worried about losing your home to the bankruptcy process, talk to your lawyer about claiming certain exemptions. While New Jersey does not offer any bankruptcy exceptions related to your home, you may still claim the federal homestead exemption under 11 U.S.C. § 522(d)(1). This exemption allows homeowners to exempt $27,900 of their home’s equity from the bankruptcy process.

Reasons Why You Should Consider Bankruptcy in Fort Lee, NJ

There are numerous reasons why people file for bankruptcy, and they do not always involve financial mistakes or mismanagement. For example, some people find themselves overextended financially. Your debts might be so high compared to your income that there is no way to pay them off at the rate that interest accrues. While biting off more than you can chew is not uncommon, it sometimes can only be resolved through bankruptcy.

Some people file for bankruptcy because they are hit with sudden and unexpected costs that they cannot afford. Many people have to declare bankruptcy after a bad accident. Not only might they have trouble returning to work, but their medical bills might be staggering. Fortunately, medical debt can be discharged through bankruptcy.

Another somewhat common reason for filing for bankruptcy is unemployment. The workforce today can be very unpredictable. One day, you are gainfully employed, and the next, you are laid off for reasons you cannot control. What is worse, many people spend months or more unemployed because the job market is not a very friendly place. Despite your qualifications, you might be out of work longer than you can afford. If the bills start piling up and creditors are breathing down your neck, it might be time to consider bankruptcy.

Contact Our Fort Lee, NJ Bankruptcy Attorneys to Begin Your Case

Get a free, confidential case assessment by calling (609) 755-3115 and speaking to our bankruptcy attorneys at Young, Marr, Mallis & Associates.