Linden, NJ Bankruptcy Lawyer

Debt is a normal part of most people’s finances. We all carry some debt, but it can easily get out of control. If your debts have grown to the point that they cannot possibly be paid, you might want to speak to an attorney about filing for bankruptcy. While bankruptcy can be uncomfortable, it can help you get a new start and get back on your feet.

People often discuss bankruptcy as a singular legal action, but you can choose from numerous bankruptcy chapters. Many individuals choose to file under either Chapter 7 or Chapter 13, although other chapters exist that might suit more specific needs. You and a lawyer should weigh the pros and cons of filing for bankruptcy. If the pros outweigh the cons, bankruptcy might be the way to go. If they do not, your lawyer can help you explore other legal options. If you are still unsure about bankruptcy, talk to a lawyer anyway. They can help you determine if your situation warrants bankruptcy or if another option is better suited to your needs.

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

Options for Bankruptcy in Linden, NJ

Bankruptcy is not exactly a single form of legal action. Instead, it is a federal body of law that governs how people in debt can fix their financial situation through the legal system. Bankruptcy often becomes necessary when people are in so much debt that they cannot pay it off. The bankruptcy chapter you select may depend on your unique circumstances.

Chapter 7

Chapter 7 bankruptcy is intended for individuals filing for bankruptcy. It is often referred to as liquidation bankruptcy because the process focuses on liquidating assets to repay debts. According to 11 U.S.C. § 726(a), assets may be liquidated by a bankruptcy trustee appointed to your case. How the proceeds from the liquidation are distributed depends on the creditors and lenders involved in your case.

If you are okay with letting go of your assets, possibly including your vehicle and home, then Chapter 7 bankruptcy might be a good idea. You might also want to consider Chapter 7 if you have very few assets to liquidate. You might rent your home, take public transportation instead of owning a car, and have a few other valuable assets. Chapter 7 bankruptcy is often completed rather quickly. The time between our bankruptcy lawyers filing your petition and the completion of your case might only be a few months.

Chapter 13

Chapter 13 bankruptcy is designed for people who would rather not lose their valuable assets. According to § 1332(a), people who file for Chapter 13 bankruptcy must develop an aggressive yet feasible payment plan. The plan sets out a multi-year plan that allows you to make payments and eliminate as much debt as possible. A judge may discharge certain remaining debts once the plan is complete, usually after about 3 to 5 years. Remember, the payment plan must be approved by the creditors involved in your case and the bankruptcy court judge.

Other Chapters

The above chapters are among the most commonly selected by bankruptcy petitioners because they are designed for individuals. However, your situation might be different. A different chapter might be necessary if your business is filing for bankruptcy. There are numerous other chapters, and your lawyer can help you pick the one that helps you the most.

Pros and Cons of Filing for Bankruptcy in Linden, NJ

Filing for bankruptcy might be a solution to financial problems, but it is not without drawbacks. Remember, bankruptcy is not like a get-out-of-jail-free card. There may be some uncomfortable consequences we have to deal with. Even so, the benefits may outweigh the consequences.

Pros

One major advantage to bankruptcy is the automatic stay imposed under 11 U.S.C. § 362(a). Once the court accepts your bankruptcy petition, the judge may impose an automatic stay. This means that creditors and lenders to whom you might owe money cannot take legal action against you to get the debts paid. If a lender has already initiated legal action, like foreclosure or a lawsuit, the action is immediately halted.

Another major benefit of bankruptcy is that the court may discharge some debts. You are no longer legally liable for payment when a debt is discharged. The creditor you owe the debt to cannot come after you for payment. This means that many people have debts completely wiped out. Talk to your lawyer about which debts are and are not eligible for discharge.

Cons

One disadvantage that many bankruptcy petitioners worry about is the hit to their credit score. When you file for bankruptcy, it remains on your credit history for years, and your overall credit score might take a bit of a nosedive. This can make it hard to take advantage of future financial opportunities. If you plan on making a major purchase like a car or renting a new apartment, your credit might be checked, and you might be out of luck. Remember, your credit might suffer, but it is only temporary. You can take steps to rebuild your credit over time.

How Do I Know if I Should File for Bankruptcy in Linden, NJ

Before filing a bankruptcy petition, you should talk to a bankruptcy lawyer about whether bankruptcy is right for you. One thing to consider is your debt and income. You might have significant debts, but do you have enough income to keep up with them? If not, bankruptcy might be worth considering.

Do you have an income at all? Many people turn to bankruptcy because they are unemployed and having difficulty finding new work. In the meantime, debts for everyday expenses continue to build. Once you finally find a new job, your income might not be enough to pay back the debts you racked up. This can be a very tough situation, but bankruptcy can help.

Can you make all the monthly payments you need to, or are you missing some payments? If you cannot make monthly payments on some of your debts, you might be in trouble. If you can only make minimum payments and nothing more, you might still be in trouble. Talk to a lawyer about your case to determine if bankruptcy is right for you.

Talk to Our Bankruptcy Lawyers in Linden, NJ About Your Financial Situation Today

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