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Medford, NJ Bankruptcy Lawyer

Bankruptcy can be incredibly scary, and filing for bankruptcy takes a lot of courage. Essentially, bankruptcy is an admission that something is not financially working, and it is a request for relief from the debt you face. When you file for bankruptcy, it can be a lifeline, but it is still a challenging process, and you should always seek professional legal help when considering bankruptcy.

Our attorneys can discuss your financial situation with you and explore various options to avoid bankruptcy. If bankruptcy appears to be the best option, we can help you file your petition, determine what type of bankruptcy to file for, and then help you with every step of your case until your case is done.

For a free case evaluation, call (609) 755-3115 for a free case review with Young, Marr, Mallis & Associates’ bankruptcy lawyers.

Who Should File for Bankruptcy in Medford, NJ?

Bankruptcy is not the right move for everyone, and it is a huge commitment. As such, you should talk to our bankruptcy lawyers and discuss whether bankruptcy is right for you before filing anything. When making this analysis, we will look at the following factors:

Neverending Debt

Bankruptcy is best for those who have no other way to pay off their debts. If you have big assets or accounts that you can tap into to clear away your debts, then you might be better off rearranging your finances, reprioritizing those debt payments, and trimming the fat on other expenses. Bankruptcy will often seize a lot of your assets without your choice in the matter, so if you can selectively sell off assets to cover your debts while you are in control, that might be better than filing for bankruptcy.

But if there really is no end in sight for your debt, bankruptcy is probably the best choice.

You Have Tried Debt Relief

The first thing to try with severe debt is often to seek out debt consolidation and debt forgiveness, or to simply call up your creditors and see if you can restructure your debt or arrange a different payment plan that you can afford.

If you have already reached out, already tried debt consolidation, and already seen that it has not improved your situation, bankruptcy is the next logical step.

Creditor Harassment

When you are in debt in a bad way, creditors will send your debt to collections and start taking steps against you. When things are really bad, you might be going so far as to stop checking your mail, sending every call to voicemail, and feeling absolutely harassed by creditors.

Filing for bankruptcy can start you down your path to a better financial situation, but it also has the more immediate effect of putting an automatic stay on collection efforts, which stops the collection calls and gives you some room to breathe while you work through your bankruptcy petition.

You Are in Danger of Losing Your Home

If your house is on the line, filing for bankruptcy might allow you to put a pause on sheriff’s sales and other collection efforts from your mortgage company. While this might be a temporary fix, it can give you the breathing room you need to keep your house, and certain types of bankruptcy can even help you keep your house as you discharge the rest of your debt.

If your house is about to be sold out from under you, filing for bankruptcy may be the best or only option to stop them from taking your home.

What Type of Bankruptcy to File for in Medford, NJ

Once you have determined that you should file for bankruptcy, it is important to look into which type you should file. People might be familiar with terms like “Chapter 11,” which refer to the chapter of the bankruptcy code you are filing for bankruptcy under.

Chapter 11 is a business bankruptcy, so that does not come into play for most individuals and families. Instead, your bankruptcy case will usually be filed under Chapter 7 or Chapter 13, each of which have different pros and cons for different petitioners.

Chapter 7

Chapter 7 bankruptcy is often called “liquidation” bankruptcy. With liquidation, assets are sold off to cover your debts and discharge them. Generally, when you run out of things to reasonably sell off, your creditors get as much as they will be able to get, and the rest of your debt can be discharged.

Because Chapter 7 is so powerful in relieving debt, it is usually only available to those who cannot afford to pay their debts any further. As such, this chapter is “means-tested” and is only available to people with income under certain levels.

Chapter 13

Chapter 13 is called “reorganization bankruptcy” because it allows you to reorganize the debts you face and combine them into one payment through bankruptcy. If you have income and you can pay some debt, this allows the restructured debt to be paid down over time.

Chapter 13 takes a lot longer, but it can get more money to your creditors in the end. It also helps protect more assets, as you do not need to liquidate them in order to pay off your debts. As such, you can often hold onto things like your house and your car.

How Will Filing for Bankruptcy Affect My Life?

Generally, bankruptcy is a stressful process, and depending on which chapter you use, it can last for some time. This will keep your finances monitored by your bankruptcy trustee, and it will mean scrutinizing your finances for some time.

However, it will also potentially lead to a clean start and economic freedom from debt. Your credit score might be impacted for quite some time, but a successful bankruptcy case can give you the chance to rebuild, while staying burdened by debt will ultimately hurt your credit score and keep you chained by your debt.