Bankruptcy
When finances become overwhelming, you may feel stressed
and ashamed, especially if debt collectors have
been harassing you and you worry about losing your
house
and other assets. Consult our office to see if
bankruptcy is the right solution for you and relieve
a lot of
that stress.
If bankruptcy is the right solution for you, it is
not the end of your life. It is the beginning of
your second chance because everyone deserves a fresh
start.
Different types of bankruptcy:
Chapter 7 : Liquidate all of your debt and keep your
property.
Chapter 13 : Pay a portion of your debt under a
three to five year process.
Chapter 12: For family farmers and fishermen.
Chapter 11: Primarily for business debtors, and/or
people with substantial assets and debts.
What are
some advantages in filing Bankruptcy?
- Eliminate
your debt
- Peace of mind
- Reestablish and/or increase your credit
score
- Protect and keep your property
- Stop creditors from
harassing you.
Regardless of
what Chapter bankruptcy you file, creditors may not
harass you once a Petition in
Bankruptcy is
filed with the Bankruptcy Court.
Speak with us and
find out what is best for you and how to protect
your house, car and other assets,
and
help regain your peace of mind.
Chapter 7
If you are overwhelmed by debt, filing Chapter
7 bankruptcy may be the most effective way
to protect yourself from
creditor harassment and start fresh.
We can
help determine whether filing Chapter 7 bankruptcy
is right for you by
- Helping analyze your debt
- Determining your property
exemptions
- Determining your eligibility for Chapter
7
- Reaffirming your secured debts (such as an automobile
loan or mortgage)
Besides guiding you
through the Chapter 7 process, the Law Offices of
Leslie A. Farber
will instruct
you as to the best course of action.
Chapter 7 isn’t
for everyone, and there are many factors
to consider.
Don't Let Debt Ruin Your
Life
Chapter 7, also known as “liquidation,” usually
is the simplest and quickest form of
bankruptcy and is available to individuals, married
couples, and
businesses. A Trustee (appointed by
the Bankruptcy Court) gathers
and sells your non-exempt assets and
uses the proceeds from the sale to pay your creditors.
However,
most Chapter 7 cases are “no-asset” cases,
which means that many people get to
keep all of their property.
In order to qualify for
Chapter 7 liquidation, you have to pass a “means
test.” If your
income is below the median income for
families in New Jersey,
based on Census Bureau statistics,
you will be eligible. If your income is more than
the median income for
families in New Jersey, your income
over the last 6 months is
considered, along with mortgage and
car payments, back taxes and child support due, and
school expenses
up
to $1,500 per year. If you can pay
at least $6,000 at $100 per month to unsecured creditors
over a total
of 5 years, you probably will not qualify
for a Chapter 7 bankruptcy. People who do not qualify
for a Chapter
7 bankruptcy are still able file a
Chapter 13 bankruptcy where they pay back a portion
of their debts over
3-5 years.
There are other Chapter 7
particulars which you should discuss with our office. Chapter
13
Can Chapter 13 Bankruptcy Help Clear Your Debt?
When you are deeply in debt, climbing your
way out seems impossible. You want to pay back
what
you owe,
but mounting financial pressures and the cost
of ordinary living make paying off debts seem
a far
away dream.
In these cases, filing a Chapter 13 bankruptcy
may be what you need to start paying back debts
and restore
your good credit.
We can help determine whether
filing Chapter 13 bankruptcy is right for you and
help you
with the
paperwork involved
in establishing Chapter 13, including:
- Analyzing
your debt
- Determine eligibility and gauge your income
- Establish
your property end exemptions
- Complete and file
all forms
- Represent you at hearings and help negotiate
a payment plan with creditors
Besides guiding
you through the Chapter 13 process, the Law Offices
of Leslie A. Farber
will instruct
you as to the best course of action. As in
Chapter 7 cases,
Chapter 13 isn’t for everyone, and
there are many factors to consider.
If you
are an individual or a sole proprietor, you
can file a Chapter 13 bankruptcy to pay
off all or
part of your debts over three to five years.
Rather than wiping out debts immediately,
this option
allows you to reorganize them so you have
time to pay.
Many people who file Chapter
13 bankruptcies have
- Mortgages or other loans
they would like to bring current, so they do
not lose their homes or other
property.
- Taxes, child support or student loans that
cannot be “discharged” or
wiped out by Chapter 7 bankruptcy
Some
advantages of filing a Chapter 13 bankruptcy
are
- Flexibility: A Chapter 13 can be dismissed
or converted to a Chapter 7 at any time by
the debtor.
You can modify a plan if income changes or you decide to give up a
house or a car. You may be able to refinance
or sell a house during the plan.
- Some kinds of debts that cannot be discharged
under Chapter 7 are eligible for discharge
under Chapter 13.
- Unlike under Chapter 7, you do not have to
pass a “means” test.
In order
to qualify for Chapter 13 bankruptcy, you must
have a stable, disposable income (that
is, income left over after you pay the bare necessities
of life such as shelter, food and utilities).
Speak
with us and find out what is best for you and
how to protect your house, car and other assets,
and help regain some peace of mind
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