Straffi & Straffi Attorneys at Law

New Jersey Bankruptcy Laws

New Jersey bankruptcy laws are guided by federal law. However, a local judge may interpret the bankruptcy code differently than another judge in another state.

Filing for bankruptcy is a complex process. There are many documents that must be collected and reviewed by a Bankruptcy Lawyer Toms River. The bankruptcy petition lists all assets, income, and debts.

Chapter 7
For individuals with unsecured debt that is higher than their monthly income, Chapter 7 is a great option. This type of bankruptcy eliminates most types of unsecured debt, including credit cards and medical bills. Individuals, married couples and corporations can file for this type of bankruptcy in New Jersey.

Filing for bankruptcy "automatically stays" (stops) most collection actions, such as lawsuits and wage garnishments. However, nondischargeable debts like domestic support arrearages and recent tax debt are not eliminated by this type of bankruptcy.

Generally, a debtor will be able to keep their home and car as long as they claim the proper exemptions. For example, the court will calculate a homestead exemption by determining the fair market value of a house and subtracting the mortgage(s) payoff and other secured liens from that amount.

Chapter 13
For individuals with regular income who wish to repay a portion of or all of their debt, Chapter 13 is often the best option. A Chapter 13 bankruptcy filing halts foreclosure proceedings and gives you time to bring your mortgage payments current. It also allows you to keep your property if you can make the payments going forward.

A Chapter 13 bankruptcy will require you to pay secured creditors a sum of money equal to the value of their collateral. However, if the secured debt's value drops below its original amount owed, a judge may reclassify it as an unsecured debt, which you do not need to pay.

Exemptions
There is a common myth that filing for bankruptcy means you’ve done something wrong or don’t deserve help. However, even the most successful people in New Jersey have to deal with financial difficulties from time to time.

A debtor in Chapter 7 bankruptcy can protect certain assets from liquidation by using state and federal exemptions. A qualified Bankruptcy Lawyer Toms River can assist you in choosing the right exemptions to protect your property.

Individuals who file for bankruptcy can also use exemptions to prevent creditors from garnishing their wages or repossessing their property. A debtor can choose to use federal or New Jersey exemptions. In general, assets that exceed a debtor’s exemptions will be subject to liquidation. Typically, the trustee will sell an asset and distribute the proceeds to unsecured creditors.

Requirements
A person or company must meet certain requirements to file a bankruptcy petition in New Jersey. For individuals, this includes passing a means test that compares their household income to the median income for similar-sized households in New Jersey. If they fail to pass this test, they cannot file for Chapter 7 bankruptcy.

Another requirement is taking a debtor education course approved by the court. This course focuses on personal financial management and helps people manage their budgets.

Individuals also must provide information about their assets to the trustee and attend a meeting of creditors. Depending on which type of bankruptcy they choose, they will either have their debts discharged or develop a repayment plan to pay off their debts. This process typically takes about 3-6 months.

Filing
The bankruptcy process is a big decision and can be very confusing. Having a firm grasp on the bankruptcy laws of New Jersey can help you more clearly decide whether it is the right option for your situation.

Most people file Chapter 7 bankruptcy to wipe away their debt and have immediate protection against creditor collections. This is the quickest and least expensive way to discharge debt.

After filing, the court assigns a trustee to your case and a meeting of creditors is held. Typically, these meetings last no more than five minutes and are scheduled by the court. The trustee will sell your non-exempt property and use the proceeds to pay creditors. Generally, you can keep your house and car as long as the loans secured by these assets are current.

Hiring a Bankruptcy Lawyer in Toms River

Hiring a Bankruptcy Lawyer Toms River is essential when you are struggling with debt. They can help you choose the right type of bankruptcy, and guide you through the legal process. They can also help you stop creditor harassment and foreclosures.

A Chapter 7 personal bankruptcy is the most common type of bankruptcy in New Jersey. This type of bankruptcy discharges most of your debt and allows you to keep your assets.

Straffi & Straffi Attorneys at Law
If you’re struggling to pay your debts, a Bankruptcy Lawyer Toms River can help you get a fresh start. They can explain the process of filing for bankruptcy during initial consultations and help you choose the best option for your situation. They can also help you stop a foreclosure and resolve mortgage issues.

Bankruptcy law involves a complex legal procedure that requires the expertise of a skilled Bankruptcy Lawyer Toms River. It combines state and federal laws to protect people from creditor harassment and other debt-related issues. It also includes the concept of exemptions, which determines which assets can be retained during the bankruptcy process.

The new website of Straffi & Straffi Attorneys at Law provides easy access to information about bankruptcy and other services. The site also features a blog where users can learn more about the firm and its practice areas.