New Jersey Chapter 7 Bankruptcy Attorneys
Under the terms of Chapter 7 bankruptcy*, credit card balances, medical bills, certain types of loans, back taxes and other forms of unsecured debt can be discharged. Discharging your debt means that you are no longer legally obligated to pay those debts. The protections offered by Chapter 7 bankruptcy can give you the fresh financial start that you need.
Additionally, and perhaps most importantly for some people, as soon as you file for Chapter 7 bankruptcy an automatic stay is placed on creditors, temporarily halting foreclosure proceedings and collection actions. After a filing, creditors and collection agencies must contact your attorney, putting an end to the harassing phone calls and angry letters you are now getting.
The law firm of Tomes & Hanratty, P.C. is here to help you get relief from mounting debt. Contact us online or call us at 732.257.0601 or 1.866.NJLAWFIRM to learn more about our bankruptcy services. We can help you regain your financial footing and put an end to harassing calls from creditors.
Tomes & Hanratty, P.C. works closely with people dealing with mounting debt due to credit card bills, divorce, medical expenses, adjustable rate mortgages and predatory lending practices. Chapter 7 is so helpful for filers because it wipes away unsecured debt, thus freeing up the money you need to pay monthly expenses like mortgage payments, utilities, student loan payments and car payments.
What if I Cannot Pass the Chapter 7 Means Test?
Under current bankruptcy law, something known as a "means test" is used to determine eligibility for Chapter 7 bankruptcy. In general, your income cannot exceed the New Jersey median income for households of a similar size. The calculations are not nearly that simplistic, though; the formula employed can be quite complicated. It is important to work with an experienced bankruptcy lawyer who can evaluate your financial situation and determine if you can file for Chapter 7 or if a Chapter 13 bankruptcy would be a better option for you.
After I file for Chapter 7, Will I Lose My Home or Car?
Though every Chapter 7 bankruptcy (technically called a "liquidation bankruptcy") case is unique, generally you can retain a great deal of your personal property after filing. Yes, the court does have the legal authority to sell some of your personal assets to pay off a portion or all of your debt, but there are comprehensive exemptions offered under both New Jersey and federal law. You can typically claim exemptions for your home, at least one car, household items, tools/equipment used for work and other personal property. These exemptions are here for your protection, and our attorneys will show you how to claim them to keep more of what you own.
Meeting With Your Creditors - The 341 Meeting
After filing for either Chapter 7 or Chapter 13 bankruptcy, you are required to attend a meeting with your creditors. This meeting, often referred to as the "341 meeting" after the bankruptcy code section that mandates it, provides an opportunity for creditors to ask you questions while you are under oath. Our attorneys will accompany you, advising and conferring with you should you need assistance.
Can Only One Spouse File for Chapter 7 Bankruptcy?
Yes. If one spouse has substantial debt related to loans, medical bills or credit cards in his or her name only, he or she can file for Chapter 7 bankruptcy by themselves. While the court may still consider marital income when determining the ability to pay off debt, the non-filing spouse's credit report and credit score should not be affected by the filing spouse's bankruptcy.
Life After Chapter 7 Bankruptcy - Rebuilding Your Credit
Shortly after a bankruptcy filing you may be able to qualify for a low-balance credit card; keeping the balance on this card low and making regular payments will reflect positively on your credit rating. Over time this simple step will lead to an increase in both your credit line and your all-important credit score. This seemingly simple money management technique, along with establishing some smart savings and spending strategies, will rebuild your financial portfolio and strengthen your credit.
Contact Us to Learn More About Chapter 7
For more information about Chapter 7 bankruptcy and how we can help you, contact New Jersey bankruptcy attorneys at Tomes & Hanratty, P.C.. You can send us an e-mail or call us at 732.257.0601 or 1.866.NJLAWFIRM.
*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
