New Jersey Chapter 7 Personal Bankruptcy Lawyer
Many people will encounter some form of financial difficulty in their lives. Whether it is from the loss of a job, a catastrophic illness, of a failed business venture, monetary troubles have the capacity to forever affect a person’s life. The presence of heavy debts may lead to constant pursuit from collection agencies and disastrous marks on a credit report.
Fortunately, federal law allows people to declare bankruptcy to discharge many of their personal debts and get a new start on life. However, the procedures and qualifications for bankruptcy are complex.
A New Jersey Chapter 7 personal bankruptcy lawyer could help you if you wish to file Chapter 7 bankruptcy for your personal finances. A bankruptcy attorney can work to make sure that Chapter 7 is your best option and help complete the necessary steps to give people a fresh start.
Defining Chapter 7 Bankruptcy
Chapter 7 bankruptcy may be used by either individuals or corporations for the purpose of discharging debt. For individuals who are filing for bankruptcy, this typically includes credit card debts, outstanding mortgage payments, medical bills, and/or outstanding car payments.
The court can order that a person sell off anything of value, such as cars, houses, or even personal property for the purpose of paying back any other person or company that holds a debt against them. Once these items are sold, the creditors in the case receive payments from the proceeds. These creditors are then obliged to discharge their debts and may no longer pursue the debtor for payments.
The main drawback to filing Chapter 7 personal bankruptcy is that the bankruptcy will appear on the filer’s credit report. Many lenders will be very hesitant to extend credit to people with this mark on their record. In addition, the discharge cannot extinguish a lien on property. Still, Chapter 7 bankruptcy could give people much-needed breathing room for their future financial prospects.
The Process for Pursuing Chapter 7
Bankruptcy Chapter 7 personal bankruptcy is a federal court proceeding. This means that starting the process involves filing a voluntary petition to declare bankruptcy in the local bankruptcy court. In addition to filing this form, the person declaring bankruptcy must also submit:
- A schedule of assets and liabilities
- A schedule of current income and expenditures
- A statement of financial affairs
- A schedule of contracts and current leases
This paperwork is necessary to give the court an accurate picture of a filer’s financial situation and their current levels of debt and income. In certain cases, applicants may also be required to submit to credit counseling and provide the court with a credit rehabilitation plan.
Once this paperwork is completed, the court assigns a trustee to the case. The trustee’s role is to oversee the collection and sale of a person’s assets for the purpose of repaying creditors. The applicant must also provide this trustee their most recent tax return. This trustee then oversees meetings between the debtor and their creditors to allow for an accurate repayment of any debts.
As a whole, a Chapter 7 personal bankruptcy proceeding is largely administrative. As such, it is critically important to submit paperwork correctly and on time. A Chapter 7 personal bankruptcy lawyer in New Jersey could provide essential help in ensuring that the entire process is completed.
A New Jersey Chapter 7 Personal Bankruptcy Attorney May Be Able to Help
The decision to file for bankruptcy is a serious one and should never be made on a whim. Still, this decision could provide much-needed relief if you are facing overwhelming debts and aggressive creditors. A New Jersey Chapter 7 personal bankruptcy lawyer could provide much-needed guidance and experience to help you through the process.
A skilled attorney could gather all the necessary information, complete complicated paperwork on your behalf, and advocate for you at necessary meetings and hearings to complete the bankruptcy. Call today to schedule a consultation.