Bankruptcy Information
Chapter 7 bankruptcy and Chapter 13 bankruptcy offer different forms of protection. If you’re facing a financial crisis, a local bankruptcy attorney can help you determine whether Chapter 7 bankruptcy or Chapter 13 bankruptcy might be the right answer for you.
Generally speaking, Chapter 7 bankruptcy is intended to wipe the slate clean by discharging unsecured debt—debts like credit card debt, medical bills, and unsecured loans. Chapter 13 bankruptcy, on the other hand, is intended to give a debtor time to catch up past due payments over a period of 3-5 years, while keeping secured property like houses and cars.
Just complete this form & let Bankruptcy.me connect you with a bankruptcy attorney near you.Since the turmoil began with the economy, New Jersey bankruptcy attorneys have been dealing with increasing numbers of individuals coming in for advice on reorganizing their finances. The economic distress in the region has increased considerably with the meltdown of the financial markets and the loss of so much money in savings. Bankruptcy lawyers in New Jersey find themselves in the unlikely role of being the front guard on trying to keep a bad economy from becoming a disaster and trying to keep local communities from sometimes virtually collapsing.
Many people who are having their first encounter with a bankruptcy lawyer are not prepared. They are not prepared because they were not prepared to be in the financial distress that they find themselves. Up until the perfect storm of economic disaster struck, these were citizens who paid their bills on time, had money tucked away in mutual funds, had a nice home with a high value and were expecting nothing but good times to continue. There was no need for a contingency plan.
With the tumble in home values, the stock market meltdown, job losses and other surprise expenses, these same people are sometimes in what can only be considered as a state of shock.
This is where a qualified bankruptcy lawyer can really be of assistance. They can guide them through the choices they must eventually make. Sometimes the advice will be to delay any type of filing and to try to work with creditors. That failing, the lawyer will consider their individual case and recommend either a Chapter 7 or Chapter 13 filing. Chapter 7 to liquidate holdings and assets and repay creditors, if possible, or Chapter 13 to reorganize finances and repay creditors.
The search for a good lawyer can begin with trusted family and friends. It might be surprising how many have had to use lawyers when their own finances became distressed. If they cannot find a good attorney through referrals than the internet can provide some basic information, and so can local community groups — and even sometimes churches.
Bankruptcy attorneys in New Jersey are much busier this year than last, and there is no end in sight to the new people who are coming into their offices to potentially file for bankruptcy. Even though it is harder today to file bankruptcy due to changes in 2005 to bankruptcy laws, there is still a record number of people doing so nearly every month.
