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How Do I Know if Chapter 13 Bankruptcy Is Right for Me?

April 12, 2021

Most people do not want to imagine the day where they have to file for bankruptcy. However, when bills and debt accumulate and there’s no way you can pay that debt off, bankruptcy is most likely necessary. Fortunately, filing for bankruptcy is not as scary as it may seem, especially with the assistance of an experienced New Jersey bankruptcy attorney. One type of bankruptcy, known as Chapter 13 bankruptcy, has helped countless individuals achieve the peace of mind they need by allowing them to keep their homes and other assets. Please continue reading and speak with our firm to learn more about whether Chapter 13 is right for you. Here are some of the questions you may have:

Do I Qualify for Chapter 13 Bankruptcy in New Jersey?

To be eligible to file for Chapter 13 bankruptcy in New Jersey, you must:

Prove that you receive a regular income.

Prove that you do not have more than $1,149,525 in secured debts.

Prove that you do not have more than $383,175 in unsecured debts.

Prove that you have not had a bankruptcy petition dismissed within 180 days prior to filing

As long as you attend credit counseling within 180 days before filing for Chapter 13 bankruptcy from a state-approved agency, you should be able to file.

What Information Will I Have to Provide to File for Chapter 13 Bankruptcy?

When filing for bankruptcy, your attorney will work to ensure you provide all of the following information:

  • Your monthly net income

  • Financial information regarding your assets and property

  • A statement about your financial affairs

  • Statements regarding payments you’ve received from employers in the 60 days before filing

  • Proof that you attended state-approved credit counseling courses

  • A list of all executory contracts and unexpired leases

  • A list of liabilities

What Happens During the Bankruptcy Process?

The moment you file for bankruptcy, an automatic stay will go into effect, which prohibits all collection activities, thereby allowing you to keep your home. From here, you will attend a Meeting of Creditors held by a trustee. Here, you and your attorney will answer certain questions regarding your financial means and how you plan on repaying the creditors. You will be notified within 45 days of the meeting whether you have successfully filed for bankruptcy. Our firm has helped countless individuals through the Chapter 13 process, and we are ready to do the same for you.

Contact Our Experienced New Jersey Firm

Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 20 years. That is why we are confident we have what it takes to provide you with the effective legal counsel you need. If you need experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.