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Chapter 7 Bankruptcy in New Jersey | Here Is What You Need to Know

When someone is unable to pay their debts, they often look to filing for bankruptcy. Chapter 7 bankruptcy is ideal for many individuals, and it involves converting their assets into cash without having to sell what they own or lose their homes. Please continue reading and speak with our knowledgeable New Jersey bankruptcy attorney today to learn more. Here are some of the questions you may have:

What Does the Chapter 7 Bankruptcy Process Look Like?

First, you must receive credit counseling from a U.S. Trustee approved agency in the 6 months before you file. You will then take a debtor education course, and from here, you will start the bankruptcy process. To start, you must hire an experienced New Jersey bankruptcy attorney who will file a petition for bankruptcy once he has obtained a list of your debts, a list of your assets, your yearly income, and your monthly living expenses. Upon filing, an automatic stay will take effect, meaning you can keep your home, and also that creditors will halt all collection activities. From here, a bankruptcy trustee will evaluate your assets and use them to pay off as much of your debt as they can. Next, you will attend the Meeting of Creditors, wherein you and your attorney will be asked questions regarding whether you should be granted bankruptcy.

From here, you will have to mass the means test, wherein you will compare your income to the median income for comparable households in your state. If your income is over the median, you may not be eligible for Chapter 7 bankruptcy, though this is not a definite.

Can I Discharge All My Debts in A Chapter 7 Bankruptcy?

Though you cannot discharge all your debts, such as child supports, tax debts, and, in most cases, student loans, the majority of your debts should be discharged, meaning you no longer have to pay them. This is a huge sigh of relief for many individuals. If you believe bankruptcy is the best option for you, please do not hesitate to give our experienced New Jersey bankruptcy attorney a call today. Our firm has helped countless individuals through the bankruptcy process, and we are ready to do the same for you. Reach out to learn more about how we can help.

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 25 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.