For many, filing for bankruptcy is rather intimidating. At first, it may seem like you’re taking a huge leap. However, there are different types of bankruptcy, and many are pleased to know that by filing Chapter 13 bankruptcy, you can keep your home, various assets, all while being able to pay back all, or most, of the debt you’ve accrued over the course of 3 to 5 years. Please read on and reach out to our experienced New Jersey bankruptcy attorney to learn more about how our firm can help you through the legal process ahead:
How Do I Know if I Am Eligible for Chapter 13 Bankruptcy in New Jersey?
To qualify for Chapter 13 bankruptcy, you will have to meet the following criteria:
You must be able to prove that you have a regular income.
You must not have any more than $383,175 in unsecured debts.
You must not have any more than $1,149,525 in secured debts.
That being said, you should note that if you had a bankruptcy petition dismissed within 180 days, you may not file for Chapter 13. Additionally, to file for Chapter 13, you will have to attend credit counseling with 180 days before filing from a state-approved agency.
Can I Keep My House in Chapter 13 Bankruptcy?
Yes. The second you file for bankruptcy, it will trigger an automatic stay on your home, protecting it from all collection activities. You must provide the following information when filing:
Your financial information, including your assets and property
A statement regarding your financial affairs
A list of all executory contracts and unexpired leases
Any liabilities you may have
Your monthly net income
A report of any interest you have in-state or federally-qualified education or tuition accounts
Proof of any payments that you received from employers 60 days before you filed
Proof that you attended credit counseling courses
What Happens Next?
Once you file for bankruptcy and the automatic stay goes into effect, a trustee will hold a Meeting of Creditors, wherein you, with the assistance of your attorney, will answer various questions concerning your financial situation and how you plan on repaying them. You should receive a decision within 45 days of the Meeting, and as long as everything checks out, you should have successfully filed for bankruptcy. For any additional questions, feel free to give our firm a call today. We are here to 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 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.