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Bankruptcy
FAQs
Below
are some answers to frequently asked bankruptcy questions.
For more specific questions, please contact one of our
experienced New Jersey bankruptcy lawyers at 856.429.2449
or lmpesquire@comcast.net.
CLICK
HERE FOR OUR FREE BANKRUPTCY ASSESSMENT
1.
What is a Chapter 7 bankruptcy and how does it
work?
2.
What is a Chapter 13 bankruptcy and how does it
work?
3.
If I file bankruptcy, will creditors stop
harassing me?
4.
Can I keep my house?
5.
Can I keep my car?
6.
Can I get rid of student loans or tax debts in a
bankruptcy?
7.
Do all of my creditors have to be listed in the
bankruptcy?
8.
What if I forget to list a creditor in my
bankruptcy?
9.
Does my spouse have to file jointly with me?
10.
How do I know if I should file bankruptcy?
11.
Who knows about my bankruptcy case?
12.
What can I do to rebuild my credit after filing
bankruptcy?
13.
I'm a new client. What should I bring to my first
meeting with you?
CLICK
HERE FOR OUR FREE BANKRUPTCY ASSESSMENT
1.
What is a Chapter 7 bankruptcy and how does it work?
Chapter
7 is a liquidation bankruptcy meaning it can eliminate most types of
unsecured debt.
Examples
of unsecured debt are credit cards and medical bills.
Individuals, married couples, corporations and partnerships
can all file a Chapter 7 bankruptcy if eligible.
2.
What is a Chapter 13 bankruptcy and how does it work?
Chapter
13 is a reorganization or repayment bankruptcy that allows the
debtor to enter into an interest-free debt repayment plan to pay
back all or some of the debtor’s debts over a 3 to 5 year period.
The length of the plan will depend on the debtor’s
property, income and expenses. During this time, creditors must abide by the plan and are
not permitted to collect from you or contact you.
One
crucial aspect of a Chapter 13 bankruptcy is that you must have
regular income for you will be required to pay both your monthly
living expenses and a repayment to the court for your consolidated
debts.
A
Chapter 13 bankruptcy is very powerful because it provides a
mechanism for debtors to prevent foreclosures and sheriff sales and
stop repossessions and utility shutoffs while catching up on their secured
debt.
View in-depth
Chapter 13 FAQs here.
3.
If I file bankruptcy, will creditors stop harassing me?
As
soon as you come to our office for a free consultation and hire us
as your New Jersey bankruptcy lawyer, creditors will no longer be
permitted to contact you or your friends and family members.
After hiring our firm, you will be able to give our firm’s
name and number to any future creditors who call.
The sooner you come to our office and meet with one of our
New Jersey bankruptcy lawyers the sooner the harassment will stop.
4.
Can I keep my house?
One
of the biggest fears people have when first discussing filing a
bankruptcy is the possibility of losing their homes.
Bankruptcy is meant to help you get a fresh start not hurt
you. There are several
different ways to deal with homes in bankruptcy proceedings; listed
below are some explanations.
If
you are current on your mortgage payments and you file a Chapter 13
bankruptcy, you will not lose your home as long as you can continue
to keep current with the mortgage payments.
If you file a Chapter 7 bankruptcy and you are current on
your mortgage payments, whether or not you will lose your house
depends on the amount of equity you have in the property as well as
the amount of the homestead exemption to which you are
entitled. Homestead
exemptions vary from state to state so it is best to contact one of
our New Jersey bankruptcy lawyers at 856-661-1010 to discuss your
specific situation.
If
you are behind on your mortgage payments, typically, the best way to
keep your house is to file a Chapter 13 bankruptcy.
However, you will need to resume making your regular mortgage
payments and repay your missed payments through the Chapter 13
repayment plan. There
is a much greater chance you will lose your house if you file a
Chapter 7 bankruptcy and are behind on your payments.
Since
everyone’s situation is different, we strongly recommend that you
contact our office at 856-661-1010 or lmpesquire@comcast.net
and speak to one of our New Jersey bankruptcy lawyers to discuss
your specific set of circumstances.
5.
Can I keep my car?
Depending
on whether you file a Chapter 7 or a Chapter 13 bankruptcy, there
are ways for you to keep your vehicle.
In a Chapter 7 bankruptcy you must be current with your car
payments if you want to keep your vehicle.
If you are not current when you file, you must be able to
catch up on your payments, usually in a short amount of time.
If
you are filing a Chapter 13 bankruptcy and you are current with your
car payments, you can continue to make the same payment outside the
bankruptcy plan. If you
are behind on your car payments, one of our New Jersey bankruptcy
lawyers can help you arrange for the payments to be included in your
Chapter 13 repayment plan. Either
way you will be able to keep you car.
6.
Can I get rid of student loans or tax debts in a bankruptcy?
Today,
the most effective way to get relief from student loans is through a
Chapter 13 repayment bankruptcy.
Student loans cannot be discharged in a Chapter 7 bankruptcy.
Using a Chapter 13 bankruptcy, our New Jersey bankruptcy
lawyers may be able to consolidate your student loan debt into a
repayment plan. This
will ease the burden of possible garnishments as well as harassment
from student loan agencies. Call
our office today at 856-661-1010 to speak with one of our New Jersey
bankruptcy lawyers on easing this burden.
As
for tax debts, they are generally dischargeable only if you file
bankruptcy more than 3 years after you have filed a timely and
accurate tax return. If
your tax return had been filed late, the tax debt is generally
dischargeable only if you file bankruptcy more than 2 years after
filing an accurate return. However,
tax matters can be complicated and it is best to contact one of our
experienced New Jersey bankruptcy lawyers at 856-661-1010 or lmpesquire@comcast.net
to fully discuss all your options.
7.
Do all of my creditors have to be listed in the bankruptcy?
Yes,
all of your creditors must be listed in your bankruptcy along with
their names and addresses. This
is important so that all of your creditors can receive notice of the
bankruptcy and, if you are repaying your creditors through a Chapter
13 bankruptcy, can get their share of the money that is being
repaid. Not listing all
of your creditors is in violation of the law.
8.
What if I forget to list a creditor in my bankruptcy?
If
you forget to list a creditor, you should contact your attorney as
soon as you realize the creditor has been left out.
At that time you can provide your attorney with the name and
address of the creditor and the type and amount of the debt. Omitted
creditors can often be added to the bankruptcy, however, your
attorney will advise you on how things will proceed.
Our experienced New Jersey bankruptcy lawyers can help you
handle this issue if it arises.
9.
Does my spouse have to file jointly with me?
If
all or most of the debts you have are in your name only, your spouse
may not have to file. However,
your spouse’s income can have an impact on whether you can file a
Chapter 7 or a Chapter 13 bankruptcy.
Unless your spouse is legally listed as a co-debtor,
creditors cannot come after your spouse for any money.
Also, if your spouse is not included in the bankruptcy, it
should not appear on his/her credit report.
Since the laws do vary from state to state, it is best to
come in to our office to meet with one of our New Jersey bankruptcy
lawyers to determine whether your spouse should or should not file.
10.
How do I know if I should file bankruptcy?
Are
you only able to pay the minimum monthly payments on your credit
cards? Do your credit
card balances keep growing? Are your wages being garnished or threatening to be
garnished? Is your home
near foreclosure or is your car about to be repossessed? Do you have medical bills that have put you so deep in debt?
If
you have answered “yes” to any of the above questions, a
bankruptcy may be the relief you have been looking for.
It is best to contact our office at 856-661-1010 or lmpesquire@comcast.net
and speak to one of our experienced New Jersey bankruptcy lawyers so
they review the specifics of your situation and get you on the road
to a fresh start. You
can also take a FREE BANKRUPTCY ASSESSMENT and a lawyer from
our office will contact you directly about your case.
11.
Who knows about my bankruptcy case?
The
only parties that will be notified of your bankruptcy are your
creditors, the bankruptcy court and, in some cases, the Internal
Revenue Service (IRS). Your employer is not notified of your bankruptcy unless your
employer is listed as a creditor in the bankruptcy.
12.
What can I do to rebuild my credit after filing bankruptcy?
Even
though bankruptcy can be reported on your credit report for up to 10
years, you can begin to rebuild your credit immediately.
One of the best places to start rebuilding your credit is
your credit report. Your
credit report is the place where most lenders look before extending
credit.
The
Law Offices of Lee M. Perlman is a knowledgeable and experienced law
firm in New Jersey dealing with credit reporting issues.
We will review your credit report and help remove any
inaccuracies that may exist. We
can also dispute inaccurate information and, if necessary, file suit
in federal court to have the inaccuracy corrected.
By making sure that your credit report is as accurate as
possible, you are on the way to establishing a new and better credit
rating.
Our
office can also help put you in touch with legitimate financing
companies who can assist you in purchasing a new home or car.
We are here to help you rebuild your credit not fall into the
credit trap with unsecured credit cards.
After
you file your bankruptcy call our office at 856-661-1010 so we can
help you get started rebuilding your credit today.
This is just one step to getting a fresh start.
13.
I'm a new client. What
should I bring to my first meeting with you?
-
6 months of
your last pay stubs or a print-out from your employer of
the last 6 months of your pay stubs. If you cannot
locate 6 months, bring as many as you can gather.
-
The last three
tax returns, if you can get them together.
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Any and all bills
that you intend to include in the bankruptcy. This includes but
is not limited to, any and all collection agency notices,
lawyer's letters or lawsuits.
-
Any information on
the value of your real estate, if you own real estate and the
mortgage payoff information.
CLICK
HERE FOR OUR FREE BANKRUPTCY ASSESSMENT
Call our offices at 856.429.2449
to help you with New Jersey bankruptcy matters you are facing, or contact us
with your confidential questions and concerns on these matters.
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