Barrington Chapter 7 Bankruptcy Lawyers
Chapter 7 Attorneys Serving Camden County
When you are struggling under a crushing debt burden, it is hard to make good decisions. Your debt burden not only impacts your finances but can also affect your relationships with loved ones and your physical well-being. Having a debt burden is like having a 50 pound weight on your back. For a while it can be tolerable, but after long enough, the stress from carrying all the additional weight will wear you down. Many of our clients’ relationships have become strained because of their debts.
If you file for a Chapter 7 bankruptcy, all efforts by creditors to collect what you owe must immediately cease while the bankruptcy is in process. Just this step alone can give you significant relief.
Is Bankruptcy Right for You?
Learn whether bankruptcy is the right choice for you. Talk your debt-relief options over with an experienced attorney at the southern New Jersey law firm of John Hargrave and Associates. We offer free confidential consultations. Call (856) 547-6500, or contact us online.
Wipe Out Credit Card Debt and Medical Bills
Chapter 7 bankruptcy protection generally allows you to eliminate credit card debt, medical debt, personal loans and other unsecured debt, depending on the unique circumstances of your case. You will not have to pay this debt back — ever. Certain kinds of unsecured debts cannot be eliminated, such as alimony, child support, recent income taxes, or student loans.
If You Qualify for a Chapter 7 Bankruptcy, Your Unsecured Debt Is Erased
In a bankruptcy petition, you must list all assets and debts (liabilities) together, and provide a list of all your creditors. A trustee reviews, administers and evaluates your case to see if you are eligible to obtain a Chapter 7 bankruptcy. If you are eligible and meet the income requirements for a Chapter 7 bankruptcy, then you will receive a court order that discharges your debt.
This court order literally wipes out your unsecured debt. Other debt that may not be dischargeable includes income tax liability, child support payments, student loans, and other debt incurred as a result of a divorce settlement.
Will Bankruptcy Stop Foreclosure?
If you own a home, filing for bankruptcy can stop foreclosure. If you are behind in the mortgage payments but can catch up with these payments, you will be able to keep your home.
However, you may determine that surrendering your home is the best option. In that case, you will not be obligated to make further mortgage payments. The mortgage company will foreclose on your home, and you will likely be allowed to negotiate a leave date that allows you enough time to find a stable living situation.
Stop Repossession and End Wage Garnishment
In general you will get to keep most, if not all, of your possessions, including your car, if you have not defaulted on your auto loan. If you are behind on your auto loan payments, a Chapter 7 bankruptcy will temporarily halt efforts to repossess your car.
It may be possible, however, keep your automobile if your car loan holder is willing to negotiate a payment plan and you can keep up with those new payments.
Bankruptcy also will end wage garnishment, which means that creditors can no longer take money from your paycheck.
What If I Don’t Qualify for Chapter 7?
If you are earning what is considered by law to be “too much” income, you may not qualify for a Chapter 7 bankruptcy, but rather will need to reorganize your debt in a repayment plan with a Chapter 13 bankruptcy.
The two primary reasons why you might not qualify for Chapter 7 is if you received a Chapter 7 discharge in the last 8 years or a Chapter 13 discharge in the last 6 years or you ‘make too much money’. In New Jersey a family of four is eligible for a Chapter 7 if their gross household income is less than $105,175 then you qualify for a Chapter 7. If your family of four made more than $105,175 then you may still be eligible for a Chapter 7.
For more information about Chapter 7 and Chapter 13, see our bankruptcy information page, which includes clear answers to frequently asked questions.
Consult with an Experienced Debt-Relief Attorney in NJ
Get answers and understanding at the law firm of John Hargrave and Associates, in Barrington, NJ. Call to schedule a free, confidential consultation with an experienced debt-relief lawyer at (856) 547-6500 or (866) 662-3191. You may also contact us online.
We help people get back on the path to financial freedom, one client at a time. We are a debt-relief agency. We help people file for bankruptcy relief under the bankruptcy code.