Considering Bankruptcy in New Jersey?
Are You Drowning in Unmanageable Debt?
If you are overwhelmed by debt and finding it increasingly difficult to manage your financial obligations, bankruptcy might offer a fresh start. It is not a sign of failure; it is a powerful legal tool designed to help honest people recover from financial hardships caused by job loss, medical emergencies, or divorce.
Bankruptcy can erase burdensome debts or consolidate them into a manageable repayment plan. If creditors are constantly contacting you, or if you’re facing foreclosure or repossession, it’s time to talk to an experienced New Jersey bankruptcy lawyer about your options.
Why a New Jersey Bankruptcy Lawyer is Essential
Dealing with escalating debts and aggressive collection actions can be paralyzing. At Friscia & Associates LLC, our knowledgeable New Jersey bankruptcy lawyers are prepared to guide you to the best solution for your unique situation. Bankruptcy can be a viable option in various scenarios, including:
- Stopping Foreclosure: Halting a sheriff’s sale to save your family home.
- Ending Wage Garnishment: Stopping creditors from taking a portion of your paycheck.
- Eliminating Unsecured Debt: Wiping out credit card balances, medical bills, and personal loans.
- Restoring Peace of Mind: Ending the harassment of constant creditor phone calls and letters.
Filing for bankruptcy provides an “Automatic Stay,” a federal court order that halts actions like foreclosure, wage garnishment, and lawsuits immediately upon filing. Yet, the decision to file should be made carefully. Expert guidance from a New Jersey bankruptcy lawyer is crucial to determine if Chapter 7 or Chapter 13 is the best course of action for you.
Chapter 7 Bankruptcy: The “Fresh Start”
Often referred to as “liquidation” bankruptcy, Chapter 7 is the most common form of relief for individuals. It is designed to completely wipe out unsecured debts in as little as 3 to 6 months.
- How it works: A trustee reviews your finances to ensure you qualify. While the law allows for the sale of assets, most clients retain all their property (including cars and furniture) through New Jersey’s exemptions.
- Who it’s for: Individuals with limited disposable income who pass the “Means Test.”
- The Result: A court discharge that legally eliminates your obligation to pay qualifying debts, giving you a clean slate to rebuild your credit.
Chapter 13 Bankruptcy: The “Wage Earner’s Plan”
If you have a regular income but have fallen behind on mortgage payments or have assets you need to protect from liquidation, Chapter 13 is likely the right solution. This process acts as a court-supervised consolidation plan.
- Stop Foreclosure: Chapter 13 allows you to catch up on missed mortgage payments over a 3 to 5-year period while keeping your home.
- Consolidate Debt: You make one affordable monthly payment to a trustee, who distributes it to your creditors. Unsecured debts are often paid back at pennies on the dollar.
- Protect Assets: This chapter is ideal for homeowners with significant equity or those who want to keep assets that might otherwise be sold in a Chapter 7.
Consult with a NJ Bankruptcy Lawyer
Bankruptcy is a significant decision that requires a clear understanding of what it entails. You do not have to navigate this complex legal system alone. Secure the assistance of an experienced New Jersey bankruptcy lawyer to explore all available options and make an informed decision.
Contact Friscia & Associates today for a free, confidential consultation.
NJ Bankruptcy FAQ
- Does filing bankruptcy stop a foreclosure?
- Do I qualify for a Chapter 13 bankruptcy?
- What is a Chapter 13 Bankruptcy?
- What is the means test?
- Who is eligible for relief under Chapter 7?
- What are the benefits associated with a Chapter 7 filing?
See our full FAQ for more information.
