Category Archives: New Jersey bankruptcy attorney

Navigating Bankruptcy Choices: Deciphering Chapter 7 vs. Chapter 13

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Introduction

For the person who is facing financial turmoil, the decision to file for bankruptcy is one fraught with complexity and nuance. Amidst the myriad considerations, understanding the distinctions between Chapter 7 and Chapter 13 bankruptcy is paramount. In this comprehensive guide, we’ll unravel the intricacies of these two bankruptcy chapters, equipping you with the knowledge to make a well-informed decision tailored to your unique circumstances.

Chapter 7 Bankruptcy: The Liquidation Option

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” entails the liquidation of non-exempt assets to settle debts. This option is ideal for individuals seeking a fresh start without the burden of a repayment plan. People who are facing overwhelming debt may find Chapter 7 appealing for its expediency and potential for a swift resolution.

Determining Eligibility for Chapter 7

Individuals considering Chapter 7 must meet certain eligibility criteria, including passing the means test. This test evaluates your income relative to the median income in your state and determines your ability to repay debts. Understanding your eligibility is crucial in determining whether Chapter 7 is a viable option for your financial situation.

Pros and Cons of Chapter 7

  • Pros: Quick resolution, discharge of most unsecured debts, immediate relief from creditor harassment.
  • Cons: Potential loss of non-exempt assets, limited options for debt repayment, impact on credit score.

Chapter 13 Bankruptcy: The Repayment Solution

Chapter 13 bankruptcy, often termed “reorganization bankruptcy,” involves creating a structured repayment plan to settle debts over a period of three to five years. This option is suitable for people with a steady income who wish to retain their assets and repay debts over time in a manageable way.

Crafting a Repayment Plan:

In Chapter 13 bankruptcy, an experienced bankruptcy attorney will evaluate any non-exempt assets and their client’s income to help develop a feasible repayment plan. Some negotiation with the bankruptcy trustee may be involved. This plan outlines how debts will be repaid, typically prioritizing tax debts and secured debts while accommodating essential living expenses.

Pros and Cons of Chapter 13:

  • Pros: Protection of assets, opportunity to catch up on mortgage or car payments, potential to discharge certain debts upon completion of the repayment plan.
  • Cons: Lengthy process, strict adherence to repayment plan, potential for higher overall payments compared to Chapter 7.

Determining the Best Option

Sophisticated individuals evaluating bankruptcy options must conduct a thorough assessment of their financial situation, considering factors such as income, assets, debts, and long-term financial goals. Consulting with a knowledgeable bankruptcy attorney is invaluable in navigating the complexities of Chapter 7 and Chapter 13, as well as exploring alternative solutions.

Making an Informed Decision

Ultimately, the decision to file for Chapter 7 or Chapter 13 bankruptcy hinges on a careful evaluation of the benefits, drawbacks, and suitability of each option to your unique circumstances. Bankruptcy can be used as a strategic tool to regain financial stability and pave the way for a brighter financial future.

Conclusion

Navigating the choice between Chapter 7 and Chapter 13 bankruptcy demands a nuanced understanding of each option’s implications. For the sophisticated individual, making an informed decision entails assessing eligibility, weighing the pros and cons, and aligning the chosen path with long-term financial objectives. With the guidance of a seasoned bankruptcy attorney, you can embark on the path towards financial recovery with clarity, confidence, and sophistication.

Schedule a free bankruptcy consultation with Jennifer Weil, a New Jersey bankruptcy attorney, to discuss your options.

How to Work with a New Jersey Bankruptcy Lawyer

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Introduction

In times of financial hardship, seeking the guidance of a consumer bankruptcy attorney can be a crucial step towards regaining control over your financial future. Whether you’re considering filing for Chapter 7 or Chapter 13 bankruptcy, understanding how to work effectively with a bankruptcy attorney is key to a successful outcome. In this guide, we’ll explore the best practices for collaborating with a consumer bankruptcy attorney to ensure a smooth and efficient process.

  1. Research and Choose the Right Attorney: Start by researching reputable consumer bankruptcy attorneys in your area. Look for reviews, testimonials, and recommendations from trusted sources. Choosing an experienced attorney who focuses on bankruptcy law will significantly enhance your chances of a successful case.
  2. Initial Consultation: Schedule an initial consultation with your chosen attorney. This is an opportunity to discuss your financial situation openly and candidly. Be prepared to share details about your expenses, creditors, and any legal actions taken against you.
  3. Transparent Communication: Open and honest communication is the cornerstone of a successful attorney-client relationship. Clearly articulate your financial goals, concerns, and any specific challenges you may be facing. The more information you provide, the better equipped your attorney will be to navigate your case effectively.
  4. Understand Your Options: Your attorney will explain the differences between Chapter 7 and Chapter 13 bankruptcy and help you determine which option aligns best with your financial circumstances. Make sure you understand the implications of each chapter, including the impact on your assets, debts, and credit score.
  5. Follow Legal Advice: Once you’ve decided on a course of action, follow your attorney’s legal advice diligently. This may include gathering additional documentation, attending credit counseling courses, or making necessary financial adjustments. Trust your attorney’s expertise in guiding you through the complexities of bankruptcy law.
  6. Timely Documentation Submission: Ensure that you promptly provide all requested documentation to your attorney. Timely submission of required paperwork is essential for meeting court deadlines and ensuring the efficiency of the bankruptcy process.
  7. Attend Meetings and Hearings: Be present for all required meetings and hearings. Your attorney will guide you on what to expect and how to prepare. Demonstrating your commitment to the process will strengthen your case and contribute to a positive outcome.
  8. Stay Informed: Stay informed about the progress of your case. Regularly communicate with your attorney to receive updates, ask questions, and address any concerns you may have. Understanding the status of your bankruptcy proceedings will empower you to make informed decisions.
  9. Post-Bankruptcy Planning: Work with your attorney to develop a post-bankruptcy financial plan. This may include rebuilding your credit, managing expenses, and establishing a solid financial foundation for the future.

Conclusion: Collaborating effectively with a consumer bankruptcy attorney is crucial for a successful bankruptcy filing. By choosing the right attorney, maintaining open communication, and following legal advice diligently, you can navigate the bankruptcy process with confidence, ultimately achieving the financial fresh start you deserve. Schedule a free bankruptcy consultation with Jennifer Weil, a New Jersey bankruptcy attorney, to discuss your options.

Navigating the Bankruptcy Process: 10 Tips For Working With Your Attorney

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Here are some best practices for consumer bankruptcy clients when working with consumer bankruptcy attorneys:

  1. Choose the Right Attorney.

The most important step in working with a consumer bankruptcy attorney is to choose the right one. There are many factors to consider when making your decision, such as the attorney’s experience, fees, and geographic practice area. You should also make sure that you feel comfortable communicating with the attorney and that you trust them to represent your best interests.

  1. Be Honest and Upfront with Your Attorney.

Your attorney needs to have a complete and accurate understanding of your financial situation in order to properly represent you. This means being honest and upfront with them about your debts, assets, and income. Don’t try to hide anything from your attorney, as this could jeopardize your case.

  1. Gather Your Financial Documents.

Your attorney will need a variety of financial documents in order to prepare your bankruptcy petition. This includes things like your credit reports, bank statements, pay stubs, and tax returns. Start gathering these documents as soon as you start thinking about filing for bankruptcy.

  1. Be Prepared to Answer Questions.

Your attorney will have a lot of questions about your financial situation. Be prepared to answer these questions honestly and completely. The more information you can provide, the better your attorney will be able to represent you.

  1. Attend Meetings and Hearings.

You are required to attend certain meetings and hearings throughout the bankruptcy process. It is important to attend the meetings and hearings where your presence is required, as they are an important part of the process.

  1. Communicate with Your Attorney Regularly.

Keep your attorney updated on any changes to your financial situation. This includes things like new debts, new income, or changes to your living arrangements.

  1. Be Patient.

The bankruptcy process can take several months to complete. Be patient and understanding with your attorney as they work through the process.

  1. Don’t Make Any Major Financial Decisions Without Consulting with Your Attorney.

Before you make any major financial decisions, such as buying a car or taking out a loan, talk to your attorney. They can advise you on whether or not the decision is a good idea in light of your bankruptcy case. For example, there is a set procedure for buying a car while you are in a Chapter 13 bankruptcy case.

  1. Get Things in Writing.

Your attorney should provide you with certain documentation in writing. Be sure to pay close attention to these documents, which may include an agreement, a checklist, and a description of the different chapters of bankruptcy. These documents will help to avoid any misunderstandings later on.

  1. Follow Your Attorney’s Advice.

Your attorney is there to help you through the bankruptcy process. Follow their advice and you will be well on your way to a fresh start.

Schedule a free bankruptcy consultation with Jennifer Weil, a New Jersey bankruptcy attorney, to discuss your options.

5 Tips For A Smooth Bankruptcy Case

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Here are 5 tips for a smooth bankruptcy case that you can implement both before and after you’ve hired a bankruptcy attorney.

Tip #1: Have You Filed Bankruptcy Before?

If you have filed bankruptcy in the past, whether or not you received a discharge, you should immediately tell your attorney about the prior bankruptcy. This is important because it can affect how long you must wait before filing a new bankruptcy case, if you want to receive a discharge in the new case. Prior cases can affect other things, including, but not limited to, the length of time creditor must stop trying to collect debts from you.

If you’ve had a prior bankruptcy filing, your bankruptcy attorney should advise you about whether a new bankruptcy filing is a good idea for you and if so, when you should file the new case.

Tip #2: Don’t Repay Relatives Before Filing

If you are considering filing for bankruptcy and you owe money to relatives, don’t repay them before you file the bankruptcy. Instead, tell your bankruptcy attorney about these kinds of debts and ask them what to do. There are special bankruptcy rules about repaying relatives before bankruptcy and, if you do the wrong thing, the bankruptcy trustee can try and recoup the money you’ve repaid from that relative.

You may be able to easily repay that relative after your bankruptcy is finished, or in the case of a Ch. 13, during the bankruptcy. Ask your bankruptcy attorney for advice first before making any payments to relatives, to avoid any special difficulties such as the trustee wanting to sue your relative to claw back those funds.

Tip #3: Decide Whether To Keep Your Car

Whether to keep your car may be obvious to you, but it’s worth asking your bankruptcy attorney about your options. It is important to know that if you want to keep your car, and you took out a loan for that car, you must keep making all of your car payments in full and on time.

While bankruptcy gives you a break from your debts, you cannot get behind in your car payments when you expect to keep your car. If you’re behind on your car payments during your bankruptcy, then at some point, your car lender will be able to repossess your car.

If you have very high car payments or if your car is too expensive to keep due to repair problems, then discuss with your bankruptcy attorney the timing of getting rid of the car and of getting a replacement, if needed. If you’re doing a Ch. 13 case, you may be able to cram down the car loan closer to the actual value of the car.

Tip #4: Don’t give away or otherwise transfer any property

Especially before filing the bankruptcy, do not give away or transfer any property, such as real estate, a car, money, etc. If you are in doubt about whether you can, or should, transfer something you own out of your name and into someone else’s name, ask a bankruptcy attorney for advice first.

Transferring property to someone else can be a big problem that can prevent you from filing bankruptcy or get you into big trouble in your bankruptcy case. Some people naturally believe that the less they own on filing bankruptcy, the better. While that may be the case to some extent, it is far worse to have transferred something valuable out of your name just so that you didn’t own it at the time your bankruptcy was filed. This can lead to allegations of bankruptcy fraud, which will cause you a lot bigger problems than if you had never made the transfer in the first place.

Tip #5: Don’t Borrow Any More Money

Generally, you should not borrow money soon before filing your bankruptcy case. For most people, this means not using your credit cards anymore. There are detailed nuances to this general rule that you should discuss with your bankruptcy attorney, so be sure to ask for advice if you already have used credit cards recently, or if you feel that you need to do so.

If you need to discuss issues with a bankruptcy attorney, schedule a free phone consultation with attorney Jennifer N. Weil through her Setmore page or by calling (201) 676-0722.