Bankruptcy Attorneys in East Brunswick, New Jersey
Millions of Americans are faced with filing for bankruptcy each year for various reasons. Sometimes it’s due to an unexpected illness. Other times it’s a divorce or a death in the family, the loss of a steady income or a critical accident. Debt resolution offers our clients a fresh start and allows them to become productive, contributing citizens again.
Our highly skilled bankruptcy attorneys and staff are devoted to providing clients with excellent legal services. With our combined and diverse legal expertise, the attorneys of Young, Marr, and Associates are ready to assist you with a large scope of bankruptcy-related issues.
We will advise you on what type of bankruptcy to file, make sure your documents are filed promptly, and assist you in assuring all important facts are included in the paperwork. Before filing, our attorneys work side-by-side with clients to ensure bankruptcy is the best option.
What is Bankruptcy?
The bankruptcy process is used when an individual or institution is unable to repay debts owed to creditors. Sometimes bankruptcy is imposed by a court order or initiated by the debtor. The main purpose of filing for bankruptcy is debt restructuring, which allows the person to reduce, renegotiate, or eliminate delinquent debts.
There are four main types of bankruptcies:
Chapter 7 Bankruptcy
Chapter 7 deals with property and is considered liquidation because the bankruptcy trustee may sell part of the property to pay back debt. Under state law, some of the property is considered exempt and can be kept by the debtor. The rest of the property may be taken by the court, converted to cash and then divided amongst creditors. The bankruptcy is then discharged and most creditors can no longer attempt to collect money, even if the original loan is not paid off.
Chapter 13 Bankruptcy
When filing Chapter 13, a debtor can work out a repayment plan that the court approves. This means property does not have to be given up, but some or all creditors need to be paid back within three years. Sometimes the length of time is extended to five years if the judge sees fit.
Chapter 12 Bankruptcy
Chapter 12 is like Chapter 13 in structure, but it offers additional benefits to farmers and fishermen in certain circumstances, beyond what’s available to ordinary wage earners. Chapter 12 is applicable only to family farmers and fishermen.
Chapter 11 Bankruptcy
Chapter 11 is generally used by corporations.
Should I File for Bankruptcy?
There are many benefits in declaring bankruptcy, but most importantly, it provides you with a fresh start. For many people, bankruptcy offers a sense of relief. It prevents property from being repossessed, utilities from being shut off, and stops collection agencies from calling.
To be eligible for bankruptcy a filer must have a permanent residence, own property, or have a place of business in the United States. The filer must also complete a financial counseling course (although some filers may be exempt). U.S. citizenship and insolvency are not prerequisites of a bankruptcy filing.
If you’re unclear whether you’re qualified to file for bankruptcy, you should consult with a bankruptcy attorney from Young, Marr, and Associates, who will provide you with legal advice on the most beneficial option for your financial circumstances.
What to expect when I file for bankruptcy?
When you arrive at your scheduled appointment with one of our bankruptcy attorneys, you will be asked to fill out some paperwork to go along with other information you have provided. The attorney will then complete a bankruptcy petition and schedules. Most of the paperwork includes information about your assets, debts, income, and expenses.
When the schedules are complete, you will review and sign them. Your attorney will then file the documents with the appropriate bankruptcy court. Once the petition is filed, an automatic stay goes into effect immediately, which means collection activities must stop. Under the automatic stay, creditors are not allowed to call you or send collection letters. They also can’t repossess your car or other assets, or continue legal action against you. An automatic stay also stops garnishment of your wages.
Within a few weeks, you will receive notification of the date, time and location of your bankruptcy hearing. It’s imperative you attend the hearing or your case could be dismissed. If for some reason a conflict in scheduling occurs, it’s important to consult your attorney or the bankruptcy court clerk as soon as possible.
At the meeting, the court appointed trustee will verify you are eligible for bankruptcy and that your paperwork is accurate and in order. You should arrive about fifteen minutes early, bring a state issued photo I.D., your social security card and the notice you received from the court.
During the hearing, the trustee will call you forward and ask you a few basic questions such as whether you listed all of your debts and assets in the paperwork.
If you’re filing a Chapter 7, you’re finished unless the bankruptcy trustee requests additional information. If you’re filing a Chapter 13 bankruptcy, you will receive a discharge order after you have finished your court arranged payment plan. It’s important to keep the discharge paperwork in a safe place as proof that you’ve been cleared of previous debts.
The choice to declare bankruptcy is difficult, but the process is quick and the outcome is a fresh start with your finances.
Contact East Brunswick, NJ Bankruptcy Lawyers Today!
If you would like to set up an appointment with a bankruptcy attorney at Young, Marr and Associates, please contact us at (609) 755-3115. We are located in Middlesex County at 2 Tower Center Blvd. on the 19th floor, East Brunswick, NJ 08816, near the Tower Center Bus Station.