Welcome to Bankruptcy-In-NJ.com and the Law Offices of Garces & Grabler, P.C.
Is filing for Bankruptcy in NJ right for you
Are you considering filing a bankruptcy in NJ, because…
…you made a good-faith effort to pay your credit cards, but as the late fees and interest mounted, you could not keep pace, and now the ringing of your telephone fills you with dread, in fear that 
another collector is going to badger you?
…you had either inadequate or no medical insurance and an unexpected health crisis for you or a family member has left you reeling with bills you could not reasonably be expected to pay off in a lifetime?
…the loss of a job or reduction in income has you falling behind in your mortgage payments and the bank is threatening to take your house through foreclosure?
… a creditor is garnishing your wages or levying your bank accounts, making it uncertain as to whether you will have the money to feed and shelter your family?
These are just a few of the reasons you may be considering filing for bankruptcy in New Jersey.
Your Options when filing for Bankruptcy in NJ
In these tough economic times Americans from all walks of life are experiencing unforeseen financial challenges, in most cases beyond their control. Dropping real estate prices, unemployment, rising credit card debt and reduction of income are just a few of the reasons many are finding themselves in financial difficulty.
At Garces & Grabler, P.C. our New Jersey Bankruptcy lawyers have experience helping thousands of clients successfully file for Bankruptcy in New Jersey. Bankruptcy in NJ is just one of the options you have to stop the lawsuits, stop foreclosure and stop the collection calls, and receive a fresh start.
Our experienced New Jersey bankruptcy attorneys will analyze your situation and help you make an informed decision whether filing for bankruptcy in NJ is right for you and what all your options are, so that you may have a plan going forward to get a fresh start.
Bankruptcy Protection in NJ and Solutions
Chapter 7
A Chapter 7 bankruptcy in NJ allows you to:
- Keep all property (house, car, etc.) if you are current on your payments (In most cases)
- Stop all wage garnishments
- Eliminate almost all unsecured (credit card) debt; medical bills; most personal loans; judgments; deficiency judgments associated with the repossession of a motor vehicle
- Eliminate all lawsuits or civil judgments
- Prevent any creditor from placing a lien on your home
- Have your drivers license reinstated if it had been suspended due to having a car accident while your vehicle was uninsured or due to unpaid parking summons
A Chapter 7 bankruptcy is designed for individuals who are unable to pay their unsecured debts. In many instances, the Debtor keeps all of their property. The Bankruptcy Code has exemptions, which allow you to keep certain property despite the claims of your creditors. Most Chapter 7 cases are “no-asset”, which means that you do not have any non-exempt property for the trustee to sell. The Exemptions are very reasonable and most people who file for a Chapter 7 bankruptcy in NJ keep everything they own. Please call for a free consultation so we can discuss your options. If you may be at risk of losing property, we can make a determination of the right options to protect your assets and get you out of debt.
Businesses also utilize Chapter 7 to help liquidate the company’s assets and distributing the proceeds to Creditors. A Chapter 7 begins with the filing of a petition which, for the most part, initiates the “automatic stay.” This prevents creditors from taking any action against you to collect a debt without following strict rules. For the most part, they can’t call you, they can’t write you, they can’t sue you, and they can’t continue to sue you if they have already started a lawsuit, unless allowed to do so by the bankruptcy court.
We can advise you on such issues as whether a debt can be discharged, whether you can, and how to keep, assets such as your home, your car, your retirements benefits, and on many other related issues.
Chapter 13 Bankruptcy in NJ
Chapter 13
A Chapter 13 bankruptcy allows you to:
- Reorganize and consolidate your debts and repay them interest free over a 36-month or 60-month period
- Stop foreclosure on your home if filed prior to sheriff sale
- Stop creditors from collecting any money from you
In order to qualify for a Chapter 13 bankruptcy, your repayment plan must be approved by the court. This approval will require gainful employment or some other verifiable source of consistent income. You must be able to demonstrate not only that you have the financial ability to pay the regular mortgage payment and your other living expenses, but also the economic ability to make an additional payment to the trustee to consolidate your outstanding debt.Under Chapter 13, you are still obligated to make all future mortgage payments to the bank or mortgage company as before, plus an additional payment to the trustee to cover the outstanding consolidated debt amount.
A Chapter 13 bankruptcy is primarily designed to help individuals or couples who do not qualify to file Chapter 7.
A Chapter 13 bankruptcy is primarily designed for individuals who earn a regular income. It is typically, though not always, for people who are behind on their mortgage payments and their property is in foreclosure.
In such situations, a Chapter 13 petition is filed to prevent or delay a sheriff sale. A Chapter 13 reorganization plan would be eventually set up for a period of five years to allow a debtor time to catch up with the mortgage payments, refinance, sell, and/or pay other debts.
A Chapter 13 also works almost the same way if a person is financing a car and he or she is behind on their car payments and wish to retain the car.
If a person or married couple has credit card debt, these debts could also be listed on the bankruptcy petition.
The two major factors that determine which type of bankruptcy a person will file is how much disposable income is available after all expenses are calculated and how much equity remains in one’s home.
You have options. Take the first step and contact us now for a free consultation.
CONTACT OUR OFFICE
To arrange a meeting with an experienced New Jersey bankruptcy attorney, contact our office online or call us at 1-866-951-1948. We are a debt relief agency. We provide legal assistance and help people file for bankruptcy relief under the bankruptcy code.
