Chapter 7 Bankruptcy

Guiding NJ Clients through the Process of Chapter 7 Bankruptcy

If you are dealing with overwhelming bills and debt collectors, with no possibility of putting a payment plan into place, you may need to consider filing for Chapter 7 bankruptcy. While this can help you put an immediate end to some of your worst debt problems, it’s a lengthy process that requires the help of a bankruptcy attorney. Tomes Law Firm, PC can provide the high-quality legal support you need.

Why You Need a Bankruptcy Attorney for Chapter 7

When you file for Chapter 7 bankruptcy, all your assets are liquidated in order to pay off debt. In the state of New Jersey, you cannot just simply file for bankruptcy and start proceedings. You must satisfy some prerequisites, including the receipt of credit counseling from a court-approved agency within six months before filing, engagement in a debtor education course, and the satisfaction of the means test. A bankruptcy attorney at our law firm can help you meets these obligations.

The Meeting of Creditors

When you file for Chapter 7 bankruptcy, you will have to attend a Meeting of Creditors, also called a 341(a) meeting. You, your attorney, the bankruptcy trustee, and any creditors who attend the meeting will explore your financial situation. During the meeting, the trustee will work to establish a clear picture of the situation in order to sell your valuable possessions. This serves to satisfy your unsecured debts to a certain extent and forgive the remainder, with some exceptions. The creditors will try to collect information to support a valid objection. If any creditor convinces the bankruptcy court that an objection should be allowed, you will be liable for the debt.

Though the prospect of filing for bankruptcy may be frightening, it is not a punishment and could help you pay off debt, build credit once again, and move on with a fresh beginning.

Can Chapter 7 Bankruptcy help?

This form of bankruptcy can help you put an immediate end to some of your worst debt problems including:

Stop debtor harassment: Debt collectors can no longer harass you with demands for money. This is called an automatic stay. Debt collectors cannot contact you about owed debts and the only communication allowed is through the bankruptcy trustee.

Stop repossession and foreclosure: If you are facing the loss of your car or house, filing for bankruptcy stops any repossession or foreclosure proceedings. This gives you the time to explore your legal options, and possibly keep your home and car.

Forgiven debts: Many types of debt can be forgiven. This is called a discharge. You may be able to discharge credit card debts, medical bills, and other unsecured debts. Some of the many debts you cannot discharge include student loans, child support, and some taxes.

It is important to note that bankruptcy will impact your credit score for 10 years, but you can work to rebuild it within that time.

Contact Tomes Law Firm, PC for Chapter 7 Bankruptcy Help

Although every situation is unique, each bankruptcy attorney at our law firm aggressively strategizes to make sure our clients get the best outcomes when filing for bankruptcy protection. Those who qualify can use the provisions of Chapter 7 bankruptcy to immediately start rebuilding a solid financial future.

If you would like to discuss your situation with an experienced and earnest bankruptcy legal team, contact Tomes Law Firm, PC for a free initial consultation.