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In times of financial crisis, individuals may feel like they have no other options available to them. However, there are bankruptcy options that can help to improve your financial future. Before filing for bankruptcy, it is best to consult an attorney in order to decide the best way possible to fix your financial problem. The two options most used by individuals are called Chapter 7 and Chapter 13 bankruptcy.

The meeting of the creditors is a step involved in bankruptcy proceedings when you, your attorney, creditors who wish to attend and your trustee will discuss your situation. At this meeting, creditors can compile information to reject the case. If you’re successful, your debts should be cleared. Only your credit score should be affected. With financial planning, you can improve your situation for the future.

Which form of bankruptcy is more beneficial?

When compared to Chapter 7 bankruptcy, Chapter 13 may have a few more advantages. Most people are able to save their home and reschedule debts by extending them due to the repayment plan and this acts as a consolidation loan. With Chapter 13 bankruptcy, you can develop a repayment plan if you have a regular income. This repayment plan can be over a three to five year period.

What are the eligibility requirements for Chapter 13 bankruptcy?

To file for Chapter 13 bankruptcy, you will need to receive credit counseling within 180 days before filing. If another petition was dismissed within the 180 days, you cannot file again. You can still file for bankruptcy if you are self-employed or operate an unincorporated business. However, you are only eligible if your secured debts and unsecured debts are less than the capped amount.

You should then file documents that include a list of liabilities, assets and property, a statement of financial affairs, a list of executory contracts and unexpired leases, proof of credit counseling and any plan developed to handle the matter, income payments within 60 days prior to filing, monthly net income and any indication in a rise of income or expenditures and interests the debtor has in state or federally-qualified education or tuition accounts.

If you are in need of experienced legal counsel for matters of personal injury, medical malpractice, medical device injuries, unsafe drug injuries, consumer protection, bankruptcy, SSD, or criminal law in New Jersey, please contact Tomes & Hanratty, P.C. and we will be happy to assist you.