South Jersey Chapter 13 Bankruptcy Attorney
Having overwhelming debt can consume your thoughts. We know you might feel very stressed. This is not an easy time for anyone. Our South Jersey chapter 13 bankruptcy attorney will guide you through the process every step of the way. Give us a call today to get started.
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Repaying Your Debt with Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also called a wage earner’s plan. It is designed to help people who have steady income but who are having a difficult time managing debt. Chapter 13 bankruptcy lets you create a debt management plan that can span over three to five years.
The timeline in which you pay back your debt is going to be based on your income. There is an income threshold, too, that you should discuss with your South Jersey chapter 13 bankruptcy attorney.
If you are under it, you will be repaying your debt in three years. If you are over the threshold, you are going to be looking at repaying your debt within five years. You may be able to be approved for a longer timeline if you are set to repay it in three years. The repayment schedule cannot extend beyond five years.
Our South Jersey chapter 13 bankruptcy attorney can answer any questions you have.
How You Can Benefit from Chapter 13 Bankruptcy
If you are looking into whether you want to try to file for chapter 7 or chapter 13 bankruptcy, you should know the benefits of chapter 13. There are some serious advantages you should know about.
Chapter 13 means you likely won’t have to liquidate your assets to repay your debt, as you would with chapter 7 bankruptcy. Your house will not go into foreclosure when you have the help of chapter 13 bankruptcy. You do, however, need to continue making mortgage payments on time.
Another good thing about chapter 13 bankruptcy is that any of your secured debt can be rescheduled. This secured debt doesn’t include your mortgage on your house. The rescheduling of your secured debt, however, can be great because it means you are going to possibly have lower payments.
It is similar to consolidating your loans. The plan for repayment can say that you will send payments to a trustee assigned to your case. That trustee will then be making payments to your creditors. A fantastic thing about chapter 13 bankruptcy is that debt collectors can no longer harass you. Call our South Jersey chapter 13 bankruptcy attorney today to learn more.
Chapter 13 Bankruptcy Eligibility
Just about anyone can look into filing for Chapter 13 bankruptcy, whether they are self-employed or they’re the head of a big business. You do have to meet certain criteria for the debt you’re in, including both secure and unsecured debt. Your South Jersey chapter 13 bankruptcy attorney will be able to walk you through your situation and advise you on your eligibility.
Please also understand that you are going to have to appear before the bankruptcy court if you want to move forward with Chapter 13 bankruptcy. You also need to go through credit counseling in order to be eligible.
The Process of Chapter 13 Bankruptcy
Step one for chapter 13 bankruptcy is to file your petition with the bankruptcy court. This will be the time you show them what your assets, debts, and income are. You will show them proof of your income, as well as your current bank statements and a financial summary. You will then do credit counseling and start thinking about how you are going to create a debt repayment plan.
You can sit down with your South Jersey chapter 13 bankruptcy attorney to discuss the documentation that is going to be needed, as well as what you should expect in the process to come. They will help you prepare your documents. It is essential that you have an experienced lawyer on your side to ensure that you are getting the right guidance.
Please note that there will be a fee for filing. It is something that you can discuss making payments on. You can do up to but no more than four payments on this fee.
You can then come up with and create a repayment plan that might account for most or all of your debt. It is a complex process that is best done with the assistance of a skilled South Jersey chapter 13 bankruptcy attorney. The plan gets approved by going through a court hearing to show that it is likely going to work out to the creditors’ benefit while also being efficient for you.
Frequently Asked Chapter 7 Bankruptcy Questions
What’s important to know about Chapter 13 bankruptcy?
In speaking to clients about Chapter 7 or Chapter 13 bankruptcy, they want to know how the Chapter 13 bankruptcy helps them. A Chapter 13 bankruptcy is generally for individuals who have debts that are not dischargeable, such as taxes, student loans, alimony, or child support. It’s also for individuals who are having trouble managing their debt, but whose income is too high to file under a Chapter 7 bankruptcy. Chapter 13 also helps to protect your home from foreclosure or from a share of the sale. If you have any questions about whether Chapter 7 or Chapter 13 is right for you, please feel free to contact our office.
Why should I file a Chapter 13 bankruptcy as opposed to a chapter 7 bankruptcy?
A common question we have from our South Jersey clients is, “Why should I choose Chapter 7 over Chapter 13?” There are various reasons for that, one of them being maybe you’re income is too high in the Chapter 7 Means Test. Also, if you have unsecured debts that are not dischargeable, such as alimony, taxes or child support, or student loans, you would want to consider a Chapter 13. If you have any questions about whether a Chapter 7 or a Chapter 13 bankruptcy is right for you, please contact our office.
How do I choose the right Chapter 13 bankruptcy attorney?
When filing for Chapter 13 bankruptcy in South Jersey, it’s important to make sure that you have the right attorney. You need to look for an attorney who is experienced in Chapter 13 as well as Chapter 7 bankruptcy, has a background in mortgage remodifications and has experience in foreclosures. If you have any questions about whether you should file for a Chapter 7 or a Chapter 13, please contact our office.
How long does it take to complete a Chapter 13 bankruptcy?
I was talking to a Chapter 13 client the other day and they wanted to know right up front, “How long is this Chapter 13 bankruptcy plan going to take?” The answer is an emergency petition can be filed in about one to two hours, but under normal circumstances, it takes one to two weeks to complete the actual filing, and the plan will last three to five years. If you have any more questions about how this works, please contact our office.
How much does it cost to file for Chapter 13 bankruptcy?
Here in our South Jersey office, when clients come in, the cost is often a major concern on their minds. They’re already having trouble paying their debts and they want to know, “How much is it going to cost me to file for Chapter 13 bankruptcy?” Generally, there’s a small upfront fee of $750 to $1,000, but the remaining balance can be wrapped into the Chapter 13 trustee repayment plan. If you have any questions about Chapter 13 costs and how it’s wrapped into your plan, or whether a Chapter 13 bankruptcy is right for you, please call our office.
What is a Chapter 13 trustee and what is their role in a bankruptcy?
When talking to clients at our South Jersey office, they often want to know, “Who is this trustee? What do they do, and what part do they play in my bankruptcy plan?” The trustee is an individual who actually has the best interest of the creditors in mind. They will go over your assets, your debts, and your liabilities during your hearing. Creditors almost never show up to these hearings, but the trustee is there to make sure that everything is in order, and they will be the one who disperses your monthly payments. If you have any more questions about how Chapter 13 bankruptcy works, or what role the trustee will play, please feel free to contact our office.
How much of a debtor’s income must be paid to the trustee under a Chapter 13 repayment plan?
A common question we have from our clients in our South Jersey office is, “In Chapter 13 bankruptcy, how much of my paycheck am I required to use to pay back to my debt?” The answer is there’s no one-size-fits-all solution. Every case is different. We don’t know going into it how much will be going into that repayment plan. If you have any more questions, please contact our office.
Can I discharge my student loan debt if I file for Chapter 13 bankruptcy?
A question that sometimes comes up in our office with Chapter 13 clients is, “In New Jersey, am I able to put my student loans on my Chapter 13 bankruptcy?” The answer is, yes, that can be done, but the real question you need to be asking is if it’s a good idea for you to do that. Does it fit your situation? Does it benefit you? In some cases, it does not benefit you to put your student loans on your Chapter 13 bankruptcy. To determine if this is a good option for you, or to uncover what some of your other options maybe, you do need to have a bankruptcy attorney look at your situation. If you have any questions, feel free to contact our office.
Do I have to pay all my debts off in full in a Chapter 13 bankruptcy?
A common question we get from our Chapter 13 clients here in our South Jersey office is, “Am I required to pay back all my debts in full? After all, Chapter 13 is a repayment plan.” It depends on what kind of debt it is. Some debts you’re required by federal law to pay back in full, while other debts can be paid for at pennies on the dollar. If you have any questions about what must be paid in full or what will be paid for pennies on the dollar, or if Chapter 13 bankruptcy is right for you, please call our office.
Is credit card debt included in the Chapter 13 repayment plan?
Credit card debt is a big concern for a lot of our clients here in our South Jersey office, and they want to know, “If I file for Chapter 13 bankruptcy in South Jersey, will my credit cards be included in that debt?” The answer is, yes, they can be included in your debt. You will pay either pennies on the dollar or nothing at all, in some cases, for your credit cards. If you have any questions about how credit cards play into your Chapter 13 bankruptcy, please contact our office.
What assets can be protected in a Chapter 13 bankruptcy?
Many of our clients here in South Jersey ask, “What assets can be protected in a Chapter 13 bankruptcy?” The two biggest assets, and the ones that are usually on people’s minds and that they’re most concerned about are their home and their car. Those types of assets can be protected in a Chapter 13 bankruptcy. If you have any questions about how Chapter 13 can protect your assets, or if Chapter 13 is the right fit for you and your situation, please contact our office.
What happens if I miss a scheduled payment under a Chapter 13 repayment plan?
Another question we get from our Chapter 13 clients in our South Jersey office is, “If I miss a payment, what happens? After all, Chapter 13 bankruptcy is a repayment plan.” What happens when you miss a payment is the trustee will send you a warning letter. Remember, this is the person who is handling your payments every month to your creditors. They’ll give you a letter letting you know that you are behind, and they will give you the opportunity to remedy that. It’s important that you remedy that situation right away. If you have any more questions about Chapter 13 bankruptcy or what to do if you missed a payment, please contact our office.
What is life like after filing for chapter 13 bankruptcy?
Many of our Chapter 13 clients here in South Jersey want to know, “What is life like after Chapter 13 bankruptcy?” The answer is life will be easier because you’ll be able to better manage your monthly budget. You will have a monthly trustee payment that will be predictable and will be variable like it was when you were paying all those credit cards. You’ll actually be paying pennies on the dollar, which means you’ll probably have a little bit of extra money at the end of the month. The creditors will not be calling you. You will have the peace of mind of knowing that your home will not be foreclosed and that your car will not be repossessed.
Call Our South Jersey Chapter 13 Bankruptcy Attorney
If you are in serious debt and need help making the debt collectors stop calling, reach out to our South Jersey chapter 13 bankruptcy attorney right away. We are here for you.
