Do you lie awake at night worrying about how you’re going to pay for your mortgage, your medical bills, or other financial obligations? Are you concerned about your home being foreclosed on, or worried about your vehicle being repossessed? Have you resorted to juggling multiple credit cards, or borrowing money from your retirement plan, simply to pay off debt that never seems to shrink? If you answered yes to any of these questions, it may be time to speak with an experienced bankruptcy attorney about filing for Chapter 7 in New Jersey.
The New Jersey bankruptcy lawyers of Sadek & Cooper Law Offices have extensive experience handling Chapter 7 cases with efficiency, precision, and care. We have successfully helped thousands of clients file for Chapter 7 in counties throughout South Jersey, including but not limited to Atlantic County, Burlington County, Camden County, Ocean County, and Salem County. To learn more about how Chapter 7 can help you manage your debt and regain financial freedom, call Sadek & Cooper Law Offices right away at (856) 354-3310 for a free legal consultation.
What is the Difference Between Filing for Chapter 7 and Declaring Chapter 13?
There are several types of bankruptcy in New Jersey, each of which is named for its corresponding chapter of the U.S. Bankruptcy Code. Along with Chapter 13 bankruptcy, Chapter 7 is the primary form of bankruptcy used by individual debtors throughout New Jersey and the nation. But what are the core differences between these two common forms of bankruptcy, and how do you know if Chapter 7 is the right option for you?
Chapter 7 is sometimes called “straight” bankruptcy because it is quicker and more straightforward than other forms of bankruptcy. Many cases resolve in as little as just four to six months, which is one of the features that makes Chapter 7 fairly popular among filers in New Jersey.
During your case, you will benefit from a court order called the “automatic stay,” so named because it automatically halts foreclosure, wage garnishments, and other collection actions while the bankruptcy is in effect.
When a Chapter 7 case resolves successfully, the bankruptcy court grants the filer a discharge. The discharge eliminates the filer’s liability for numerous debts, giving him or her a fresh start free from financial burdens.
Chapter 13 is a much longer and much more complicated process. Unlike Chapter 7, Chapter 13 requires debtors to create a long-term reorganization plan that provides procedures for repaying creditors gradually. If you possess substantial assets or disposable income, Chapter 13 may be the more appropriate bankruptcy option for you. Our attorneys can discuss your situation in detail when you call for your free Chapter 7 consultation.
What Dischargeable Debts Are Eliminated in a Chapter 7 Bankruptcy Case?
Chapter 7 bankruptcy in New Jersey has numerous financial benefits, such as the automatic stay and protection from creditor harassment. Bankruptcy can even help you build good credit in the future by liberating you from many of the debts that have been holding you back financially. However, for most filers the primary benefit of bankruptcy is the discharge, which eliminates liability for various debts.
A debt that can be wiped out in Chapter 7 bankruptcy in New Jersey is known as a “dischargeable” debt. Fortunately, most major sources of debt in New Jersey are considered to be dischargeable. Some examples of Chapter 7 dischargeable debts, or debts that can be eliminated in Chapter 7, include but are not limited to:
- Business Debt
- Credit Card Debt
- Medical Debt
- Past-Due Rent
- Past-Due Utilities
- Personal Loan Debt
While the bankruptcy discharge is broad, there are still a few debts which Chapter 7 does not release the filer from. With several narrow exceptions, the following types of debt cannot be discharged in a Chapter 7 case:
- Alimony Debt
- Child Support Debt
- Student Loan Debt
- Tax Debt
New Jersey Chapter 7 Bankruptcy Attorneys Serving Southern New Jersey
At Sadek & Cooper Law Offices, we understand that bankruptcy can be an extremely daunting, even frightening prospect, especially for debtors who are filing for the first time and are unfamiliar with the process and its potential outcomes. We want you to feel comfortable and confident, which is why we will work closely with you to eliminate stress by handling your paperwork, answering your questions, discussing your options, and making sure you are well informed at each stage of your case. When you are represented by Sadek & Cooper Law Offices, you can expect comprehensive bankruptcy legal services at every step of the way.
Sadek & Cooper Law Offices handles Chapter 7 cases throughout South Jersey, including but not limited to Atlantic City, Camden, Cherry Hill, Egg Harbor Township, Evesham Township, Galloway Township, Gloucester Township, Lakewood Township, Mount Laurel Township, Toms River Township, and throughout Burlington and Gloucester Counties. Additionally, if we determine that declaring Chapter 7 would be an inappropriate strategy to address your financial concerns, we may be able to help you file for Chapter 13, or utilize various bankruptcy alternatives, as another potential option.
You don’t have to suffer through another sleepless night worrying about your family’s finances. If you’re thinking about filing for bankruptcy in New Jersey, call Sadek & Cooper Law Offices immediately at (856) 354-3310 for a free legal consultation.