New Jersey Bankruptcy Lawyer - Chapter 7 & 13

Considerations when filing a bankruptcy

When choosing to file Bankruptcy many factors must be considered.  The most important decision is what type of Bankruptcy should be considered.   Relief is obtained through filing one of three types of proceedings and is governed by the United States Bankruptcy Code.   The Chapters of the Code determine the type of Bankruptcy to be filed and the relief obtained.  There are generally three types of Individual Bankruptcies under Chapter 7, Chapter 13, and Chapter 11.  If you are a farmer relief is obtained under Chapter 12.  Generally the requirements are set forth below and some of the advantages of each.  For more information and and greater detail visit our website at www.njbankruptcyatty.com.  

New Jersey Chapter Seven Lawyer

This type of Bankruptcy is the most advantageous available.  In a Chapter 7 you do not pay anything to your creditors and most debt can be discharged, meaning wiped away at the conclusion of the case.   There are some situations however where a Chapter 7 is not available.  If you earn more than the median income of wage earners of New Jersey you may be prohibited from filing a Chapter 7.   Here are the income limits for 2013 New Jersey residents.   They are for Single Individuals $59,906;  for two member households $68,284; for three member households $83,292 and four four family households $101,682.  New Jersey is the highest of all the states for Median Income levels for most family sizes.   The other reasons why a Chapter 7 may not be right for you is that you have assets you wish to retain that are more valuable than your exemptions.  Here is a partial list of the Federal Exemptions for property.  Speak with a New Jersey Chapter 7 Bankruptcy Lawyer today. 

Homestead 

Jewelry

Automobile

Tools of Trade

Household Goods and Furnishings

Wildcard

Another reason a Chapter 7 may not be desirable is if you have a secured debt such as a car loan or home loan that you are in arrears on and you wish to retain and keep the property if this is your situation then a Chapter 13 is a more appropriate form of relief.

New Jersey Chapter Thirteen Lawyer

A bankruptcy filing under this section of the Code allows you to retain your home by paying all of the arrearages in the course of a Chapter 13 Plan. A Chapter 13 Plan has a few requirements.  The first requirement is that the creditors must receive the same as they would have received if you had filed a Chapter 7.  If you are paying arrearages they must be paid in their entirety with certain exceptions for second mortgages and home equity loans.  Another rule for Plans is that they are limited to a maximum of five years (60 Months). Another rule for Plans is that they must provide that you pay all of your disposable income over the course of the Plan.  A budget of your income and expenses is prepared and this budget if accepted by the trustee will determine the amount of your payments. There are Debt Limits for individual seeking Chapter 13 Relief of Secured Debt totaling more than $1,010,650 and Unsecured Debt of $336,900. Speak with a New Jersey Chapter 13 Bankruptcy Lawyer today. 

New Jersey Chapter Eleven Bankruptcy   

If an individual does not qualify for relief under Chapter 13 due to exceeding the income levels a Chapter 11 may be filed.  This type of Bankruptcy filing is more complex than either a Chapter 7 or Chapter 13 and relief is limited tot he Debtor. 

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