What is Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy allows both individuals and couples who cannot meet
their financial obligations to be excused from having to repay some or
all of their unsecured debt. A Chapter 7 bankruptcy filing is the simplest, easiest, and fastest way
to accomplish this. This type of bankruptcy is a liquidation process where
your assets and property that are subject to the process are surrendered,
sold, and the proceeds distributed to creditors. However, much of your
personal property is exempt from the bankruptcy process under rules set
up for this purpose. In many cases, you will not lose most of your personal
belongings or assets such as household goods, stocks, clothing, pensions,
public benefits, and more. This will be determined at the time your case
is analyzed by our attorney.
In exchange for the surrender of assets, your unsecured debt will be discharged
by the bankruptcy court, giving you a clean slate. This does not apply
to mortgages or vehicle loans, which you will be required to continue
paying if you wish to keep them.
The Automatic Stay
Once you initiate the bankruptcy process, the court will issue an automatic
stay that stops any further attempts by your creditors to collect payment.
After you file, these creditors can only go through the bankruptcy court
to collect. This means the end of creditor harassment.
Types of Non-Dischargeable Debt
Some debt cannot be discharged through bankruptcy. These generally include:
- Student loans
- Child support and alimony obligations
- Homeowner association fees
- Personal injury or wrongful death judgments
- Debts accrued through criminal actions
A creditor can also petition the court requesting that the debt you owe
it be made non-dischargeable. If the court rules in the creditor’s
favor, you will still owe that particular debt. Having a prepared and
aggressive attorney on your side in such a case will give you the representation
you need to present your side of the story and to fight back against such
Let Blanch Legal Firm Help You
You may be in over your head financially due to circumstances beyond your
control, such as from a sudden illness or injury leading to extensive
medical bills, from a divorce, job loss, business loss, or other unforeseen
problem. Let our experienced New Jersey bankruptcy attorneys help you
determine whether bankruptcy is the right choice for you and, if so, safely
guide you through the entire proceeding. We have a long history of helping
people just like yourself find their way out of debt overload and getting
their financial scene back on track.
Let us hear from you about your financial situation. Get a private, confidential,
and free case review by
(201) 257-5388 today.