Best Family Law Attorneys near Gloucester, NJ

Generally, a Chapter 13 case is for people who either don't qualify to file a Chapter 7 case or require certain protections to a debtor that a Chapter 7 case cannot offer. Qualified bankruptcy lawyers can help with filing for Chapter 13. In a Chapter 13 case, the debtor formulates a plan where they make monthly payments to a Trustee for a period of three to five years. These payments are distributed to creditors by the Trustee, and any debt left after the plan is completed is discharged. For example, if a debtor is facing foreclosure of their home and/or repossession of their car due to non-payment, the debtor can propose a plan to pay to the mortgage company and/or the car loan company the amount(s) they're behind. By the end of the plan, the debtor would be current on the mortgage and/or car loan.

In order to prepare your bankruptcy petition, you must provide your bankruptcy lawyers with income information from the past six months from all household members even though you might be the only one filing. According to Legal Jobs, 97% of bankruptcies are filed by individuals. You should also provide statements from all bank accounts from the past six months, your last two filed income tax returns, and your most current bills, i.e., credit card, mortgage loan, and car loan statements, medical and utility bills, lawsuit documents, and any other proof of debt. Depending on your particular situation, you may need to bring your bankruptcy lawyers proof of other financial assets, such as brokerage account statements, life insurance policies, and savings bonds.

Many bankruptcy lawyers will inform you that most debts can be discharged in bankruptcy. However, some debts, such as student loans, unpaid income taxes, court fines, alimony, child support, and personal liability debts resulting from injuries caused by intoxication cannot be discharged.

The short answer is yes. If you intend to file, bankruptcy lawyers recommend the following: (1) Stop paying your unsecured debts, such as credit cards and personal loans. Reducing the amounts you owe on these debts will not make a difference to the Bankruptcy Court nor have a favorable effect on your credit score. (2) DO NOT take on new debt. Do not go out and max out on your credit cards! Do not charge for expensive trips or luxury items (like new TVs, computers, cars, and jewelry). You could face serious penalties if you are found to have charged significant expenses knowing that you were going to file for bankruptcy. (3) DO NOT transfer titles to homes, cars, or valuable items in an effort to lower the value of your possessions or shield these items from creditors or the bankruptcy trustee. (4) DO NOT pay debts you might owe to family members or friends. Choosing to pay friends or relatives before filing for bankruptcy on your other debt is known as a preference. Such actions could cause you and your friends or relatives significant legal problems. (5) Be honest. Being truthful and complete in your filing will not only allow your attorney to help you navigate the complexities of bankruptcy but it'll also make the process smoother and make a somewhat unpleasant experience less stressful.