Personal Bankruptcy

In recent years the number of bankruptcy filings has reached historic levels due, in large part, to the overall economic crisis with which the United States has been dealing. If you have been struggling to climb out of your own financial crisis for some time now, it may be time to consider bankruptcy. One of the most common questions we are asked about bankruptcy is “How long does it take to file a chapter 13 bankruptcy?” A better understanding of the chapter 13 bankruptcy process can answer that question.

If you are one of the millions of hard working Americans who struggles every month to pay your bills yet never seems to get ahead, it may be time to consider filing for bankruptcy as a long-term solution. Most debtors struggle for months, even years, before seriously considering bankruptcy as an option. Often, valuable assets are lost in the process – assets that could have been saved had the debtor consulted with a bankruptcy attorney early on. Once you understand the Middlesex County bankruptcy process better you may see why filing for bankruptcy in Middlesex County is often the best option for a debtor who is struggling financially.

If your financial struggles have reached the point at which there does not appear to be a way out it may be time to consider filing for bankruptcy protection. In fact, bankruptcy is intended to help people just like you. As an individual (or married) debtor you will probably choose to file a chapter7 bankruptcy if you are eligible because a chapter 7 bankruptcy eliminated most of your debts at the end of the process. One debt that usually cannot be discharged, however, is student loan debt.

If you have made the difficult decision to pursue bankruptcy as a solution to your financial troubles, you likely arrived at that decision after careful consideration and contemplation. The next decision you need to make is which chapter to use for your bankruptcy. As an individual (or married) debtor you could use chapters 11, 12, 13, or 7. Most individuals who are eligible choose to file a chapter 7 bankruptcy because it results in the majority of your debts being discharged, or eliminated, at the end of the process. In order to file a chapter 7 bankruptcy in Middlesex County, however, you must first pass the “means test”.

If you have made the difficult decision to pursue bankruptcy as a solution to your financial troubles, you likely arrived at that decision after careful consideration and contemplation. The next decision you need to make is which chapter to use for your bankruptcy. As an individual (or married) debtor you could use chapters 11, 12, 13, or 7. Most individuals who are eligible choose to file a chapter 7 bankruptcy because it results in the majority of your debts being discharged, or eliminated, at the end of the process. In order to file a chapter 7 bankruptcy in Middlesex County, however, you must first pass the “means test”.

When you file for bankruptcy in Monmouth County the court handling the bankruptcy will assign a Trustee to oversee your petition. Though the court will remain in control of your petition, you may never step foot in the courtroom and will likely never meet the actual bankruptcy judge. The Trustee, however, will be an important party in your chapter 7 bankruptcy.

Unless you own a small business, farm or ranch, or are a family fisherman, you will choose between a chapter 13 and a chapter 7 bankruptcy when you get ready to file. Most debtors who qualify file a Monmouth County chapter 7 bankruptcy unless they have valuable non-exempt assets they wish to protect in which case they will have to use chapter 13. In a chapter 7 bankruptcy, non-exempt assets can be sold and the proceeds used to repay creditors.

Over the last several years the number of bankruptcy petitions filed across the United States has reached historic levels due, in large part, to the recession the country has suffered through. If you are one of the millions of people who has been adversely affected by the economic downturn, bankruptcy may be your best long-term solution as well. For a debtor who has never been through the bankruptcy process it can be confusing and a bit intimidating. Knowing what to expect can help. Though every bankruptcy is as individual as the debtor filing the bankruptcy, there are some common steps that most debtors go through. For example, all debtors in Monmouth County and throughout New Jersey will need to attend a “341 Hearing”, often referred to as a “meeting of creditors”.

For most people, deciding to file for bankruptcy is a decision that is not reached easily. On the contrary, most people try various solutions and explore numerous other options before finally deciding that bankruptcy is the best long-term solution. One of the reasons why people hesitate to consider bankruptcy as a solution to their financial problems is because they are concerned how bankruptcy will affect their credit rating. While this concern is understandable, the reality is that for most people their credit rating only suffers momentarily.

Most debtors who get to the point of filing bankruptcy have already seen their credit score suffer. Some, however, do manage to maintain a decent credit rating despite financial troubles that are significant enough to warrant filing bankruptcy. Regardless of where your credit score is when you file for bankruptcy, it will likely drop right after filing. Those with a higher score at the time of filing will see the most noticeable drop after filing. On average, a debtor will see a drop of 50-150 points in his or her credit score right after the petition for bankruptcy is filed. The good news, however, is that this drop in your credit score is usually only temporary. In fact, for many debtors their score will start to rebound within a few short months after filing.

A homeowner in Middlesex County may take out a second mortgage for a variety of reasons. Sometimes it is done to free up cash for renovations on the home. Other times the funds are needed to pay for college while still others take out a second mortgage because an emergency has caused a financial crisis and liquid assets are needed just to pay the monthly bills. If the homeowner then files for bankruptcy at some point down the road it may be possible to “strip”, or remove, the second mortgage as part of that bankruptcy.

The bankruptcy process can be an intimidating process for the average debtor. As is the case with most legal procedures, bankruptcy is full of legal jargon and legal terms with which most people are unfamiliar. If you are considering bankruptcy as a solution to your financial problems, or have already begun the bankruptcy process in Ocean County, the following list of common Ocean County bankruptcy terms may be helpful.

Regardless of how dire your financial situation is the decision to file bankruptcy will likely not be an easy one. If you are considering bankruptcy in Middlesex County New Jersey, or have already reached the conclusion that bankruptcy is your best option, you will need to decide which chapter to use when you file. Most individual (or married) debtors filer a chapter 7 or a chapter 13 bankruptcy. As a general rule, most debtors who qualify to file a chapter 7 bankruptcy choose to do so because a chapter 7 bankruptcy typically does not require the debtor to repay debts. This leads to the question “Can I file a chapter 7 bankruptcy in Middlesex County?”