You are not alone. Times are tough for everyone. If you are considering personal bankruptcy, you have probably been struggling for months to make ends meet. Due to a loss of income, perhaps your job or other catastrophic circumstance, you’ve been unable to do so. Collection companies have made it impossible for you to answer the phone without being harassed, and creditors are writing letters and making threats.
Nobody wants to file bankruptcy. Many struggle because they perceive payment to their creditors is an “honorable” thing, and filing bankruptcy is perceived as a negative or embarrassing stigma which attaches to you. Others are afraid of what the process will do to their credit.
Stop the harassment. Stop the self imposed stress and sleepless nights, and consider this: The Bankruptcy Code has been used by countless thousands of people, just like yourself. The notables include Donald Trump, GM, Burt Reynolds, Johnny Unitas, Kim Basinger, Sharper Image, Circuit City, US Airways, Bed Bath and Beyond, and many, many others – why not you? Nobody will be showing up to place yellow tape on your property or around your house marked “Bankrupt”. Nor will your name appear in the newspaper.
As for your credit – consider whether your current credit score, and the debt you are saddled with now will enable you to qualify for more credit any time soon. Consider too, whether you are best served by continuing to struggle for years, or whether a “fresh start” will return you to creditworthiness sooner.
Chapter 7 of the US Code:
Chapter 7 is commonly referred to as a “straight bankruptcy” or “liquidation bankruptcy.” In this form of bankruptcy, individual debtors are allowed to keep certain exempt property. Typically, such bankruptcies result in a discharge of unsecured debts (debts which are not backed by real property), while secured debts such as car loans, home mortgages, etc. are reaffirmed. Other non-exempt assets are typically sold by an appointed trustee, in order to raise money with which to pay creditors.
In a chapter 7 filing, a debtor is usually discharged within four to five months after filing a petition.
Overall, chapter 7 debtors are able to discharge their unsecured debt, keep their exempt property, and move on with their lives.
You Can Learn More:
Obviously, there are many rules, codes and factors which one should consider when making the decision to file bankruptcy. The best source of more information is from the bankruptcy counsel you choose. Another excellent source of information is the web page of the US Bankruptcy Court itself: www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
Do you qualify for Chapter 7? Take the “Means Test” by clicking here.
Contact The Firm
If you have questions regarding New Jersey bankruptcy law, contact Romanowsky Law at 973-451-1116 or simply complete the online contact form on this website. The firm offers services in English and Spanish.