New Jersey Chapter 13 Bankruptcy
When filing for bankruptcy, there are a few different options. In Chapter 13 bankruptcy, the debtor proposes a repayment plan for all or part of the debt. This repayment plan is typically 3-5 years and is based on the debtor’s future income. Chapter 13 bankruptcy can be used for reason such as; stopping interest from accruing on tax debt, keeping valuable non-exempt property, preventing a house foreclosure, and making up missed mortgage or car payments. By sticking to the approved repayment agreement, any dischargeable debt will be released at the end of the plan. The repayment amount is determined by the debtor’s disposable income, and the amount must be equal to the amount creditors would have received if the debtor filed for Chapter 7 bankruptcy. You must a regular source of income and disposable income in order to get a repayment plan approved.
If Chapter 7 bankruptcy is a liquidation, then Chapter 13 bankruptcy is a reorganization. Chapter 13 bankruptcy is commonly used by debtors who wish to keep secured assets, like a car or house, when there is more equity in the assets than they can protect.
Chapter 13 bankruptcy allows debtors to make up overdue payments over time. If the debtor has valuable nonexempt property or assets, Chapter 13 bankruptcy could be a better option. If the debtor is looking to eliminate debt rather than pay it back, Chapter 7 would be the best route.
The Bankruptcy Attorneys At The Law Offices Of Marc A. Futterweit Can Help You Eliminate Debt & Silence Creditors
There are many consumers every year who file for bankruptcy. If you are struggling with debt collectors harassing you or unable to manage your debt, don’t worry, we can help. There are two courses of action that someone in your situation can do.
There is Chapter 7 bankruptcy, which is known as “straight” or “liquidation” bankruptcy. In this case, the process is designed to get rid of unsecured debts that you have accrued like medical bills or credit cards.
Another option is known as Chapter 13 bankruptcy in which you would still retain your assets but you negotiate a plan to repay a portion or all of your debt over an allotted amount of time.
If you think that this is a viable option for you, get in touch with us to find out how we can help you. We recommend considering alternative routes to bankruptcy before deciding on this option. If your unsure of how to handle your debt situation, contact us and our law firm can answer all of your questions.