What You Should Know About Chapter 7 Bankruptcy
By Marc A. Futterweit
For most people, bankruptcy is a scary word. Can bankruptcy be a frightening thing? Of course! There are very few (if any) people in the world that go through their life with the intention of declaring bankruptcy. However, sometimes life gets in the way and throws a person unforeseen circumstances. When you find yourself in this type of situation, your best alternative may be to turn to considering bankruptcy.
Many people are unaware that there are different chapters of bankruptcy. When it comes to wiping out your personal debt, an individual would file for Chapter 7 bankruptcy. When a person files for Chapter 7 bankruptcy they are essentially asking the State of New Jersey for a fresh start to be able to get their affairs in order in a reasonable monetary way that will allow them to continue be able to live life in a somewhat suitable way.
When you are thinking about bankruptcy, there are many things that a person needs to consider. First and foremost, a person needs to be aware that filing for Chapter 7 bankruptcy does not mean that all of their debts disappears. There are certain types of debt that cannot be forgiven in bankruptcy. In today’s day and age, many people are experience issues with student loan debt. However, filing for bankruptcy will not allow someone to get out of student loan debt. Also on the list of debts that are not covered by filing for Chapter 7 are debts due to back alimony or child support payments, certain taxes or fraudulent debts. When considering bankruptcy, the best thing that you can do is sit down with an experienced bankruptcy attorney to discuss the amounts and circumstances of your debts.
A common misconception of bankruptcy is that the State of New Jersey will come in and take every asset that you have. The reality, however, is that there are certain assets that are exempt when it comes to bankruptcy and therefore cannot be taken. For example, if you file for personal bankruptcy but you own a business, the State is not allowed to take any property that you own in a business partnership. Additionally, the State would not be allowed to take away any pension that you have accumulated or unemployment compensation. While the State will try and collect what it can to satisfy the debt, the State understands that the bankruptcy filer cannot simply have everything taken away.
The Law Office of Marc A. Futterweit is able to provide their bankruptcy clients with the individualized attention that each bankruptcy case will consistently need. The ultimate goal is to be able to have each client come into a position where they will be able to pick up their financial pieces and move on with their life to get back to a comfortable place in which they are able to care of themselves and their family. If you are considering bankruptcy, please call our office today at 973-442-0200 or visit our website at www.futterweit.com to learn more about our bankruptcy and other legal services.