Chapter 7 Bankruptcy Allows Consumers to Discharge Debt
Saddle Brook bankruptcy attorney helps individuals seeking relief
Sometimes situations beyond your control can profoundly impact your earning potential and lead to overwhelming debt. If you find yourself unable to pay your bills, you may want to consider filing for bankruptcy. Designed to give debtors a fresh start, Chapter 7 bankruptcy gives you and your spouse relief from debts through liquidation of your assets. Once you have filed for bankruptcy, creditors must immediately stop collections efforts, including harassing letters and phone calls.
Means test for eligible debtors
To qualify for Chapter 7 bankruptcy relief, you must satisfy the court’s means test, which calculates your income and expenses compared to the median income in New Jersey. If you are not eligible for Chapter 7 bankruptcy, Chapter 13 may be available. The Law Office Of William H. Mulder can help you determine whether you are eligible for Chapter 7 bankruptcy and if it is your best solution for dealing with your debts.
Discharge of some, but not all, debt
I can help you determine which of your assets are eligible for exemption and negotiate with the trustee to preserve these assets from bankruptcy liquidation. Upon conclusion of the bankruptcy proceedings, the court grants a discharge of your debts. Certain debts, however, cannot be discharged through bankruptcy. These include back child support and alimony payments, student loans, recent back taxes, and court judgments based on personal injury claims. I advise you about how much of your debt is dischargeable, so you can make an informed decision about whether to pursue Chapter 7 bankruptcy.
Preparing for your appointment
So that I can immediately begin analyzing your case, it is necessary that you bring certain information to your appointment with me, including:
- A list of your creditors’ names, amount of each claim and nature of the debt
- Your employer’s name and your gross and net income
- Other sources of income and amounts
- A list of what you own and estimates of the value of each item
- A list of your monthly bills and details of each expense