Protect Your New Jersey Home And Rebuild Your Finances With Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a debt reorganization process that allows you to keep your property while repaying creditors through a three- to five-year court-approved payment plan. Unlike Chapter 7, which liquidates assets to pay creditors, Chapter 13 lets you retain your home, car and other valuable property while catching up on missed mortgage or car payments. This bankruptcy option works particularly well for people with steady income who have fallen behind on secured debts but want to avoid foreclosure or repossession.

At Goldman & Beslow, LLC Attorneys At Law, our New Jersey Chapter 13 bankruptcy lawyers help clients throughout Northern and Central New Jersey reorganize overwhelming debt while protecting their homes and assets. With more than 40 years of experience helping over 10,000 clients, we guide you through every step of the bankruptcy process to ensure you receive maximum debt relief and emerge on solid financial footing.

Who Qualifies For Chapter 13 Bankruptcy In New Jersey

Not everyone facing difficult debt is in that situation because they are not making money. It is very easy to have even a substantial income stream and still be unable to keep up with debts. Especially since the 2008 recession, many people have found themselves forced into situations where a pay cut turned a debt load that had previously been manageable into something that could not be sustained over the long run.

To qualify for Chapter 13 bankruptcy in New Jersey, you must have regular income sufficient to make monthly plan payments. There are also debt limits. Your unsecured debts (credit cards, medical bills, personal loans) cannot exceed approximately $465,275, and your secured debts (mortgages, car loans) cannot exceed approximately $1,395,875. These limits adjust periodically for inflation.

People in this type of debt situation can feel like all they need to do is buckle down and force their way through by working hard, scrimping and making smart choices. The reality for most people is that they could have benefited from experienced debt relief guidance long before they finally asked for it. There is no need to suffer through years of strain and stress trying to fix your difficult debt situation on your own.

What Debts Can Be Included In Chapter 13

Chapter 13 addresses multiple types of debt through your repayment plan:

• Mortgage arrears can be spread over the plan period, allowing you to catch up on missed payments while keeping your home
• Car loan arrears can be included, preventing repossession and giving you time to catch up
• Priority debts like recent taxes and child support must be paid in full through the plan
• Unsecured debts, including credit cards, medical bills and personal loans, receive partial payment, with remaining balances discharged at plan completion
• Second mortgages may be eliminated if your home’s value is less than what you owe on your first mortgage

The debts that cannot be discharged through Chapter 13 include most student loans, recent taxes, child support, alimony and debts incurred through fraud.

The Chapter 13 Bankruptcy Process In New Jersey

Filing Chapter 13 begins with credit counseling from an approved agency. Our attorneys then prepare and file your bankruptcy petition, payment plan proposal and required financial documents with the bankruptcy court.

Once filed, an automatic stay immediately stops all collection activities, foreclosure proceedings, wage garnishments and creditor harassment. You then attend a meeting of creditors where the bankruptcy trustee reviews your financial situation and proposed payment plan.

The court holds a confirmation hearing to approve your repayment plan. Once confirmed, you make monthly payments to the bankruptcy trustee, who distributes funds to creditors according to the approved plan. After completing all plan payments over three to five years, remaining eligible unsecured debts are discharged.

Fighting Foreclosure

One of the major reasons to consider Chapter 13 is if your home is threatened with foreclosure. When you file for Chapter 13, all foreclosure proceedings, along with all other debt collection attempts, must cease immediately. Any late mortgage payments can be rolled into the three- to five-year repayment plan that is part of Chapter 13.

This gives you breathing room to catch up on missed payments while keeping your home. As long as you maintain current mortgage payments going forward and make your Chapter 13 plan payments, you can stop foreclosure and retain ownership of your property.

Understanding Your Repayment Plan

Under Chapter 13, a repayment plan is created that takes into account your debts and your ability to pay. The plan typically lasts three to five years depending on your income level. People with income below the state median usually have three-year plans, while those with higher income have five-year plans.

Your monthly payment amount depends on your income, necessary living expenses and the types and amounts of debt you owe. Priority debts must be paid in full, secured debt arrears must be cured and unsecured creditors receive whatever remains after these obligations are met. Any leftover unsecured debt is discharged when you complete the plan.

Understanding Chapter 13 Bankruptcy In New Jersey

If you’re considering filing for Chapter 13 bankruptcy in New Jersey, it’s important to understand the key aspects of the process. Below are some frequently asked questions that can help clarify what to expect during your bankruptcy journey.

How long does a Chapter 13 bankruptcy repayment plan last in New Jersey?

A Chapter 13 bankruptcy repayment plan in New Jersey typically spans three to five years, depending on your income level and the specific details of your case.

What assets or property will I lose if I file Chapter 13 bankruptcy in New Jersey?

In Chapter 13 bankruptcy, you generally retain ownership of your assets and property. The focus is on reorganizing your debts into a manageable repayment plan rather than liquidating assets.

What is the role of the trustee in a New Jersey Chapter 13 bankruptcy plan?

In a New Jersey Chapter 13 bankruptcy, the trustee oversees the bankruptcy process, ensuring that your repayment plan is followed and that creditors receive their designated payments under the terms of the plan.

If you have more questions or need personalized guidance through your Chapter 13 bankruptcy process, please don’t hesitate to reach out to us for a consultation.

Call Bankruptcy Lawyers Serving Northern And Central New Jersey

Reorganize your debts through a Chapter 13 bankruptcy. We offer a free one-half-hour consultation to help you learn more. To schedule a consultation, call 973-414-8069 or contact us online.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.