New Jersey Chapter 7 Bankruptcy FAQs

There are a lot of myths and misinformation surrounding Chapter 7 bankruptcy, especially since the 2005 changes in the law make qualifying for this important form of debt relief more difficult. At the law firm of Goldman & Beslow, LLC Attorneys At Law, our lawyers can help answer all of your bankruptcy-related questions and address your concerns.The following are some of the frequently asked questions most people have when it comes to filing
Chapter 7 bankruptcy.

Of course everyone’s situation is unique and the specific answer to your set of issues may be different than it is for someone else. It is always recommended that you schedule a consultation with our attorneys before moving forward with any type of legal action.

What is Chapter 7 bankruptcy? A Chapter 7 filing will discharge most of your unsecured debt, such as outstanding credit card debt, medical bills and other types of debt. Some people refer to this form of bankruptcy as a liquidation bankruptcy as a bankruptcy trustee may sell your nonexempt assets to help pay for your debt. Because most people who qualify for Chapter 7 have little to no nonexempt assets, this is rarely an issue and if it is, you can always file a Chapter 13.

How long does the Chapter 7 process take? A Chapter 7 filing runs its course fairly quickly (4 months), as opposed to a Chapter 13 filing where a person is put on a 3 to 5 year repayment plan. Typically, debts will be discharged under Chapter 7 a few months after filing for this form of protection.

What is the means test? There are certain income restrictions that must be met in order to be eligible for Chapter 7. The means test involves a series of calculations which are designed to show whether a debtor has the ability to repay a certain amount to his or her creditors. Even if it appears that you will not qualify for Chapter 7 under the means test, other forms of debt relief, such as Chapter 13, may be a better fit for your situation.

What are exempt assets? Exempt assets are assets that cannot be claimed by creditors. Such assets may include homes or a percentage of the equity you have in your home, household goods, vehicles, pensions, IRA’s and jewelry. We can let you know specifically what assets you have that are considered to be exempt under bankruptcy law.

How do I know if Chapter 7 is right for me? Our attorneys can help review your financial situation and help determine the option that is right for you. There is no risk and no obligation when it comes to requesting a free initial consultation.

Contact Goldman & Beslow, LLC Attorneys At Law

You do not have to carry the burden of overwhelming debt. Relief may be available. Contact us online, or call 973-414-8069 to schedule a free one-half hour confidential consultation. With offices in East Orange, Paterson and Jersey City, we are conveniently located to help you with your needs.

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