Filing Chapter 7 Bankruptcy in Bergen County, New Jersey
More than 24,000 nonbusiness Chapter 7 bankruptcy petitions were filed in New Jersey from September 2008 to September 2009, according to the Administrative Office of the U.S. Courts. In contrast, fewer than 16,000 Chapter 7 petitions were filed during the previous 12-month period.
As court statistics clearly show, Chapter 7 bankruptcy petitions are on the rise. Statistics like these provide insight into the effect of a recession on individual consumers and families. Sadly, many people refuse to file a Chapter 7 bankruptcy petition until it is too late, with disastrous effects on their credit ratings and their family relationships.
The many causes of financial crisis can quickly turn a peaceful existence into a daily nightmare of dodging creditors, fighting about family finances, begging for loans from family members, and the terrifying prospect of losing your home to foreclosure.
Chapter 7 Bankruptcy Pushes the "Pause Button' and Erases Eligible Debt
A successful Chapter 7 bankruptcy petition results in elimination of all qualifying debt. The process may take as little time as three months from start to finish. As soon as you file a Chapter 7 bankruptcy petition, an automatic stay goes into effect. This means creditor harassment stops, wage garnishments stop, repossession actions stop, and any home foreclosure proceedings stop.
The bankruptcy petition lists all debts and all income and assets, demonstrating that the debtor is unlikely to be able to repay the debts within any reasonable time frame. If you have assets that the bankruptcy court considers "non-exempt," the bankruptcy court may require you to sell any non-exempt property to pay off at least some of your debts. This is why Chapter 7 bankruptcy is sometimes called asset or debt liquidation bankruptcy. However, most Chapter 7 bankruptcy filers have already sold any non-exempt assets by the time they consider filing bankruptcy.
Chapter 7 Bankruptcy Law Requires a 'Means Test' to Qualify
Not every person with high debt load can file a Chapter 7 bankruptcy petition. You must be able to show that your income is below a certain level or that your debt-to-income ratio is above a certain level. These qualifying tests change frequently and many complex factors may affect whether you qualify. If you do not qualify for Chapter 7 bankruptcy, you may still be able to get debt relief via a Chapter 13 bankruptcy petition.
Seek Help With Chapter 7 Bankruptcy From an Experienced Lawyer
At the law offices of Russell S. Warren, Jr., Esq., attorney Russell S. Warren, Jr. gives bankruptcy clients the benefit of working directly with a veteran debt relief lawyer. Mr. Warren has over 25 years' legal experience, and he handles each bankruptcy case personally from start to finish, with assistance from our professional staff.
The Law Office of Russell S. Warren, Jr., Esq. is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Contact Us for a Free Phone or Office Consultation
Learn more about bankruptcy by reading our answers to frequently asked questions. Or, discuss Chapter 7 bankruptcy and other debt relief options in private with a knowledgeable Bergen County attorney. To schedule a free consultation by phone or at our Englewood Cliffs office, contact us by e-mail or call 201-503-0773. Our law offices are open Monday through Friday from 9 a.m. to 5 p.m.
Russell S. Warren, Jr., Esq. | |
Law Office:473 Sylvan Avenue, First Floor | Mailing Address:P.O. Box 1234 |
Englewood Cliffs, New Jersey attorney Russell S. Warren, Jr., Esq. represents clients throughout northern New Jersey in communities such as Englewood Cliffs, Englewood, Bergenfield, Cliffside Park, Dumont, Fort Lee, Garfield, Hackensack, Leonia, New Milford, North Bergen, Paramus, Passaic, Patterson and Teaneck.Bergen County | Hudson County | |