Russell S. Warren, Jr., Esq.

Englewood Cliffs NJ Chapter 13 Bankruptcy Lawyer

Filing Chapter 13 Bankruptcy in Bergen County, New Jersey

More than 8,000 nonbusiness Chapter 13 bankruptcy petitions were filed in New Jersey from September 2008 to September 2009, according to the Administrative Office of the U.S. Courts.

One of the biggest misperceptions about Chapter13 bankruptcy is that Chapter 13 bankruptcy filers still have to repay all their debt and that Chapter 13 just gives them more control over the timeline of debt repayment. This may not be true. Depending on your income and other factors, you may only have to repay 5 to 10 percent of your qualifying debt, and you have three to five years to make those repayments.

Chapter 13 Bankruptcy: Debt Consolidation and Repayment Plans

Stated in the simplest terms, a Chapter 13 bankruptcy filer does the following:

• Reports all income, assets and debts to the bankruptcy court
• Demonstrates that it is impossible to meet each individual creditor's current repayment demands
• Proposes a debt repayment plan, to occur over three to five years

The bankruptcy court must approve the Chapter 13 repayment plan, which means that assistance from experienced Chapter 13 bankruptcy attorney can help you develop a repayment plan proposal that is realistic — both from your perspective and from the perspective of the bankruptcy court.

The repayment plan is like a calendar of monthly debt payments plus income estimates, and it must show that you are devoting a specific percentage of your income to debt repayment. Depending on your income and amount of debt, the repayment plan does not have to conclude with all debt repaid. If your income makes it impossible to repay all your debt within three to five years, then any remaining eligible debt will be eliminated at the end of the repayment period.

Advantages of Chapter 13 Bankruptcy

Chapter 13 bankruptcy is often an excellent debt relief option for individuals or families who:

• Still have equity in their home and wish to keep their house rather than lose it to foreclosure
• Have a current and stable income or know they will start earning income again on a specific date

Chapter 13 bankruptcy provides relief from creditor harassment, just like Chapter 7 bankruptcy does. It also puts the debtor in control of monthly debt payments, which are made to a bankruptcy court trustee instead of directly to the creditors.

Chapter 13 bankruptcy is not the best debt relief option for everyone, but anyone who is looking at debt relief options should consider it with help from an experienced bankruptcy lawyer.

New Jersey clients of the law offices of Russell S. Warren, Jr., Esq., work directly with attorney Russell S. Warren, Jr., an accomplished and experienced lawyer who 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 13 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.