What is Chapter 7 Bankruptcy?

Under the terms of Chapter 7 bankruptcy, credit card balances, medical bills, certain types of loans, back taxes and other forms of unsecured debt can be discharged. Discharging your debt means that you are no longer legally obligated to pay those debts. The protections offered by Chapter 7 bankruptcy can give you the fresh financial start that you need.

Additionally, and perhaps most importantly for some people, as soon as you file for Chapter 7 bankruptcy an automatic stay is placed on creditors, temporarily halting foreclosure proceedings and collection actions. After a filing, creditors and collection agencies must contact your attorney, putting an end to the harassing phone calls and angry letters you are now getting.

Rudikh & Associates, LLC is here to help you get relief from mounting debt. Contact us online or call us at (732) 659-6961 to learn more about our bankruptcy services. We can help you regain your financial footing and put an end to harassing calls from creditors.

Rudikh & Associates, LLC works closely with people dealing with mounting debt due to credit card bills, divorce, medical expenses, adjustable rate mortgages and predatory lending practices. Chapter 7 is so helpful for filers because it wipes away unsecured debt, thus freeing up the money you need to pay monthly expenses like mortgage payments, utilities, student loan payments and car payments.

What if I Cannot Pass the Chapter 7 Means Test?

Under current bankruptcy law, something known as a "means test" is used to determine eligibility for Chapter 7 bankruptcy. In general, your income cannot exceed the New Jersey median income for households of a similar size. The calculations are not nearly that simplistic, though; the formula employed can be quite complicated. It is important to work with an experienced bankruptcy lawyer who can evaluate your financial situation and determine if you can file for Chapter 7 or if a Chapter 13 bankruptcy would be a better option for you. After I file for Chapter 7, Will I Lose My Home or Car?

Though every Chapter 7 bankruptcy (technically called a "liquidation bankruptcy") case is unique, generally you can retain a great deal of your personal property after filing. Yes, the court does have the legal authority to sell some of your personal assets to pay off a portion or all of your debt, but there are comprehensive exemptions offered under both New Jersey and federal law. You can typically claim exemptions for your home, at least one car, household items, tools/equipment used for work and other personal property. These exemptions are here for your protection, and our attorneys will show you how to claim them to keep more of what you own.

Meeting With Your Creditors - The 341 Meeting

After filing for either Chapter 7 or Chapter 13 bankruptcy, you are required to attend a meeting with your creditors. This meeting, often referred to as the "341 meeting" after the bankruptcy code section that mandates it, provides an opportunity for creditors to ask you questions while you are under oath. Our attorneys will accompany you, advising and conferring with you should you need assistance.

Can Only One Spouse File for Chapter 7 Bankruptcy?

Yes. If one spouse has substantial debt related to loans, medical bills or credit cards in his or her name only, he or she can file for Chapter 7 bankruptcy by themselves. While the court may still consider marital income when determining the ability to pay off debt, the non-filing spouse's credit report and credit score should not be affected by the filing spouse's bankruptcy.

Life After Chapter 7 Bankruptcy - Rebuilding Your Credit

Shortly after a bankruptcy filing you may be able to qualify for a low-balance credit card; keeping the balance on this card low and making regular payments will reflect positively on your credit rating. Over time this simple step will lead to an increase in both your credit line and your all-important credit score. This seemingly simple money management technique, along with establishing some smart savings and spending strategies, will rebuild your financial portfolio and strengthen your credit.

Contact Us to Learn More About Chapter 7

For more information about Chapter 7 bankruptcy and how we can help you, contact New Jersey bankruptcy attorneys at Rudikh & Associates, LLC. You can send us an e-mail or call us at (732) 659-6961.

What is Chapter 13 Bankruptcy?

People who do not meet the means test for filing under Chapter 7 could likely be eligible for Chapter 13 bankruptcy protection. Under Chapter 13, commonly known as "repayment bankruptcy," "wage-earner bankruptcy," or "debt reorganization," you will be repaying a portion of your debt during a specific time, typically ranging from three to five years.

This plan is drafted by your attorney, working in conjunction with the bankruptcy trustee (who represents your creditors); we will handle any negotiations with the trustee or other creditors regarding terms of the repayment plan and the nature or amount of any debt prior to its confirmation by the judge. Once you successfully execute the terms of your repayment plan, however, any remaining debt will be discharged by the court.

At Rudikh & Associates, LLC we represent people interested in filing for Chapter 13 bankruptcy. We can evaluate your financial situation, prepare all necessary paperwork and represent you in any interactions with the court or creditors.

To schedule a meeting to discuss your case, contact the New Jersey Chapter 13 bankruptcy attorney today. E-mail us or call us at (732) 659-6961

Home Foreclosure and Chapter 13 Bankruptcy

Chapter 13 allows you to restructure your preexisting debt, thus rolling past due amounts on things like your mortgage and car payments into the debt organization/repayment plan. You still need to make current and future payments, of course, since those are not included in your debt restructuring under the bankruptcy filing.

Meeting With Your Creditors - The 341 Meeting

After filing for either Chapter 7 or Chapter 13 bankruptcy, you are required to attend a meeting with your creditors. This meeting, often referred to as the "341 meeting" after the bankruptcy code section that mandates it, provides an opportunity for creditors to ask you questions while you are under oath. Our attorneys will accompany you, advising and conferring with you should you need assistance.

Contact Chapter 13 Bankruptcy Attorney Yan Rudikh Today

While you may have some reservations about filing for bankruptcy, it is an effective way to get out from under crushing debt, regain your financial footing, and get a fresh start. Because of the automatic stay provisions, you will also see an end to harassing phone calls and threatening letters from credits and collection agencies.

To learn more about Chapter 13, contact Rudikh & Associates, LLC today to schedule an appointment and discuss your case.