Is Chapter 7 bankruptcy right for me?

When an individual is struggling financially, they may be unsure of where to turn. There are a lot of different options to help an individual take hold of their situation. One such option is to file for bankruptcy. A chapter 7 consumer bankruptcy allows a debtor to use liquidation to discharge their debts. This can ultimately allow the individual to get back on his or her feet and find financial success down the road. The biggest benefit of a chapter 7 bankruptcy is that it allows the debtor to get a fresh start by discharging their debt. The attorneys at Detzky, Hunter & DeFillippo, LLC have years of experience guiding clients through the process of filing for chapter 7 bankruptcy.

One of the first steps in chapter 7 bankruptcy is to determine if the debtor is eligible. If the individual’s household income is less than the average for the county in which they reside, they may be eligible. Individuals that do not meet this threshold may have to consider a chapter 13 bankruptcy, which allows them to come up with a repayment plan before debts can be discharged. However, if they are eligible for chapter 7, the debtor will be able to discharge a variety of different debts. Some of the debts that can be discharged in a chapter 7 bankruptcy include most unsecured debt, such as:

  • Personal loans
  • Medical expenses
  • Court-ordered judgments
  • Surcharges from the NJ Motor Vehicle Commission
  • Debts resulting from accident or negligence cases

It is important to be aware that not all debts can be discharged in a chapter 7 bankruptcy. The debts that are typically considered non-dischargeable include the following:

  • Child support
  • Spousal support
  • Student loans, unless a judge determines that they are causing “undue hardship,” which is very rare
  • Certain civil judgments
  • Federal and state income taxes
  • Debt that was incurred through fraud or dishonesty in another form

If you have questions or concerns about bankruptcy in New Jersey, it is essential to retain the services of an experienced legal team. The attorneys at Detzky, Hunter & DeFillippo, LLC are here to help. Contact our firm today for quality legal representation when it matters most.

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