If you’re struggling under a mountain of debt, bankruptcy might be an option for relief. Finding an experienced and affordable NJ bankruptcy lawyer is crucial for navigating the process and achieving the best outcome for your financial situation. This article will explore how to find a bankruptcy attorney, what questions to ask, and roughly how much legal fees might cost. Let’s get started!
What Does a Bankruptcy Attorney Do?
Many people facing debt struggles don’t even realize bankruptcy is a legal option for them. A good bankruptcy attorney will answer all your questions and help you understand if it’s the right move. Filing for bankruptcy under the Bankruptcy Code could give you a much-needed chance to rebuild your finances, either by getting rid of debt or setting up affordable payments.
Typically, there are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13. Chapter 7 involves liquidating some assets to pay creditors, while Chapter 13 creates a structured repayment plan. Your attorney will explain the differences, help you qualify for the right chapter, and guide you through the entire process.
Common Concerns Bankruptcy Questions You Should Ask
Can I stop a wage garnishment by filing bankruptcy? Often, yes! Bankruptcy can offer powerful, immediate protections from wage garnishment and other creditor actions.
Will the bankruptcy court take everything I own? Not necessarily. Federal and state law provide exemptions to protect assets like your home (up to a certain amount) and other essentials.
Do I have to go to bankruptcy court? Yes, but it’s usually just a brief hearing, and your lawyer will be with you.
What will the bankruptcy trustee ask me? Your attorney can prepare you; questions mostly focus on confirming your financial information.
Can a creditor put me in jail? No. It’s illegal for creditors to threaten jail over unpaid debts.
How Much Do Bankruptcy Attorneys Cost?
Understanding the cost of a NJ bankruptcy lawyer is important in your decision-making. Thankfully, NJ bankruptcy lawyers often charge less than attorneys in other areas of law. Fees generally depend on the complexity of your case and the attorney’s experience.
For a Chapter 7, you might expect a flat fee between $1,000 and $2,000. A Chapter 13 bankruptcy will often necessitate more legal work, and fees could range between $3,000 to $5,000. Don’t forget to factor in the court filing fee (check the current amount on the court’s website). Also, many attorneys offer free initial consultations, so you can get your questions answered without obligation.
Important Note: Don’t pay bankruptcy attorney fees with a credit card. Incurring new debt with the intent to file bankruptcy can be considered fraudulent.
Finding the Right NJ Bankruptcy Lawyer
The right attorney can make this a smoother, less stressful experience. Here’s how to find potential options:
Recommendations: Ask friends or family if they’ve worked with a good bankruptcy lawyer.
Online Searches: Try searching for “affordable bankruptcy attorneys near me” and check out their reviews.
NACBA Website: The National Association of Consumer Bankruptcy Attorneys NACBA website has a useful attorney finder tool.
Preparing for Your Consultation
Make the most of your meeting with potential bankruptcy lawyers
Write down all your questions. Nothing’s too small to ask! Understanding the process is vital.
Gather financial documents: Bring recent bills, pay stubs, etc. It helps the lawyer assess your situation.
