Considering bankruptcy can be a difficult and stressful decision. If you’re struggling with debt in New Jersey, a bankruptcy lawyer NJ can be an invaluable asset. An experienced attorney can guide you through the process, explain your options, and ensure your rights are protected so you can regain your financial footing. Let’s examine why hiring a bankruptcy attorney is a wise decision.

Bankruptcy in NJ What You Should Know

The U.S. Bankruptcy Code lays out numerous laws and regulations that govern this legal process. There are multiple bankruptcy types, but individuals generally focus on either Chapter 7 or Chapter 13.

Chapter 7

Chapter 7, or liquidation bankruptcy, can be a viable solution for those burdened with overwhelming debt and very limited disposable income. A “means test” comparing your income to your region’s median household income helps determine if you qualify. If eligible, a court-appointed trustee supervises the liquidation of non-exempt assets to distribute proceeds to creditors. Exempt property is protected and may include items essential to your employment like a car or work tools. Some unsecured debts may be discharged upon case completion, providing significant financial relief.

Chapter 13

Chapter 13, known as a repayment plan, suits individuals with some disposable income to pay down debt. Under Chapter 13, you’ll submit a court-approved repayment plan spanning three to five years. Your disposable income (money left after necessary expenses) is the cornerstone of this plan. A realistic plan demonstrating your ability to repay debts is key to approval. Chapter 13 lets you keep assets and can have a less severe impact on your credit score.

What Do Bankruptcy Lawyers Do?

A skilled bankruptcy lawyer NJ serves as your guide and advocate. They offer expert legal advice on the following:

Is Bankruptcy the Right Choice? An attorney thoroughly analyzes your financial situation to help you determine if bankruptcy aligns with your goals and whether alternatives may be more suitable.
Optimal Bankruptcy Type: A lawyer clarifies the advantages and nuances of different bankruptcy chapters, guiding you toward the one best suited to your needs.
The Bankruptcy Process: They’ll clearly explain the steps involved, from initial paperwork to potential court appearances and everything in between.
Debt Analysis: Attorneys can identify which debts might be eligible for discharge and advise on options for non-dischargeable debts.
Asset Protection: They understand bankruptcy exemptions and advocate to safeguard as much of your property as the law permits.

A Word of Caution: Pro Se Filers

While filing for bankruptcy without representation (“pro se”) is technically possible, it’s strongly discouraged. Bankruptcy proceedings are complex and involve numerous forms, deadlines, and interactions with creditors and potentially the court. A single mistake can have far-reaching consequences. Hiring a bankruptcy attorney NJ gives you peace of mind that your case is handled by an experienced professional who understands the law.

The Value of an Attorney by Your Side

Bankruptcy can be a gateway to a fresh financial start, but it’s a decision that shouldn’t be taken lightly. A knowledgeable bankruptcy lawyer NJ is your ally, equipping you with the understanding and support to navigate this process for the best possible outcome.