Legal Advice During Challenging Times

The Chapter 7 Bankruptcy Option

The debtor (the person filing) must disclose on the bankruptcy petition, all assets and liabilities, along with income and expenses. Immediately upon the filing of Chapter 7 or Chapter 13 bankruptcy case, all collection efforts and lawsuits are stopped automatically. No creditor may continue their collection cases against the debtor once the petition is filed.

This means that upon the filing, no one can touch your bank account, automobile, boat or house as long as the “stay” remains in force. A creditor must file a motion in the bankruptcy court to obtain relief from the stay. The attorneys at The Law Offices of Franklin S. Montero in Clifton, New Jersey, have a keen understanding of bankruptcy law. We will explain the best legal option for you.

The Differences Of Certain Debt

Generally, someone would consider filing for Chapter 7 bankruptcy if they are unable to pay their unsecured debt, which is any debt that is owed to a creditor, where the creditor does not maintain any filed interest in property. Secured debts are most commonly auto loans and mortgages on real estate.

Unsecured debt includes, but is not limited to, the following: credit cards, personal loans, doctors’ bills, hospital bills, etc. If you meet the requirements under the bankruptcy code, you may keep your property such as an automotive vehicle and a house and eliminate all unsecured debt.

One may also consider Chapter 7 protection for the purpose of surrendering property, such as an automotive vehicle or a house, due to an inability to make the finance or mortgage payments. Under this scenario, if the debtor meets the requirements, they may eliminate the mortgage, auto financing and all unsecured debt.

You May Be Able To Save Your Home

If one meets the Chapter 7 requirements, as of the date of the filing, all unsecured debt will eventually be discharged, without ever having to make another payment to the unsecured creditors. Generally, a debtor completes the bankruptcy process and obtains an order of discharge in approximately four months after the filing.

Chapter 7 bankruptcy does not require you to make any trustee payments as you would under Chapter 13 bankruptcy. Chapter 7 bankruptcy may even allow an individual to save a house from a foreclosure action or an automotive vehicle from repossession.

Certain Debt Remains Dischargeable

The bankruptcy code specifies which type of debt is dischargeable. Even though you meet all the requirements for a Chapter 7 bankruptcy filing and obtain a discharge, the order of discharge usually does not discharge certain debts, some of which include:

  • Certain income taxes
  • Child support
  • Student loans insured by the government
  • Debt incurred by fraud
  • Governmental fines

We are experienced in bankruptcy law. Our attorneys will talk with you and explain your options.

Schedule A Meeting With Us

As experienced bankruptcy attorneys, The Law Offices of Franklin S. Montero in Clifton, New Jersey, will help you in debt relief. If you are considering filing for Chapter 7 bankruptcy, we can help you navigate through the process. To contact us, please fill out this online form or call 973-869-5556 . Se habla español.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.