Voorhees, NJ Chapter 13 and Chapter 7 Bankruptcy Attorney
Bankruptcy can help you eliminate debt, stop debt collectors from harassing you, protect your home from being foreclosed on, and prevent your car from being repossessed. By giving you a fresh start through debt relief, bankruptcy can also make it easier to start building good credit for your family’s future. There are many benefits to filing Chapter 7 bankruptcy or Chapter 13 in New Jersey, and the experienced Voorhees bankruptcy attorneys of Sadek & Cooper Law Offices, LLC can help you reap their rewards. To learn more about whether personal bankruptcy is right for you in a free legal consultation, call our law offices at (856) 354-3310 today.
What Debts Does Bankruptcy Cover in New Jersey?
When you file for bankruptcy in New Jersey, the debts you owe will be divided into several categories. For example, if a debt is “secured,” it means the debt is backed by collateral, such as a mortgage loan that is secured by your home.
These and other designations are important, because they determine the extent to which various debts must be paid. Certain debts must be paid in full, while others can be paid for a fraction of what the debtor actually owes.
One of the most important ways debt is classified in bankruptcy is whether the debt is “dischargeable” or “non-dischargeable.” Put simply, a dischargeable debt is a debt that can be erased by bankruptcy. By comparison, a non-dischargeable debt is a debt that survives bankruptcy.
Once you receive your discharge from the bankruptcy court, you will no longer be liable for your dischargeable debts. As part of Camden County, Voorhees is served by the U.S. Bankruptcy Court for the District of New Jersey, Camden Division. The courthouse is located in downtown Camden.
Creditors cannot come after you for debts which have been discharged by the bankruptcy court. However, you will still be required to pay off your non-dischargeable debts. Therefore, it is crucial to understand which debts are and aren’t dischargeable in bankruptcy.
The following debts are dischargeable, which means they are covered by bankruptcy New Jersey:
- Back Rent
- Business Debt
- Credit Card Debt
- Medical Debt
- Past-Due Utility Bills
- Personal Loan Debt
The following debts are non-dischargeable, which means they are not covered by bankruptcy and must be paid off:
- Alimony Debts
- Child Support Debts
- Student Loan Debt
- Tax Debt and IRS Debt
Exceptions occasionally arise where non-dischargeable debts become dischargeable. For example, while student loan debt is normally non-dischargeable, it can sometimes be erased if the debtor can prove that the debt fits certain criteria. Similarly, income tax debts can sometimes be wiped out if they meet certain standards.
Should I File Chapter 7 or 13 Bankruptcy?
Phrases like “filing for bankruptcy” and “declaring bankruptcy” are somewhat misleading, because there are a few distinct types of bankruptcy. Each type of bankruptcy is called a “bankruptcy chapter” or “chapter of bankruptcy,” named for its chapter in the U.S. Bankruptcy Code.
While there are many bankruptcy chapters, the vast majority of debtors who live in Voorhees choose one of the following options:
- Chapter 7 Bankruptcy in Voorhees, NJ
- Chapter 13 Bankruptcy in Voorhees, NJ
Both types of bankruptcy can:
- Eliminate or reduce various debts.
- Give you a chance to protect valuable property and possessions from being sold, repossessed, or foreclosed on.
- Help you get a clean financial slate so that you can build good credit in the long term.
- Stop debt collectors from harassing and contacting you.
Despite these similarities, there are also significant differences between Chapter 7 and Chapter 13, so it is critical to make a smart and strategic decision with help from your bankruptcy lawyer in Voorhees. To provide a quick, at-a-glance overview, some of the key differences between Chapter 13 and Chapter 7 are highlighted in the bankruptcy comparison chart below.
|Chapter 7 in Voorhees, NJ||Chapter 13 in Voorhees, NJ|
|Alternate Names||Ordinary bankruptcy, straight bankruptcy, liquidation||Wage earner’s plan, reorganization|
|Case Duration||Approximately 4 to 6 months||3 to 5 years|
|Time on Credit Report||Up to 10 years||Up to 7 years|
|Pros and Advantages||Rapid process, simpler than Chapter 13, opportunities to protect property with bankruptcy exemptions||Prevent foreclosure, prevent vehicle repossession, more debts can be discharged than in Chapter 7|
|Cons and Disadvantages||Potential for liquidation of non-exempt property and assets, slightly higher filing fee than Chapter 13||Longer and more complex process than Chapter 7, requires careful budgeting|
While it is typically possible to convert from Chapter 7 to Chapter 13, or from Chapter 13 to Chapter 7, while the bankruptcy is pending, this process can be costly and time-consuming. It is more efficient to work with a Voorhees bankruptcy attorney to identify the appropriate chapter of bankruptcy at the start of the process. Whether you are a business owner, want to file individually, or are thinking about filing jointly with your spouse, the Voorhees Chapter 7 bankruptcy lawyers of Sadek and Cooper Law Offices, LLC can help you make an informed decision about which type of bankruptcy is best suited to help you accomplish your financial goals.
Voorhees Bankruptcy Lawyers for Chapter 13 and 7
There’s no need to lose another night of sleep because you’re worried about how you’ll make ends meet tomorrow. Make today the day you get your debt under control, and start enjoying your life again.
If you live in Voorhees or other communities in the Voorhees area, such as Berlin, Evesham Township, Gibbsboro, Glendale, Greentree, Marlton, or Mount Laurel, call Sadek and Cooper Law Offices, LLC at (856) 354-3310 for a free bankruptcy consultation about Chapter 7, Chapter 13, foreclosure defense, or alternatives to bankruptcy in New Jersey. We will keep your information confidential.