To many, bankruptcy may sound like a dirty word, but in reality, it can provide a debt-free financial fresh start for those that find themselves unable to pay their bills or only able to pay their minimum. No one should be stuck in a financial situation where they cannot afford their bills and live, and for many, Chapter 7 bankruptcy may provide that financial lifeline.
Chapter 7 bankruptcy
Chapter 7 bankruptcy is the most common form of personal bankruptcy, and it is often called liquidation bankruptcy because it seeks to “liquidate” or sell assets to pay off assets. However, in fact, it does not strip one of their possessions because most clients are entitled to keep most, if not all, of their personal property. This includes one’s vehicle, home and other valuables. This is because there are fairly large exemptions to the liquidation requirement that allow most avoid actually liquidating anything. Yet, at the end of the process, their debts will still be entirely or mostly discharged (erased). Plus, it stops creditor harassment.
Chapter 7 bankruptcy was and is designed to provide people with this fresh financial start. Indeed, only those with significant assets will find that they need to liquidate anything. Of course, this is not a guarantee as federal bankruptcy courts require filers to meet certain criteria. This includes showing that filers have made an honest accounting of financial needs, debts, property and income.
Specifically, filers have to provide a detailed list of all creditor, including the debts that are owed. A total list of income must be provided that includes the source, amount and frequency of payments. A complete and detailed list of property must also be provided, including a monthly lit of expenses that includes necessities, like food, clothing, shelter, etc.
Starting the fresh financial start
For those in Hackettstown and across New Jersey, The Law Offices of Jonathan Stone, is here to help those that need to file for Chapter 7 bankruptcy. We can walk filers through the process, analyze whether Chapter 7 bankruptcy is appropriate and whether one will qualify. In addition, we can help our clients figure out how to pay for everything.