#NewJerseyBankruptcy

[karralkingston-blog]

How Long Does a Chapter 7 Bankruptcy Take?

Many people who come to seek my help are afraid to file bankruptcy. They assume that once they file bankruptcy their life is over. This is simply not true. Filing for bankruptcy can help you get back on your feet and start over. You will be able to get credit again. If you are concerned about how the process works give Karra L. Kingston Esq. a call to better understand the process and your options.

How Long Does Chapter 7 Bankruptcy Take?

  A Chapter 7 can be filed immediately once you have given us all of your paperwork to create your Chapter 7 bankruptcy petition. When you meet with us our lawyers will provide you with a list of documents that you will have to gather. Once you have gathered all of the requested information we will create your petition. Normally, a petition takes about a few days to a week to complete. Once we have completed your petition we will have you review it to make sure everything is in order. During this time you will also have to complete an online counseling course before we file. Once you have reviewed your petition you will sign it. As soon as the petition is signed and no corrections have to be made, we will file your Chapter 7 bankruptcy petition with the Court.As soon as the Clerk of Courts receives your bankruptcy petition, you will be assigned a case number, a bankruptcy trustee and a court date. If you have no property/ assets most Chapter 7 bankruptcy cases typically take anywhere from three to six months to be completed. If on the other hand you have assets it could take longer. For example , if you have a foreclosure pending and want to try to get a loan modification through the Bankruptcy Court it could take four months or longer. Our office makes sure that the documents the trustee requests are sent before you go to Court. This allows for a smoother process. If we get to Court and the trustee asks for more documents this could also extend your Chapter 7 bankruptcy case timeline. What is a Chapter 7 Bankruptcy   A Chapter 7 bankruptcy is considered the liquidation chapter of bankruptcy. This is because the Chapter 7 bankruptcy trustee can sell your property in order to pay your creditors back. A good bankruptcy lawyer will make sure that you will not lose any property. Many people don't realize that their are exemptions that protect your assets and  allow you to keep your property when you file a Chapter 7 bankruptcy. A bankruptcy lawyer knows what exemptions to use so you can still file bankruptcy and not lose anything! What are The Bankruptcy Exemptions   There are certain Federal and State exemptions that allow you to keep certain property. New York and New Jersey have different state exemptions. It is important to know when you should use the Federal exemptions vs the State exemptions. Speaking with a bankruptcy lawyer is the best way to ensure your property is safe.  Some exemptions that allow debtors filing a Chapter 7 bankruptcy to keep their property are for: Vehicles, clothing, retirement, tools, personal property, pensions, jewelry, health aid, life insurance, child support , alimony, retirement benefits, pensions etc. Do I Need an Attorney a Bankruptcy Attorney to File a Chapter 7 Bankruptcy? You are not required to hire a bankruptcy attorney to help you file bankruptcy. However, it may be in your best interest to hire one. Exemptions are complicated and hiring an attorney can make the difference between losing your property and protecting it. A Chapter 7 bankruptcy attorney can also prepare you for the types of questions that will be asked in Court and ensure that the proper paperwork is filed prior to your hearing. If you are worried about paying for a bankruptcy attorney many law firms allow payment plans and will help you. Our office works with each of our client's to make sure they are able to file a Chapter 7 bankruptcy without worrying! Read the full article

[karralkingston-blog]

New Jersey Bankruptcy: The Top 5 Common Reasons People File Bankruptcy In New Jersey: 

Whenever I meet a new bankruptcy client they are usually distraught over the fact that they are sitting in front of me about to file bankruptcy. Most of the time, clients that I meet are ashamed and embarrassed that they are in this situation. They usually begin the conversation  by trying to justify why they are filing bankruptcy and want me reassure them that they are making the right decision. I always try to tell my bankruptcy clients that they are not the only ones in this position. I have seen hundreds of bankruptcy clients for all different reasons. Sometimes unexpected things happen in life that are out of ones control, people deserve second chances.  I try to explain that bankruptcy is a tool that should be used to help you start fresh and get back on your feet, filing for bankruptcy doesn't mean that your life is over.  So what are the most common reasons that people file bankruptcy in New Jersey? 1. Medical Bills: Many times people file bankruptcy because they have unexpected medical bills. Hospital stays are extremely expensive and some insurance companies don't fully cover hospital stays. I have seen people with medical bills from: injuries from work, diseases, cancer, and  child birth. Many times these types of medical bills have caused either one or both spouses to be out of work resulting in loss of income. Thus, leaving people with large amounts of medical debt that cannot be paid. 2. Divorce: Many bankruptcy clients who come to me in New Jersey are  filing bankruptcy because they are either going through or just finished a divorce. Many times spouses who know they are going to get a divorce file bankruptcy together so that they can get rid of each others debt. At the same time there are times when only one spouse files for bankruptcy because they have lost half of their income. 3. Job Loss: Many times bankruptcy clients come to me because they have lost their job. Losing a job can not only put someone in a financial deficit but, it can also cause someone to become mentally depressed. It can sometimes take months to find a new job. Fortunately, some types of bankruptcy can help eliminate all of your debt and help you start fresh. 4. Uncontrollable Spending: Sometimes people just can't stop spending. I have seen times where people just don't know how to live within their budget but I have also seen people who spend on necessities on their credit cards but just can't afford to live. 5. Natural Disaster: Sometimes people who file for bankruptcy are faced with uncontrollable events. Recently, over the last few years I have seen and helped many bankruptcy clients who lost their homes due to Hurricane Sandy. Many of these people fell into debt because they lost all of their belongings and were not given enough money to be able to get back on their feet. Although, I have listed the common reasons people file for bankruptcy there is many other reasons that people come to me to file bankruptcy. Some of those reasons may include   a loss of a business, drugs, bank levies, and wage garnishments. If you are thinking about filing bankruptcy it is important to speak with an experienced bankruptcy attorney. Karra Kingston and William Bonomo are leading New Jersey Bankruptcy attorneys. They offer free consultations and will work with you to ensure you are getting the right information. Give them a call today, so they can help you get back on the right path. Read the full article

[karralkingston-blog]

A Further Look At The Bankruptcy Process in New York and New Jersey

Bankruptcy is a process that offers individuals, such as consumers and businesses who are facing financial hardship a way out. The federal courts have implemented different Bankruptcy laws in each state so that individuals and businesses can get help and manage repayments under the Court. There are different chapters of Bankruptcy. The most common form of Bankruptcy is a Chapter 7 Bankruptcy. In a Chapter 7 Bankruptcy any non exempt assets are liquidated and any outstanding debt is discharged. Chapter 7 Bankruptcy is usually for consumers. However, businesses can file under a Chapter 7 as well. In a Chapter 7 Bankruptcy, any property that is not exempt is liquidated, meaning sold by the trustee. The proceeds from the sale of any assets is then used to payback any outstanding creditors. Unfortunately, not everyone can file a Chapter 7 bankruptcy, and get their debts wiped out completely. If you generate too much income, have too many assets, or have filed previously then you will not qualify for a Chapter 7 Bankruptcy. In order to file a Chapter 7 Bankruptcy, the court first looks to see if you are below the median household income level. The court uses a test called “The Means Test.” Different states such as New York and New Jersey have different median incomes which means the Means Test is different per state. The court uses this test to determine whether you qualify for a Chapter 7 Bankruptcy. In order to qualify for Bankruptcy under the means test, the court takes your average household income for the last 6 months and compares it to the standard median income for a household of the same comparable size in that state. It is important to note that social security payments are not included in calculating The Means Test. An individual can only file for a Chapter 7 Bankruptcy every 8 years. A person who has filed a Chapter 7 Bankruptcy in the past must wait eight years before filing again. Many people prefer to file a Chapter 7 Bankruptcy because your debt gets completely wiped out. Further, many people are under the misguided impression that filing for Chapter 7 Bankruptcy means that you won’t be able to keep any of your assets. This is completely false. There are Federal and State exemptions which allow debtors who file a Chapter 7 Bankruptcy to sometimes keep their property if they fall within the exemptions. Unlike a Chapter 7 Bankruptcy where assets are liquidated and the debt is discharged, a second method of bankruptcy involves Reorganization. Reorganization is a method in which you can communicate to the court how much you intend to pay your creditors to clear your debts. This is also known as filing for a Chapter 13 Bankruptcy. Unlike Chapter 7 Bankruptcy, with a Chapter 13 you pay back your creditors over a 3-5 year plan. One of the reasons people enter into a Chapter 13 Bankruptcy is because they generate too much income or have too many assets. The monthly payment plan in a Chapter 13 Bankruptcy is determined by adding up your outstanding debt to secured creditors. One advantage of choosing a Chapter 13 Bankruptcy is that all of your debts will be paid back interest free. Another advantage of a Chapter 13 Bankruptcy offers individuals an opportunity for individuals with too much equity to save their homes from foreclosure. By filing a Chapter 13 Bankruptcy individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Under the Bankruptcy Laws, any individual, even if self-employed or operating an unincorporated business, is eligible for Chapter 13 relief. The Bankruptcy law permits the filing of a Chapter 13 Bankruptcy as long as the individual's unsecured debts are less than $394,725 and secured debts are less than $1,184,200. 11 U.S.C. § 109(e). These amounts are adjusted periodically . It is important to note that a corporation or partnership may not file a Chapter 13 Bankruptcy. Under the Courts rules if you intend to file either a Chapter 7 or Chapter 13 Bankruptcy, it is required that a credit counseling course is completed prior to the filing and a debtor education course is filed after the case has been filed. These courses are done in the convenience of your own home and take about an hour each to complete. The first Course is imposed to allow you to make an informed decision whether Bankruptcy is the right option for you. While the second course will help to ensure that your finances don’t become unmanageable in the future. In order to determine which Bankruptcy Chapter you qualify for, it is important to speak to an experienced Bankruptcy attorney who can assess your individual circumstances. If you are considering filing bankruptcy and have more questions regarding the advantages of filing bankruptcy, then talking to an experienced New York or New Jersey bankruptcy lawyer is important. Call Karra Kingston and William Bonomo today to get a Free Consultation. Read the full article