Skip to main content

Chapter 7 Bankruptcy

Chapter 7 Liquidation:
In a Chapter 7 Bankruptcy also known as liquidation, most of the debtor’s dischargeable debts are forgiven and the debtor is allowed a fresh start. The debtor is allowed to keep certain exempt property depending on the state they live in. The value of property that can be claimed as exempt varies from state to state. Assets that are not protected under an exemption are sold by the interim trustee to repay creditors. Many types of unsecured debt are legally discharged by the bankruptcy proceeding, however there are various types of debt that are not discharged in a Chapter 7. Some exceptions to discharge include child support, income taxes less than 3 years old and property taxes.  
When a person decides to file for bankruptcy the advisable first step is to see an attorney.   Among the requirements for qualification is whether the person falls within the means test.  The attorney will require for the debtor to bring pay stubs and provide a list of their expenses.   In our office for example, once income is determined, we will ask the client to bring additional documents including tax returns and their bills. The Bankruptcy court requires that the debtor takes two classes one before the petition is filed which is called Credit Counseling and one after  which is called Financial Management.  The classes can be done online and a certificated would be send to the debtor or his attorney via e-mail.  After the petition is file a hearing will be schedule. In that hearing the debtor will see a bankruptcy trustee who will ask question regarding their application. If there are no issues the debtor will get a bankruptcy discharge. 


For more information  please contact our office at 201-880-5563 or visit us at www.ruizdoolanlaw.com for a consultation.


Disclaimer: The contents of this website are of general nature and not intended to be a substitute for legal advice or the formation of a lawyer-client relationship. In order to be properly represented, please contact your local professional. In addition, the information given on this web site has been composed by a New Jersey attorney practicing exclusively in New Jersey. None of the information contained herein should be deemed to apply in other states, nor should this website be construed as an attempt by the author to practice law in any state other than New Jersey. If you have any question regarding this website please contact our office directly at (201) 880-5563.
ADVERTISEMENT: This website contains attorney advertisement within the meaning of the Rules of Professional Conduct governing the practice of lawyers in the State of New Jersey.  This website is considered an “advertisement.” Before making your choice of an attorney, you should give this matter careful thought. The selection of an attorney is an important decision. If the representations made on this website are inaccurate or misleading, you may report this to the Committee on Attorney Advertising, Hughes Justice Complex, P.O. Box 037, Trenton, NJ 08625.

Comments

Post a Comment

Popular posts from this blog

When do I need to Probate A Will in New Jersey?

PROBATE AND WILLS IN NEW JERSEY As Estate Planning Attorneys in New Jersey we often get asks whether probate is necessary if the decedent has a Will.  To better answer this question we need to know what is probate.  Probate is the process which permits an executor to transfer assets as directed by a decedent in their Last Will & Testament to the beneficiaries in accordance to the decedent's Will.  In order to make a determination of which decedent's assets must go through probate, we need to determine the tittle in which the asset is held. Assets held in the name of the decedent alone such as real estate, personal property and monies owed to the testator will generate be transferred through probate.  There is however a caveat in this situation as to some financial firms provide beneficiary designation forms which may transfer these accounts without probate. Assets held by the testator and another person jointly, with a right of survivorship, are said to be ...
Post a Comment
Read more

Establishing Consumer Fraud Claims in New Jersey

The New Jersey Consumer Fraud Act purpose was to combat sharp practices and dealings that victimized consumers by luring them into purchases through fraudulent or deceptive means. It was expanded to allow a private right of action for consumers that are victims of violations of the CFA. The private right of action included provisions that allowed for entitlement to treble damages, reasonable attorney’s fees, and reasonable costs of suit. In a cause of action asserting a violation of the NJ Consumer Fraud Act a plaintiff must prove:     1) unlawful conduct by defendant;     2) an ascertainable loss by plaintiff;     3) a causal relationship between the unlawful conduct and the ascertainable loss.       D’Agostino v. Maldonado , 216 N.J. 168, 183-184 (2013) (quoting Bosland v. Warnock Dodge  Inc ., 197 N.J. 543, 557 (2009)). If the plaintiff is successful in establishing his/her cause of action, the plaintiff is entitled to treb...
Post a Comment
Read more

Bankruptcy Filing Fees Rate Increase

Rate Increase for Filing Fees The Judicial Conference of the United States Courts approved the following amendments to the Bankruptcy Court Miscellaneous Fee Schedule.  For those who want to file bankruptcy before the fees changes please be aware of the new fee structure effective June 1, 2014     As a result of those changes the following fees will increase: • Chapter 7 Petition - $335           • Chapter 9 Petition - $1,717        • Chapter 11 Petition - $1,717  • Chapter 12 Petition - $275         • Chapter 13 Petition - $310         • Chapter 15 Petition - $1,717   • Motion to Split Chapter 7 Case - $335            • Motion to Split Chapter 11 Case - $1,717 • Motion to Split Chapter 12 Case - $275          • Motion to Split ...
Post a Comment
Read more