Brenner Spiller & Archer

Chapter 7 Bankruptcy Benefits Thousands of New Jersey Residents

Camden NJ Debt Relief Lawyer Assists Clients throughout South Jersey

Bankruptcy can be beneficial for people in a variety of circumstances. Some families might struggle to afford unexpected medical costs, while many people have lost their job due to company cutbacks and the poor economy. However, it is important for people to realize that everyone might be eligible for a fresh financial start — even in these tough economic times.

According to the American Bankruptcy Institute, New Jersey residents filed roughly 20,000 bankruptcy petitions in 2007 and more than doubled that number in 2010 by filing roughly 41,000 petitions. Each person who filed for bankruptcy undoubtedly had concerns before submitting their petition, but in the end they likely realized the many benefits bankruptcy has to offer.

Benefits of Chapter 7 Bankruptcy

People who file for bankruptcy will receive immediate relief from collection efforts. Creditors will no longer call during dinner hours, they are prohibited from sending collection letters, and they must stop foreclosure proceedings until after the bankruptcy process is complete.

This immediate relief is due to an automatic stay that goes into effect once the petition is filed. This automatic stay prohibits all collection efforts and assures stiff penalties for any creditor who violates it.

Next, many people worry they will have to sell all of their property during the Chapter 7 liquidation process. This is incorrect. Both state and federal law allows people to exempt some of their property, such as sentimental items, the equity in a home, many necessities and items required for employment.

However, the exact property that can be exempted depends upon the property’s value, in which state the debtor files and under which chapter of the federal bankruptcy code the debtor files. Anyone considering bankruptcy should speak with an experienced bankruptcy lawyer for an analysis of their specific situation.

Chapter 7 Discharge

After determining what property is exempt, the non-exempt property is auctioned and distributed to creditors. Once this process is complete, most — and occasionally all — of a person’s debts are discharged.

Debts such as medical bills, credit cards, certain loans and court judgments are typically all dischargeable in Chapter 7 bankruptcy. However, many types of debt survive the bankruptcy process. This includes student loans, alimony, child support and taxes. As a result, anyone considering bankruptcy should consult a qualified attorney immediately to discuss their eligibility and whether Chapter 7 bankruptcy is appropriate.

Contact the Law Firm of Brenner Spiller & Archer

If you are overwhelmed by debt, we can help you explore your debt relief options, including filing for Chapter 7 protection. Contact our Camden County bankruptcy attorneys online or call 856-963-5000 to schedule a free initial consultation to discuss your situation.

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