If you keep getting deeper into debt even when you live very modestly and spend every penny of your paycheck, after housing, transportation, and grocery costs, on debt repayment, it might be a good idea to file for bankruptcy. Everyone has the right to file for bankruptcy protection, regardless of their age or marital status and no matter the value of their assets. Filing for bankruptcy can help you discharge your eligible debts, meaning that the court declares that you are no longer responsible for paying these debts. You might be in such a bad financial situation that you want to file for bankruptcy as cheaply as possible, or you might be worried about whether you can afford to file for bankruptcy at all. A New Jersey bankruptcy lawyer can help you strategize about the best way to prepare for your bankruptcy filing.
The Difference Between Chapter 7 and Chapter 13 Bankruptcy
The two most common types of bankruptcy filings for individuals are inexpensive enough that most people, even those whose only income is in the form of Social Security or disability benefits, can afford them. In New Jersey, the chapter 7 bankruptcy filing petition costs $338.00. In chapter 7 bankruptcy, the court has the right to sell some of your assets to pay your creditors, and then it discharges your eligible debts almost immediately. Most people find that all of their assets are exempt from liquidation because they do not own any valuable assets except the house where they live and the car with which they commute to work.
By contrast, the petition for chapter 13 bankruptcy costs $310.00. In a chapter 13 bankruptcy case, you pay a monthly sum to the court for three to five years, and the court distributes it among eligible creditors. At the end of the repayment period, the court discharges the balance of your eligible debts. If, after you file for bankruptcy, you want to change your bankruptcy category from chapter 7 to chapter 13 or the other way around, this does not cost any additional money.
Additional Costs Besides the Bankruptcy Filing Fees
New Jersey law requires consumers who file for bankruptcy to complete a debtor education course before or after filing the bankruptcy petition. This course is one 90-minute session that can take place in person or online. The course costs $50.
It is your choice whether you choose to represent yourself or to choose someone else to represent you. Your chances of getting more of your debts discharged are more significant if you hire a bankruptcy lawyer, so when you hire a lawyer, you are spending a little bit of money to save a lot.
Contact a Monmouth County Bankruptcy Lawyer
Jonathan Goldsmith Cohen has helped thousands of clients, regardless of the extent of their financial hardships, successfully apply for chapter 7 and chapter 13 bankruptcy and get out of debt. Contact Jonathan Goldsmith Cohen to discuss your case.
If you keep getting deeper into debt even when you live very modestly and spend every penny of your paycheck, after housing, transportation, and grocery costs, on debt repayment, it might be a good idea to file for bankruptcy. Everyone has the right to file for bankruptcy protection, regardless of their age or marital status and no matter the value of their assets. Filing for bankruptcy can help you discharge your eligible debts, meaning that the court declares that you are no longer responsible for paying these debts. You might be in such a bad financial situation that you want to file for bankruptcy as cheaply as possible, or you might be worried about whether you can afford to file for bankruptcy at all. A New Jersey bankruptcy lawyer can help you strategize about the best way to prepare for your bankruptcy filing.
The Difference Between Chapter 7 and Chapter 13 Bankruptcy
The two most common types of bankruptcy filings for individuals are inexpensive enough that most people, even those whose only income is in the form of Social Security or disability benefits, can afford them. In New Jersey, the chapter 7 bankruptcy filing petition costs $338.00. In chapter 7 bankruptcy, the court has the right to sell some of your assets to pay your creditors, and then it discharges your eligible debts almost immediately. Most people find that all of their assets are exempt from liquidation because they do not own any valuable assets except the house where they live and the car with which they commute to work.
By contrast, the petition for chapter 13 bankruptcy costs $310.00. In a chapter 13 bankruptcy case, you pay a monthly sum to the court for three to five years, and the court distributes it among eligible creditors. At the end of the repayment period, the court discharges the balance of your eligible debts. If, after you file for bankruptcy, you want to change your bankruptcy category from chapter 7 to chapter 13 or the other way around, this does not cost any additional money.
Additional Costs Besides the Bankruptcy Filing Fees
New Jersey law requires consumers who file for bankruptcy to complete a debtor education course before or after filing the bankruptcy petition. This course is one 90-minute session that can take place in person or online. The course costs $50.
It is your choice whether you choose to represent yourself or to choose someone else to represent you. Your chances of getting more of your debts discharged are more significant if you hire a bankruptcy lawyer, so when you hire a lawyer, you are spending a little bit of money to save a lot.
Contact a Monmouth County Bankruptcy Lawyer
Jonathan Goldsmith Cohen has helped thousands of clients, regardless of the extent of their financial hardships, successfully apply for chapter 7 and chapter 13 bankruptcy and get out of debt. Contact Jonathan Goldsmith Cohen to discuss your case.
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