Chapter 7 Bankruptcy

Discharge Personal And Business Debt

At Freeman & Patel, we comprehend the emotional and thoughtful support required to navigate our clients through the bankruptcy petition process. Our team of attorneys is dedicated to representing individuals, married couples, and businesses at every stage of the bankruptcy journey. Whether you are seeking a fresh start or increased financial flexibility, we are here to provide seamless guidance and help you obtain the necessary relief. Our experienced attorneys are well-versed in handling a wide range of bankruptcy cases, catering to both large-scale companies and individuals. When considering bankruptcy, it is crucial to consult with a knowledgeable attorney who can offer valuable insights and expertise.

Bankruptcy petitions can be extremely complicated and commonly include proceedings and motion practice that can overwhelm you during the process. Our firm realizes that these situations can quickly become frustrating and therefore we make sure that we are accessible and supportive throughout each stage in your case. Moreover, our lawyers make it a point to provide our clients with thorough and smart representation combined with powerful litigation skills in order to help you get the results you need and deserve. An experienced bankruptcy lawyer from our firm will review your case and make sure to explain the best options to protect your rights. Our attorneys always place the priorities of our clients at the forefront and ensure you will feel completely satisfied upon retaining our services.

Would you like to know more? Call our office at 732-494-7900 now.

What is Chapter 7 Bankruptcy?

Chapter 7 offers a way out for debtors who cannot make ends meet. A qualified debtor will obtain a “discharge,” which bars creditors from taking any and all action to collect debt. Chapter 7 petitions are administered by a bankruptcy trustee, who can take possession of a debtor’s “non-exempt” property and distribute it among creditors. All property may not be exempt. You will need to consult with an experienced attorney to determine which property may be claimed as exempt. When property is exempt, the debtor keeps the property instead of subjecting it to a sale by the bankruptcy trustee and the petitioner walks away with a fresh start.

How Does Filing a Chapter 7 Petition Keep Creditors Away?

Immediately after a Chapter 7 filing, the Court notifies creditors of the petition and, upon receipt of this notice by creditors, an “automatic stay” takes effect pursuant to 11 U.S.C. § 362. The stay prevents creditors listed in the petition from taking action to collect debt or otherwise enforcing their rights. Prohibited conduct includes making phone calls, sending collection letters, filing a lawsuit, pursuing a lawsuit in progress, repossessing property, garnishing wages, attaching bank accounts, evicting tenants, and foreclosing on real property. The automatic stay lasts for the duration of the bankruptcy unless the creditor has a basis for asking the court to lift the stay, and then files a motion that is granted by the Court. When the debtor is discharged at the end of the case, the automatic stay becomes, in effect, permanent.

What Debts May Be Discharged?

The policy behind United States bankruptcy law is to allow an honest debtor to start anew without financial burden. In Chapter 7, most debts are dischargeable including credit card purchases, debts and cash advances, medical bills, loans, and many judgments. However there are exceptions. An individual contemplating Chapter 7 must know what is dischargeable and what is not; otherwise valuable assets can be lost.

If the trustee or the Court believe a petitioner is abusing the bankruptcy system, any one of them may move to dismiss the bankruptcy petition. Dismissal of a petition lifts the Court’s protection thereby allowing creditors once again to take action such as filing suits, obtaining judgments, and collecting judgments by garnishment of wages. Consult with an experienced to avoid these major pitfalls.

What Property May I Keep?

That which the debtor may keep is known as exempt property or “exemptions.” There are limitations on which property may be claimed as exempt and not subject to sale or distribution by the bankruptcy Trustee. Only when the debtor’s assets exceed in value what the debtor may legally keep will property (the excess) be subject to confiscation and distribution by the trustee. The Bankruptcy Code aims to give a fresh start, not to punish. Consult with an attorney to determine whether your personal property such as furniture, appliances, television sets, cars, and computer equipment will remain in your possession upon filing the petition for bankruptcy.

Contact Freeman & Patel for Representation from an Experienced NJ/NY Chapter 7 Bankruptcy Lawyer

For all your legal needs related to Chapter 7 Bankruptcy in New York and New Jersey, call Freeman & Patel at 732-494-7900 for a free evaluation with a skilled and experienced law attorney.

To discuss your case with an attorney at our firm, call 732-494-7900 or complete our Case Evaluation Form.

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3840 Park Ave #202A, Edison, NJ 08820

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