Are your bills getting out of hand?

Suppose you are behind on your mortgage or car payments and you would like to pay off your debts without losing your property.

There is a possibility by filing for Chapter 13 bankruptcy. A Chapter 13 allows the debtor to propose a 3-5 year repayment plan offering to pay off all or part of the debts from their future income. If you wish to file for Chapter 13, you will have to complete a “means test” provided by the state of New Jersey. The state determines your ability to pay off your debts via a repayment plan by looking into your personal finances, but in most situations, debtors filing for Chapter 13 do not have to complete a New Jersey “means test.”

Your Petition to file for Chapter 13 will go through a New Jersey bankruptcy court. If successful, the court will assign you a “trustee” – a person assigned to look over your debts and finances – who will help you reorganize your assets and devise a repayment plan. There are multiple advantages to Chapter 13 bankruptcy.

As long as you complete your repayment plan, you may keep all of your property and other terms agreed upon. Additionally, you have immediate and full protection against the creditor’s collection efforts and wage garnishment.

The alternative to a Chapter 13 bankruptcy is a Chapter 7 which you can also read on in our blog section.

If you are thinking about filing for a Chapter 13 bankruptcy in the state of New Jersey, or want to know what your options are, contact us at 908-424-1011, bmiranda@bmirandalaw.com or message us on our Facebook or Instagram.