Being in debt, or even filing for bankruptcy, does not automatically mean that you must give up your home or car. You can protect assets in an NJ bankruptcy to an extent. Working with a Newark bankruptcy attorney can result in you achieving a better financial situation while protecting your assets to the fullest extent possible. At Consumer Law Attorneys, our Newark bankruptcy lawyers give you tailored legal advice and advocacy for your specific situation, working for you to obtain a better financial future.
How Bankruptcy Protects Your Home and Assets in Newark
Bankruptcy can protect your home and assets in the short term by stopping all collection efforts through the application of the automatic stay. While the bankruptcy process is pending, you have a measure of protection for your assets. To be clear, there are some tradeoffs that you will have to make in exchange for the debt discharge that you may receive as part of Chapter 7 bankruptcy. However, you can protect some of your assets, even in Chapter 7, because there are exemptions that may apply to your property.
If you file for Chapter 13 bankruptcy, you have greater protection for your assets, and you may even be able to keep everything. However, you must still make payments on the debt you owe for the entire pendency of the Chapter 13 bankruptcy process.
Exemptions Available in New Jersey
When you file for Chapter 7 bankruptcy, the exact property that you can keep is a matter of state law. Your home and car are two of the major things that concern you when you seek bankruptcy protection. When it comes to your home protection in NJ for your primary residence, you can keep up to $25,150 in equity for a single debtor, and $50,300 for joint filers. Each debtor can protect up to $4,000 in equity per vehicle. You can also protect up to $12,150 per debtor (this can double when bankruptcy is a joint filing) of your own personal possessions that include clothing, furniture, appliances, linens, and personal effects. As such, there is a chance that you may need to surrender some of your assets to the trustee.
Choosing Between Chapter 7 and Chapter 13
The type of bankruptcy protection you seek depends on both your income level and your personal situation. If you have assets that you do not want to lose, such as your home or car, you may elect for Chapter 13 protection, since you do not have to surrender property to the bankruptcy trustee. However, your financial situation can be so dire that you may need to elect for Chapter 7 protection. Then, you will get discharge of certain debts that you owe, but it will come at a cost. A bankruptcy lawyer in Newark can advise you on how to protect your assets in a New Jersey bankruptcy.
How to Stop Foreclosure or Repossession
Filing for any type of bankruptcy can put the brakes on foreclosure on your home or repossession of your vehicle. The automatic stay applies to both of these self-help measures that a creditor may take. You can get more time to get your debts and financial situation under control. However, you also need to reaffirm the debt and your intention to continue making payments. Otherwise, you can lose your home or car at the conclusion of bankruptcy. If you have filed for Chapter 13 bankruptcy in Newark, you must make payments on the current amount due on your home or car loan, while you catch up on arrears as part of your reorganization plan.
Working with a Newark Bankruptcy Lawyer
When you are in financial distress, you may not have the ability to think strategically on your own. All you can see and experience is the stress of your current situation. A bankruptcy lawyer in Newark can help you take a step back and look at the realities of your situation. They can give you advice on which type of protection you should seek based on your circumstances and what is important to you. Then, they can work to protect your property to the fullest extent possible while you are going through the bankruptcy process, and after you emerge from it.
Contact a Newark Bankruptcy Lawyer
If debt is taking over your life, the experienced Newark bankruptcy lawyers at Consumer Law Attorneys are ready to get you a fresh start. Whether you need Chapter 7 or Chapter 13 relief, we guide you through every step, protect your assets, and stop creditor harassment fast. Do not wait for home foreclosure or vehicle repossession. Contact Consumer Law Attorneys today by calling us at (877) 241-2200 for a free consultation and personalized debt-relief strategy.
