Frequently Asked Questions
What is bankruptcy?
Bankruptcy is a legal process that occurs when a borrower owes a lender money that he or she cannot afford to pay back. In order to pay the lender back, the borrower will work out an arrangement to pay the lender back over a period of time or will have his or her debts discharged (eliminated) through the bankruptcy process.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is a type of bankruptcy that occurs when the borrower’s assets are liquidated and the proceeds are then distributed to his or her creditors. If your annual income is higher than average for your state, you will have to pass the means test in order to file for Chapter 7.
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is a type of bankruptcy that occurs when a borrower works with a lender to repay his or her debts over a period of time. Liquidation is not required with Chapter 13.
What is the difference between secured debt and unsecured debt?
Secured debt is tied to property like a home or a car. When a person has filed for bankruptcy, creditors may file for a lien on the person’s property to gain repayment of debts owed. Unsecured debt is not tied to any property. Examples of unsecured debt would be credit card debt, student loan debt or medical bill debt.
What type of bankruptcy should I file for?
Before you decide which type of bankruptcy you should file for, you should meet with a qualified New Jersey bankruptcy attorney. At Liberty Credit Law, PC, we can help you determine which type of bankruptcy is appropriate for you by reviewing your credit history, you income, your assets and your debts. We can then advise you as to which type of bankruptcy is most advantageous for you and help you proceed in the right direction.
How long will a bankruptcy stay on my record?
A bankruptcy can stay on your financial record for 7 to 10 years. The length of time will depend upon the type of bankruptcy that you file for.
Why should I work with Liberty Credit Law, PC?
At Liberty Credit Law, we have years of experience in consumer law, real estate law, collection law and bankruptcy. We are a law firm with attorneys dedicated to protecting your rights, solving your credit and debt related issues and providing you the legal representation that you need. Our experience is that lenders will give us the best possible resolutions to your needs because they know we will vigorously protect your legal rights. Lenders have attorneys and so should you.
Contact a skilled New Jersey Bankruptcy Attorney from Liberty Credit Law, PC for a free case evaluation today.