FAQs About Bankruptcy

1. Is bankruptcy an option for me?

The requirements to file bankruptcy changed in 2005. They became somewhat more burdensome, and many people thought that they were not eligible. This is not true. Most people are eligible to file bankruptcy, but there are guidelines to fit Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy now has a means test to determine if a person qualifies to file Chapter 7. Call our New Jersey law office to discuss your financial situation to determine what your options are.

2. Can I keep my family home?

The vast majority of people who file for bankruptcy do not lose their homes because they file for bankruptcy. Still, many people worry about losing their homes and the money they have invested in them. If you are worried, you should know that bankruptcy allows for a homestead exemption, which protects a certain amount of equity in your family home.

3. If I need it, will I be able to get credit after I file bankruptcy?

Every case is different. Generally, people who file bankruptcy will be able to get credit if they have income. You can expect to pay a higher interest rate due to the bankruptcy, but credit can be found and there are lenders who will work with you to help rebuild your credit score.

4. How long will the bankruptcy stay on my credit report?

The bankruptcy can stay on your credit report for 10 years for Chapter 7 and seven years for Chapter 13, but more recent events tend to carry greater weight than events that happened far in the past. It is important to remember that the further away you get from your bankruptcy the better it is for your credit score.

5. Will bankruptcy stop wage garnishment?

Bankruptcy puts an end to most wage garnishments earned after the filing of the bankruptcy.

6. Can I discharge child support and alimony judgments in bankruptcy?

Child support and spousal support are nondischargeable in bankruptcy. However, bankruptcy helps make your financial situation more manageable — giving you the resources to help resolve your support obligation. A Chapter 13 filing may provide for relief from significant support arrears by seeking to pay the prebankruptcy arrears over five years while paying the current payment.

Contact An Attorney Regarding Your FAQ About Bankruptcy

Call Ast & Schmidt, P.C., in Morristown, New Jersey, at 973-984-1300 to schedule a free, initial consultation with an experienced bankruptcy lawyer. You may also simply complete our online contact form.

We offer flexible hours — Monday through Friday — with all meetings by appointment. Evening meetings are available. Our office is conveniently located across the street from the Morris County Mall, and we have off-street parking.

Ast & Schmidt, P.C., is a debt relief agency. We help individuals file for bankruptcy relief under the Bankruptcy Code. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation