FAQ

By triggering an automatic stay, bankruptcy puts an end to most (if not all) forms of debt collection, including wage garnishments. Wage garnishment typically stops even after the proceeding is complete. The automatic stay is one of the most powerful advantages of bankruptcy because it preserves access to funds and provides welcome relief from endless collection calls.

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 certain lenders will work with you to help rebuild your credit score. In every case, rebuilding credit takes time, and we can help you develop a plan to recover from bankruptcy and achieve your goals as soon as possible.

The vast majority of people who file for bankruptcy do not lose their assets as a result. Still, many people worry about losing their vehicles and homes. If you are concerned, rest assured that New Jersey offers several exemptions (i.e. types of assets you can keep when you file bankruptcy). You can also choose to claim federal exemptions instead. For example, federal law allows for a homestead exemption, which protects a certain amount of equity in your family home.

The requirements to file bankruptcy changed in 2005. They became somewhat more burdensome, and many people thought they were not eligible. Nevertheless, most people are eligible to file bankruptcy, but each chapter has its own set of requirements and qualifications. Chapter 7 bankruptcy now has a means test, for example, to determine if a person has a low enough income to warrant debt discharge. Our firm can help determine whether bankruptcy is right for you, and, if so, which chapter is best for your unique situation.