Chapter 13 Bankruptcy Lawyers in Newark, NJ

Essex County, New Jersey Attorneys for Chapter 13 Bankruptcy

Consumers ineligible for Chapter 7 bankruptcy because their income is too high still have options. Chapter 13 bankruptcy protects the consumer from foreclosure and car repossession. Chapter 13 bankruptcy is known as a “wage earners’ bankruptcy” because people eligible for this type of bankruptcy protection have an income stream.

Contact a Wayne, New Jersey Attorney About Chapter 13 Bankruptcy

To learn how Chapter 13 bankruptcy works and to find out whether it could be right for you, talk to our Clifton, New Jersey bankruptcy attorneys. Call Silverman & Roedel at 973-772-6411 or contact us online to discuss your situation. Learn how you can keep your house and car while paying off debts under a court-approved plan. We have assisted countless clients throughout New Jersey, including Paterson, Wayne, East Orange, Bloomfield, Paramus, and Hackensack, NJ.

Differences Between Chapter 7 and Chapter 13 Bankruptcy

Chapter 13 bankruptcy differs from Chapter 7 because debtors are required to pay at least some of their dischargeable debts. Other differences include:

  • Debt limits: In 2017, one can have unsecured debts of up to $394,725 and secured debts of up to $1,184,200. There are no debt limits in Chapter 7.
  • Income limits: If your income exceeds the median income in New Jersey, you are ineligible for Chapter 7 bankruptcy protection and must file under Chapter 13.
  • Foreclosure: Chapter 13 will allow you to stop foreclosure on your home. In Chapter 7, your home could be sold to pay your debts if there is enough equity.
  • Car repossession: If your car is more than two years old and you owe more than it is worth, you may be able to have your payment reduced and keep the car — so long as you continue making the reduced payments. In Chapter 7, you could lose your car if there is enough equity to repay some of your debts.
  • Payment plans for non-dischargeable debt: Chapter 13 allows you to set up a payment plan that will give you the time you need to pay off any debts that are not dischargeable through a Chapter 13 bankruptcy filing.

In addition, you may be able to discharge certain debts ineligible for discharge in a Chapter 7 bankruptcy. These include debts you incurred to pay taxes, condo fees and other homeowners’ fees, court fees, and marital debt from a divorce settlement (excluding support orders such as child support or alimony). Our attorneys can advise you about debts that can be part of a Chapter 13 bankruptcy filing.

Overview of Chapter 13 Process

The process of filing for Chapter 13 bankruptcy protection is similar to that of a Chapter 7. The person must take a credit counseling course and file the certificate of completion along with the petition and report income, assets, debts, creditors, tax returns, monthly expenses, pay stubs, contracts, leases and more. You must pay the filing fee, either in full or in installments with the court’s permission. The petitioner must file a proposed debt repayment plan within 15 days of submitting the petition. There is a creditor’s meeting with the trustee, during which creditors can ask questions about the repayment plan and other aspects of the bankruptcy filing. A subsequent hearing with a judge confirms whether the proposed repayment plan is acceptable. After everything is confirmed, the petitioner begins making the approved repayments to the trustee and continues for either three or five years, until the plan is completed.

Contact Our Paterson, NJ Law Firm About Chapter 13 Bankruptcy

Our northern New Jersey lawyers will guide you through the bankruptcy process, explain the steps you need to take, attend required hearings with you, and help you develop the repayment plan. We will explain the different types of debt (secured, priority, and unsecured) and how or whether they must be repaid. In short, our attorneys will show you how to get through the process of Chapter 13 bankruptcy. Call Silverman & Roedel, LLC at 973-772-6411 or contact us online to learn how we can help you with Chapter 13 bankruptcy. We have offices conveniently located in Newark and Clifton, NJ.

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We are a debt relief agency. We help people file for relief under the Bankruptcy Code.