A Chapter 7 bankruptcy is the most common form of bankruptcy and is designed to bring total debt relief for individuals. In a Chapter 7 bankruptcy, a trustee liquidates your property and uses the proceeds to pay off your creditors. As a result, all of your debts are wiped clean. Chapter 7 bankruptcy lawyers in communities such as Newark can assist you by helping you file a petition with the court that lists your debts and property. The court reviews the documents and then assigns a bankruptcy trustee who’s job it is to see that your creditors get as much of their money back as possible.
The trustee handles the sale of your property and uses the funds to pay your unsecured debt to creditors. When you file for Chapter 7, the court notifies your creditors and advises them that an automatic stay is now in effect. The automatic stay stops creditors from continuing their collection activities during your bankruptcy. They are not allowed to call you or collect money from you. They are also not allowed to foreclose on your home, place a lien on your property or repossess your car. Some property may be exempt from bankruptcy in which case you will get to keep it.
Exemptions vary from state to state and a bankruptcy lawyer can assist you in determining which of your assets may qualify. When your bankruptcy case has ended, most of your debts will be discharged and you will no longer be obligated to make payments on them. There are some notable exceptions including child support arrears and student loans. Again, this is where the expertise of a Chapter 7 bankruptcy attorney will prove valuable as you work your way through the process.
Garces, Grabler & LeBrocq is a full service New Jersey law firm with offices in Elizabeth, Freehold, Hackensack, Newark, New Brunswick, Perth Amboy, Plainfield and Trenton.
