There are two (2) main types of Personal Bankruptcies you can file, Chapter 7 and Chapter 13. Both provide for an Federal Automatic Stay which stops all harassment from creditors, including foreclosures and sheriff's sales. We evaluate whether you qualify for either a Chapter 7 of Chapter 13 Bankruptcy. Below is a brief description of what each Bankruptcy usually involves.

Chapter 7 Bankruptcy involves most debts being wiped out and usually allows you to keep all of your personal property. The only debts which cannot be wiped out are: recent taxes, child support, court fines, student loans, and secured debt. You can file a Chapter 7 Bankruptcy and still keep your home and car (again assuming you qualify), and wipe out all your unsecured debt such as credit cards. An example of a Chapter 7 Bankruptcy would be a Debtor filing and wiping out $20,000 in credit card debt, $3,000 in medical bills, $1000 in Federal taxes over three years old, and keeping his home and vehicle. The Debtor would be responsible to maintain his mortgage, student loans, and car payments, but all the other debt listed would be discharged.

Chapter 13 Bankruptcy. This type of bankruptcy involves the filing of a plan and monthly payments made to catch up on secured debts. An example would be if a Debtor is four months behind on her $1000 a month mortgage payments, and two months behind on her $500 per month credit card payments. The $5,000 owed would be paid backthree (3) to five (5) years, while the Debtor (you) will maintain your normal mortgage payments. Some attorneys fees and costs can also be included in the plan. Chapter 13 can also provide for immediate driver's licenses restoration when surcharges are the only bar to restoring licenses. Chapter 13 will stop sheriff's sales, repossession, and provide needed debt relief. Generally, Chapter 13 is more involved as it provides for plan payments, where Chapter 7 does not provide for plan payments. Again, it is important to determine if you qualify.

Federal exemptions are available for both Bankruptcies which allow most clients to keep all of their personal property. While many agencies offer quick bankruptcies, we strongly recommend the use of an attorney who has experience in handling these matters, so your interests can best be represented. We also have the ability to run your credit to ensure that all of your debts are included in the bankruptcy.

We provide a full range of Bankruptcy Services for individuals throughout South Jersey, and regularly appear in Bankruptcy Court. We take the time to fully explain to you all the technicalities of qualifying for Bankruptcy, and evaluate which may be best for you. Many times, clients are under significant emotional and financial pressure from credit harassment, foreclosure, wage garnishments, lawsuits, and repossessions. We understand that financial problems can lead to personal problems. It is very common to have an underlying divorce and Bankruptcy problem at the same time, and we have a great deal of experience in handling these types of bankruptcies. It's important to us to make your Bankruptcy process go as smooth, pressure free, and simple as possible. Clients often find themselves very satisfied with our services because we focus on making it as painless as possible.

Bankruptcy is about starting over with a fresh slate in life, and is nothing to feel guilty about. It allows you to get out of the debt trap, and to take control of your life back. There are many questions clients often have about bankruptcy.

UPDATE AS OF OCTOBER 15, 2005. The New Federal Bankrupcty Act has gone into effect, which made major overhauls in how personal Chapter 7 and Chapter 13 Bankrupcties are to be filed. Major changes include different eligibility requirements. We are fully prepared to coordinate and assist you with the required credit counseling (prior to filing), and other requirments necessary to now file Bankrupcty. Please call us if you have any questions as to the requirements imposed by the new Bankrupcty Act.