Somerville Bankruptcy Lawyers

A range of circumstances can cause unexpected financial hardship, from the loss of a job and mounting student loans to medical bills and credit card debt. This can be an extremely challenging and stressful situation, particularly if you are drowning in debt with no solution in sight. Fortunately, options available to you can alleviate some of the financial pressure you are facing and allow you to regain control of your financial future.

Filing for bankruptcy offers a range of benefits from eliminating certain types of debt, protecting your home, and rebuilding your finances. In addition, you do not have to face this process alone. An experienced Somerville bankruptcy lawyer will discuss the type of bankruptcy that is best for your situation, help you navigate every step of the process, and ensure that your legal and financial rights are protected.

What Are the Different Types of Bankruptcy?

While no one wants to be in a position where they have to consider filing for bankruptcy, it allows you to take control of your debt and make a fresh start. Bankruptcy allows you to avoid harassing calls from debtors, avoid real estate foreclosures, eliminate credit card debt, prevent wage garnishments, end creditor lawsuits, and remove prior judgments. There are two types of bankruptcy, each serving different purposes and applying to specific purposes. They include the following:

  • Chapter 7 Bankruptcy: This is also known as “liquidation bankruptcy” or “straight bankruptcy.” This process involves selling off non-exempt assets in order to repay your debts. In most cases, you can retain all or most of your property by declaring certain assets exempt from liquidation. This option is generally preferable for individuals with lower income and a significant amount of credit card debt, medical bills, or other unsecured debt.
  • Chapter 13 Bankruptcy: Also known as reorganization bankruptcy, this involves reorganizing your debt and creating a payment plan to repay your debts over a period of three to five years. Depending on your specific circumstances, you may be required to pay your debt in full, partially, or not at all. This type of bankruptcy is recommended for people who make a regular income and can make consistent payments towards their debt.

What Tips Should I Keep in Mind When Filing for Bankruptcy?

Like any other major financial decision, it is important that you carefully consider your options before you proceed with filing for bankruptcy. The following are examples of helpful tips to consider when filing for bankruptcy:

  • Review your financial situation. Thoroughly review all of your debts, assets, income, and expenses. This will help you make more informed decisions as you navigate bankruptcy.
  • Consult with a bankruptcy lawyer. It is highly recommended that you work with an experienced bankruptcy lawyer who will address all your questions and concerns and ensure your best interests are protected.
  • Pursue the appropriate type of bankruptcy. It is essential that you choose the bankruptcy chapter that is appropriate for your specific situation and financial circumstances.
  • Complete credit counseling. This will provide you with information on managing your debts and finances.
  • Collect the necessary documents. You will need to collect several documents to file for bankruptcy, including financial statements, tax returns, pay stubs, bank statements, and a list of assets and liabilities.
  • File the bankruptcy petition. This includes detailed information about your current financial situation. The petition must be filed with the bankruptcy court in your jurisdiction.
  • Attend the meeting of creditors. You must attend a meeting of creditors, also known as a 341 meeting, where the bankruptcy trustee and your creditors may ask you questions about your financial affairs.
  • Complete a financial management course. This will provide you with a range of tools and strategies to better manage your finances going forward. You will not receive a discharge of your debts until you complete a financial management course from an approved agency.
  • Comply with all court proceedings and requirements. As you navigate the bankruptcy process, you must comply with all court proceedings and requirements, including attending hearings, providing requested documentation, and cooperating with the bankruptcy trustee.

What Is Involved in the Bankruptcy Process?

The specific steps involved in the bankruptcy process will depend on the chapter filed, although most bankruptcy cases involve the following stages:

  • Initial consultation with a bankruptcy lawyer
  • Choosing the appropriate chapter
  • Preparing and filing the petition
  • Automatic stay implementation
  • Creditor’s meeting
  • Litigation, if necessary
  • Discharge of debts

How Will a Somerville Bankruptcy Lawyer Help Me?

During the bankruptcy process, it is vital to have an experienced bankruptcy lawyer who will advocate for you and provide legal guidance throughout the process. The following are some of the ways that a bankruptcy lawyer can help you:

  • Explain the bankruptcy process, including the role of the trustee and judge, and what actions creditors may or may not take.
  • Evaluate your financial situation to determine which type of bankruptcy suits your circumstances.
  • Ensure that all required documents are completed and filed on time.
  • Represent you at all required court hearings.
  • Ensure that creditors adhere to the automatic stay that goes into effect after filing for bankruptcy and address any issues of harassment or attempts to collect debts illegally.
  • Negotiate with creditors so that you are able to make payments you can afford while keeping your home.
  • Guide strategies to effectively manage finances and avoid future debts.

The Somerville Bankruptcy Lawyers at Lyons & Associates, P.C. Help Clients Navigate the Bankruptcy Process

If you are facing overwhelming debt and require legal assistance with managing your finances, do not hesitate to contact the Somerville bankruptcy lawyers at Lyons & Associates, P.C. Our skilled team will assist you with every step of the bankruptcy process, negotiate with credit card companies, assist you with loan modifications, and help you lower or resolve your debt. To schedule a free, confidential consultation, call us today at 908-575-9777 or contact us online. Our offices are located in Somerville, Morristown, and Freehold, New Jersey, where we serve clients in Somerset, Woodbridge, Morristown, Parsippany, Rockaway, Short Hills, Chatham, Randolph, Madison, Morris Plains, and Monmouth County.