Chapter 7 Bankruptcy Lawyer in New Jersey: Get a Fresh Financial Start

Experienced New Jersey Chapter 7 Bankruptcy Attorneys

If you are struggling with overwhelming debt, constant creditor harassment, or the threat of foreclosure, filing for Chapter 7 bankruptcy may be the solution you need to achieve financial freedom. At Lyons & Associates, our experienced New Jersey bankruptcy attorneys are committed to helping individuals and families navigate the Chapter 7 bankruptcy process with confidence. We understand that financial difficulties can be stressful, and we are here to provide the legal guidance you need to regain control of your financial future.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” is designed to eliminate most unsecured debts, including credit card balances, medical bills, personal loans, and other financial obligations. Unlike Chapter 13 bankruptcy, which requires a repayment plan, Chapter 7 allows eligible individuals to discharge debts quickly, usually within a few months.

Filing for Chapter 7 bankruptcy provides immediate relief through the automatic stay, which halts all collection efforts, lawsuits, wage garnishments, and creditor harassment.

Who Qualifies for Chapter 7 Bankruptcy in New Jersey?

Not everyone qualifies for Chapter 7 bankruptcy. To be eligible, you must pass the means test, which evaluates your income and expenses to determine whether you have the ability to repay your debts. Key factors include:

  • Income Level: Your household income must be below the median income for a similar-sized household in New Jersey, or you must prove that you do not have sufficient disposable income to repay debts.
  • Type of Debt: Chapter 7 primarily discharges unsecured debts. Secured debts, such as car loans and mortgages, may require additional legal considerations.
  • Previous Bankruptcy Filings: If you have filed for bankruptcy before, you may need to wait a specific period before filing again.

Our attorneys will assess your financial situation to determine whether Chapter 7 bankruptcy is the right option for you.

What Debts Can Be Discharged in Chapter 7 Bankruptcy?

Chapter 7 bankruptcy eliminates most unsecured debts, including:

  • Credit card debt
  • Medical bills
  • Personal loans
  • Utility bills
  • Payday loans
  • Deficiencies from repossessions
  • Certain tax debts (subject to eligibility requirements)

However, some debts are not dischargeable in Chapter 7 bankruptcy, such as:

  • Student loans (except in cases of extreme hardship)
  • Child support and alimony
  • Most tax debts
  • Court fines and penalties
  • Debts incurred through fraud or malicious intent

What Happens to Your Assets in Chapter 7 Bankruptcy?

A common concern among individuals considering Chapter 7 bankruptcy is whether they will lose their property. While Chapter 7 is known as “liquidation bankruptcy,” many filers qualify for exemptions that allow them to keep essential assets.

Exempt Assets:

  • Primary residence (subject to homestead exemption limits)
  • Vehicle (up to a certain value)
  • Retirement accounts (401(k), IRA, pension plans)
  • Household furniture and personal belongings
  • Social Security, disability, and unemployment benefits

Non-Exempt Assets:

  • Second homes or vacation properties
  • Luxury vehicles
  • Valuable jewelry, collectibles, or investments
  • Expensive personal property not covered by exemptions

Our legal team will work to maximize your exemptions and protect as many of your assets as possible.

The Chapter 7 Bankruptcy Process in New Jersey

Understanding the bankruptcy process can help alleviate some of the stress associated with financial uncertainty. Here’s what you can expect when filing for Chapter 7 bankruptcy:

  1. Consultation with a Bankruptcy Attorney
    • Our team will review your financial situation and determine whether Chapter 7 bankruptcy is the best solution for you.
  2. Filing the Bankruptcy Petition
    • Once eligibility is confirmed, we will prepare and file your bankruptcy petition with the New Jersey Bankruptcy Court. This includes detailed financial disclosures about your income, assets, debts, and expenses.
  3. Automatic Stay Protection
    • The moment your bankruptcy case is filed, an automatic stay goes into effect, stopping all collection actions, lawsuits, wage garnishments, and foreclosures.
  4. Meeting of Creditors (341 Hearing)
    • You will be required to attend a meeting with the bankruptcy trustee and any creditors who choose to participate. This hearing allows the trustee to ask questions about your financial situation and ensure the accuracy of your petition.
  5. Debt Discharge
    • After fulfilling any necessary obligations (such as financial management courses), the bankruptcy court will issue a discharge order, eliminating qualifying debts and giving you a fresh financial start.

How Chapter 7 Bankruptcy Can Help You

Filing for Chapter 7 bankruptcy offers several key benefits, including:

  • Elimination of Most Debts: Wipe out credit card balances, medical bills, and personal loans.
  • Immediate Relief from Creditors: Put an end to harassing phone calls, collection letters, and wage garnishments.
  • Protection of Essential Assets: Many filers are able to keep their home, car, and personal property.
  • Quick Resolution: Most Chapter 7 cases are completed within 3 to 6 months, allowing you to move forward with financial stability.
  • Opportunity to Rebuild Credit: While bankruptcy affects your credit score initially, many people begin improving their credit within a year by practicing responsible financial habits.

Why Choose Lyons & Associates to Represent You in Bankruptcy

At Lyons & Associates, we are committed to helping clients navigate the bankruptcy process with dignity and confidence. Here’s why individuals across New Jersey trust our firm for their debt relief needs:

  • Experienced Bankruptcy Attorneys: Our legal team has extensive experience handling Chapter 7 bankruptcy cases.
  • Personalized Legal Guidance: We take the time to understand your unique financial situation and develop a tailored strategy to help you achieve debt relief.
  • Compassionate Advocacy: We understand that financial difficulties can be overwhelming. Our attorneys provide compassionate, judgment-free representation.
  • Comprehensive Debt Solutions: We explore all available options, including debt negotiation and alternatives to bankruptcy, to ensure the best possible outcome for your financial future.

Take Control of Your Financial Future – Contact Lyons & Associates Today

If you are facing unmanageable debt and considering Chapter 7 bankruptcy, don’t wait to take action. Our skilled New Jersey bankruptcy attorneys at Lyons & Associates are here to guide you through the process and help you regain financial stability.

Call us today to schedule a confidential consultation and learn how we can help you achieve the fresh start you deserve.