Marlton, NJ Chapter 13 Bankruptcy Lawyers
Chapter 13 Debt Repayment Plans ∙ New Jersey
Injury, job layoff, divorce and any number of other significant life experiences can result in your being out of commission and in serious financial trouble. You fell behind on your mortgage, credit card bills, child or spousal support payments and other financial responsibilities. Even now, although you are working again and meeting monthly financial obligations, you are still accruing default penalties from the past months in which you were incapable of paying — and, in situations following divorce or separation, you may even be facing enforcement proceedings which could result in incarceration for nonpayment of overdue child support or spousal support. It is a vicious cycle from which there is no reprieve.
Don’t Keep Suffering From Out-of-Control Debt Problems
Chapter 13 bankruptcy can help you get your financial life back in order after a period of distress or upheaval. At the Law Office of Andrew B. Finberg, LLC, we help clients understand their financial options and help them make informed decisions regarding the most efficient and effective transition into life after debt. Contact our experienced Marlton Chapter 13 bankruptcy attorneys for skilled representation throughout South Jersey.
Chapter 13 bankruptcy gives debtors the opportunity to satisfy debts while under the protection of the Bankruptcy Code. A successful Chapter 13 bankruptcy filing can:
- Avoid wasting time and energy in attempting to pursue unsuccessful short sales and address the full picture of your financial problems
- Stop mortgage foreclosure and allow you to catch up on defaulted payments (without continuing to accrue penalties or interest fees)
- In some instances, completely eliminate or reduce mortgage balances
- Take control and liquidate assets — only if you want or need to in order to eliminate certain financial obligations
- Retain exempt and nonexempt assets
- Save motor vehicles or other personal property about to be lost to repossession
- Catch up on past due child support or spousal support and avoid the risk of Court imposed sanctions, including the threat of incarceration for nonpayment (as long as you can maintain current payments throughout the duration of your case)
- Satisfy nondischargeable tax obligations owed to state or federal tax authorities and take up to 60 months to do it, without incurring additional penalties and possibly interest, as well
The Means Test and Liquidation Analysis
Bankruptcy Courts use a means test to determine if a debtor is eligible for debt discharge under a Chapter 7 bankruptcy filing or debt reorganization under a Chapter 13 bankruptcy and repayment plan filing. The means test involves comparison of your income to the threshold median income for those in your geographic region as well as a calculation of your income, debt, reasonable and necessary living expenses and your ability to pay an additional payment to a bankruptcy trustee (if approved for a Chapter 13 petition). If the debtor is below the median threshold, a Chapter 7 bankruptcy filing may be an appropriate option. However, those over the threshold must be approved for bankruptcy eligibility in the latter, more rigorous, process. For those who may be eligible for either a Chapter 7 or Chapter 13 petition, we clients to weigh the advantages and disadvantages of the options as applied to each unique case.
Generally, for those proceeding with a Chapter 13 bankruptcy, there is a minimum total amount of debt that must be paid back before the Bankruptcy Court will approve the discharge. This amount is usually in alignment with the liquidation amount in a Chapter 7 bankruptcy — the amount that creditors would have received, after exemption, as a result of a liquidation under a Chapter 7 filing. In the event that a Chapter 7 filing would have resulted in no distribution to unsecured creditors, unless it is shown that you can afford to do so, required payments under a Chapter 13 plan can be limited to other goals, such as saving a home by catching up on mortgage payments, or paying back past due taxes or support obligations, without having to pay any credit card debt or other unsecured obligations. Careful liquidation analysis aids in determining the amount that must be recovered through the repayment plan in a Chapter 13 petition, and in identifying whether a three-year or five-year repayment plan is more appropriate for your situation.
Will Chapter 13 Bankruptcy Work For Me?
The success of your Chapter 13 bankruptcy repayment plan hinges on your ability to maintain regular payments to the bankruptcy trustee during the repayment period, and your ability to regularly meet your routine financial obligations, such as your mortgage, child support payments, etc. Failure to do so could result in consequences that jeopardize your entire bankruptcy petition.
Marlton Debt Relief Lawyer
Contact us at the Law Office of Andrew B. Finberg, LLC, to arrange an appointment with our skilled bankruptcy lawyer. We offer flexible meeting schedules and affordable payment plans. Call (856) 988-9055 or contact us online to schedule your free initial consultation.
the Law Office of Andrew B. Finberg, LLC is located in Marlton, New Jersey and provides skilled legal counsel to individuals needing help with bankruptcy in Cherry Hill, Voorhees, Mount Laurel, Morristown, Maple Shade and serves Burlington, Camden and Gloucester Counties.
>We are proud to be a federally designated debt relief agency.
We help people file for bankruptcy relief under the Bankruptcy Code.