The following article was written by Theodore Sliwinski, Esq. and can be found on New-Jersey-Lawyers.com
1. Eliminate the Legal Obligation to Pay Most of Your Debts.
This process of wiping the slate clean is called the discharge of your debts. The goal of a bankruptcy discharge is to wipe out your debts to give you a fresh start. Whether it is through a straight bankruptcy that is called a Chapter 7, or through a reorganization that is called a Chapter 13, most or all of your debts can be wiped out for good.
2. Stop the Foreclosure on Your House and Allow You to Effectively Make Payments to Catch up on Missed Payments of Your Mortgage.
If your home is in a foreclosure, then a Chapter 13 will stop it if is filed before the sheriff’s sale. However, a bankruptcy does not eliminate your mortgages that are filed on your home. Instead, a bankruptcy will structure a repayment plan to enable you to repay your mortgage arrears over a five year period. Your mortgage arrears are the amount that you are behind on your mortgage.
3. Prevent Your Car or Other Property From Being Repossessed.
Even if the repo man has snatched your car, the filing of a bankruptcy can help you to save your car. However, your bankruptcy must be filed before the car is sold at the auction. The past payments you have missed will be consolidated into your Chapter 13 plan. After you file, you will no longer pay the bank or the finance company, instead you will make your monthly payments to the bankruptcy trustee. The bankruptcy trustee will then pay the finance company your missed payments over a three to five year period.
4. Reduce or Even Wipe Out High Medical Bills.
Sometimes an unfortunate accident or a major illness can totally emotionally destroy a family. Moreover, their financial health can also be wrecked as well. Many families have to make difficult choices on what bills to pay. Many New Jersey-ites rack up tens of thousands of dollars of medical bills if they become sick, or if their kids get sick. If you file for a chapter 7 then this legal process can wipe out your outrageous medical bills that simply won’t go away.
5. Recent Loss of a Job. …..click here to finish this article
For more information about NJ Bankruptcy Law or to find a New Jersey Bankruptcy Lawyer. Additional lists of NJ Law firms can be found here.