Most THE BANKRUPTCY LAWS EXIST TO PROTECT YOU people who are facing financial problems are reluctant to consider filing for bankruptcy. They consider it shameful or dishonest to admit that they cannot pay their bill and struggle with the thought of being labeled “bankrupt”. The fact of the matter is that there is nothing to be ashamed of and in fact many people and businesses that are very well respected have filed for bankruptcy; some more than once. The bankruptcy laws were enacted to help people and businesses get a fresh start by reducing or eliminating some or all of their debts. Obviously, this is not a decision to be made without a good deal of investigation and consultation. That is where the advice and counsel of an experienced New Jersey bankruptcy lawyer is invaluable. Mr. Montero will provide you with a free consultation and explain the differences in the applicable Chapters. He will let you know which Chapter you qualify for and explain the process in detail.
The first question most individuals ask when asking for advice from a bankruptcy attorney is; “What will it do to my credit?” The fact is that in the vast majority of cases, if you have arrived at the point of seeking the advice of a bankruptcy attorney, your credit rating is probably already “poor” or “very poor”. The good news is that shortly after you emerge from the process your rate will likely go up very fast and much higher than it was previously. Mr. Montero would be pleased to explain why that is as well as answer any other questions you might have concerning the bankruptcy process from beginning to end. The following sections explain in more detail what Chapter might be suitable for your situation and financial circumstances. Should you have any questions, Mr. Montero welcomes you for a free consultation
Following the banking fiasco of 2008, personal and business bankruptcy filings soared to record heights. As a result, this area of practice has seen a corresponding increase in the need for competent legal representation. Since going into private practice, Mr. Montero has concentrated on bankruptcy as one of the central areas of focus for his firm. This field has also gone under numerous changes especially since October of 2005 when the bankruptcy laws changed with passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). It is now more difficult for individuals to qualify for bankruptcy and as a result it is all the more important that if you are considering bankruptcy as a way out of your financial problems that you consult with an experienced bankruptcy specialist. Mr. Montero has the specialized knowledge you need
The “No Asset” Case Chapter 7
The vast majority of bankruptcies that are filed each year are known in the field as “no asset” Chapter 7 cases. This is not to say that you cannot have any assets to file a Chapter 7. Quite to the contrary, you can have many assets, just not more than permitted by the bankruptcy laws, which enumerate how much of each type of asset is considered exempt. For instance, most people assume that they cannot own and keep their home if they file for bankruptcy. They are completely wrong. Mr. Montero will explain how much equity you can have and still file a Chapter 7 to wipe out or eliminate most if not all of your unsecured debt while keeping your home or condominium. Each case is different and there are many questions that must be answered to determine which Chapter if any applies to your situation. That is why you need to speak with an experienced bankruptcy attorney to help you through this stressful process. Mr. Montero will guide you throughout the process, attend the hearing with you and see you through to a new beginning.
Business Reorganization Chapter 11
Chapter 11 is mostly what is being referred to when you hear that a business has filed for “protection” under the bankruptcy laws. Although this Chapter is almost exclusively for businesses, an individual may qualify if they derive income from some business source, such as a rental property. Under Chapter 11 a business is seeking time to reorganize its finances in hopes of staying open in a more streamlined version of its former self. Thus, when you hear that XYZ Corporation has “emerged from bankruptcy” it means that the company was able to convince its creditors, the trustee and the Court that under its new structure and payment arrangements that it will be able to survive. If your business is having trouble in today’s uncertain times you might be eligible to reorganize and restructure your debts which would allow you to survive. Some well known companies have used Chapter 11 and are now thriving. Yours could be the next.
Chapter 13 Bankruptcy
SAVING YOUR HOUSE FROM FORECLOSURE
Approximately 95% of all Chapter 13 bankruptcies are filed by homeowners seeking to save their home from foreclosure. To qualify you must be an individual with regular income. Almost anything qualifies as regular income, but the important point to remember is that you must be able to stay current with your bills going forward and propose a plan on catching up on your arrears; especially your mortgage.
This type of bankruptcy is much more complex and involved than a Chapter 7 and accordingly costs more. It is usually recommended only if you have significant equity in the home and you can demonstrate some change in your circumstances to indicate that you will be able to meet the requirements of repayment. For instance, if you fell behind in your mortgage due to an illness or temporary job loss, you might be able to show that you are fully capable of managing your finances going forward. If this situation applies to you, Mr. Montero can explain the process and help you through this difficult time.