Levitt & Slafkes, P.C. Essex County Bankruptcy Attorney | Chapter 7, Chapter 13 2026-05-13T09:16:20Z https://www.levittslafkes.com/feed/atom/ WordPress /wp-content/uploads/sites/1201709/2021/08/cropped-Levitt_Slafkes-site-icon-32x32.png by Levitt & Slafkes, P.C. <![CDATA[Should Senior Citizens File for Bankruptcy? A Practical Guide from Levitt & Slafkes]]> https://www.levittslafkes.com/?p=56358 2026-05-05T05:17:20Z 2026-05-05T05:04:43Z When A Chapter 7 Bankruptcy Might Make Sense for You Bankruptcy can be a powerful tool for seniors facing overwhelming debt. In certain situations, it can offer a fresh start and much-needed relief from the stress debt can cause. Bankruptcy might be right for you if:
  • You can’t make your minimum credit card payments;
  • Your phone is ringing off the hook from debt collector calls;
  • Your debt far exceeds your income and assets;
  • You’re using credit cards to pay for basic living expenses;
  • You can’t pay your medical bills; and
  • You are feeling very stressed because of your financial situation.
For many seniors, bankruptcy can eliminate unsecured debts like credit cards and medical bills, allowing them to focus on essential living expenses.

Benefits of a Chapter 7 Bankruptcy

If you are a senior facing unmanageable debt, here are some of the benefits to filing a Chapter 7 Bankruptcy.

A Chapter 7 Bankruptcy Can Give You Relief from Medical Debt

A Chapter 7 Bankruptcy will eliminate your medical debt. As we age, medical expenses are often why we are drowning in debt. All of the copays for medicine and doctors add up quickly. If you can imagine the relief you will get knowing your past medical debt is gone, then you can understand why many seniors file for bankruptcy.

Chapter 7 Bankruptcy Can Protect Retirement Assets

It is important to know that if you file for Bankruptcy, the Court does not take your qualified retirement accounts as they are considered exempt and the law allows you to keep them. Some seniors try to pay their bills by using their retirement savings. By postponing filing for bankruptcy, you can lose money and assets that you would get to keep when you file bankruptcy. For example, taking money out of your retirement account to pay your debt can deplete an account that would be fully exempt (that you could keep) after filing bankruptcy. The better approach is to safeguard your assets and eliminate your debt by filing bankruptcy as soon as possible.

Chapter 7 Bankruptcy Relief Occurs Quickly

A Chapter 7 bankruptcy is a relatively quick process. From filing the petition to getting your discharge (the end of the bankruptcy which eliminates your debt) is approximately 3 to 6 months.

Let Levitt and Slafkes Help You Move Forward

If you are a senior citizen and are interested in discussing bankruptcy relief, contact the compassionate and knowledge the attorneys at attorneys at Levitt & Slafkes, P.C. for a free consultation. Call us at [nap_phone id="LOCAL-CT-NUMBER-3"], or contact us online We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 40 years. The information on this website and blogs is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.]]> On Behalf of Levitt & Slafkes, P.C. <![CDATA[What Happens if I Hide Assets in a Chapter 7 Bankruptcy?]]> https://www.levittslafkes.com/?p=56354 2026-03-06T05:48:42Z 2026-02-26T05:39:17Z At Levitt & Slafkes, P.C. we stress to our clients the importance of being honest when listing their assets in a Chapter 7 Bankruptcy. Bankruptcy is truly meant to help the honest debtor. It is a big mistake to intentionally hide assets when you file bankruptcy. At Levitt & Slafkes, P.C. we've represented individuals throughout New Jersey who want to eliminate their debt in a Chapter 7 bankruptcy. In this blog we will explain what can happen if you hide assets when filing Chapter 7 bankruptcy and why you should never do so.

What Assets Must You Disclose In A Chapter 7 Bankruptcy?

When you file a Chapter 7 bankruptcy, you are required to fully disclose all your assets. Your assets include:
  • Real estate
  • Vehicles
  • Bank accounts and the amount in them
  • All financial accounts including cryptocurrencies
  • Cash
  • Jewelry or collectibles
  • Retirement accounts
  • Business interests
  • Lawsuits or potential legal claims that you have such as for a medical malpractice or personal injury

What Does "Hiding Assets" Mean in a Chapter 7 Bankruptcy?

Hiding assets means that you intentionally did not disclose all your property and income in order to keep it out of the bankruptcy process. This can include the following:
  • Not disclosing a transfer of property that you made to a friend or family member before filing
  • Not listing all of your bank accounts or cryptocurrency or other valuable item
  • Undervaluing assets in your bankruptcy petition
  • Not listing all the real estate that you own

What Happens If You Hide Assets in A Chapter 7 Bankruptcy?

Bankruptcy is governed by federal law and honesty is not optional. If the bankruptcy trustee or a creditor finds out that you've intentionally hidden assets, your case could be dismissed, and your debts will not be discharged. You could also be prosecuted for bankruptcy fraud. This rarely happens as most people are honest in declaring all their assets. If you are unsure if something is an asset, tell your attorney and they can decide.

What Happens If I Accidentally Don't List an Asset?

If you honestly forgot to list an asset, tell your attorney immediately. Your attorney can file an amendment with the court to list the asset.

Contact Levitt & Slafkes for a Free Bankruptcy Consultation

At Levitt & Slafkes, we help our clients thoroughly prepare their bankruptcy petitions to avoid errors and reduce the risk of missed disclosures. We are here to help! Call us at 973-313-1200, or contact us online to schedule a consultation at no cost.]]> by Bruce Levitt <![CDATA[The Bankruptcy Means Test and How It Works – Updated for November 1, 2025 Changes in Means Test Numbers]]> https://www.levittslafkes.com/?p=56253 2026-01-21T03:52:19Z 2026-01-20T05:01:15Z Chapter 7 bankruptcy. The only times you do not have to pass the means test is when most of your debt is tax or business debt. This blog will explain what the means test is and how it works. The means test income numbers have been updated for cases filed on or after November 1, 2025.

What is the Means Test?

The means test is basically a screening process which is used by the Bankruptcy Court to determine if an individual with mostly consumer debt is eligible to file a Chapter 7 bankruptcy. The means test looks at whether you have enough disposable income to pay some or all your debt.

Who Must Pass the Means Test?

The means test is only for people whose debt is primarily consumer debt such as medical and credit card debt. You don’t need to pass the means test if your debt is mainly business or tax debt. If you are a disabled veteran, you may also be exempt from the means test depending on your level of disability and when you incurred the debts. You may also qualify for an exemption if you are in the military reserves or active in the National Guard.

How Does the Means Test Work?

Step 1: Look at your Average Monthly Income

The first part of the means test looks at whether your average monthly income for the 6 months before your bankruptcy filing is below your state’s median income. Your average monthly income is compared to the median income of a New Jersey family the same size as yours. For cases filed on or after November 1, 2025  the median annual household income in New Jersey is:
  • $84,938  for a single earner ($ 7,078.00 /month)
  • $104,136  for a family of two ($ 8,678 /month)
  • $133,620 for a family of three ($ 11,135 /month)
  • $163,187 for a family of four* ($ 13,651/  month)
*Add $11,100 a year for each person beyond four. While the means test is based on the past six months, there can be adjustments made if you have recent or upcoming financial changes. For example, if you were employed for 4 of the past 6 months, but are now unemployed, the means test will factor in the decrease in your income. Conversely, if you recently got a new job and are making more money, that increase will also be taken into account. If your income is below the median income, you’ve passed the means test and can file a NJ Chapter 7 bankruptcy. Most people pass the means test. If you don’t pass the means test you move on to the second step. What Is Considered Income for the Means Test? The means test considers all income that you received from most sources during the full 6 months before the date you filed your petition. Income sources include:
  • Salaried income
  • 1099 Income such as Uber or Lyft
  • Hourly and overtime income
  • Rental Income (Net)
  • Child Support and Alimony
  • Pension & Retirement Income
  • Business Income (Net)
  • Unemployment compensation
  • Worker’s Compensation Benefits
  • Annuity payments
If you are married, the means test also takes into account your spouse’s income even if your spouse is not filing bankruptcy with you. If you and your spouse are legally separated, you might not have to include their income in the means test. Not all income is included in the bankruptcy means test. For example, some disability and social security income is not included.

Step 2: What If I Don’t Pass the Means Test?

If you don’t pass the means test it doesn’t necessarily mean that you can’t file a Chapter 7 bankruptcy. You must however, go to the second step. The second step of the means test lets you deduct allowable monthly expenses from your current monthly income to calculate your disposable income. It is important that you accurately gather information about your household expenses over the last 6 months. Allowable expenses include things such as groceries, medical expenses, clothing, rent, utilities, and alimony and child support payments. What’s left after allowable expenses is considered disposable income that you could use toward paying your bills. If your disposable income is shown to be low enough, you may still qualify for Chapter 7. If the disposable income is too high, then you will not qualify for Chapter 7, as it is presumed that this money could be used toward outstanding debts. An experienced NJ bankruptcy attorney at Levitt and Slafkes will make sure your expenses are properly documented and help you to pass the means test.

Not Eligible for Chapter 7? Chapter 13 May Offer You Many Benefits

If you are eligible and proceed with a Chapter 7 bankruptcy, you can look forward to a discharge of most of your debts within three to six months. If you are not eligible, your attorney may suggest that you file for Chapter 13, bankruptcy. We would discuss this option with you should it be relevant.

Contact Us for Help Now

The experienced bankruptcy attorneys at Levitt & Slafkes, P.C. can answer all your questions regarding bankruptcy issues. Contact us today so one of our attorneys can evaluate your case and discuss the best options available to you. We are here to help! Call us at [nap_phone id="LOCAL-CT-NUMBER-3"], or contact us online to schedule a consultation at no cost. We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years. The information on this website and blogs is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.]]> On Behalf of Levitt & Slafkes, P.C. <![CDATA[How Filing Bankruptcy Can Give You a Financial Fresh Start in The New Year]]> https://www.levittslafkes.com/?p=56348 2026-01-08T07:32:32Z 2026-01-08T07:16:50Z Levitt & Slafkes, P.C., our experienced New Jersey bankruptcy attorneys have helped thousands of people throughout New Jersey get back on their feet through compassionate and experienced legal representation. Bankruptcy might be the tool for you to get a new financial beginning in 2026.

What Are The Benefits of Filing Bankruptcy In The New Year?

These are some of the benefits of filing Chapter 7 or Chapter 13 bankruptcy in 2026.

1. A Chance to Get Rid of Your Debt

The New Year is a natural time to reflect on what isn't working. If you've spent years juggling minimum payments, using credit cards to cover essentials, or falling behind on major bills, bankruptcy could break that cycle. Instead of carrying last year's financial burdens into the future, you can eliminate your debt and rebuild financially.

2. Bankruptcy Stops Creditor Harassment Immediately

The minute you file a Chapter 7 or Chapter 13 bankruptcy an automatic stay is put in place which immediately stops all collection actions against you including:
  • Harassing telephone calls and texts at all hours from debt collectors
  • Letters threatening lawsuits
  • Filing of new lawsuits
  • Wage garnishments
  • Bank levies
  • Foreclosure or repossession efforts
For many of our clients, this immediate relief is life changing.

3. Protect Your Assets and Rebuild Your Credit

Contrary to common belief, bankruptcy does not mean you lose everything. Most people keep their homes, cars, and all their personal property. In fact, by getting rid of unmanageable debt through bankruptcy, most people are able to rebuild their credit faster than if they continued to struggle financially without relief.

Why Work with Levitt & Slafkes, P.C.?

Choosing to file bankruptcy is a big decision—one that should be guided by experienced and caring professionals. At Levitt & Slafkes, P.C., we offer:
  • Over 30 years of bankruptcy expertise
  • Personalized attention from attorneys Bruce Levitt and Shelley Slafkes
  • Judgment-free guidance
  • A clear explanation of all your options—bankruptcy and non-bankruptcy alike
We know the stress financial hardship can cause. Our goal is simple, to help you regain control of your life and move forward with confidence.

Make This the Year You Take Back Your Financial Freedom

The New Year symbolizes new beginnings. If debt has been holding you back, 2026 is the perfect time to explore whether bankruptcy can give you the fresh start you deserve. You don't have to face this alone. Let us help you build a brighter financial future. We are here to help! Call Levitt and Slafkes at [nap_phone id="LOCAL-CT-NUMBER-3"], or contact us online for a free consultation.]]> On Behalf of Levitt & Slafkes, P.C. <![CDATA[Must Married Couples File Bankruptcy Together?]]> https://www.levittslafkes.com/?p=47399 2025-12-03T07:13:13Z 2025-12-03T05:00:00Z no. Married couples are not required to file bankruptcy together. Whether you should file jointly, individually, or not at all depends on your unique financial situation. At Levitt & Slafkes, P.C. we have helped many New Jersey couples decide the best approach. This blog will discuss the pros and cons of filing bankruptcy together with your spouse.

Do Married Couples Have to File Bankruptcy Together?

No. The U.S. Bankruptcy Code does not require that both spouses file bankruptcy together. Married couples have the option to:
  • File individually;
  • File jointly, or
  • Have only 1 spouse file bankruptcy

When is it Beneficial for Spouses to File Jointly?

There are many factors involved in deciding whether both spouses should jointly file a Chapter 7 or Chapter 13 bankruptcy. These are some of the benefits of both spouses filing bankruptcy together:
  • Convenience: Filing bankruptcy together simplifies the process, since only one set of paperwork is required
  • Saves Money: Filing together is generally less expensive than each spouse filing their own bankruptcy as there is only one filing fee, and one set of paperwork.
  • Protects Both Spouses: If there are joint debts, both spouses are protected from collection efforts if they file a joint bankruptcy. If only one spouse files bankruptcy, the non-filing spouse remains liable for any joint debts.
  • Both Spouses Have Debt: If both spouses are struggling with debt, filing together can eliminate all of the debt and give you a fresh start as a couple.

When Is It Beneficial For Only One Spouse To File Bankruptcy?

In some situations, it might be best for only one spouse to file bankruptcy, or for each spouse to file their own individual bankruptcy. Here are some of the factors to consider in making the decision.
  • Only One Spouse Has Debt: If the majority of the debt is only in one spouse's name, it might be best if only the spouse with the debt files bankruptcy.
  • Each Spouse Has Separate Assets: If one spouse has significant property or assets that are only in their name, filing jointly might put the assets of that spouse at risk.
  • Preserving Individual Credit: If only one spouse has substantial debt, filing separately allows the non-filing spouse to maintain a better credit profile, since their debts wouldn't be included in the bankruptcy.

Contact Levitt & Slafkes For a Free Consultation

If you have any questions about whether to jointly file bankruptcy with your spouse, you should talk to the experienced bankruptcy attorneys at Levitt & Slafkes, P.C. We will:
  • Evaluate your debts and income
  • Help you understand your legal options
  • Guide you through the entire bankruptcy process
Contact us today so one of our attorneys can evaluate your case and discuss the best options available to you. Call us at 973-323-2953, or contact us online to schedule a free consultation.]]> On Behalf of Levitt & Slafkes, P.C. <![CDATA[Can Bankruptcy Remove Judgment Liens on My Home?]]> https://www.levittslafkes.com/?p=47962 2025-09-16T09:11:38Z 2025-09-22T04:00:00Z What Is a Judgment Lien? A judgment lien is a legal claim that a creditor puts on your property after winning a lawsuit against you. This can happen when:
  • You haven’t paid your bills (such as credit cards, medical bills, or personal loans;
  • Your creditor files a lawsuit against you and gets a judgment; and
  • The creditor records the judgment with the judgment section of the court as a lien on your real property (such as your house).
  • Once the judgment lien is recorded, the holder of the lien is entitled to payment when the property is sold or refinanced.

What Is The Difference Between the Underlying Debt and the Judgment Lien?

A lien and a debt are separate concepts that are treated differently under bankruptcy laws.

Will A Bankruptcy Discharge the Debt Underlying the Judgment?

Yes. A Chapter 7 or Chapter 13 bankruptcy discharge can eliminate many types of unsecured debts, including the debt behind most judgment liens.

Will A Bankruptcy Discharge Automatically Eliminate a Judgment Lien?

No. A lien is not automatically discharged and can remain after you receive a discharge and your bankruptcy case is closed.

How to Eliminate a Lien During a Bankruptcy

If the following criteria are met, a motion can be filed during your bankruptcy to avoid (eliminate) a judgment lien. Specifically:
  • The lien must impair your homestead exemption. If your home is worth less than what you owe on your mortgage(s) or you have little or no equity, the judgment lien is likely impairing your exemption.
  • The lien must be the result of a debt that is dischargeable.
  • The lien cannot come from non-dischargeable debts, such as certain taxes and domestic support obligations.

You Need an Experienced Bankruptcy Attorney to Address Liens

Judgment liens are complex. It is critical that you adequately address liens during the bankruptcy process. At Levitt & Slafkes, P.C., we help individuals and families throughout New Jersey protect their homes and cars. With our decades of experience and vast knowledge of the law, we will make sure your bankruptcy is handled right. Contact our New Jersey law firm online by filling out the form or by calling [nap_phone id="LOCAL-CT-NUMBER-3"] to schedule a free initial consultation with an attorney at Levitt & Slafkes, P.C.. We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years. The information on this website and blogs is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.]]> On Behalf of Levitt & Slafkes, P.C. <![CDATA[Understanding Secured vs. Unsecured Debt: Why Does it Matter in Bankruptcy?]]> https://www.levittslafkes.com/?p=46464 2025-08-12T07:16:30Z 2025-08-18T04:00:00Z Types of Debt

1. Secured Debt

What is Secured Debt?

Secured debts are debts where your promise to pay the debt is secured by collateral. Collateral is an asset or property that a borrower pledges to secure the loan. If you don’t keep up with the payments, your creditor can take back the collateral securing the debt.

Examples of Secured Debt:

  • Car Loans: A car loan is secured by the vehicle. If you stop paying the car loan, the lender can repossess the car to recover the amount that you owe.
  • Mortgage Loans: A mortgage loan is secured by your home. If you stop paying your mortgage, the lender can cause your home to be sold (foreclosure) to repay your debt. Once the creditor has foreclosed upon your home, or repossessed your car, your property is sold to pay what you owe on the debt. If your collateral is sold for less than what you owe on the debt, the creditor may have the right to sue you for the remaining amount, which is called the deficiency.

2. Unsecured Debt

What is Unsecured Debt?

With unsecured debt, there is no collateral to secure repayment. Because of this, when you default, your creditors cannot claim any specific property to satisfy the debt. Instead, they generally must file a lawsuit against you and win before they can bring collection proceedings which can include wage garnishment.

Examples of Unsecured Debt:

  • Credit card debt
  • Medical bills
  • Personal Loans
  • Rent

Why Does the Difference Between Secured and Unsecured Debt Matter in Bankruptcy?

Unsecured and secured debts are treated differently, depending on whether you file a Chapter 7 or Chapter 13 bankruptcy,

Chapter 7 Bankruptcy

Unsecured Debt

In a Chapter 7 bankruptcy, most of your unsecured debt is discharged (eliminated). Unsecured debts that cannot be discharged include child support, most student loans, and recent tax debts.

Secured Debt

Chapter 7 eliminates your personal obligation to pay the secured debt. It does not, however, eliminate the creditor’s lien that allows for the collateral such as your house or car to be sold or repossessed. If you want to keep the secured debt, such as your car or house, you must stay current on the mortgage or car loan. If you would like to give up the collateral by surrendering the car or the house, and it sells for less than what you owe, a Chapter 7 can protect you from being sued by the creditor for the deficiency.

Chapter 13 Bankruptcy

Unsecured Debt

In a Chapter 13 bankruptcy, most unsecured debts become part of the 3-to-5-year repayment plan. The amount you are required to pay towards the unsecured debt depends upon many factors. Most unsecured debts are discharged at the end of a Chapter 13 bankruptcy after only a small portion of the debts have been paid.

Secured Debt

A Chapter 13 allows you 3 to 5 years to become current on your delinquent secured debts through the payment plan. This is why Chapter 13 bankruptcy is especially helpful for those seeking to avoid repossession of their car or foreclosure on their home. As long as you can make the monthly Chapter 13 payments towards your delinquent secured debt under the plan, and stay current on your ongoing payments, your creditors are legally prohibited from taking back the collateral.

Talk to an Attorney at Levitt & Slafkes to Protect Your Assets

We are bankruptcy lawyers who know how to make a difference in your financial situation. We have experience you can rely on, and we care about your results. Contact our New Jersey law firm online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation with an attorney at Levitt & Slafkes, P.C. We are proudly designated as a debt relief agency by an Act of Congress.  We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years. The information on this website and blogs is for general information purposes only.  Nothing should be taken as legal advice for any individual case or situation.]]> On Behalf of Levitt & Slafkes, P.C. <![CDATA[What is a Chapter 13 Bankruptcy and How Does It Work]]> https://www.levittslafkes.com/?p=47526 2025-08-06T19:03:16Z 2025-08-06T14:00:00Z Qualifications to File a Chapter 13 Bankruptcy

Only Individuals Can File Chapter 13

Only individuals and sole proprietors can file a Chapter 13 bankruptcy. Corporations and small businesses cannot.

You Must Have Regular Income

To file a Chapter 13 bankruptcy, you must have regular income. Regular income includes wages, social security, pension, alimony or any other type of regular income. The spouse of a person who has regular income can file jointly with their spouse even if they don’t have regular income. Unlike Chapter 7 which has income limits, there is no limit on the amount of income you can have and still file a Chapter 13 bankruptcy.

You Cannot Exceed the Chapter 13 Debt Limits

Chapter 13 has debt limits. You cannot file a Chapter 13 Bankruptcy if your unsecured debts are more than $526,700 or your secured debts are more than $1,580,125. These debt limits don’t stop most people from filing a NJ Chapter 13 Bankruptcy. However, if you have too much debt you can file an individual Chapter 11 bankruptcy instead.

How Does Chapter 13 Bankruptcy Work?

Initial Steps:

  1. Completing the Required Credit Counseling Course

In the 180 days before your Chapter 13 bankruptcy petition is filed you must take a credit counseling course from an agency approved by the Department of Justice U.S. Trustee Program. This course can be done online or on the telephone. The certificate of completion must be filed when your Chapter 13 bankruptcy is filed.

  1. Filing of the Chapter 13 Bankruptcy Petition

The filing of a bankruptcy petition starts your bankruptcy case. You will receive a case number when your Chapter 13 bankruptcy petition is filed. The filed petition includes many forms including a listing of all of your debts, assets, income and expenses and a statement of financial affairs. These forms must be filled out completely and accurately as they are submitted under penalty of perjury. A fee must be paid to file a Chapter 13 bankruptcy. The current Chapter 13 filing fee is $ 313.00.

  1. Filing of the Chapter 13 Plan

A Chapter 13 plan must be filed with the Bankruptcy Court when your bankruptcy petition is filed. The plan is a document that states how you propose to pay creditors and how much they will be paid. A Chapter 13 plan requires you to make monthly payments to a Bankruptcy Trustee over a period of three to five years.

What Happens After the Chapter 13 Bankruptcy is Filed?

  1. An Automatic Stay is put in place

An automatic stay is immediately put in place when the bankruptcy petition is filed. The automatic stay stops most collection activity including harassing creditor phone calls, lawsuits, wage garnishment, car repossession and sheriff sales. See our article on the benefits of the automatic stay for more information. In a Chapter 13 bankruptcy, the automatic stay also applies to co-signors on the debt. As long as the debt is paid under the Chapter 13 bankruptcy plan, creditors cannot take any action against your cosigners who have not filed bankruptcy.

  1. Begin Making Your Chapter 13 Plan Payments

You generally start making your monthly Chapter 13 payments the month after your petition is filed even though your Plan has not yet been approved by the Bankruptcy Court.

  1. Attend Meeting of Creditors

Approximately 1 month after your Chapter 13 bankruptcy petition is filed, a meeting of creditors, also called a 341 meeting, is held. This meeting is between you and the bankruptcy trustee. Although creditors can appear, they rarely do. Before the meeting, the bankruptcy trustee must be provided with certain documents including proof of income, your last Federal income tax return and proof of identity. The meetings are being held on Zoom. Your Chapter 13 bankruptcy attorney will appear with you at the meeting. Read our blog on Preparing for Your 341(a) Meeting of Creditors for more information.

  1. Debtor Education Course Requirement

After your Chapter 13 bankruptcy is filed you are required to complete an approved educational course on personal finances and file the certificate with the Court. This course can be taken online or on the telephone. This course generally reviews money management, budgeting, and how to use credit wisely.

  1. The Chapter 13 Confirmation Process

Your payments are held by the Chapter 13 trustee until the Bankruptcy Court approves your Chapter 13 plan. The approval is made at a Chapter 13 confirmation hearing. At the confirmation hearing the Court will determine whether your plan meets the Chapter 13 requirements. The Court will hear any objections to approval of the plan. If there are no objections by the Trustee or your creditors, the Court may approve the plan without a hearing. If the Court does not approve your Chapter 13 plan, any payments you made towards the Plan will be returned to you after administrative costs are deducted.

  1. How Much Do I Have to Pay in the Chapter 13 Plan?

Many factors go into determining the amount of your monthly Chapter 13 plan payment. These factors include whether your debt is secured or unsecured and whether you are behind on a mortgage or car payments. Usually, the plan payment is determined by how much disposable income you have at the end of every month. Your disposable income is how much you have left over after paying your necessary living expenses such as rent or mortgage, food, cell phone bill, utilities, etc.

  1. Certain Debts Have to be Paid in Full in the Chapter 13 Plan

Certain debts must be paid in full in the Chapter 13 plan. These include mortgage arrears, certain tax debt and past due alimony and child support. Payment of these debts can increase your monthly plan payments. Your past due payments can be spread over the 3-to-5-year Chapter 13 plan period. Your unsecured creditors also get a share of payments under the Chapter 13 plan. What they get depends upon your disposable income. Your disposable income is how much you have left over after paying your necessary living expenses such as rent or mortgage, food, cell phone bill, utilities, etc. If there is no disposable income, your unsecured creditors may receive nothing. The more disposable income you have, the more your unsecured creditors get. One of the many benefits of a Chapter 13 is that generally you are not required to pay unsecured creditors any interest, late fees, and other penalty charges that you would have owed if you did not file Chapter 13 bankruptcy. In some situations, where you have assets that exceed what the law lets you keep, unsecured creditors might be entitled to more, even if your disposable income is low. A skilled bankruptcy attorney can help you understand this situation.

Do You Keep Everything in Chapter 13?

In a Chapter 13 bankruptcy you don’t have to sell any of your assets. You can keep your property, but you must stay current on loan payments to keep your home or car or other secured debt. You will also have to catch up on any arrears you have on secured debt in the plan.

How Does a Creditor Get Paid in a Chapter 13 Bankruptcy?

If a Creditor wants to get paid in a Chapter 13 bankruptcy, they must file a Proof of Claim with the Bankruptcy Court. The proof of claim states what they think they are owed. You can object to the claim if you believe the creditor overcharged you or if you have defenses to owing the money. The Bankruptcy Judge will then decide how much the creditor should be paid.

What Debts are Eliminated When Your Chapter 13 Plan is Complete?

After you complete your Chapter 13 Plan and make all the required plan payments the remaining debts are discharged. You are no longer required to pay debts that are discharged. To get a discharge, you must have also completed a Debtor Education Course.

Questions About How Chapter 13 Bankruptcy Works? We’re Here to Help!

The experienced Chapter 13 attorneys at Levitt & Slafkes, P.C. can answer all your questions how Chapter 13 bankruptcy works. Contact us today so one of our attorneys can evaluate your case and discuss the best options available to you. We are here to help! Call us at [nap_phone id="LOCAL-CT-NUMBER-3"], or contact us online We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years. The information on this website and blogs is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.]]> On Behalf of Levitt & Slafkes, P.C. <![CDATA[Bankruptcy Code Exemption Amounts Increased April 1, 2025]]> https://www.levittslafkes.com/?p=56334 2025-06-24T12:59:19Z 2025-06-24T12:41:21Z NJ Chapter 7 Bankruptcy get to keep all or almost all of what they own. Bankruptcy exemptions determine what property you can keep. The Bankruptcy Code Section 104(b) provides that exemption amounts and other dollar amounts are adjusted for inflation every 3 years.

New Bankruptcy Exemption Amounts Allow You to Keep Even More Property

The bankruptcy exemption amounts increased on April 1, 2025 and apply to all bankruptcy cases filed after that date. The new higher bankruptcy exemption amounts mean that even you can protect more of your assets when you file a Chapter 7 Bankruptcy. Exemption amounts do not refer to the value of your property, but to your equity interest in the property, which is the amount left after deducting outstanding debt secured by that property. These exemption amounts are doubled when a married couple files a joint bankruptcy. These are some of the exemption amounts that increased as of April 1, 2025.
Category New exemption amount
Homestead (equity in home) $31,575
Motor Vehicle $5,025
Household Goods (per item limit) $800
Household Goods (collective limit) $16,850
Jewelry $2,125
Wild Card (any property) $1,675
Unused homestead $15,800
Personal Injury Claims $31,575
  Contact the experienced NJ Bankruptcy attorneys at Levitt & Slafkes to learn how you can eliminate your debt by filing bankruptcy. You can reach us by calling [nap_phone id="LOCAL-CT-NUMBER-3"] or by filling out our online form. We represent debtors in Chapter 7, Chapter 13 and Chapter 11 filings. Let us help you get the fresh financial start you need today. Our offices are conveniently located in Maplewood, NJ. We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years. The information on this website and blogs is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.]]> On Behalf of Levitt & Slafkes, P.C. <![CDATA[What is an Individual Chapter 11 Bankruptcy?]]> https://www.levittslafkes.com/?p=46452 2025-06-19T05:34:41Z 2025-05-13T04:00:00Z
  • Filing fee of $1,738.00
  • Quarterly fees paid to the U.S. Trustee; and
  • The cost to prepare and mail your plan of reorganization, disclosure statement and creditor voting ballots.
    • In certain situations, Chapter 11 bankruptcy might still be the right choice, for example when you don’t qualify for a Chapter 7 bankruptcy because your disposable income is too high under the means test, and when your debts exceed the Chapter 13 bankruptcy limits. As of April 1, 2025, Chapter 13 debt limits are $1,580,125 of secured debts (such as mortgage or car debts) and $526,700.00 of unsecured debts (debts that are not secured by any property, such as most credit card debts and medical debts).

    How Does Chapter 11 Bankruptcy Work?

    A Chapter 11 bankruptcy case begins when a petition is filed with the Bankruptcy Court. As soon as your bankruptcy petition is filed, you immediately get the benefit of the “automatic stay”. The automatic stay is an order prohibiting your creditors from taking collection actions against you. All debt collection actions including lawsuits, garnishments and foreclosures are suspended by the automatic stay, giving you time to negotiate with your creditors on a repayment plan. The automatic stay continues until the court approves your plan of reorganization.

    Preparing Your Plan of Reorganization

    A Chapter 11 reorganization plan is a document designed to solve your unique financial problems. The Chapter 11 debtor (the person who files the bankruptcy) proposes a plan that preserves their most important assets while allowing them to use their available income to pay their debts over time.

    Voting and Confirmation of Your Plan

    Once the plan is filed with the Court, your creditors will then vote on whether they want to accept or reject it. Not all creditors will agree. Sometimes, a reluctant creditor won’t agree to a reasonable restructure of its claim and will vote “no” on the plan. When that happens it might still be possible to “cram down “ a plan over the creditor’s objections, by convincing the judge that the proposed treatment of that creditor’s claim is fair and reasonable. To be confirmed (approved by the court), a Chapter 11 plan must be accepted by at least one-half of the number of creditors in each class of claims, and two-thirds of the dollar amount of claims in each class. Once accomplished, the court issues an order confirming your plan of reorganization.

    Discharge of Your Debt

    The goal of the Chapter 11 plan is for you to get a discharge of all remaining debts. The timing of the discharge is set out in the plan. If you do not complete the agreed upon plan, however, then you remain responsible for the balances on any outstanding obligations.

    Discuss Your Financial Situation with Our Attorneys

    Chapter 11 is a very complex area of law. If you are a high-income debtor with significant assets, or if you exceed the debt limits of Chapter 13 bankruptcy, you may want to consider filing Chapter 11 bankruptcy. Take the time to talk to an experienced bankruptcy attorney at Levitt & Slafkes about how Chapter 11 bankruptcy can work for you. Contact us at [nap_phone id="LOCAL-CT-NUMBER-3"] to schedule an initial consultation, or contact us online. We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years.]]>