The decision to seek bankruptcy relief is a hard one, but one that comes from a place of necessity and strength. In pursuing bankruptcy protection, it is necessary to enter the process with open eyes and a clear understanding of what is to come. This is a particular truth when seeking Chapter 13 bankruptcy relief.
Bankruptcy is a measure of last resort when it comes to debt relief. In fact, bankruptcy laws and the courts are designed to specifically protect people who actually need the relief, and not people who don't actually need it. This is because there is a delicate balance of the property rights of creditors to money they are owed versus the rights of debtors to get out of the prison of insurmountable debt.
Bankruptcy proceedings are often intense and incredibly complex. For the uninitiated, the terms that attorneys and judges throw around often sound like a different language. Nevertheless, if you are interested in learning more about bankruptcy, it is important to learn some of the fundamental concepts so that you can make well-informed decisions.
Trying to overcome debt problems is a hard, emotionally draining process. For many, it seems like a hopeless spiral of missed payments, juggling credit cards, selling treasured possessions, harassing calls from creditors, and growing interest penalties. If you find yourself in this situation, you need help. When attempts to pay off your debts and to negotiate with your creditors have failed, it is well past time to speak with an attorney for some relief.
The importance of honesty in the bankruptcy process cannot be overstated. As part of the bankruptcy process, a filer must disclose all property, income, and debts. These declarations are made under penalty of perjury that everything contained in the bankruptcy petition is true and correct to the best of one's knowledge, information, and belief. Honesty in this process is not optional; it is required. Failing to disclose income or assets can have wide-ranging implications from inability to discharge debt through to criminal liability.
For years, New Jersey homeowners saw their homes rise in value. During this time, many homeowners took out second or third mortgages or home equity loans. Even now, eight years after the beginning of the housing crisis, many homeowners are still underwater in their mortgages, owing more than their home is worth.
Every Chapter 7 or Chapter 13 bankruptcy filing requires a 341(a) Meeting of Creditors. While your creditors are notified of this meeting, in practice creditors rarely attend. Instead, generally the only people present at this meeting are you, your attorney, and the trustee.
If you are the parent of minor children, you may be worried about how declaring bankruptcy may affect their lives. The good news is that for most filers, a bankruptcy does not negatively affect their children. An experienced bankruptcy attorney can help you understand how a bankruptcy might affect your family and help you plan accordingly.
We've all seen some amazing Do-It-Yourself projects. From Pinterest to HGTV, perhaps you've seen the incredible home remodel or unbelievable craft idea. While it may be tempting to test your DIY abilities in bankruptcy law, it is best to keep those skills in the home and out of the courtroom.