Financial burdens are a problem faced by most people at some time or another. As making ends meet becomes more and more difficult, many people turn to credit cards to make daily purchases, which leads to increased debt. Eventually, some people get to the point that it is virtually impossible to make even the minimum of their expense payments. For those who are facing these circumstances, filing for bankruptcy may be the best option. At Winegar Wilhelm Glynn & Roemersma, our bankruptcy attorneys can guide clients through the process of filing for personal bankruptcy to ensure that their rights are protected. For many of our New Jersey clients, personal bankruptcy offers the only means of a fresh financial start.
Filing for Personal Bankruptcy
There are many options to consider when filing for personal bankruptcy, and the process can be complicated. To ensure that everything is done properly and to protect your personal rights throughout the bankruptcy process, it is best to work with an attorney who understands bankruptcy laws. Attorney Scott Wilhelm has helped a great number of our clients take control of debt by filing for personal bankruptcy. He lends his knowledge and expertise to clients to ensure that the process is completed without complication and that clients' rights are fully protected. Clients who are looking to file for bankruptcy have two primary options to consider: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
- Chapter 7: Chapter 7 bankruptcy is also known as liquidation bankruptcy. To qualify to file for Chapter 7 bankruptcy, clients must pass a means test showing that they make less than the median income for a family of their size in their state. Those who qualify for Chapter 7 can have debts discharged once liquid assets (such as cash, savings, and checking accounts) are used to pay off a portion of the debt. Chapter 7 bankruptcy does allow for the retention of some exempt property, such as a home, cars, or retirement funds.
- Chapter 13: The other form of personal bankruptcy is Chapter 13, which is considered a reorganization of debt. This option is ideal for those who are regular wage earners, those who do not qualify for Chapter 7, or those who want to continue paying secured debt (such as a car loan or mortgage). Under Chapter 13 bankruptcy, a payment plan will be created to give clients more time to pay off debt, usually under a decreased interest rate or free of interest altogether. If there are debts remaining at the end of this payment plan, they may be cancelled.
It can be difficult to determine what form of bankruptcy offers you the best option and is ideal for your unique situation. Mr. Wilhelm can guide clients through this decision and then help with the legal process to ensure that everything is done properly with minimal stress for our clients.
If overwhelming debt and financial stress is making your life difficult, it may be time to consider personal bankruptcy. The bankruptcy attorneys at Winegar Wilhelm Glynn & Roemersma are happy to answer any questions you may have and help you better understand your bankruptcy options. Contact us at your earliest convenience to learn how we can help you regain financial freedom. We look forward to hearing from you.