While the Chapter 7 bankruptcy eligibility requirements have stiffened, many people are still eligible to obtain a fresh start by filing for Chapter 7 bankruptcy. Of course, your situation is unique, and you would benefit most by setting up a free consultation with Veitengruber Law to go over the best options for you.

• Chapter 7 bankruptcy requires a debtor to relinquish property that exceeds a specific monetary limit so that the property can be sold to creditors. This is also known as liquidation. In most Chapter 7 cases, however, all property is exempt. The debtor keeps what little they have and can potentially have a fresh start.
• Chapter 11 bankruptcy is used by businesses and individuals with huge debts.
• Chapter 12 bankruptcy is only used by family farmers and fishermen.
• Chapter 13 bankruptcy is called a “debt adjustment” because the debtor must file a plan to pay their debt based on their current income.

A Chapter 7 bankruptcy petition requires a broad range of information about the debtor’s financial status, including but not limited to a complete list of all:

• Creditors
• Collection agencies
• Debt schedules
• Unsecured claims
• Secured claims
• Unsecured priority claims
• Unexpired contracts and leases
• Ownership in real estate
• Ownership of personal property
• Pensions
• Stocks
• Cash value of any life insurance policies

When you set up a free consultation with Veitengruber Law, Mr. George Veitengruber will discuss the filing requirements with you.

In a Chapter 7 case, a debtor can retain all property that the law says is exempt from the claims of creditors. You can choose between your exemptions under your state law or federal law. In many cases, the federal exemptions are better. Federal exemptions include:

• $22,975 in equity in your home ($45,950 couple)
• $3,675 in equity in your car ($7,350 couple)
• $550 per item in any household goods up to a total of $12,250
• $1,550 in jewelry ($3,100 couple)
• $2,300 in things you need for your job (tools, books, etc.) ($4,600 couple)
• $1,150 in any property plus part of the unused exemption in your home, up to $11,500
• Your right to receive certain benefits such as Social Security unemployment compensation, veteran’s benefits, public assistance, and pensions – regardless of the amount.

Definitely! Exempt property and anything obtained after the bankruptcy is filed are retained. However, if the debtor receives an inheritance, a property settlement, or life insurance benefits within 180 days of filing a Chapter 7 bankruptcy petition, that money or property will likely have to be paid to creditors if it is not exempt.

No.11 U.S.C. sec. 525 prohibits governmental units and private employers from discriminating against you because you filed a bankruptcy petition or failed to pay a dischargeable debt.

Yes. After filing a Chapter 7 bankruptcy petition, the court will schedule a meeting of creditors within one to two months. This meeting is conducted by the trustee at the federal court level in Trenton, Newark, or Camden. Once you have retained Veitengruber Law, counsel will attend court and sit beside you to assist. Questions will be asked to help the trustee determine if you have assets that can be distributed to creditors and if you have filed the petition in good faith.

Bankruptcy does indeed put somewhat of a bad mark on one’s credit rating. However, the effect of bankruptcy can be less harmful than a long history of debts or judgments that remain unpaid. Many people who have filed for bankruptcy obtain or are offered new credit cards shortly after filing. Most lenders view a recently discharged debtor as less of a risk than one who is overloaded with debt. Additionally, a recently released debtor is now debt-free, and lenders know they may not file for bankruptcy again for at least six years.

Although bankruptcy will wipe out most of your debts, some exceptions exist. Bankruptcy will not usually affect child support or alimony obligations, fines, some unlisted debts, or loans received under pretenses. Mortgages and other liens not paid in a bankruptcy case may still attach to the property, but not you personally, unless you reaffirm the obligation. If the creditor sells the property, bankruptcy will wipe out your responsibility to pay any additional money.

Debtors who have faced obstacles to paying off their debts when due have no doubt received more than their fair share of demanding letters and phone calls. The thought of getting rid of their obligations and the constant demands through bankruptcy can be quite appealing. Before deciding to pursue that route, which can have long-term effects on credit rating and their ability to make large purchases like a home, debtors should consider other, less drastic alternatives.

Suppose the debtor’s financial problems are only temporary. In that case, they may ask creditors to accept lower payments or payments scheduled over a more extended period. Creditors may be receptive to these ideas if the debtor has been a prompt payer in the past or if the specter of bankruptcy is raised since creditors know that once a bankruptcy proceeding is initiated, they will probably collect nothing or, at most, only a portion of what is owed. In addition, creditors may wish to avoid the difficulties of a court proceeding to collect on the debt, which can be time-consuming and expensive. Veitengruber Law works with clients to provide them with all their options, allowing them to make an informed decision before proceeding.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.