If you’re considering filing bankruptcy in Elizabeth, NJ, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Elizabeth, New Jersey, or anywhere else in the United States involves meeting certain criteria and understanding the different types of bankruptcy available. Bankruptcy is a legal process designed to help individuals and businesses struggling with overwhelming debt obtain a fresh financial start. In Elizabeth, NJ, as in the rest of the country, the two primary types of bankruptcy individuals typically file for are Chapter 7 and Chapter 13 bankruptcy.

Chapter 7 Bankruptcy: Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed for individuals who have limited income and significant unsecured debts, such as credit card debt and medical bills. To qualify for Chapter 7 bankruptcy in Elizabeth, NJ, you need to meet specific eligibility criteria:

1. Means Test: The means test is a crucial aspect of Chapter 7 bankruptcy eligibility. It compares your income to the median income for your household size in New Jersey. If your income is below the median, you are typically eligible for Chapter 7. If your income exceeds the median, you may still qualify based on your disposable income after specific expenses are deducted.
2. Credit Counseling: Before filing for Chapter 7 bankruptcy, you must complete a credit counseling course from an approved agency. This is a mandatory requirement to ensure that you explore other options before proceeding with bankruptcy.
3. Previous Bankruptcy Discharge: If you have received a Chapter 7 discharge in the past eight years, you may not be eligible for another Chapter 7 discharge. However, you might still be eligible for Chapter 13 bankruptcy.
4. Fraudulent Behavior: If you’ve engaged in fraudulent activities related to your debts, you may not be eligible for Chapter 7 bankruptcy.

Chapter 13 Bankruptcy: Chapter 13 bankruptcy, often called “reorganization bankruptcy,” is an option for individuals who have a steady income but are struggling to meet their debt obligations. To qualify for Chapter 13 bankruptcy in Elizabeth, NJ, you must:

1. Steady Income: You need to have a regular source of income to create a repayment plan. This plan typically spans three to five years and is used to pay off a portion of your debts.
2. Debt Limits: There are debt limits for Chapter 13 bankruptcy. These limits are subject to change due to inflation adjustments, so it’s essential to verify the current limits when considering Chapter 13.
3. Credit Counseling: Similar to Chapter 7, you must complete a credit counseling course before filing for Chapter 13 bankruptcy.
4. Filing Compliance: You must have filed your federal and state income tax returns for the previous four years before you can qualify for Chapter 13 bankruptcy.
5. No Recent Chapter 13 Discharge: If you’ve received a Chapter 13 discharge in the past two years or a Chapter 7 discharge in the past four years, you may not be eligible for another Chapter 13 discharge.

It’s crucial to note that bankruptcy laws and regulations can change over time. Therefore, it’s advisable to consult with a qualified bankruptcy attorney in Elizabeth, NJ, who can provide you with the most up-to-date information and help you determine your eligibility based on your unique financial situation.

Additionally, keep in mind that filing for bankruptcy has long-term consequences on your credit and financial future. It should be considered as a last resort after exploring other debt relief options, such as debt consolidation or negotiation with creditors. Bankruptcy should only be pursued when there are no viable alternatives to address your financial difficulties.

RESOURCES:

Do You Need a Lawyer to File For Bankruptcy in Elizabeth, NJ?

Filing for bankruptcy in Elizabeth, New Jersey, is a legal process that individuals can undertake on their own, known as “pro se” filing. However, whether you need a lawyer to file for bankruptcy depends on your specific circumstances, the type of bankruptcy you’re pursuing, and your comfort level with legal processes and paperwork.

Here are some key factors to consider when deciding whether to hire a lawyer for bankruptcy in Elizabeth, NJ:

1. Complexity of Your Case:

• If your financial situation is relatively straightforward, you may be able to navigate a Chapter 7 bankruptcy on your own. This is especially true if you have no significant assets, limited income, and relatively simple debts.

2. Chapter 13 Bankruptcy:

• Chapter 13 bankruptcy cases are typically more complex than Chapter 7 cases. If you’re considering Chapter 13, which involves a repayment plan spanning several years, it’s advisable to consult with an attorney. An attorney can help you create a viable repayment plan, negotiate with creditors, and ensure that your proposed plan meets the legal requirements.

3. Legal Knowledge and Experience:

• Filing for bankruptcy involves a significant amount of paperwork, legal requirements, and deadlines. If you are comfortable with legal processes, have experience with bankruptcy law, or are willing to dedicate extensive time to research and learning, you may be able to file pro se. However, keep in mind that bankruptcy law is complex, and even minor mistakes can have serious consequences.

4. Asset Protection:

• If you have valuable assets, such as a home or significant equity in a car, and you want to protect these assets during bankruptcy, it’s wise to consult with an attorney. Legal counsel can help you navigate exemptions and strategies to safeguard your property.

5. Creditor Challenges:

• If your bankruptcy case is likely to face challenges from creditors, such as objections to the discharge of specific debts or allegations of fraud, having an attorney to represent your interests is essential. An attorney can help you respond to these challenges effectively.

6. Avoiding Mistakes:

• Bankruptcy paperwork must be completed accurately and submitted on time. Mistakes or omissions in your bankruptcy petition can lead to delays, dismissals, or even legal consequences. An attorney’s experience can help prevent these errors.

7. Stress Reduction:

• Bankruptcy can be an emotionally challenging process. Having an attorney by your side can alleviate some of the stress and anxiety associated with the legal aspects of bankruptcy, allowing you to focus on rebuilding your financial future.

8. Long-Term Consequences:

• Bankruptcy has long-term consequences on your credit and financial life. An attorney can provide guidance on the best course of action for your specific situation and help you make informed decisions that align with your financial goals.

9. Legal Representation in Court:

• If your bankruptcy case requires appearances in court, having an attorney who can represent you professionally and effectively is invaluable.

wWhile it is possible to file for bankruptcy in Elizabeth, NJ, without an attorney, it’s important to carefully assess your situation and consider the factors mentioned above. Bankruptcy law can be complex, and the consequences of mistakes can be significant. Consulting with a qualified bankruptcy attorney can provide you with the guidance and expertise needed to navigate the process successfully and maximize the benefits of bankruptcy while minimizing potential pitfalls.

Cost to File Chapter 7 Bankruptcy in Elizabeth, NJ

The cost to file Chapter 7 bankruptcy in Elizabeth, New Jersey, consists of various fees and expenses, including court filing fees, mandatory credit counseling costs, and attorney fees if you choose to hire a bankruptcy attorney.

Here’s a breakdown of these costs:

1. Court Filing Fee: The primary cost associated with filing Chapter 7 bankruptcy is the court filing fee, which is set by the federal government. The standard filing fee for Chapter 7 bankruptcy is $392. However, these fees may change over time, so it’s essential to check the most up-to-date fee schedule on the U.S. Bankruptcy Court’s website or consult with a legal professional.
2. Credit Counseling Costs: Before filing for bankruptcy, individuals are required to complete credit counseling through an approved agency. These agencies typically charge fees for their services, which can vary. The cost of credit counseling usually ranges from $30 to $58, although some agencies offer reduced fees or fee waivers based on your income.
3. Attorney Fees: While it is possible to file for Chapter 7 bankruptcy without an attorney (pro se), many individuals choose to hire a bankruptcy attorney to guide them through the process, ensure their paperwork is complete and accurate, and represent their interests. Attorney fees can vary significantly depending on the complexity of your case and the attorney’s experience. In Elizabeth, NJ, you might find attorneys who charge a flat fee for Chapter 7 bankruptcy, ranging from $1,155 to $2,980 or more. Some attorneys also offer payment plans to make their services more affordable.
4. Other Costs: There may be additional costs associated with your Chapter 7 bankruptcy case, such as fees for obtaining credit reports, notary services, and postage for mailing documents. These expenses are typically relatively minor compared to the filing fee and attorney fees.
5. Exemption Costs: If you have non-exempt assets (property that is not protected by bankruptcy exemptions) that you wish to keep, you may need to pay the trustee the appraised value of those assets. This allows you to retain the property while still obtaining a discharge of your other debts. The cost will depend on the value of the non-exempt assets.

Before proceeding with a Chapter 7 bankruptcy filing in Elizabeth, NJ, or anywhere else, it’s advisable to consult with a bankruptcy attorney. They can provide you with an estimate of the total costs involved, help you understand the potential consequences and benefits of bankruptcy, and explore any available options to make the process more affordable. Bankruptcy can have a significant impact on your financial future, so making informed decisions and seeking professional guidance is crucial to ensure the best possible outcome for your situation.

Cost to File Chapter 11 Bankruptcy in Elizabeth, NJ

Filing for Chapter 11 bankruptcy in Elizabeth, New Jersey, is a complex and expensive process primarily designed for businesses or individuals with substantial assets and debts who wish to restructure their financial affairs. The cost to file Chapter 11 bankruptcy can vary significantly based on the size and complexity of the case. Here’s a breakdown of the typical costs involved:

1. Court Filing Fee: The initial filing fee for a Chapter 11 bankruptcy case is determined by the U.S. Bankruptcy Court and can be quite substantial. However, these fees are subject to change, so it’s essential to check the most current fee schedule on the U.S. Bankruptcy Court’s website.
2. Attorney Fees: Chapter 11 bankruptcy is highly complex, and it is almost always necessary to hire an experienced bankruptcy attorney to guide you through the process. Attorney fees for Chapter 11 cases can vary significantly based on factors such as the complexity of your financial situation, the size of your business, and the scope of the reorganization plan. Expect attorney fees to range from several thousand dollars to tens of thousands of dollars, or even more for complex cases.
3. Accountant and Financial Advisor Fees: In many Chapter 11 cases, it’s necessary to work with accountants, financial advisors, or turnaround specialists to develop a viable reorganization plan and financial projections. These professionals charge fees for their services, which can add significantly to the overall cost.
4. Fees for Other Professionals: Depending on the complexity of your case, you may need to hire other professionals, such as appraisers, real estate experts, or legal consultants. Their fees will depend on the specific services required.
5. U.S. Trustee Fees: In some Chapter 11 cases, the U.S. Trustee’s office may assess quarterly fees based on the debtor’s disbursements. These fees are intended to cover the cost of oversight and administration of the case.
6. Filing and Administrative Costs: There are various administrative costs associated with a Chapter 11 case, including costs related to mailing, court hearings, and document production. These expenses can add up over the course of the bankruptcy process.

Before proceeding with a Chapter 11 bankruptcy filing in Elizabeth, NJ, or anywhere else, it’s crucial to consult with experienced legal and financial professionals who can provide a detailed cost estimate tailored to your specific circumstances. Additionally, exploring alternative financial restructuring options may also be advisable, as Chapter 11 is a significant undertaking with potentially high costs and long-term implications.

Cost to File Chapter 13 Bankruptcy in Elizabeth, NJ

Filing for Chapter 13 bankruptcy in Elizabeth, New Jersey, is a viable option for individuals who have a steady income but are struggling to manage their debts. The cost to file Chapter 13 bankruptcy includes various fees and expenses. Here’s a breakdown of the typical costs involved:

1. Court Filing Fee: The primary cost associated with filing Chapter 13 bankruptcy is the court filing fee. These fees are subject to change, so it’s crucial to verify the current fee schedule on the U.S. Bankruptcy Court’s website or by consulting with a legal professional.
2. Attorney Fees: While individuals can file for Chapter 13 bankruptcy without an attorney (pro se), it is highly advisable to hire an experienced bankruptcy attorney. Attorney fees for Chapter 13 cases can vary depending on factors such as your location, the complexity of your case, and the attorney’s experience. On average, you can expect attorney fees to range from $2,700 to $5,000 or more. Some attorneys offer payment plans to make their services more affordable.
3. Credit Counseling Costs: Before filing for Chapter 13 bankruptcy, individuals are required to complete credit counseling through an approved agency. These agencies typically charge fees for their services, which can range from $32 to $60, though fee waivers or reduced fees may be available based on your income.
4. Financial Management Course: After filing for Chapter 13 bankruptcy, you are required to complete a financial management course from an approved agency. The cost of this course is typically in the range of $29 to $59.
5. Other Costs: There may be additional costs associated with your Chapter 13 case, such as fees for obtaining credit reports, notary services, and postage for mailing documents. These expenses are generally minor compared to the court filing fee and attorney fees.
6. Plan Payments: In a Chapter 13 case, you will develop a repayment plan that outlines how you will repay your debts over three to five years. Your monthly plan payments are a significant financial commitment during this period, as they are used to repay your creditors.

It’s essential to remember that while Chapter 13 bankruptcy involves various costs, it can be a valuable tool for individuals seeking to reorganize their finances and protect assets like their home from foreclosure. Your attorney can help you create a manageable repayment plan that aligns with your income and financial goals.

Reliable Bankruptcy Attorneys in Elizabeth, NJ

Below is a list of reputable bankruptcy attorneys in Elizabeth, NJ. They can help you with both personal and business bankruptcy information.

Low & Low, LLC
618 Newark Ave, Elizabeth, NJ 07208, United States

Law Office of Leah E. Capece, Esq., LLC
1338 North Ave, Elizabeth, NJ 07208, United States

Herman Alarcon, Esq.
230 W Jersey St #105, Elizabeth, NJ 07202, United States

Afonso & Afonso, LLC., Attorneys at Law
544 Elizabeth Ave, Elizabeth, NJ 07206, United States

Beninato & Matrafajlo Law
1207 E Grand St 2nd floor, Elizabeth, NJ 07201, United States

Elizabeth, NJ Zip Codes We Proudly Serve:

07083, 07201, 07202, 07206, 07208

---