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

Am I Qualified for Bankruptcy?

Filing for bankruptcy is a legal process that provides individuals and businesses with financial relief when they are unable to meet their debt obligations. Qualifying for bankruptcy in Lakewood, NJ, or anywhere in the United States, involves meeting certain eligibility criteria outlined in the federal bankruptcy laws.

Chapter 7 vs. Chapter 13: In the United States, there are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13. Each has its own eligibility requirements and serves different purposes.

Chapter 7 Bankruptcy: Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed for individuals or businesses with limited income and assets. To qualify for Chapter 7 bankruptcy in Lakewood, NJ, you need to meet certain criteria:

1. Means Test: You must pass the means test, which assesses your income and expenses. This test determines whether your income is low enough to file for Chapter 7. If your income is below the state median or you can demonstrate that you have insufficient disposable income, you’re likely eligible for Chapter 7.
2. Previous Filings: If you have filed for Chapter 7 bankruptcy and received a discharge within the past 8 years, you may not be eligible for another Chapter 7 discharge.
3. Credit Counseling: You must complete a credit counseling course from an approved agency within 180 days before filing your bankruptcy petition.
4. Financial Management Course: After filing for Chapter 7, you must complete a financial management course.
5. Non-Exempt Assets: If you have valuable non-exempt assets, they may be sold (liquidated) to repay your creditors.

Chapter 13 Bankruptcy: Chapter 13 bankruptcy, also known as “reorganization bankruptcy,” is an option for those with a regular income who want to restructure their debts rather than liquidate assets. To qualify for Chapter 13 in Lakewood, NJ, you should consider the following:

1. Steady Income: You must have a regular source of income to propose and maintain a repayment plan.
2. Secured and Unsecured Debt Limits: Chapter 13 has debt limits. These limits are subject to change due to inflation adjustments.
3. Completion of Credit Counseling: Like in Chapter 7, you need to complete credit counseling before filing.
4. Repayment Plan: You must develop a viable repayment plan that demonstrates your ability to pay off your debts over three to five years.

State-Specific Considerations: While bankruptcy laws are primarily federal, there are some state-specific considerations to be aware of in New Jersey, including Lakewood:

1. Exemptions: New Jersey has its own set of exemptions that determine what property you can keep when filing for bankruptcy. These exemptions may impact your eligibility for Chapter 7 or the terms of your Chapter 13 plan.
2. Local Rules: The U.S. Bankruptcy Court for the District of New Jersey, which oversees Lakewood, may have local rules or procedures that could affect your case.
3. Residency: You generally need to have lived in New Jersey for a certain amount of time before you can file for bankruptcy in the state. Check the specific residency requirements in your district.
4. Legal Assistance: While it’s possible to file for bankruptcy pro se (without an attorney), it’s highly advisable to consult with a bankruptcy attorney who is familiar with the local rules and can guide you through the process.

The qualifications for filing bankruptcy in Lakewood, NJ, depend on your financial situation, income, and the type of bankruptcy you’re considering. Chapter 7 is for those with limited income and assets, while Chapter 13 is for individuals with a steady income who want to restructure their debts. Understanding the federal and state-specific requirements is crucial, and seeking legal advice is highly recommended to navigate the bankruptcy process effectively.

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

Filing for bankruptcy in Lakewood, NJ, is a legal process that can be complex and challenging to navigate on your own. While it’s not an absolute requirement to hire a lawyer to file for bankruptcy, there are several compelling reasons why it is highly advisable to have legal representation when going through this process.

1. Complexity of the Bankruptcy Code: The U.S. Bankruptcy Code is a complex federal law that governs bankruptcy proceedings. It has numerous provisions, rules, and exceptions that can be difficult for non-legal professionals to understand fully. A bankruptcy attorney is well-versed in these laws and can help you interpret and apply them correctly to your specific situation.
2. Legal Expertise and Experience: Bankruptcy attorneys have specialized knowledge and experience in handling bankruptcy cases. They understand the nuances of different bankruptcy chapters (such as Chapter 7 and Chapter 13) and can determine which chapter is most suitable for your circumstances. They can also guide you through the entire process, from preparing and filing your petition to representing you in court, if necessary.
3. Assessment of Alternatives: An experienced attorney can assess your financial situation and explore alternative options beyond bankruptcy. Bankruptcy should be considered as a last resort, and an attorney can help you determine if there are other debt relief solutions, such as debt negotiation or consolidation, that may be more appropriate for your situation.
4. Protection of Your Rights: When you hire an attorney, you have someone who will advocate for your rights and interests throughout the bankruptcy process. They can help protect you from creditor harassment, ensure that your assets are properly exempted, and assist in resolving disputes with creditors or the bankruptcy trustee.
5. Avoiding Costly Mistakes: Filing for bankruptcy involves completing detailed forms and meeting strict deadlines. One mistake or omission on your bankruptcy paperwork can lead to delays, dismissal of your case, or even legal penalties. An attorney can help you avoid these costly errors and ensure that your case proceeds smoothly.
6. Debt Discharge Maximization: Bankruptcy attorneys know how to structure your case to maximize the discharge of eligible debts. They can help you identify which debts can be discharged and which cannot, helping you achieve the best possible outcome.
7. Customized Guidance: Every individual’s financial situation is unique, and an attorney can provide personalized guidance tailored to your specific circumstances. They can help you make informed decisions about your assets, exemptions, and other critical aspects of your bankruptcy case.
8. Court Representation: If your bankruptcy case requires court appearances or involves contested matters, having an attorney by your side is invaluable. They can represent you in court, argue on your behalf, and provide a strong legal defense if needed.
9. Peace of Mind: Bankruptcy can be an emotionally and mentally taxing process. Having an attorney to handle the legal aspects of your case can provide you with peace of mind, allowing you to focus on rebuilding your financial future.

While it’s technically possible to file for bankruptcy without an attorney (referred to as “pro se” filing), it’s a risky endeavor, especially given the potential consequences of errors or misunderstandings. Bankruptcy is a significant legal process that can impact your financial future for years to come, and having professional legal representation is a prudent investment to ensure that your rights and interests are protected throughout the process.

Cost to File Chapter 7 Bankruptcy in Lakewood, NJ

The cost to file Chapter 7 bankruptcy in Lakewood, NJ, consists of several fees and expenses, including court filing fees, attorney fees, and mandatory credit counseling and debtor education costs. Here’s a breakdown of these expenses:

1. Court Filing Fee: The filing fee for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey is $390. Please note that court filing fees can change over time due to inflation and other factors, so it’s essential to verify the current fee with the court or an attorney.
2. Attorney Fees: Hiring a bankruptcy attorney is strongly recommended for a successful Chapter 7 bankruptcy filing. Attorney fees can vary widely depending on the complexity of your case, your location, and the attorney’s experience. In Lakewood, NJ, attorney fees for Chapter 7 bankruptcy typically range from $1,200 to $2,900 or more. The fees may cover legal consultations, document preparation, court representation, and overall guidance throughout the bankruptcy process.
3. Credit Counseling and Debtor Education: Before filing for Chapter 7 bankruptcy, you are required to complete two courses: a credit counseling course and a debtor education course. These courses typically cost between $60 and $130 each, though some agencies offer them for free or on a sliding scale based on your income.
4. Miscellaneous Costs: In addition to the above fees, there may be other minor expenses associated with your bankruptcy, such as notary fees, postage, or photocopying costs. These are typically nominal but should be considered in your budget.

When considering the cost of filing Chapter 7 bankruptcy, it’s crucial to weigh the financial benefits of obtaining debt relief against the expenses involved. Chapter 7 can discharge many types of unsecured debts, such as credit card debt and medical bills, providing you with a fresh financial start. However, you should carefully assess your financial situation, including your income, assets, and debts, before proceeding with bankruptcy.

Cost to File Chapter 11 Bankruptcy in Lakewood, NJ

Filing for Chapter 11 bankruptcy in Lakewood, NJ, is a complex and expensive process, primarily intended for businesses and individuals with substantial debts who need to reorganize their finances. The cost of filing Chapter 11 bankruptcy can be significantly higher than Chapter 7 or Chapter 13 due to its complexity and the ongoing nature of the proceedings. Here’s a breakdown of the costs involved:

1. Attorney Fees: Chapter 11 cases are highly intricate, involving complex legal and financial issues. As a result, attorney fees for Chapter 11 bankruptcy can be substantial. Attorneys often charge an hourly rate for their services, and these fees can accumulate rapidly over the course of the bankruptcy process. The total attorney fees will depend on the complexity of your case and the hours required to navigate it effectively. It’s not uncommon for Chapter 11 bankruptcy cases to cost tens of thousands of dollars or more in legal fees.
2. Court Filing Fee: The initial court filing fee for a Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey is typically over $2,050. However, this fee can change, so it’s essential to verify the current amount with the court.
3. U.S. Trustee Fees: In Chapter 11 cases, the U.S. Trustee’s Office assesses quarterly fees based on the debtor’s disbursements. These fees are designed to cover the cost of overseeing and administering the case. The amount of U.S. Trustee fees varies depending on the disbursements made during the case.
4. Accounting and Financial Advisory Fees: Chapter 11 cases often require the involvement of financial professionals, such as accountants and financial advisors, to help develop and implement a reorganization plan. Their fees can also be substantial and are typically paid from the debtor’s assets.
5. Creditors’ Committee Fees: If a creditors’ committee is appointed in your Chapter 11 case, you may be responsible for covering their reasonable fees and expenses. These fees can vary based on the committee’s activities and the complexity of the case.
6. Other Administrative Expenses: Chapter 11 cases may involve various administrative expenses, such as court-approved professionals, appraisers, and consultants, whose fees must be paid.
7. Operational Costs: Throughout the Chapter 11 process, you must continue to operate your business or manage your financial affairs. These ongoing operational costs, including rent, utilities, and employee salaries, will need to be covered.

Due to the complexity and costs involved in a Chapter 11 bankruptcy, it’s highly recommended to consult with an experienced bankruptcy attorney who specializes in Chapter 11 cases. An attorney can provide guidance, help you develop a viable reorganization plan, and navigate the various legal and financial aspects of the process. Additionally, they can assist in managing the costs associated with Chapter 11 bankruptcy to achieve the best possible outcome for your financial situation.

Cost to File Chapter 13 Bankruptcy in Lakewood, NJ

Filing for Chapter 13 bankruptcy in Lakewood, NJ, involves several costs and fees, which are important to consider as you navigate the process of debt reorganization. Chapter 13 is typically more affordable upfront compared to Chapter 11, but it still entails expenses. Here’s a breakdown of the costs associated with filing for Chapter 13 bankruptcy:

1. Attorney Fees: Hiring an experienced bankruptcy attorney is crucial when filing for Chapter 13 bankruptcy. Attorney fees can vary depending on your location, the complexity of your case, and the attorney’s experience. In Lakewood, NJ, Chapter 13 attorney fees generally range from $3,900 to $7,000 or more. These fees often cover legal consultations, document preparation, negotiation with creditors, and representation throughout the bankruptcy process.
2. Court Filing Fee: The court filing fee for a Chapter 13 bankruptcy case in the U.S. Bankruptcy Court for the District of New Jersey is $389. Please note that court filing fees can change, so it’s essential to verify the current fee with the court.
3. Credit Counseling and Debtor Education: Before filing for Chapter 13 bankruptcy, you are required to complete two courses: a credit counseling course and a debtor education course. These courses typically cost between $58 and $118 each, though some agencies offer them for free or on a sliding scale based on your income.
4. Chapter 13 Plan Payments: In a Chapter 13 case, you’ll propose a repayment plan to the court that outlines how you’ll repay your debts over three to five years. Your monthly plan payments will be a significant part of your Chapter 13 costs. The amount of these payments will depend on your disposable income and the total amount of your debts.
5. Miscellaneous Costs: There may be other minor expenses associated with your Chapter 13 bankruptcy, such as notary fees, postage, or photocopying costs. These are typically nominal but should be included in your budget.

While Chapter 13 bankruptcy does require financial commitments, it can provide relief and protection from creditors while allowing you to keep your assets and work towards a fresh financial start. Careful planning and budgeting can help ensure that you can successfully complete your Chapter 13 repayment plan and achieve your financial goals.

Reliable Bankruptcy Attorneys in Lakewood, NJ

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

Law Offices of Stefan Coleman, PLLC
1072 Madison Ave #1, Lakewood, NJ 08701, United States

Law Offices of Joseph I Harrison
34 Gefen Dr, Lakewood, NJ 08701, United States

Harrison & Christos
1306 River Ave, Lakewood, NJ 08701, United States

Gerald Klein Law
954 Morris Ave, Lakewood, NJ 08701, United States

Lakewood, NJ Zip Codes We Proudly Serve:

08701

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