Filing a bankruptcy case accomplishes several goals for the debtor. It gives the debtor a clean slate and a fresh start so that he or she can rebuild and recover after a financial crisis. A bankruptcy cases stops foreclosures, repossessions, wage garnishments, creditor harassment, and collection lawsuits. However, a bankruptcy filing will also protect your assets from your creditors and even from the bankruptcy trustee.
If you are struggling with overwhelming debt, I encourage you to contact my office for a free bankruptcy consultation. We will discuss how a bankruptcy filing can give you the much-needed relief you need from debt and how the bankruptcy filing will protect your assets from creditors.
The Bankruptcy Automatic Stay
The first thing a bankruptcy filing does to protect your assets is to initiate an automatic stay. The automatic stay provisions of the Bankruptcy Code prohibit creditors from taking any actions to collect a debt once the bankruptcy case is filed. Your future wages cannot be garnished, creditors cannot obtain judgments that attach to your property, and foreclosure and repossession efforts must cease upon the filing of your bankruptcy case. The automatic stay remains in effect until the end of your bankruptcy case or until the court modifies the stay.
However, the automatic stay will not prevent a secured creditor from taking actions through the bankruptcy court to repossess or foreclose if you are not making the payments on a secured debt. Depending on the chapter of bankruptcy you file, you may be able to reorganize your debts in a manner that allows you to catch up past due payments on secured debt to keep the collateral.
Bankruptcy Exemptions Protect Your Assets
The second way a bankruptcy filing will protect your assets is with bankruptcy exemptions. By law, you are entitled to protect the value of certain assets from your creditors and the bankruptcy trustee. To do this, you claim bankruptcy exemptions by listing them in your bankruptcy filing. Exemptions are limited and only protect a certain amount of the equity in an asset. However, the equity is determined by subtracting any liens against the property from the value of the asset. In most cases, debtors are able to protect all of the net equity in their assets by using bankruptcy exemptions.
In New Jersey, debtors are permitted to claim either the federal bankruptcy exemptions or the exemptions set by the state of New Jersey. Your bankruptcy attorney reviews all of your assets and determines whether the federal exemptions or the state exemptions protect your assets the best. In order to determine if you can protect your assets with a bankruptcy filing, contact my office today to schedule your free bankruptcy consultation. In most bankruptcy cases filed in South Jersey, the debtors retain all of their assets while eliminating most, if not all, of their debts.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
Contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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