Losing assets is a common fear for many individuals considering filing for bankruptcy relief. They wonder if they will lose their car, home or other assets if they file bankruptcy. The truth is that 99% of all Chapter 7 bankruptcy cases filed in New Jersey are no-asset cases. In a no-asset case, the debtor is able to discharge thousands of dollars in debts without losing any of his or her property. This allows a debtor to receive a fresh start so that he or she can recover from a financial crisis with the means to build a strong financial future.
How Can I File Bankruptcy and Keep My Assets?
When you file a bankruptcy case, creditors are prohibited from taking any further action to collect debts including but not limited to seizing assets to satisfy debts. For example, a creditor may not file a lawsuit or continue a lawsuit to repossess your vehicle without first obtaining approval by the bankruptcy court. If you file a Chapter 7 bankruptcy case, you must continue making your car payments in order to keep your vehicle; however, if you file bankruptcy under Chapter 13, you may be able to include the car payment in your bankruptcy plan to keep your car.
If you do not owe any money on your car and you file bankruptcy, the bankruptcy exemptions will often protect the equity in your vehicle from creditors and the court. When you file bankruptcy, you are entitled to claim certain exemptions to protect the equity in your assets. Depending on the value of your vehicle, you may be entitled to protect 100% of the equity in the vehicle from creditors and the court. Therefore, you can discharge your unsecured debts while still keeping your vehicle.
An experienced bankruptcy attorney can advise you of your legal options with regard to erasing your debts while keeping your vehicle and other assets. It is important to seek the counsel of an experienced bankruptcy attorney when you file bankruptcy because an experienced bankruptcy attorney will have the knowledge and expertise necessary to help you resolve your debt problems while utilizing the protections provided by the Bankruptcy Code to protect your assets from your creditors. Keeping your car is vital to your ability to continue to work and earn a living. Bankruptcy can help you do this so that you can build a stronger financial future for yourself and your family.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC provides a full range of bankruptcy and debt relief services to companies and individuals in the Mount Holly area. The firm focuses solely on debt consolidation, credit repair, tax liens, student loans, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, and foreclosure. We represent clients in Burlington County and throughout South Jersey.
If you are experiencing financial problems due to debt, contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. Contact one of our friendly, professional staff members via our online contact form to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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