Morristown New Jersey Chapter 7 Bankruptcy Lawyer

In October of 2005, Congress enacted changes to our nation's bankruptcy laws. Chapter 7 bankruptcy, also known as straight bankruptcy, now requires that an individual meet certain income requirements before filing for bankruptcy under Chapter 7. In order to qualify for bankruptcy under Chapter 7, an individual's monthly income must be less than or equal to the median monthly income of a household of similar size in the state they reside in. If your income exceeds the monthly median income of similarly sized households, you can still qualify for Chapter 7 if your disposal income after paying certain bills and expenses is below a certain amount. At the law offices of David Alan Ast, we can determine if you qualify to file under Chapter 7, explaining what is involved and what steps you can take now to begin re-establishing your credit.

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Under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), there are new document production requirements as well as having to participate in a mandatory credit counseling and financial management programs approved of by the Office of the United States Trustee. We're prepared to help you avoid complications and unnecessary stress throughout the process. To learn more about how we can help you, contact Chapter 7 bankruptcy lawyer David Alan Ast today to schedule a free consultation.

How Debt is Handled Under Chapter 7 Bankruptcy

Qualifying for Chapter 7 bankruptcy allows individuals to discharge unsecured debt, including medical bills and credit cards. Typically, the court will essentially sell some of your eligible property and liquidate some of your assets in order to pay off some or all of what you owe creditors. However, while the court may sell certain luxury items or non-essentials in order to pay creditors, social security benefits, retirement savings, and 401k accounts are exempt. It is also important to keep in mind that some forms of debt cannot be wiped out under Chapter 7: student loan debt, property liens, and child support payments cannot be discharged by declaring Chapter 7 bankruptcy.

What will Happen to My Home?

Our office is prepared to work with your bank or mortgage company in order to arrange a financial agreement that allows you to keep your home. Of course, you will be required to continue making some form of monthly payment and not all lending institutions are willing to broker a deal. However, our office will do everything possible to help you reach an agreement with your bank or mortgage company. If your bank files for relief from stay, we are prepared to represent you in responding to the bank's action.

Questions? Contact the Law Offices of David Alan Ast

There are a number of issues to consider when filing for Chapter 7 bankruptcy. Not only will we make sure you are informed regarding your rights and obligations, we will explain the steps you need to take in order to begin re-building your credit.

To schedule an appointment to discuss how we can help you, contact Chapter 7 bankruptcy attorney David Alan Ast today.