Considering Chapter 13 Bankruptcy? Talk to the Morris County Bankruptcy Lawyers at David Alan Ast, PC

Helping clients in Budd Lake, Madison, Boonton, Mount Arlington, Denville, Florham Park, Morristown, Dover, Montville, Rockaway, Whippany, Cedar Knolls, Flanders and the surrounding cities

Chapter 13 bankruptcy allows debtors to develop a plan to repay all, or part, of their existing debt in installments over a three to five year period. This is often referred to as a “wage earner’s plan” because it is only available to individuals who have a regular stream of income. The income that qualifies is extremely broad. Chapter 13 bankruptcy is often preferred over Chapter 7 because it allows debtors to retain their homes and other assets if the values exceed the allowable exemptions. Chapter 13 bankruptcy is also often viewed more favorably by creditors and remains on credit reports for only seven years, while Chapter 7 bankruptcy remains on a credit report for ten years.

Chapter 13 is often preferred in situations where the debtor:

• Does not qualify for Chapter 7 bankruptcy or has filed for Chapter 7 bankruptcy previously within the past eight years
• Owns his or her own home and wishes to protect it from claims of creditors
• Has assets that exceed allowable exemptions
• Is delinquent on mortgage or car payments and wants to have time to cure the arrears
• Has mortgage debt that exceeds the value of the property
• Owes taxes or student loans
• Payoff credit cards with the interest frozen as of the date of filing

In the 2005 revisions to the bankruptcy law, Congress added a provision called the “Means Test” designed to determine who would be an eligible debtor under Chapter 7 without a presumption of abuse or who should be required to file a Chapter 13. In Chapter 13, the Means Test determines, in part, the minimum amount of repayment to the general unsecured creditors.

If you feel that Chapter 13 bankruptcy might be an option for you to evaluate, you should consult with a Morris County Chapter 13 bankruptcy lawyer to ensure that you have explored all available options. The attorneys at David Alan Ast, PC are qualified bankruptcy attorneys who have experience working on bankruptcy cases in New Jersey. Contact a Morris County Chapter 13 bankruptcy attorney at David Alan Ast, PC today for assistance with your bankruptcy situation.