If you’ve been unable to catch up with your bills and you don’t see relief in the near future, you may be considering a Chapter 7 or Chapter 13 bankruptcy. For many individuals and families, a bankruptcy can be a fresh start to their lives. Depending on which type of bankruptcy you opt for, you may even be able to keep your residence and your car.

As New Jersey bankruptcy attorneys in Hackensack, one of the questions that constantly comes up is whether or not someone needs a bankruptcy lawyer to file. After all, we’ve all heard how expensive lawyers can be. Doesn’t hiring a lawyer for bankruptcy seem counterintuitive? The fact of the matters is that few non-lawyers have the knowledge or experience to successfully file for Chapter 7 or Chapter 13 bankruptcy or to navigate their way to the conclusion. Here are some of the things that a bankruptcy lawyer can do for you.

Determine Which Type of Bankruptcy You Qualify For

Chapter 7 and Chapter 13 have very different income requirements. If you make too much money, you may not qualify for Chapter 7 no matter how much you owe. Chapter 13 will allow you to restructure your debt and develop a three-year to five-year payment plan if you have the income to support it. With Chapter 7, you liquidate your non-exempt assets and pay your creditors through those. Both types of bankruptcies have their pros and cons and an attorney can help you decide which is right for you.

Help You Decide Whether You Should Declare Bankruptcy

Not everyone in debt can declare bankruptcy, and some who are able to probably shouldn’t. You may benefit from credit counseling instead of bankruptcy, and a good bankruptcy attorney can help you figure that out.

Enforce the Automatic Stay

With both Chapter 7 and Chapter 13 bankruptcy, the judge issues an automatic stay. This prevents creditors from pursuing debts while the stay is in force. To be able to come after you, they need to have the stay lifted—legally. A bankruptcy lawyer can make sure that all of your creditors are obeying the law.

Determine Whether You Can Keep Your Home

If you’re determined to keep your home, you may be able to do so even in bankruptcy. A Chapter 13 bankruptcy allows you to keep your residence as an exempt asset as long as it’s not already in foreclosure, but there may be a possibility even with Chapter 7. The state of New Jersey, for instance, allows you to exempt a certain amount of your home equity. It is, however, difficult to retain your home in Chapter 7 bankruptcy when you have a significant amount of equity above the exemption.

Represent You in the 341 Meeting

The 341 meeting, also known as the meeting of creditors and security holders is an opportunity for your creditors to ask you questions about your finances. While the meeting isn’t supposed to be adversarial, it can be intimidating for the uninitiated. Your attorney can prepare you for the meeting and attend it with you.

Bankruptcies in the state of New Jersey and elsewhere tend to be complicated and involve the filing of forms, paperwork, and financial affidavits. While the attorney will usually charge a retainer up front, some of their fees can be incorporated into the bankruptcy settlement.

Click here for more information.