Chapter 7 FAQ

When you are in debt, it can be a difficult experience. You are bombarded with calls and letters from creditors and their representatives. It can seem like there is no way to make it all stop. If you do not know your rights, you could become a victim of creditors and their collection practices.

There are solutions when you find yourself in financial difficulty. For many people, personal Bankruptcy can be the answer. Bankruptcy is designed to allow you a fresh start. It can allow you to get your finances in order and put many of your problems behind you. Bankruptcy is governed by federal law. It is your right to take advantage of these laws.

New Jersey Bankruptcy is a legal procedure for dealing with the debts of New Jersey individuals and New Jersey businesses. To begin a New Jersey Bankruptcy, a New Jersey individual or New Jersey business, called the "petitioner," files a New Jersey Bankruptcy Case under the Federal Government's Bankruptcy laws -- one of the Chapters of title 11 of the United States Code (the New Jersey Bankruptcy Code).

A New Jersey Bankruptcy Debtor is a person filing a New Jersey Bankruptcy petition seeing relief under the New Jersey Bankruptcy Code in a New Jersey Bankruptcy Court.

A New Jersey Bankruptcy creditor is an individual or business that is owed money by a New Jersey Bankruptcy Debtor or that the creditor claims owes them money.

Yes Bankruptcy is still available! No, the government never eliminated Bankruptcy! The Bankruptcy Rules changed but bankruptcy is still available to many people who find themselves in financial difficulty. Every year, thousands of people file a New Jersey Bankruptcy Case!

Yes! Filing a New Jersey Bankruptcy can stop creditor harassment. It is a violation of federal law for a creditor to continue efforts to collect a debt after receiving written notification of a Debtor's filing Bankruptcy. Once the automatic Bankruptcy stay is in effect, your creditors must contact your attorney (if you are represented by one) and are forbidden by federal law to contact you except under very specific circumstances.

In most New Jersey Chapter 7 Bankruptcy cases, if the New Jersey Debtor is an individual, just a few months after the New Jersey Bankruptcy petition is filed, they receive a discharge that releases them from personal liability for certain dischargeable debts. Many individual and business New Jersey Bankruptcy Cases are completed in a few months. Since each case is unique, consult with a New Jersey attorney to find out how long your New Jersey Bankruptcy Case might take to be completed.

There are options available other than filing a New Jersey Chapter 7 Bankruptcy Case in New Jersey. Instead of filing a New Jersey Chapter 7 Bankruptcy Case in New Jersey, New Jersey Bankruptcy Debtors with a regular income could qualify to file a Chapter 13 Bankruptcy petition in New Jersey to readjust certain debts. A reason why many people file a Chapter 13 Bankruptcy petition in New Jersey is to try to save their homes from foreclosure by giving the New Jersey Bankruptcy Debtors an opportunity to pay back overdue payments through a payment plan. Also, certain New Jersey Bankruptcy Debtors involved in business may want to avoid liquidation and continue their business. For example, New Jersey sole proprietors could qualify to file a Chapter 13 Bankruptcy petition in New Jersey which provides for the repayment of certain debts.

The following types of New Jersey Bankruptcy Debtors may be able to file for a New Jersey Chapter 7 Bankruptcy:

• Individuals
• Partnerships
• Corporations; or
• Other business entities.
• To file a New Jersey Chapter 7 Bankruptcy in New Jersey, individual New Jersey Bankruptcy Debtors must meet the New Jersey Bankruptcy Code's means test, which is described below.

At least 180 days before filing a New Jersey Chapter 7 Bankruptcy Case, a New Jersey Bankruptcy Debtor must generally first receive credit counseling from an approved credit counseling agency. If during the credit counseling, the New Jersey Bankruptcy Debtor has a debt management plan developed for themselves, the plan must be filed with the New Jersey Bankruptcy Court.

To be able to file a New Jersey Chapter 7 Bankruptcy Case, the New Jersey Bankruptcy Debtor must pass the New Jersey Chapter 7 Bankruptcy Means Test to prove that the New Jersey Bankruptcy Debtor's income and expenses satisfy the Bankruptcy Code's requirements. Under a New Jersey Chapter 7 Bankruptcy, if the New Jersey Bankruptcy Debtor's current monthly income is higher than New Jersey's median income, the New Jersey Bankruptcy Code applies a "means test" to the New Jersey Bankruptcy Debtor to see if the New Jersey Chapter 7 Bankruptcy Case is an abuse of the system. Sometimes, a New Jersey Bankruptcy Debtor may prove that special circumstances allow additional expenses or adjustments of current monthly income. If the New Jersey Bankruptcy Debtor fails to pass the New Jersey Chapter 7 Bankruptcy Means Test:

• if the New Jersey Bankruptcy Debtor agrees, the New Jersey Bankruptcy Case may be converted from a New Jersey Chapter 7 Bankruptcy Case to a New Jersey Chapter 13 Bankruptcy Case; or
• the New Jersey Bankruptcy Court will dismiss the the New Jersey Bankruptcy Case.

A New Jersey Bankruptcy Debtor is not disqualified from filing a New Jersey Chapter 7 Bankruptcy Case simply because the New Jersey Bankruptcy Debtor's debts reach a certain dollar amount.

There are certain limits to repeat New Jersey Bankruptcy Court case filings. For example, if a New Jersey Bankruptcy Debtor had another Bankruptcy Case before, they cannot file another New Jersey Bankruptcy Case if, during the previous 180 days, the prior case was dismissed due to the New Jersey Bankruptcy Debtor's willful failure to appear before the New Jersey Bankruptcy Court or failure to comply with court orders or if he New Jersey Bankruptcy Debtor voluntarily dismissed the previous case after creditors sought relief from the New Jersey Bankruptcy Court to recover property on which the creditors held liens.

A New Jersey Bankruptcy Debtor may be able to convert their New Jersey Chapter 7 Bankruptcy Case to a Bankruptcy Case under Chapter 11, 12 or 13 if: (1) the New Jersey Bankruptcy Debtor meets the requirements for filing under the different Chapter that they want to proceed under; and (2) the New Jersey Bankruptcy Case wasn't previously converted to a New Jersey Chapter 7 Bankruptcy from another Bankruptcy Chapter.

At least 180 days before filing a New Jersey Chapter 7 Bankruptcy Case, a New Jersey Bankruptcy Debtor must generally first receive credit counseling from an approved credit counseling agency. New Jersey Bankruptcy Debtors who have a debt management plan developed for themselves during credit counseling must file the debt management plan with the New Jersey Bankruptcy Court.

Husband and wife may file one New Jersey Bankruptcy petition - a "joint petition" - or separate New Jersey Bankruptcy petitions. If husband and wife file a joint Bankruptcy petition, they have to follow all document filing requirements for individual New Jersey Bankruptcy Debtors.

Married individuals filling a New Jersey Bankruptcy Case get together the information asked for by the New Jersey Bankruptcy Court regardless of whether they file a joint petition, separate petitions or if just one spouse files a New Jersey Bankruptcy petition. When only one spouse files a New Jersey Bankruptcy Case, the non-filing spouse's income and expenses are given to the New Jersey Bankruptcy Trustee to allow that the New Jersey Bankruptcy Court, the New Jersey Bankruptcy trustee and creditors to determine the New Jersey Bankruptcy Debtor's household's financial position.

To file a New Jersey Chapter 7 Bankruptcy Petition, New Jersey Bankruptcy Debtors must normally pay fees to the New Jersey Bankruptcy Court Clerk when the New Jersey Bankruptcy petition is filed, which include the following:

• A case filing fee
• A miscellaneous administrative fee
• A trustee surcharge.

The filing fees for a New Jersey Bankruptcy petition is generally only charged per petition. Accordingly, New Jersey joint Bankruptcy petitions do not cost more money to file than single New Jersey Bankruptcy petitions.

The New Jersey Bankruptcy Court may make exceptions for certain New Jersey Bankruptcy Debtors whose income is below the poverty level by waiving the New Jersey Bankruptcy petition filing fee.

New Jersey Bankruptcy Court filing fees change. Before any documents are filed with the New Jersey Bankruptcy Court, it is absolutely necessary to confirm all New Jersey Bankruptcy Court filing fees.

A New Jersey Bankruptcy Debtor's failure to timely pay New Jersey Bankruptcy Court filing fees could result in their case being dismissed. Often attorneys who do not receive payment of fees in advance of filing the New Jersey Bankruptcy petition shall refuse to file a New Jersey Bankruptcy Debtor's Bankruptcy petition.

In a New Jersey Bankruptcy case, a secured creditor is an individual or business with a claim against the New Jersey Bankruptcy Debtor secured by a lien on property of the New Jersey Bankruptcy estate. The property that is subject to the lien is the secured creditor's collateral. The creditor offers credit to the New Jersey Bankruptcy Debtor with the understanding that the creditor may decide to seize the collateral on default of the debt. In a New Jersey Bankruptcy Case, secured debt is debt supported by a mortgage, pledge of collateral or other lien -- debt for which the creditor has the right to pursue their interest specific property upon default of the obligation. Common examples of "secured debt" include: (1) house mortgages; (2) real estate tax liens; and (3) vehicle loans. Unsecured debt is a New Jersey Bankruptcy Debtor's debt for which a creditor holds no special guarantee of payment, such as a mortgage or lien, because the New Jersey Bankruptcy Debtor received credit from the creditor based solely upon the creditor's determination of the New Jersey Bankruptcy Debtor's future ability to pay back the debt.

In a New Jersey Bankruptcy case, an unsecured creditor is an individual or business with a claim against the New Jersey Bankruptcy Debtor that is not secured by a lien on property of the New Jersey Bankruptcy estate. Unsecured creditors hold unsecured debt instead of secured debt. Unsecured debts are debts for which credit was extended based only upon the creditor's determination of the New Jersey Bankruptcy Debtor's ability to pay the debt.

A Bankruptcy estate in a New Jersey Bankruptcy Case is all the New Jersey Bankruptcy Debtor's interests in property when they file a New Jersey Bankruptcy case. While a New Jersey Bankruptcy Case is active, the New Jersey Bankruptcy Estate is the temporary legal owner of all of the New Jersey Bankruptcy Debtor's property. When the New Jersey Bankruptcy Debtor files a Bankruptcy Case, all of the New Jersey Bankruptcy Debtor's property, including property owned or held by another person in which the New Jersey Bankruptcy Debtor has an interest, is part of the New Jersey Bankruptcy estate. Federal or New Jersey laws (or the laws of other states) may allow New Jersey Bankruptcy Debtors filing for Bankruptcy to keep certain "exempt" property free from the claims of unsecured creditors. Exempt property may include interest in the New Jersey Bankruptcy Debtor's primary residence and some or all tools the New Jersey Bankruptcy Debtor uses to make a living. If the New Jersey creditors are entitled to payment, the New Jersey Bankruptcy Debtor's creditors are usually paid from the New Jersey Bankruptcy estate's "nonexempt" property - property able to be "liquidated" or sold to satisfy the New Jersey creditors' claims.

Once a New Jersey Bankruptcy Case is properly filed, the New Jersey Bankruptcy Court appoints a trustee for the New Jersey Bankruptcy Case - a person who represents the interests of the New Jersey Bankruptcy estate and the creditors. The New Jersey Bankruptcy trustee does the following:

• Reviews the New Jersey Bankruptcy Debtor's petition and schedules
• Liquidates the New Jersey Bankruptcy estate's property
• Makes distributions to creditors
• Sometimes brings actions against creditors or the New Jersey Bankruptcy Debtor to recover the New Jersey Bankruptcy estate's property

Normally, New Jersey Chapter 7 Bankruptcy cases do not require New Jersey Debtors to appear in court and most New Jersey Debtors involved in New Jersey Chapter 7 Bankruptcy cases never see a New Jersey Bankruptcy judge unless an objection is raised in the New Jersey Bankruptcy case. Most New Jersey Debtors who file New Jersey Chapter 7 Bankruptcy cases have only one formal hearing at which the New Jersey Debtor must appear - the meeting of creditors, also called a "341 hearing" or "341 meeting" because section 341 of the United States Bankruptcy Code requires New Jersey Debtors to attend the meeting so that the New Jersey Debtors can be asked questions about their debts and property and income. New Jersey 341 hearings are usually held at a New Jersey Bankruptcy Trustee's office instead of at a New Jersey Bankruptcy Courthouse.

Yes. The Law Office of Ronald E. Norman, LLC is dedicated to protecting the rights of consumers. We handle Bankruptcy cases only in the State Of New Jersey. We take Bankruptcy cases from anywhere in the State of New Jersey. The Law Office of Ronald E. Norman, LLC is designated as a Federal Debt Relief Agency. The Law Office of Ronald E. Norman, LLC has performed the following tasks:

• Handled New Jersey Bankruptcy Cases for people and businesses across New Jersey, including representations of individuals and businesses.
• Filed thousands of New Jersey Bankruptcy Petitions
• Settled New Jersey debt disputes for New Jersey creditors and New Jersey Debtors.
• Prepared and filed many New Jersey Bankruptcy Petitions
• Personally appeared in all 3 of the New Jersey Bankruptcy Courts - Camden, New Jersey - the United States Bankruptcy Court For The District of New Jersey, Camden Vicinage, Trenton, New Jersey - the United States Bankruptcy Court For The District of New Jersey, Trenton Vicinage and Newark, New Jersey - the United States Bankruptcy Court For The District of New Jersey, Newark Vicinage
• Appeared at New Jersey Bankruptcy 341 hearings - New Jersey Bankruptcy first meeting of creditors'
• Successfully argued New Jersey Bankruptcy Court motions
• Represented New Jersey Debtors in New Jersey Bankruptcy Court
• Represented New Jersey Debtors in New Jersey post judgment collection proceedings