A Chapter 7 Bankruptcy is referred to as “straight bankruptcy” or “total liquidation.” In order to file a Chapter 7 we will complete documents called a Chapter 7 Bankruptcy Petition and Schedules for you for filing with the U.S. Bankruptcy Court. Depending upon the location of your residence, your case may be filed with the U.S. Bankruptcy Court for the District of New Jersey in either Newark, Camden or Trenton. Those living in Parsippany and Morris County will file their Petitions at the Bankruptcy Court in Newark, New Jersey.
Whether it is a Chapter 7 or 13; you, without exception, must list every asset (property owned). This includes, but is not limited to, real property (houses and land) and personal property (cars, boats, bank accounts, jewelry, household goods, art and collectibles, lawsuits, life insurance with cash value, retirement accounts, etc.) Whether it is a Chapter 7 or 13; you, without exception, must list every debt owed. This includes the debts you intend to keep, like your house or car and every other debt owed, including all credit cards, pay day advances, medical bills, past-due utility bills, taxes, personal loans and loans from relatives and friends. The fact that you are current or “you like” this account or credit union does not create an exception to this rule.
The Bankruptcy law is generous and fair, but it imposes strict honesty upon those who seek its relief. In order to seek relief under the Bankruptcy Code the Debtor must file all FEDERAL, STATE, AND LOCAL TAX RETURNS due for the last four years. Tip: Call 1-800-829-1040 for IRS tax transcripts which then can be faxed or mailed for proof of your filed Federal taxes. Please click here for additional information on acquiring a copy of your Federal returns.
Before a person is eligible to file a Chapter 7 Petition he or she must complete a “means test” or budget analysis by their attorney to determine whether they qualify to file a Chapter 7 or must file a Chapter 13? Generally, to qualify household income for a given household size must no exceed a specific amount.
If a Chapter 7 is allowed; a Chapter 7 Petition, along with the necessary certificates and pre-qualification mandatory paperwork is filed with the U.S. Bankruptcy Court and notice of the Bankruptcy is given to all Creditors listed by the Bankruptcy Court. The notice instructs all creditors to cease collection activity.
You must appear at a court hearing so Creditors and a court appointed “Trustee” can ask question of you regarding assets and debts and the financial circumstances that led to filing a Bankruptcy. Don’t worry, I WILL BE RIGHT THERE WITH YOU! Creditors also have the right to ask questions at this hearing and they have the right to request additional questioning (a “deposition” or Rule 2004 exam) if they believe it is warranted and have a right to request and review your tax returns and other financial documentation.
Speak Directly With An Experienced Lawyer At No Cost To You
Schedule a complimentary consultation with Bankruptcy Attorney Marc P. Feldman to understand how bankruptcy can help you obtain the debt relief you need. Contact us online or call our office at 973-267-7555.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.