Is Bankruptcy Really The Best Path Out Of Debt For Sayreville Residents?
While bankruptcy can be a terrifying thing to think about, in many ways, its bark is worse than its bite. For families and small businesses struggling already to make ends meet, debt can be the burden that keeps you from building up any wealth or, worse, locks you into a cycle of poverty or more debt.
Getting out of that cycle requires careful planning or drastic measures. Bankruptcy will not always be the ideal solution for everyone in Sayreville, as there are other debt relief mechanisms that can be brought to bear. But when the outlook is too grim, creditors too greedy, and the debt too deep, then a bankruptcy attorney may be the only one offering a light of any kind.
Fortunately, there are several kinds of bankruptcy, called Chapters, each of which is best suited for different situations. As a result, whether you are a small business owner on Main Street or trying to hold on to your home in Morgan, there is a type of bankruptcy best for you.
How Can Chapter 7 Bankruptcy Help Save Your Sayreville Home?
Many New Jersey residents worry that bankruptcy will cost them their home and any equity or ownership they have built up for it. Fortunately, that is not the case. Under Chapter 7 Bankruptcy, you can get most, if not all, unsecured debts discharged (completely forgiven) without losing any essential and except assets.
That includes your household.
You might have to give up luxuries like a boat, an unnecessary car, or a second home, but in New Jersey, Chapter 7 bankruptcy will not cost you your home in Sayreville or anywhere else. This means that, with the help of an experienced attorney, you could be out from under your debts without losing the essentials you have worked so hard to earn.
However, to file for Chapter 13 bankruptcy, your income must be below a certain threshold, which means some families with two jobs or those who have recently started earning more may not be eligible for that kind of relief.
New Jersey Chapter 13 Bankruptcy Offers Debt Relief For Any Sayreville Residents
If you are unable to qualify for Chapter 7 bankruptcy, or if the loss of non-essential assets represents too big a burden for you and your family, an attorney can help you file for Chapter 13 bankruptcy instead.
Under New Jersey’s Chapter 13 bankruptcy rules, Sayreville residents will not have to give up any assets or be under a certain income level to qualify. Instead, they will have to prepare a carefully planned repayment plan.
This plan effectively has you pay back a portion of what you owe your creditors over the next three to five years. If you are able to meet the payments you have committed to, then the remaining debt is discharged, and you will have the same fresh financial start without giving up anything you already owned.
While Chapter 13 is a great solution for many individuals and families, businesses in Sayerville do not have that option.