Bankruptcy is a legal action designed to help debtors who can no longer pay their creditors. Bankruptcy laws also protect struggling businesses, and helps business creditors receive financial compensation through liquidation or reorganization. If you have had your wages garnished, facing mounting credit card debts or receiving hassling calls from debt collectors seeking collection, then bankruptcy might be the next logical step.
Filing For Your First Bankruptcy
If you are considering filing for the first time, read these tips to ensure the process goes smoothly:
First, assess your finances. Know you income, all expenses and debts. By looking at these things closely, you can see what your current financial situation is and pinpoint why this may have happened in the first place. Gather all your paperwork including your current income sources, all financial transactions from the last two years, your monthly living expenses, your secured and unsecured debts and a list of all of your property and assets. You must also provide copies of your tax returns for the last two years. Have all of this prepared ahead of time.
Pull a current credit report. Use this credit report to update yourself on debts owed. Make sure that when you file, to include every creditor that you owe. Leaving one of them out may cost you a lot of money in the long run.
Contact debt collectors to let them know that you are filing for bankruptcy. When a bankruptcy petition is filed in court, an “automatic stay” is triggered and the collection calls, letters and correspondents must cease. The automatic stay is a restriction placed on all of the debtor’s creditors. This means that all creditors must stop making attempts to collect payment, can no longer make harassing phone calls or pursue any legal action against the debtor outside of the proceeding.
Why you Need a Bankruptcy Lawyer
Bankruptcy laws are staggeringly complex. It is not advised to try to file by yourself. If you’re thinking about filing for bankruptcy, immediately contact an experienced lawyer. Every case is different. That is why just researching online is not enough to ensure that your bankruptcy is done correctly. Without question, hiring an attorney who is experienced in handling cases in the U.S. Bankruptcy Court, District of New Jersey is the best way to make sure that your specific case is completed successfully.
Learn More about Filing for Bankruptcy in NJ
Bankruptcy protection is federal law that is meant to give a debtor a fresh start while providing fair and equal treatment to creditors. Learn about different bankruptcy options that may be available to you:
- Filing a Bankruptcy Petition
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
- The Effects of a Bankruptcy Filing
Contact a NJ Bankruptcy Lawyer Today
If you have been receiving harassing phone calls and aggressive collection attempts from creditors, you may have options. Villani & DeLuca Of Counsel attorney Robert H. Johnson, Esq. is an experienced New Jersey bankruptcy attorney with years of experience representing debtors in Federal Bankruptcy Court. Named by New Jersey Super Lawyers as a “Rising Star”, Mr. Johnson has the experience necessary to discuss with you the benefits of filing for bankruptcy. Call Villani & DeLuca, P.C. today for your free initial consultation at [dyna_phone phone=’1′ format=’dashed’].