Bankruptcy
Bankruptcy: The United States Bankruptcy Code is a federal law used to help debtor's obtain a fresh start or reorganize their financial affairs. However disturbing the idea of bankruptcy might initially seem, the bankruptcy law is there to help those who are unable to pay their bills.
Alternatives to Bankruptcy: You should ask your lawyer about alternatives to bankruptcy. Some alternatives can be negotiating with your creditors for more time to pay and/or lower payments, or designing a payment plan acceptable to your creditors.
Personal Bankruptcy Options: The majority of personal bankruptcies proceed as follows:
a. Liquidation - Also called a Chapter 7 bankruptcy, where you sell your property and use whatever cash is generated to fully satisfy creditors. You are allowed to keep certain types of property under the federal and state exemption laws. Exempt property differs in each state and may include clothing, furniture, household goods and appliances, jewelry, your home and car. If you file a Chapter 7 bankruptcy, you will not be able to file another Chapter 7 for 6 years.
b. Repayment Plan -Also called a Chapter 13 bankruptcy, where you pay a portion of your monthly income to a trustee for distribution to your creditors. A repayment plan is helpful when you are behind in payments on your car or home. The repayment plan can be extended up to 5 years and may allow you to pay less that you owe. You will be allowed to keep your monthly income to pay living expenses such as food, clothing, rent or mortgage and medicine. There is no waiting period after a Chapter 13 bankruptcy to file again.
Your lawyer can examine your situation and advise you on whether to seek Chapter 7 or Chapter 13 relief. The best alternative for you depends on a number of different factors including, but not limited to, the source of your income, the amount and types of your debt, and the protection of co-signors and guarantors.
Effects of bankruptcy: The end of your bankruptcy provides you with a discharge of your debts. The Court Order will end your responsibility to pay dischargeable debts. However, under both Chapter 7 and Chapter 13, some debts, such as taxes, fines, penalties, alimony, child support, most student loans, and debts incurred by deliberately injuring someone, will not be discharged. A bankruptcy proceeding will be reflected on your credit report for up to 10 years.
Obtaining legal advice: Bankruptcy law is a quickly changing and complex area involving federal and state laws, as well as commercial, tax, pension and family law issues. The details of your specific situation will be important in determining what is best for you.
The information contained herein is general in nature and has been issued to inform and not to advise. Laws develop over time and vary from state to state. This site does not provide legal advice about your specific legal problems. Let us advise you about your particular situation.
Bankruptcy Biography
JOEL R. SPIVACK HAS REPRESENTED DEBTORS, CREDITORS, TRUSTEES AND CREDITOR’S COMMITTEES IN BANKRUPTCY MATTERS SINCE 1990.
ATTORNEY SPIVACK IS A FORMER LAW CLERK TO FORMER CHIEF JUDGE DAVID A. SCHOLL OF THE UNITED STATES BANKRUPTCY COURT FOR THE
EASTERN DISTRICT OF PENNSYLVANIA.
Licenses:
• New Jersey
• Pennsylvania
• District of Columbia
• U.S. Supreme Court
• U.S. District Court, District of New Jersey
• U.S. District Court, Eastern District of Pennsylvania
• U.S. District Court, Middle District of Pennsylvania
Appointme
nts:
• Bankruptcy Mediation Panel, U.S. Bankruptcy Court, District of New Jersey
• Bankruptcy Mediation Panel, U.S. Bankruptcy Court, Eastern District of Pennsylvania
• Camden County Bar Association Commercial Debtor-Creditor Relations Committee
• New Jersey State Bar Association Bankruptcy Law Section
• Rutgers University Pro Bono Bankruptcy Project
Memberships:
• American Bankruptcy Institute
• Eastern District of Pennsylvania Bankruptcy Conference
• National Association of Consumer Bankruptcy Attorneys
Education:
• Juris Doctor, Hofstra University School of Law
• Bachelor of Arts, University of Maryland
Other:
• " SJ Magazine" Top Attoney - Bankruptcy Law 2003 &
2005
• Panelist, WPSJ Television Program “Legal Line”, Bankruptcy (2002)
• Panelist, Garden State Cable Television Program “Legal Line”, Help, I’m Drowning
In Debt (2000)
