Experienced Camden County Bankruptcy Lawyer Outlines Chapter 7 Exceptions in New Jersey
When you are in over your head financially, it’s not unusual to grab at any solution you think may make things better for you and your family. Filing for bankruptcy protection can be an excellent way to clear the slate, so to speak, and give you a fresh financial start. However, it’s important to know the differences between the various types of bankruptcy because there are significant limitations that make choosing one option over the other more advantageous depending on your personal circumstances.
If you are considering filing for Chapter 7, you need to understand the exceptions associated with this form of bankruptcy protection. There are several types that can’t be wiped out under Chapter 7. Learn more about Chapter 7 bankruptcy exceptions and whether this method of dealing with debt is in your best interests. Contact experienced bankruptcy lawyer Joel R. Spivack, Esq. for a free consultation about your situation in Mt. Laurel, Medford, Voorhees and throughout Camden County, NJ.
Know the Pitfalls of Chapter 7 Bankruptcy: Non-Dischargeable Debt
Chapter 7 bankruptcy will, in fact, get rid of most of your debt. However, there are some types of debt that are considered “non-dischargeable.” This means that even after your Chapter 7 bankruptcy is completed, you will still have to pay back those debts to your creditors.
Therefore, it is very important that you understand what your financial obligations will be after the Chapter 7 bankruptcy is successfully filed. There could be little worse than going through the stress of filing for bankruptcy protection only to find out that you are still responsible for paying old debt.
Chapter 7 bankruptcy is known as liquidation bankruptcy for a reason. Almost all of your assets, sometimes including your house and car, will be taken from you. The upside, however, is that most of your debts will be taken away, as well. When debts are discharged, you will have no further obligation to those creditors and they are no longer permitted to attempt to collect those debts.
Cherry Hill Attorney Assists Advises Clients about Chapter 7 Bankruptcy Exceptions in Camden County, NJ
United States Bankruptcy Code has 21 different categories for classifying various types of debt. When it comes to Chapter 7, there are several common types of debt that are exceptions to liquidation – meaning these debts cannot be discharged via Chapter 7. These include:
- Tax Liens
- Student Loans
- Child support and alimony obligations
- Condo or Homeowners Association fees or assessments
- Debts incurred through criminal activity, fraud or false representation – this includes embezzlement and any debt incurred by someone in a position of financial responsibility for a company (a CFO or controller, for example)
- Government-related fines or penalties
- Personal injury or wrongful death lawsuit judgments relating to any motor vehicle accident that occurred while you were driving while intoxicated
- Condominium or cooperative association fees or assessments
For more than 25 years, Mr. Spivack has been helping South Jersey residents file for bankruptcy – protecting their rights and interests along the way. He will answer your questions and provide sound legal advice. If it’s determined that Chapter 7 bankruptcy is not in your best interests, Mr. Spivack can assist you with alternatives to bankruptcy such
as debt negotiation or settlement.
What Happens When a Creditor Fights Your Bankruptcy?
Actually, technically speaking, a creditor is not able to fight your decision to file for bankruptcy protection, but it is permitted to petition the court to make the debt you owe non-dischargeable. If that creditor is successful is objecting, that debt will not be discharged and you will still be responsible for paying it back.
There are a few types of debt that commonly are considered by the court as to whether or not they should be discharged. These include:
- More than $650 in purchases for luxury goods to one creditor within three months of filing for bankruptcy
- More than $925 in cash advances taken within 70 days of filing for bankruptcy
- Debts incurred following injury to another person or property or through false pretenses or fraud
- Rest assured, your creditor will have a team of lawyers fighting its case. You need a savvy, successful bankruptcy lawyer to prove you had every intention of paying back the debts when you made the purchases but circumstances are such that you are now unable to do so.
Contact an Experienced Bankruptcy Lawyer for Sound Legal Advice about Filing for Chapter 7 Protection in New Jersey
The decision to file for Chapter 7 bankruptcy protection can be frustrating and stressful. It’s a major decision and you need to know all the facts about it so you can make the best choices for your family. We invite you to talk to Joel R. Spivack, Esq. about your financial situation. In a private, free consultation, he will explain the process and what happens to debts that aren’t discharged in bankruptcy.
He will answer all your questions and provide skilled and knowledgeable legal guidance as he has done for families in Moorestown, Cherry Hill, Mount Holly and throughout South Jersey for over two decades. Call him today for your free consultation.