Our New Jersey Bankruptcy Lawyers at Lyons & Associates, P.C., Help Clients Alleviate Debt Through Bankruptcy
Declaring bankruptcy provides a fresh start from overwhelming debt. Our experienced New Jersey bankruptcy lawyers at Lyons & Associates, P.C., can help. Call 908-829-6959 or contact us online to schedule a free consultation. Located in Somerville, Morristown, and Freehold, New Jersey, we serve clients in Somerset, Woodbridge, Morristown, Parsippany, Rockaway, Short Hills, Chatham, Randolph, Madison, Morris Plains, and Monmouth County.
Frequently Asked Questions About Bankruptcy in New Jersey
What is Chapter 7 bankruptcy?
Chapter 7 is a liquidation bankruptcy that eliminates most unsecured debts like credit cards and medical bills. To qualify, you must meet income requirements, and some non-exempt assets may be sold, though many people keep their property under available exemptions.
What is Chapter 13 bankruptcy?
Chapter 13 is a court-approved repayment plan lasting three to five years. It allows you to reorganize debt, stop foreclosure or repossession, and catch up on missed payments if you have regular income.
Will filing bankruptcy stop creditor harassment?
Yes. Filing triggers an automatic stay, which immediately stops most collection efforts, including calls, lawsuits, wage garnishments, and foreclosure actions.
Can I keep my house if I file bankruptcy?
Often, yes. If you are current on payments, you can usually keep your home; if you are behind, Chapter 13 may allow you to catch up over time.
Can I keep my car?
In many cases, yes. If you are current or able to catch up on payments, both Chapter 7 and Chapter 13 may allow you to retain your vehicle, depending on equity and loan status.
Can bankruptcy eliminate student loans or tax debt?
Student loans are rarely discharged unless extreme hardship is proven. Certain older tax debts may be dischargeable if specific timing and filing rules are met.
Do I have to list all of my creditors?
Yes. Bankruptcy law requires full disclosure of all debts, even small balances or personal loans from friends or family.
What happens if I forget to include a creditor?
You should notify your attorney immediately. In many cases, schedules can be amended to add the omitted creditor.
Does my spouse have to file with me?
Not necessarily. If debts are only in your name, your spouse may not need to file, though household income is still considered for eligibility.
How do I know if bankruptcy is right for me?
If you cannot keep up with payments, face garnishment or foreclosure, or see debt growing despite minimum payments, bankruptcy may provide structured relief and a fresh financial start.
Who is notified if I file bankruptcy?
Your listed creditors, the bankruptcy court, and the assigned trustee are notified. Employers are generally not informed unless wage garnishment is involved.
How can I rebuild my credit after bankruptcy?
Rebuilding starts immediately by paying ongoing obligations on time and ensuring your credit report is accurate. Many people see improvement well before the bankruptcy falls off their report.
What should I bring to my initial bankruptcy consultation?
Bring recent pay stubs, tax returns, a list of debts, mortgage or vehicle loan statements, and any collection or foreclosure documents. Complete information allows for accurate legal guidance.
