Let’s get one thing straight first…contrary to the false statements that often circulate, bankruptcy was never intended as a “get out of jail free” card. The American bankruptcy laws were enacted because legislators knew that hard-working people often encountered unexpected circumstances and needed a way forward.
When you have determined that bankruptcy is your best option, you’ll discover two typical paths—liquidation under Chapter 7 and reorganization under Chapter 13. Let’s look at Chapter 7.
In a Chapter 7 filing, debtors are allowed to “discharge” certain debts. That means that the debtor will forever be rid of any legal obligation to repay those debts. In exchange for that opportunity, debtors must relinquish certain assets to the bankruptcy court, to be used to pay off creditors. Here are the important things to understand about bankruptcy protection under Chapter 7:
At the office of Howard N. Sobel, we provide personal bankruptcy counsel to men and women throughout the state of New Jersey. Contact our office online or call us at 856-424-6400 to set up a free initial consultation. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
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