Frequently Asked Questions About Bankruptcy in New Jersey
Piscataway bankruptcy attorney has the right answers for your individual circumstances
At the Law Office of Michael P. Otto, we realize that these are tough economic times for too many of our New Jersey neighbors. That’s why we’re so dedicated to using our experience to provide ethical and compassionate legal services to clients throughout Middlesex, Union, Somerset and Morris counties. For more than 14 years, we’ve helped hard-working New Jersey residents get relief from crushing debt. We offer this brief list of questions and answers to prospective clients and ask that you contact us to inquire further.
- What is the means test for Chapter 7 bankruptcy in New Jersey?
- What is meant by “clean hands” in a bankruptcy case?
- Can debt consolidation help me avoid bankruptcy?
- How can bankruptcy help me avoid foreclosure on my home in Piscataway?
Speak with a knowledgeable and concerned Piscataway bankruptcy attorney
The Law Office of Michael P. Otto offers sound advice and reliable service for bankruptcy throughout New Jersey. Mr. Otto is available in the evening and on weekends when necessary. Call 732-819-7000 or contact us online to arrange your free consultation.
The first part of the means test evaluates your family income, which must be below the median income for a family your size. If you’re above the median, you still may qualify if your disposable income is less than $100 or if your disposable income would not allow you to repay 25 percent of your debt over a five-year period.
Bankruptcy is meant as a remedy for honest but unfortunate citizens. Individuals who have accumulated debt through fraud or with no intention ever to repay it, lack the “clean hands” necessary to petition the court for relief. For this reason, it’s important to retain a bankruptcy attorney who has the litigation skill to defend you against allegations of fraud.
Debt consolidation is a process by which you take all of your unsecured debt, such as credit cards, and take out a low-interest personal loan with a lower monthly payment that allows you to pay off the cards. While this sounds like a practical solution, you need to shop around for a reputable lender. In some cases, lenders have severe penalties for missed payments, which could result in high interest rates that would put you right back in the situation you were with your credit cards. Also, many companies require a longer repayment period, so over the life of the loan, you may eventually pay more than you would in a Chapter 7 bankruptcy.
Chapter 13 bankruptcy allows you to bring all your late payments to current status under a repayment plan that the court approves. This includes late mortgage payments; you get a second chance to satisfy your obligation to your lender, and your lender cannot move to foreclose.