It is not uncommon for individuals, couples, or businesses to fall into significant debt. This debt may be the result of an unexpected medical bill, falling behind on credit card payments, or being left unable to afford car payments or a home mortgage. Falling into debt can be a stressful situation, as it can affect not just your finances but also your overall well-being and personal relationships. The experienced attorneys at Gillman, Bruton & Capone are available to help get you back on track.

If you believe that you are unable to escape out from under debt, declaring bankruptcy may be the solution. An Edison bankruptcy lawyer can recommend the specific bankruptcy plan that is right for you, assist in gathering the information needed to file a petition with the court, and guide you along the court’s recommended plan for the discharge of your debts.

Why Consider Bankruptcy as a Form of Debt Relief?

If you have significant debt, you should consider bankruptcy as an option. However, we always caution clients that this does not necessarily mean you should declare bankruptcy as your best option. Much like any difficult situation, the best advice is to consider all of your options when faced with overwhelming debt.

Before we recommend seeking bankruptcy protection to any of our potential clients in Edison, we review non-bankruptcy alternatives, and the pros and cons to any potential solution.

For example, unlike other solutions to debt issues, the most immediate benefit to declaring bankruptcy is the automatic stay. An automatic stay is an immediate halt on all collection efforts from creditors, even those that are already active in civil courts. Once a petition for bankruptcy relief is filed with the court, the automatic stay will go into quick and immediate effect stopping all collection activity.

Unlike other non-bankruptcy debt relief, upon the successful completion of a bankruptcy plan or completion of a Chapter 7 bankruptcy case, the bankruptcy code allows you to discharge – or eliminate – most, if not all, of the remaining debt. The bankruptcy option offers the benefit of considering all debt in a single case or plan. Although some debts cannot be eliminated, such as student loan debts, or tax debts, a bankruptcy case can propose to restructure that debt or provide a breathing spell from payments. Talking with an Edison bankruptcy lawyer can help you to decide if seeking bankruptcy protection is right for you. They could also provide fierce advocacy in the event that you require a foreclosure defense.

The Two Main Options for Bankruptcy Protection

While most bankruptcy cases in Edison have the same goals, there are two primary methods that determine the exact procedures that you must follow.

The first method is Chapter 7 Bankruptcy, which is available to most individuals and couples. In a Chapter 7 Bankruptcy plan, the court will order the liquidation of a significant portion of your assets. The cash that this sale raises will go to your creditors and satisfy your debts. It is a misconception that a person forfeits all their assets in a Chapter 7 plan. Instead, you are allowed to keep a portion of the equity in the family home, a personal vehicle, and other exempt property.

The second primary option is a Chapter 13 Bankruptcy, where you may be able to keep a greater portion of your assets. The court will instead place you on a strict plan of reorganization. A single missed payment on this plan can potentially result in the ending of Chapter 13 and a resumption of debt collection efforts.

In addition, a business or sole proprietorship could go into Chapter 11 Bankruptcy and not have their personal assets at risk. An Edison bankruptcy lawyer can help determine which bankruptcy plan best fits your needs and current situation.

Contact an Edison Bankruptcy Attorney Now to Get a Handle on Your Debt Obligations

Consumer debt is a major source of stress for people throughout Edison and the rest of the country. For many, a declaration of bankruptcy can bring needed relief while allowing for a fresh financial start. Even so, it is vitally important to know if bankruptcy is the right path forward and to choose the bankruptcy plan that is best for you.

An Edison bankruptcy lawyer is ready to provide this support. We can help analyze your current finances, explain how bankruptcy works, submit proper petitions for relief to the court, and support you through your chosen bankruptcy plan. We have over 25 years in bankruptcy resolution and pride ourselves on strong communication with our clients. Give us a call now for a Free Case Evaluation to get started.