Chapter 13 Bankruptcy Lawyers In Hoboken
Falling behind on bills does not mean you have to lose your home or car. Chapter 13 bankruptcy gives you a way to reorganize your debts through a court-approved repayment plan. At Lofaro & Headley, LLC, we help clients in Hoboken and Jersey City determine whether Chapter 13 bankruptcy fits their financial situation.
Our bankruptcy lawyers Wayne Headley and Lawrence Lofaro bring over 40 years of combined experience to each case. We work with you to create a realistic plan that protects your assets while giving you a path toward financial stability.
Understanding Chapter 13 Bankruptcy In New Jersey
If you do not qualify for Chapter 7 bankruptcy, a Chapter 13 may be your best option. A Chapter 13 bankruptcy allows a person to repay all or a portion of his or her debts under the supervision and protection of the bankruptcy court. We will work to negotiate better loan terms that are affordable and reasonable. We will help you prepare a three-to-five-year debt repayment plan, which will satisfy creditors and put you on a sustainable path to financial freedom.
Under a Chapter 13 plan, some priority debts are required to be paid in full, but many creditors will only receive a small percentage of the amount they are owed. A key difference between Chapter 13 and Chapter 7 bankruptcy is that Chapter 13 allows you to retain possession of nonexempt property that may be lost in Chapter 7 bankruptcy.
Rebuild Your Financial Future
With Chapter 13 bankruptcy, you have a wide array of options and benefits. With the help of a bankruptcy lawyer, you can craft a sustainable repayment plan that safeguards your financial future. As a result, you can:
- Stop the foreclosure process
- Halt wage garnishment, judgments against you, bank levies, attachments, lawsuits and repossessions
- Get rid of unsecured debt, including credit card debt, medical debt, personal loans and possibly some tax debt
- Enact property exemptions for your home, car, pension, 401(k) and other assets
- Get back on track with mortgage and auto loan payments to ensure you stay in your home and keep your vehicle(s), as long as you are able to stay current on payments
At the law office of Lofaro & Headley, LLC, in Hoboken, New Jersey, we help individuals navigate the complex process of regaining a solid financial foundation through bankruptcy. We provide hands-on assistance from the first meeting through the resolution of your case. We avoid cookie-cutter solutions by carefully reviewing each client’s situation before recommending a course of action.
What happens if my income changes during my Chapter 13 repayment plan?
Significant changes in income (either increases or decreases) can impact your ability to fulfill the Chapter 13 repayment plan. You may need to modify the plan with the court’s approval. If your income decreases substantially, you might be able to lower your payments. If it increases, creditors might request that you pay more into the plan. It’s crucial to inform your attorney about any income changes.
Can I buy a car or a house while in Chapter 13 bankruptcy?
Yes, it is possible, but it requires court approval. The court will want to ensure that the new debt fits within your repayment plan and that you can afford the payments without jeopardizing your ability to fulfill your existing obligations. You’ll generally need to demonstrate a legitimate need for the purchase.
What happens to my credit score during and after Chapter 13 bankruptcy
Filing Chapter 13 will initially lower your credit score. However, the impact lessens over time. Successfully completing your repayment plan and managing your finances responsibly afterward can help you rebuild your credit. While major credit bureaus typically remove a Chapter 13 bankruptcy seven years from the filing date, federal law technically allows it to remain on your credit report for up to 10 years.
Call Today To Discuss Your Options
We offer a free initial consultation during which an attorney will assess your case and provide you with an experienced opinion on what solution is best for your set of circumstances. To meet with our lawyers, call 201-467-4020 or use our contact form to schedule an appointment.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.