Hoboken’s Trusted Chapter 7 Bankruptcy Lawyers
Insurmountable debt often results from circumstances beyond an individual’s control, yet creditors keep calling and bills continue to arrive in the mail. The pressure may seem unrelenting, but there are solutions.
The experienced bankruptcy lawyers at Lofaro & Headley, LLC, in Hoboken, New Jersey, help individuals, couples and businesses assess their situation and determine the best means of resolving their financial woes. When you select us to represent you, you have direct access to our attorneys throughout the process. We answer every question and take the time to explain each step so you can be part of the decision-making process.
We Can Help With The Most Complex Cases
Chapter 7 bankruptcy provides the most straightforward and comprehensive relief to debtors. If you have limited assets and you are able to make good on any past debts you owe on your home or a car, then Chapter 7 bankruptcy could be the ideal solution for you. Our bankruptcy attorneys have more than 40 years of cumulative experience. They can review your situation and determine what resolution is right for you.
Do You Qualify For Chapter 7 Bankruptcy?
Chapter 7 bankruptcy has specific eligibility requirements based on your income and financial situation. The means test determines whether you qualify. This test puts your household income against the median income in New Jersey. To qualify for this, your family income should fall under the state median. If your income exceeds it, the court examines your disposable income after accounting for allowable expenses. The means test considers several factors:
- Your average monthly income over the past six months
- Your household size
- Allowable living expenses such as housing, utilities, food and transportation
- Mandatory deductions like taxes and child support payments
- Secured debt payments for your home and car
If you earn too much to qualify for Chapter 7, Chapter 13 bankruptcy may be a better option. Chapter 13 allows you to keep your property while following a court-approved repayment plan. At Lofaro & Headley, LLC, we review your complete financial situation during your free consultation. We calculate whether you meet the means test requirements and explain which bankruptcy chapter works best for your circumstances.
What To Expect During The Chapter 7 Process
Understanding the Chapter 7 process helps reduce anxiety about filing for bankruptcy. We guide you through each stage and keep you informed about what happens next.
The process typically includes these steps:
- Initial consultation where we review your finances and determine eligibility
- Credit counseling course completion (required before filing)
- Preparation and filing of your bankruptcy petition with the court
- Automatic stay goes into effect, stopping creditor collection actions
- Meeting of creditors (341 meeting), where you answer questions under oath
- Trustee reviews your assets and may sell nonexempt property
- Debtor education course completion (required for discharge)
- Final discharge of eligible debts
Most Chapter 7 cases in New Jersey conclude within four months. The automatic stay provides immediate relief from creditor harassment, wage garnishment and foreclosure proceedings. During the 341 meeting, the trustee and creditors can ask you questions about your finances and petition. This meeting typically lasts only a few minutes for straightforward cases.
We prepare you for every step and accompany you to the required meetings. Our team handles the paperwork and court filings while you focus on planning your financial future. We answer your questions promptly and explain any developments in your case as they occur.
Instant Relief From Our Debt Relief Lawyers
We can enforce an immediate automatic stay on your assets, enforceable through the Federal Bankruptcy Court. The court filing can also protect you from creditor harassment and unfair debt collection under the Fair Debt Collection Practices Act (FDCPA).
If you qualify for Chapter 7, we can help you:
- Put an immediate stop to the foreclosure process
- Stop wage garnishment, bank levies, judgments against you, attachments, lawsuits and repossessions
- Eliminate unsecured debt, including credit card debt, personal loans, medical debt and other debt not attached to a property, as well as some tax debt
- Enact property exemptions for things you depend on, such as your home, car, pension, 401(k) and other assets
Our lawyers are devoted to helping people in debt trouble and people in danger of losing their homes find relief. We can help you avoid the long-term consequences of debt problems and help you gain financial freedom again.
What happens to cosigners on my loans if I file Chapter 7 bankruptcy?
Chapter 7 bankruptcy only discharges your personal legal obligation; your cosigner remains fully liable. Unlike Chapter 13, Chapter 7 does not protect your cosigner from collection actions while your case is active.
Are there any debts that Chapter 7 bankruptcy cannot discharge?
Yes, child support, spousal support, most recent tax debts, debts obtained through fraud and debts related to intentional wrongdoing. In addition, Chapter 7 typically cannot discharge student loans without a specific court ruling or court-ordered fines and restitution.
How long does the Chapter 7 bankruptcy process typically take?
Most straightforward Chapter 7 cases in New Jersey are completed in roughly four months, though complex cases involving assets or creditor objections can take longer.
Schedule A Free Consultation Today
We offer a free consultation in which our Hoboken Chapter 7 bankruptcy lawyers can answer your questions and assess your situation in order to recommend the best steps to take. Call 201-467-4020 or email us to schedule an appointment.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.