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Answering Your Bankruptcy Questions

One of the biggest barriers that keep people from applying for the bankruptcy help they desperately need is a lack of information. At the Ewing office of Law Offices of Sklar Smith-Sklar, we want to provide you with the information you need to make the right decision for your future. Before you meet with us to discuss your bankruptcy options, our New Jersey team wants to answer some of your more common questions here:

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy allows a debtor to discharge debts that do not have collateral attached to it, like credit card debt, medical debt and unpaid utility bills. With Chapter 13 bankruptcy, a debtor instead restructures their debt into a payment plan lasting three to five years. At the end of the repayment period, any remaining debt is then discharged.

Will I lose everything if I file for bankruptcy?

When you file for Chapter 7 bankruptcy, it is true that you will need to sell nonessential assets like secondary homes or cars, jewelry, heirlooms and other valuables; but you will also be able to keep necessary assets like your primary home and vehicle and other essential assets.

When you file for Chapter 13 bankruptcy, you do not have to sell your assets so long as you can stay on your repayment plan and repay your debt according to that arrangement.

Will bankruptcy destroy my credit score?

It is true that your credit score will likely decrease after filing for bankruptcy. Many applicants are able to raise their score to higher levels than before they file in a matter of months. With a better debt-to-income ratio, it can be much easier to build your credit score than before you filed for bankruptcy.

Will bankruptcy clear all of my debt?

While filing for bankruptcy can clear a lot of debt, it cannot eliminate all of it. Secured debt (debt with collateral attached to it) like mortgages, car loans, and student debt cannot be discharged. With the extra available income you may have after discharging qualifying debt, you may be able to afford the remaining debt better.

Can I file for bankruptcy without a lawyer?

There is no legal requirement to file for bankruptcy with the help of an attorney. However, with our legal guidance, we can answer your questions, increase the odds of a successful application, complete any necessary paperwork, and help you avoid critical mistakes in your application process.

If you are ready to learn more about how we can help you pursue the outcome you deserve in your bankruptcy application, contact us by calling 609-568-7877 or emailing us here to schedule your initial consultation today.