Bankruptcy is something not many people know about, but hundreds of thousands of people benefit from it every year. Sometimes, it only takes a few questions and answers to get someone on the path to overcoming financial hardship. At Kridel Law Group, we want to help answer some of the more common questions you may have here:
How Does Bankruptcy Work?
There are different types of bankruptcy, all with different functions. Chapter 7 bankruptcy allows a debtor to discharge most or all of their unsecured debt (like credit card debt, medical debt and unpaid utility bills), Chapter 13 allows a debtor to restructure their debt into a payment plan that usually lasts three to five years, and Chapter 11 bankruptcy allows business owners to maintain their business while paying off their debt.
What Are The Benefits Of Filing For Bankruptcy?
Bankruptcy is not a sign of failure or shortcoming. Most debt that people have comes from sudden hardships like job loss, medical emergency or other causes. Bankruptcy allows these people to overcome their financial hardships and get a clean slate to move forward in their life, instead of sacrificing more than necessary to pay off debt endlessly.
What Is An Automatic Stay In Bankruptcy?
When you file bankruptcy, an “automatic stay” prevents parties like creditors, collection agencies, the government or anyone else seeking money from you from filing lawsuits or other collection efforts to get the money you owe them. It can also protect you from eviction or utility cancellations.
How Do I Start Pursuing Bankruptcy?
The best way to get approved for the bankruptcy option that is right for you is by contacting us today. Call our Clifton office at 973-470-0800 or email our New Jersey team here to schedule your initial consultation today.