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To contact us ask for Larry or Justin at: |
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Phone: (973) 779-6799 Fax: (973) 779-0067 E-mail: attorney@pincklaw.com |
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BANKRUPTCY SERVICES |
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As a Federally designated debt relief agency Pinck & Pinck can help individuals regain their financial independence by declaring Chapter 7 or 13 under the United States Bankruptcy Code. The current bankruptcy system provides relief to individuals who have fallen behind on payments to creditors and need a fresh start. Many individuals suffer from the needless stress and anxiety caused by harassing creditors, the possibility of having their wages garnished or bank accounts levied on, and the possible foreclosure of their home. Bankruptcy is an effective way to get one’s financial life back on track. There are multiple forms of bankruptcy including Chapter 7, 9, 11, 12, and 13. However, for individuals living in the New Jersey—New York area, the most common are Chapter 7 and 13. Chapter 9 pertains the bankruptcy of a municipality, 11 is for business reorganization, and 12 relates to family farmers. Upon filing any type of Bankruptcy, there is immediate injunction on all collection activities. This is referred to as the “Automatic Stay”. As soon as the Automatic Stay goes into effect, all creditors must cease all attempts to collect a debt, or face harsh penalties imposed by the Federal Bankruptcy Court. This will be in effect until the bankruptcy process has been completed. It should be noted there are exceptions, which should be discussed with an attorney prior to filing a bankruptcy. Chapter 7, which is also referred to as a “Liquidation Bankruptcy” has the ability to wipe out all unsecured debts. That is to say if a person files for Chapter 7 all debts including credit cards, medical bills, personal loans, and most legal judgments will be discharged, and the creditors will no longer be able collect on the debts. On the other hand, secured debt such as a mortgage on a house or car loan cannot be discharged under most circumstances. Additionally, certain priority debts such as specific types of taxes or child support cannot be removed in bankruptcy. A Chapter 13 or Reorganization Bankruptcy allows an individual who has fallen behind on mortgage payments the ability to stop a foreclosure or a Sheriff Sale. Under a traditional Chapter 13, the amount a person has failed to pay is placed in a 60 month repayment plan. The person must also make their regular monthly mortgage payments. As long as the plan is in effect the property may not be foreclosed. There are variations on this plan, which should be discussed with an attorney. If you think you could benefit from the above please do not hesitate to contact us for a free consultation. |
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1115 Clifton Avenue Clifton, New Jersey 07013 (973) 779-6799
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For More Information |
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“The words filled the poor girl’s head; they weighed upon her with all their weight; she herself was so scrupulously conscientious; no flower in the depths of a forest had grown more delicately free from spot or stain; she knew none of the maxims of worldy wisdom, and nothing of its quibbles and its sophistries. So she accepted her father’s cruel definition and sweeping statements as to bankruptcy; he drew no distinction between a fraudulent bankruptcy and a failure from unavoidable causes, and how should she?
Honore de Balzac, Eugenie Grandet 108 (1833) |
