How Does The Bankruptcy Process Work?

Bankruptcy is a means for finding relief from overwhelming debt. There are a variety of options under the Bankruptcy Code and which option is best depends upon your specific situation.

But while bankruptcy can allow for you to achieve a fresh financial start, it is important to understand that mistakes made in filing bankruptcy can be costly. The attorneys at Purrazzella & Purrazzella, P.A., have over 30 years of experience in the bankruptcy area and are known for their specific attention to detail. When arriving at our office, we will guide you through the process and provide you a straightforward assessment of your situation. We want to make certain you pursue the correct option that will most benefit you and your family.

What Will Be Required Of You

Chapter 7 bankruptcy and Chapter 13 bankruptcy have different requirements. Under Chapter 7 bankruptcy, a judge will order a discharge of most if not all of your debts. When filing for Chapter 13 bankruptcy, you will propose to a judge a payment schedule for ridding yourself of your debt. Chapter 7 is commonly filed by individuals who have large amounts of unsecured debt. Chapter 13 bankruptcy is often used by individuals with substantial amounts of assets who, because of income restraints, cannot pay their debts.

In either case, the bankruptcy process will involve preparing a petition. You will need to fill the petition out accurately and demonstrate your need for bankruptcy relief. This could include documentation regarding your debts, income, property and assets. If you file for Chapter 13, you will need to prepare a payment plan indicating specifically how you will pay your debts back. Mistakes made in such paperwork could delay the granting of your petition or even result in denial of bankruptcy relief.

You may be required to attend a meeting with the creditors present. Though rare, creditors can in certain circumstances challenge the bankruptcy petition. If such a meeting does occur, it is important for you to heed the advice of your lawyer and testify honestly at the proceeding.

Discharge through the process is generally complete within nine months. Any letter of discharge through bankruptcy must be sent to your creditors.

The Benefits Of Bankruptcy Relief

Bankruptcy can prove beneficial in a number of ways. The benefits of a bankruptcy filing include:

  • An automatic stay providing protection from creditor collection efforts
  • The exemption of certain assets from creditor claims
  • The discharge of a number of debts

Let An Experienced Bankruptcy Attorney Help You

Bankruptcy is a highly regulated process, and therefore it is essential to have experienced representation on your side. To contact us or make an appointment with an attorney at Purrazzella & Purrazzella, P.A., please call 732-691-4589. With a location in Toms River, we represent individuals in Monmouth County, Ocean County and all of New Jersey.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.