New Here...Chapter 7

[rooster0330]

Hi, I live in New Jersey, we are going to wind up filing bankruptcy. I am very nervous never thought I would be at this point. But anyway, can anyone give me the basics in New Jersey. Can I keep my cars, house etc....we have severe credit card debt, some medical, some misc...all from this economy. Do you have to be current on your mortgage, cars, anything you want to keep? I don't know, I don't even know where to begin, and insight advice would be more than appreciated.

[viking64]

Hi, I live in New Jersey, we are going to wind up filing bankruptcy. I am very nervous never thought I would be at this point. But anyway, can anyone give me the basics in New Jersey. Can I keep my cars, house etc....we have severe credit card debt, some medical, some misc...all from this economy. Do you have to be current on your mortgage, cars, anything you want to keep? I don't know, I don't even know where to begin, and insight advice would be more than appreciated.

As a fellow Jersey resident, I just wanted to say "Welcome." We're in the same boat. I can't answer specific questions, because I really did just turn things over to the attorney - but you will be able to use Federal Exemptions which helped us be a no-asset case.

I would definitely advise getting a good attorney you are comfortable with. I pored over ratings on a legal website and found one who appears to be experienced and great. She charges the max allowed, but I'm finding that might not be a bad idea since I'm pleased with the service. Of course, all this is provisional opinion until discharge.

My debit is half consumer credit, 1/4 taxes, 1/4 student loans. With consumer debt discharged, I'll be able to catch up on taxes and student loans in 2-3 years and then be totally debt free. Before then, I'll be able to live without having anxiety attacks every few days and feeling like black cloud is hanging over me.

I don't own a house and own my car free and clear. It's value at $3700 and the exemption is around $3200, so the extra is covered in the "wildcard" exemption.

I think the best advice is probably to be current on what you want to keep. We were also advised to not reaffirm anything as that means it could never be discharged. Since I still have tax and student loan debt to pay, it's probably wise to not be locked into anything should I lose my job or have a financial calamity.

We also have a timeshare with a small mortgage payment. We intend to keep it since the payment is small and the profit on sale is negligible enough to fit within the wildcard exemption as well. I'm current on that payment. if the trustee wants it, he can have it without a squeak from me, but we're going to try.

[DeadManCrawling]

For CH 7 you usually need to be current. There are a few people who have worked out a loan mod on homesteads during or even after a Ch 7 but this is unusual. It may become more common in the future, but it is not something you can reliably depend on.

CH 13 is designed to let you keep these things and get caught up, within certain parameters, and may be a better choice, depending on your financial abilities. In many Ch 13 cases, the secured creditors are the only ones who get paid. So, you could have a plan that allows you to catch up on the items you want to keep, but removes all unsecured debt, like CC's.

[freedom7]

new jersey has some of the highest means test numbers and qualifying for chapter 7 isn't that difficult. to keep a car, you have to be current or willing to get current quickly, because the courts will act quick if a creditor files a motion to lift stay. mortgages I don't have much experience with though. State is broken into 3 regions for filing purposes and trustees seem fair but do question cc debt a bit more than most people seem to be around the country(from what i have read from fellow posters). It has been a much easier transition here than i would have thought...good luck

[viking64]

State is broken into 3 regions for filing purposes and trustees seem fair but do question cc debt a bit more than most people seem to be around the country

In what ways? I'm running through potential questions in my mind so I won't be nervous, and trying to get a picture of the 341. My attorney isn't concerned, but I'm an expert at worrying about the end of the world.

[freedom7]

well, most threads i have read state how nothing is ever said other than the general questions, but the day I watched 341's and the day we went for ours, two different trustees, same location, asked all the people who had cc debt how they got it, what they did with the purchases, did they live above their means, mostly simple questions, but I was just surprised that they really wanted to know.

Like I did, you can go and watch the 341's anytime and get a feel for it, they are open and at the same locations all the time.

Good luck