Chapter 13 bankruptcy is available for those who have exhausted all other options available and meet the requirements with an understanding of the repayment. If you are a New Jersey resident and you are having issues with your finances, filing Chapter 13 for bankruptcy may be an option you need to explore.
With the help of bankruptcy attorneys in Millburn NJ, you can get access to the most accurate information and legal counsel to help guide you through this process. Let Goodgold West & Bennett LLC assist you with your questions.
What is Chapter 13?
Chapter 13 refers to a federal repayment plan regulated at both the state and federal levels. There are rules and regulations put in place for the parties declaring bankruptcy, the creditors involved, and how to establish the repayment plan.
Based on considered priority and non-priority, it may require you to pay back some or all of your debt. In order to know what truly qualifies, you will need to have your debt and assets reviewed by a Millburn bankruptcy lawyer to prepare you for the plan.
Not everyone is eligible for Chapter 13 of bankruptcy, so you need to review the eligibility requirements first.
Am I eligible?
If you are pursuing Chapter 13, you need to first make sure you meet eligibility requirements. This includes the following:
- An individual US citizen
- Must be self-employed or operating an unincorporated business
- Meet secured and unsecured debt requirements
Maximum Unsecured Debts
In order to be eligible, the total amount of your unsecured debts must be equal to or less than $465,275.
Unsecured debt refers to your credit card debt, medical bills that are outstanding, bank loans, memberships, and any other debt you have acquired without having to provide any type of collateral for that credit. A Millburn bankruptcy lawyer can help you determine if you have unsecured debts if you are not sure.
Maximum Secured Debts
If you have posted collateral for some of your debt, that amount cannot be greater than $1,395,875 in total.
Secured debt refers to loans or liens given based on a property to assure the value of the loan. This will include things like your financed vehicle loans, mortgage, and other properties. With the help of a Millburn bankruptcy attorney, you can get the total value of your secured debt to make sure you meet requirements.
Current Income Taxes
Before you can file for Chapter 13 and get approval, your current tax status will need a review.
Any taxes considered delinquent will be open for review and access during the process. Your priority taxes, based on your income will need payment first. An experienced Millburn NJ Chapter 13 bankruptcy attorney can explain in-depth based on your personal tax situation.
For example, non-priority taxes consist of those that are not required to get paid right away and may not be part of your Chapter 13 repayment plan. It includes the following:
- Any due income taxes due three years or older prior to your filing date for bankruptcy
- Filed taxes with your income at the gross level
- A taxing agent reviewed the tax prior to 240 days before the filing of the bankruptcy
Below are priority taxes guaranteed to your repayment plan.
- Taxes from trust funds
- Any sales taxes paid by consumers
- Employment taxes related to you or your business
- Tax refunds sent in error
- Tax liens that were in place prior to the chapter 13 bankruptcy
If you are not sure if your taxes fall into one of these categories, a Millburn Chapter 13 bankruptcy lawyer can help you determine what actually qualifies.
At Goodgold West & Bennett LLC, you can expect to receive top-tier knowledge from our bankruptcy lawyers in Millburn NJ. We have years of experience helping other residents just like you get through Chapter 13 and make it as easy as possible. If you would like more information, contact us today for a free consultation.