Chapter 7 Bankruptcy Attorney In Bedminster, New Jersey

In a chapter 7 bankruptcy, the debtor declares all assets owned at the beginning of the case. This collection of assets is called the "estate." The debtor also declares who all of his or her creditors are. The bankruptcy trustee assigned to the case determines whether the estate has any assets that would be available for liquidation to creditors in order to repay any of the debts owed.



Most debtors get to keep all of their property in a chapter 7 bankruptcy case because bankruptcy law permits people to retain certain types of assets up to a certain value. The categories of assets that the debtor is permitted to keep are called "exemptions." For example, a chapter 7 debtor with equity in his or her home can keep the property as long as the value of the equity is less than what is called the "homestead exemption," currently slightly under $24,000 in the state of New Jersey. So, a chapter 7 debtor without a lot of equity in their home can keep their house as long as they continue to make the regular mortgage payments. At the Law Offices of Andy Winchell, P.C. we sit down with clients and help them to create a comprehensive list of their personal assets and related exemptions so that a chapter 7 bankruptcy will offer as little disruption as possible to their established lives.