Bankruptcy Attorney in Vineland, New Jersey

Financial problems can happen at any time to anyone. Even when you may feel like you are on solid ground, an unexpected situation can arise that brings you to the brink of disaster. When this happens to you, you don’t have to feel like your struggle is insurmountable. Filing for bankruptcy is not the end of your financial security —it’s the beginning of your journey to get back on solid ground. 

At Law Office of Victor Druziako, P.C., I focus on taking a personal approach to the issues my clients are facing. I am here to help you understand what bankruptcy options are available to you, explain the process, and lead you toward a better financial future. If you are considering filing for bankruptcy and you live in the Vineland area or anywhere throughout South New Jersey, reach out to me to schedule a free consultation to discuss your situation. 

Understanding Bankruptcy

Many people have preconceived notions about bankruptcy. While there may be a certain stigma that comes with filing for bankruptcy, it is actually often misunderstood. Contrary to what many people believe, there is a reality about what bankruptcy is—and what it is not. 

Bankruptcy IS a Tool for Seeking Financial Relief

Bankruptcy laws are in place to help individuals, families, and businesses that are struggling under the weight of financial debt. Depending on the specifics of your situation, filing for bankruptcy may be your best option to pursue the relief you so badly need. 

Bankruptcy IS NOT Something to Be Ashamed Of

Though some people may believe filing for bankruptcy is just a sign of failure or an indicator of someone being unable to be wise with their money, it is not something you need to feel embarrassed about. Life is often difficult, and that can include unforeseen financial trouble. There is nothing shameful about asking for help when you need it. In fact, according to Debt.org, bankruptcy filings in the United States for February 2023 increased by 18% over the number of filings in February 2022. People are ready and willing to reach out for help. 

Bankruptcy Options

Though the decision to file for bankruptcy may be relatively simple, the process itself can be complex. There are various types of bankruptcy available for individuals and businesses, and understanding what type of bankruptcy is right for you is dependent upon your own specific financial situation. 

Chapter 7

Chapter 7 bankruptcy—also referred to as liquidation or straight bankruptcy —is commonly used by individuals or businesses that have a limited amount of income and owe a significant amount of debt. Chapter 7 bankruptcy liquidates "non-exempt" assets and sells them off to repay the debt owed to creditors. Some assets are exempt from liquidation, including: 

• Your home 

• Your primary vehicle 

• Your personal belongings 

• 401(k)s and other retirement accounts or pensions 

The Chapter 7 bankruptcy process is relatively quick, though the individual filing must pass what is called the “means test” in order to qualify to file for Chapter 7. 

Chapter 11

Chapter 11 bankruptcy—also known as reorganization bankruptcy — is primarily used by businesses, but it can also be used by individuals who owe a substantial amount of debt or have uncommonly complex financial situations. Chapter 11 bankruptcy allows debtors to restructure their debt and create a repayment plan while still continuing to operate. Chapter 11 is a more complex and expensive process in comparison to other common types of bankruptcy. 

Chapter 13

Chapter 13 bankruptcy—sometimes referred to as the "wage earner's plan" —is designed for individuals who have regular income and want to repay their debt but need assistance to do so. Chapter 13 allows the individuals filing to create a manageable repayment plan that helps them repay their debt over a three to five-year period while protecting their assets from liquidation. Details about Chapter 13 bankruptcy include: 

• Debtors propose a repayment plan detailing how they will repay a portion or all of their debts over a specified period. 

• The repayment plan is based on the debtor's income, expenses, and the value of their non-exempt assets. 

• Chapter 13 helps debtors catch up on missed rent, mortgage or car loan payments while being allowed to keep their property. 

• Upon successful completion of the repayment plan, remaining eligible debts may be discharged. 

Deciding What Type of Bankruptcy Is Right for You 

As previously mentioned, determining what type of bankruptcy is right for you depends on a number of factors. With the help of an experienced bankruptcy attorney, you can learn more about how each type of bankruptcy applies to your circumstances and decide which filing option will be the best choice. Having a skilled attorney in your corner will put you in the best position to map out a sound path forward.