Bankruptcy and credit-Frequently Asked Questions

We are attorneys providing debt relief advice and representation. We help people obtain debt relief under the Bankruptcy Code and other laws.

Do I need a bankruptcy? Can't I just dig out of debt myself?
You might be able to, but many people underestimate how much debt they have or how "financially underwater" they are. To find out for yourself, go to our bankruptcy resources page for some helpful links and budget worksheets.

What is the First Meeting of Creditors and why is it important?
This is really the formal hearing with the representative of creditors, where each debtor is required to testify under oath and answer questions about assets, finances and provide information. Usually, this hearing is in a hearing room in a courthouse or an office. In Chapter 7 and Chapter 13 cases, the hearing is conducted by the trustee. In Chapter 11 cases, a representative of the United States Trustee presides. Creditors can appear and ask questions but this is rare except in big or hotly disputed cases. Usually their involvement is limited.

For most debtors, this is their first and only appearance at a hearing. If their attorney is knowledgeable and prepared, he or she has already assembled the documents needed to answer the questions likely to come up. Properly prepared, a debtor should have a pretty good idea what these questions will be. In fact, most trustees send out notice ahead of time listing the documents and information needed.

This hearing is very important. Not being prepared can result in complications, more hearings with more time off from work, delays, expense and anxiety. You and your attorney should have supplied the information the trustee needs, or bring it to the hearing.You should prepare by reviewing again your Petition, Schedules and other papers you filed. If there is anything inaccurate in them, you should tell your attorney and be prepared to correct that error, and disclose and explain why it happened. Any type of dishonesty or concealment can have bad side-effects. You could lose your discharge, or your property, or your right to claim property as exempt. You could face civil or criminal action.

DO: Arrive on time with your papers.
DO: Bring your government issued photo-ID and original Social Security Card, paystub with your full Social Security Number, W-2, 1099 or other form of approved original document to verify your Social Security Number.
DONT: Bring any type of weapon. If your hearing is in a courthouse, leave your cellphone in your car or outside.

Directions to First Meeting Hearing Rooms in New Jersey

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I cannot come to the First Meeting of Creditors. What do I do?
The answer depends on why you cannot make it. If you have another important commitment that you cannot break, your attorney should call the Trustee to reschedule. You may be required to provide information or documents the Trustee has asked for, in order to be allowed to do this. If you are unable to come because you are ill or disabled, or are going to be out of town for a lengthy period of time, your attorney can arrange for the First Meeting to be conducted by telephone, but this will require a court order.

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Can I "withdraw" my bankruptcy?
If you are in a Chapter 13 bankruptcy and did not start in another chapter, yes. Otherwise, debtors in Chapter 7 or Chapter 11 do not have a "right" to withdraw their bankruptcy, and must show the court and the trustee that dismissing their bankruptcy will not prejudice the rights and interests of creditors. The court has discretion to refuse to dismiss a bankruptcy case. If your attorney can show that continuing your bankruptcy will not result in your unsecured creditors receiving any payment, the chances of being able to dismiss your bankruptcy are usually pretty good. If you want to end the bankruptcy because a trustee or a creditor has discovered that you have something of value that can be sold or collected to create money for creditors, you can expect a hard time, especially if there was any delay in your asking to get out of bankruptcy. Just because you may want to pay your creditors yourself is rarely enough.

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I am in a Chapter 7 bankruptcy and the Trustee wants to sell something I want to keep. What can I do?
This should not have come as a surprise if you were straightforward with your attorney and he did his job. However, sometimes the unexpected happens. First, you should work with the trustee to establish the real value of the item you want to keep, and how much money the trustee would be left with after paying sale costs, your exemptions, and any mortgages or liens. This is the "net benefit value". This figure is usually less than what it would cost you to replace the item. Talk to your attorney to see if you can pay the Trustee this net benefit value. You might be able to "redeem" the item in this way. If not, you and your attorney should consider whether converting to Chapter 13 makes sense. However, you should ask your attorney about the additional cost of doing this.

For a graphical map of the progress of bankruptcies under the different chapters, click here.

I want to rebuild my credit after my bankruptcy. What do you suggest?
First and foremost, you must budget and control your spending. Understand that credit is buying the use of other people's money, and your price can be very high if you do not have good credit. That said, the sooner you can start establishing that you can handle credit responsibly. For more information, please go to our page on Bankruptcy and Your Credit.

For a expense budget, you can use our Excel spreadsheet by clicking here.

Finally, read our webpage on identity theft.

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If you need our help feel free to call us, after you have reviewed our disclosure page. The initial telephone consultation for new clients is always free, and most initial office consultations are either free or at reduced cost.

For new clients, we will want to see you in the office. To make the best use of that meeting, we urge you to download and fill out our client questionnaire, (click here if you have a business, or click here if otherwise)

We will take the time to talk over with you all your options and to help you with the planning process that will help you take control of your life. When you leave our offices, you will either have a plan or be

IF YOU WOULD LIKE OUR HELP, WE ASK YOU TO CALL US AT (856) 596-2828 FOR AN APPOINTMENT. Please first read a notice about bankruptcy required by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 by clicking here: