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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Good Day, My sister-in-law is facing bankruptcy. She is in

Resolved Question:

Good Day,
My sister-in-law is facing bankruptcy. She is in debt to the tune of about 20-30 thousand dollars. She spoke to a lawyer who wanted $3000.00 to file the proper papers. It seems unreasonable to me because my sister-in-law has no money. Thats why she's filing.

Can someone try to help and/or clarify this situation?

Thank you.
My name isXXXXX and you can reach me by e-mail or phone at
(XXX) XXX-XXXX
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.
Hello,

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by JustAnswer.com and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

What type of bankruptcy is your sister-in-law filing??
Customer: replied 6 years ago.
I guess its a personal banckruptcy.
Expert:  Ellen replied 6 years ago.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy is known as liquidation bankruptcy.It does not involve a payment plan and usually runs about $1000-$1500 attorneys fees


A Chapter 13 bankruptcy is a repayment plan for an individual.It typically runs about $2500-$5000

I hope this is helpful
Customer: replied 6 years ago.
How do I choose which proceeding is right for my sister-in-law
Customer: replied 6 years ago.
Can you explain a little more about the difference between the two bankruptcies
Expert:  Ellen replied 6 years ago.
Hello,


As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of her unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, she may have to surrender assets, if any, that exceed her exemption.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that She repay some of your unsecured credit card debt over a 3 -5 year period. However, she may retain assets that exceed her exemption.


Here are the exemptions for New Jersey:
http://www.bankruptcyinformation.com/nj_exemp.htm



Best wishes for a Happy and Healthy New Year!
Ellen and other Bankruptcy Law Specialists are ready to help you