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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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We are considering bankruptcy options. we live in the state

Customer Question

We are considering bankruptcy options. we live in the state of NJ. We would like to try to file Chapter 13 and keep our home, hopefully selling when things in the housing market pick up in a few years. Question - can a bankruptcy attorney negotiate for a reduced mortgage payment? Can they negotiate for reduced payments for unsecured debt? We will try to find a local attorney to handle. Can you suggest questions to ask attorneys that we are considering?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.



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


You may want to consider filing a Chapter 7 bankruptcy.



I will explain.


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 your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.


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


After you file a Chapter 7 bankruptcy, you may keep your home if you continue to pay the mortgages.

Here are the exemptions for New Jersey:



I hope that the information which I provided was helpful to you.

Customer: replied 8 years ago.
Thank you for your reply - however. I was already aware of the differences between CH. 7 & 13, as it is information readily available on numerous websites for no charge. I was more interested as to what attorneys can, in the state of NJ, negotiate for you, and what questions we should ask attorney when we have initial consultation (other than his/her fees, of course)
Expert:  Ellen replied 8 years ago.
I will opt out so that another expert can assist you.