Question 1

What's the difference between Chapter 7 and Chapter 13 bankruptcy?

Accepted Answer

Chapter 7 discharges qualifying debts outright for individuals who meet income and asset thresholds, while Chapter 13 creates a structured repayment plan for those with regular income. Chapter 7 typically concludes faster, but Chapter 13 can stop foreclosure and repossession while you catch up on payments. At Jonathan Stone ESQ CPA MST LLC, we evaluate your income, assets, and goals to determine which path offers the best protection.

Question 2

How does filing Chapter 13 stop foreclosure in New Jersey?

Accepted Answer

Filing Chapter 13 triggers an automatic stay that immediately halts foreclosure proceedings, giving you time to catch up on missed mortgage payments through a court-approved repayment plan. The plan typically spans three to five years and must be aligned with New Jersey trustee requirements. At Jonathan Stone ESQ CPA MST LLC, we customize plans to protect your home while addressing other debts.

Question 3

Can I keep my car if I file Chapter 7 bankruptcy?

Accepted Answer

Yes, if your vehicle falls within New Jersey's exemption limits or you can reaffirm the loan with your lender. Exemptions protect a portion of your car's equity, allowing you to retain it through the discharge process. At Jonathan Stone ESQ CPA MST LLC, we assess your asset situation and apply exemptions strategically to preserve essential property.

Question 4

What income qualifies you for Chapter 7 in New Jersey?

Accepted Answer

Your income must fall below the New Jersey median for your household size, or you must pass the means test showing limited disposable income after allowed expenses. The means test evaluates your last six months of income against federal and state benchmarks. Jonathan Stone ESQ CPA MST LLC reviews your financial profile to confirm eligibility before filing.

Question 5

How long does a Chapter 13 repayment plan last?

Accepted Answer

Chapter 13 plans typically run three to five years, depending on your income level relative to the state median. Higher earners usually commit to five-year plans, while those below the median may qualify for three years. At Jonathan Stone ESQ CPA MST LLC, we structure plans that meet court requirements while balancing your budget and long-term financial stability.

Question 6

What happens during a bankruptcy trustee meeting in New Jersey?

Accepted Answer

The trustee meeting, or 341 meeting, is a short session where the trustee reviews your bankruptcy petition, verifies documentation, and asks questions about your finances under oath. Creditors may attend but rarely do. At Jonathan Stone ESQ CPA MST LLC, we prepare you thoroughly and accompany you to the meeting to ensure accurate, confident responses.

Question 7

Can bankruptcy stop wage garnishment right away?

Accepted Answer

Yes, filing either Chapter 7 or Chapter 13 triggers an automatic stay that immediately stops most wage garnishments, including those for credit card debt, medical bills, and personal loans. Garnishments for child support or certain tax debts may continue. Jonathan Stone ESQ CPA MST LLC files promptly to restore your take-home pay and protect your income.

Question 8

How does a CPA background help with bankruptcy cases?

Accepted Answer

A CPA's training in tax law and financial analysis allows for more accurate evaluation of income, deductions, and asset valuation, which are critical to bankruptcy eligibility and planning. It also helps identify tax debt issues that may require separate resolution. At Jonathan Stone ESQ CPA MST LLC, this dual expertise ensures your case is filed correctly and strategically from both legal and financial perspectives.

Question 9

What debts can't be discharged in Chapter 7 bankruptcy?

Accepted Answer

Chapter 7 generally cannot discharge child support, alimony, most student loans, recent tax debts, and debts arising from fraud or willful injury. Secured debts like mortgages and car loans remain unless you surrender the property. Jonathan Stone ESQ CPA MST LLC reviews your debt profile to clarify what will and won't be eliminated, so you can plan accordingly.

Question 10

When should you file bankruptcy instead of negotiating debt?

Accepted Answer

Bankruptcy may be the better option when your debt exceeds your ability to repay within a reasonable timeframe, creditors are threatening lawsuits or garnishments, or you're at risk of losing essential assets like your home or car. Negotiation works best for smaller, manageable debts. At Jonathan Stone ESQ CPA MST LLC, we compare both paths based on your income, debt level, and timeline to recommend the most effective solution.

Question 11

Does filing bankruptcy affect your tax refund in New Jersey?

Accepted Answer

Yes, tax refunds are considered assets in bankruptcy and may be subject to exemption limits or trustee claims, depending on timing and amount. Chapter 13 filers often must turn over refunds during the plan period. At Jonathan Stone ESQ CPA MST LLC, we time filings strategically and apply exemptions to protect as much of your refund as possible under New Jersey law.

Question 12

What's the biggest mistake people make before filing bankruptcy?

Accepted Answer

Many people transfer assets to family members, take on new debt, or cash out retirement accounts right before filing, all of which can lead to case dismissal, fraud allegations, or loss of exemptions. Accurate documentation and timing are critical. At Jonathan Stone ESQ CPA MST LLC, we guide you through pre-filing decisions to avoid costly errors and ensure compliance with federal and New Jersey bankruptcy rules.

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