Consumer Bankruptcy Lawyers in Newark, Delaware

Find the right Consumer Bankruptcy attorney in Newark, DE

Bankruptcy is a legal procedure that allows an individual or business to have some or all of their debts discharged. It is usually considered as an option of last resort, because while it can stave off financial disaster, it has some significant long-term consequences warranting careful consideration of the costs and benefits. Being a creation of federal law, bankruptcy will go through federal courts. Accordingly, the process for filing for bankruptcy in Delaware is essentially the same as the process anywhere else in the United States. However, particular courts in Newark, Delaware will have individual rules for exemptions, so you should speak with a local attorney before filing.

Chapter 7 Bankruptcy in Newark, Delaware

There are 2 common types of consumer bankruptcy in Newark, Delaware: Chapter 7 and 13. Chapter 7 liquidates part of the debtor's assets. It requires a certain percentage of the debtor's assets to be sold off to pay as much of his or her debt as possible. However, many forms of property that most people own are exempt, meaning that they don't need to be sold. This often includes houses, vehicles, insurance policies, and essential personal items, like clothing. These assets are not available to creditors.

Once eligible assets are sold, and the money turned over to the creditors, most remaining debt is discharged. However, there are certain types of debt that cannot be discharged in bankruptcy, including student loans, taxes, child support, and criminal fines. If most of your debt is non-dischargeable, it may not be a good idea to file for bankruptcy in Newark, Delaware.

Chapter 13 Bankruptcy in Newark, Delaware

Chapter 13 bankruptcy in Newark, Delaware is markedly different. It may or may not be a better option than Chapter 7, depending on the facts of your particular case. Chapter 13 does not eliminate any debt, but it creates a new payment plan that should give the debtor some breathing room. Typically, all of the debts are consolidated into 1 periodic payment. While this may make it take longer to pay off the debt, if the debtor is willing to make a few sacrifices, the plan should be manageable.

Which Type of Consumer Bankruptcy Should I File in Newark, Delaware

Chapter 13 is usually a good option for people who have a stable income, and a large amount of non-exempt property that they can't part with. On the other hand, if most of the debtor's property is exempt, and he or she does not have a stable income, Chapter 7 might be more beneficial.

Regardless of your situation, you should speak with an attorney in Newark, Delaware who is accomplished in bankruptcy before making a decision. They will be able to advise you of your options, and the likely consequences of each one, allowing you to make a much more informed decision.

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Life in Newark

Newark, Delaware is a city in New Castle County, and is located just miles away from Wilmington, the largest city in Delaware. As of a 2006 estimate by the Census Bureau, Newark has a population of just over 30,000 people.

Newark was founded by Scots-Irish and Welshsettlers in the late 1600s. However, the town was not officially chartered until 1758, when King George II issued a charter.

Throughout its history, Newark, Delaware has been a center for education, and educational institutions have played an important role in its development over the last few hundred years.

A grammar school was established in the town in 1765, as the Newark Academy. 3 signers of the Declaration of Independence were among the school's first graduates. Newark is also home to the University of Delaware, which was founded in 1833 as Newark College. Today, the University of Delaware is well regarded for many of its programs, particularly in the life sciences.

Newark, Delaware attorneys have to be ready to handle a wide variety of cases, given the unique demographics of the college town. Newark, Delaware has a large number of college students, as well as affluent families. The legal issues that these two groups are likely to face are very different from one another. Accordingly, Newark, Delaware lawyers have to be very well-rounded, making it very likely that they can handle just about any legal issue you might face.

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