Filing for bankruptcy in New Jersey is an important step towards achieving financial relief. It stops creditor harassment, prevents repossession, and protects certain assets.
Living in New Jersey is expensive, and sometimes debts pile up beyond a person’s means. Even celebrities have had to file for bankruptcy.
Chapter 7
A Chapter 7 bankruptcy is a liquidation process that eliminates most types of unsecured debt, such as credit card bills. It also allows the debtor to keep certain property, assuming it is exempt or protected under the law. However, some property must be surrendered to the bankruptcy trustee. Our firm can help you understand which assets are exempt and protect your property during the bankruptcy process.
New Jersey offers its residents strong debtor protections under the state and federal exemption laws. These can allow you to retain many personal and real assets, including your home and vehicle. Our firm can review your property with you during a free consultation to ensure it can be fully exempted or protected.
You must pass a means test to qualify for Chapter 7. A knowledgeable bankruptcy lawyer can help you determine your eligibility and assist with alternative options. Even the most successful people can experience financial difficulties. For example, talk show host Larry King and Grammy-winning artist Toni Braxton both filed for bankruptcy.
Chapter 13
When an individual files for Chapter 13 bankruptcy in New Jersey, they are required to submit various documentation to the court. This includes a list of all debts and income sources, as well as documents identifying all property owned by the individual. In addition, the person filing for bankruptcy must also take a credit counseling course.
Once a petition is filed, the court immediately imposes an automatic stay, which stops creditors from calling, suing, garnishing wages or starting foreclosure actions. The next step is to prepare and file a plan with the court that outlines how you will repay some or all of your debt over three to five years.
A bankruptcy lawyer can help you develop a plan that works for your situation. They will also be able to resolve any objections from your creditors regarding the repayment plan. Some debts cannot be discharged, including student loans, alimony and child support. In addition, the bankruptcy will remain on your credit history for 10 years.
E-filing
The law provides for several ways to get relief from debt under the United States Bankruptcy Code. Individuals can file for bankruptcy under Chapter 7 to liquidate assets, or Chapter 13 to create a repayment plan. Municipalities (cities, towns, taxing districts, and school districts) can file for Chapter 9 to reorganize. Chapter 11 helps troubled businesses. Families can obtain debt relief under Chapter 12 to reorganize or liquidate their debts.
All pleadings must be filed electronically. Attorneys must be registered to use CM/ECF and must be admitted to practice before this Court in order to file electronically. Attorneys who do not practice before this Court must associate with local counsel to e:file.
Before filing for bankruptcy, a person must receive credit counseling from an approved provider. Failure to do so may result in dismissal of the case. To find an approved provider, click here. Occasionally, the CM/ECF system experiences delays caused by network congestion or other technical difficulties. When this occurs, filings are encouraged to be submitted early in the morning or around lunch hours.
Credit Counseling
The New Jersey bankruptcy code requires you to take a credit counseling course before you file for bankruptcy. This class is usually offered online or over the telephone and costs about $50. You can ask for a waiver if you can’t afford to pay. There are several organizations that offer these classes. A list of approved agencies can be found on the DOJ’s website.
Many people worry that if they file for bankruptcy, their credit will be ruined forever. However, this is not always the case. Many successful people like Larry King and Toni Braxton have filed for bankruptcy. Bankruptcy can help you get rid of unsecured debt and start fresh.
You can use a New Jersey bankruptcy attorney to guide you through the process. An experienced attorney can also negotiate with creditors to reduce your debt. They can even help you avoid bankruptcy by finding ways to settle your debts outside the bankruptcy process.
