What to consider when facing bankruptcy in New Jersey
Are you drowning in debt? Living paycheck-to-paycheck while debts keep getting larger? If so, you may be considering filing for bankruptcy. For individual debtors, the U.S. Bankruptcy Code offers two types of bankruptcy to New Jersey residents: Chapter 7 and Chapter 13.
In a Chapter 7 bankruptcy, certain assets of the debtor are surrendered to the bankruptcy court and sold, with the proceeds divided amongst the debtor’s creditors. The debts are then discharged, meaning that the debtor is no longer obligated to pay them. In a Chapter 13 bankruptcy, the debtor pays the bankruptcy court his or her disposable income for a period of three to five years. This money is distributed to the debtor’s creditors. At the conclusion of the three- to five-year period, the remaining debt is discharged.
Bankruptcy is designed to give debtors a fresh financial start, but this does not mean it is the solution for every tough financial situation. Before you file for bankruptcy in New Jersey, consider the following:
These are but a few of the issues that should be considered before filing bankruptcy in the Garden State. Bankruptcy law can be complicated, so debtors who are confused about the process should consider reaching out to a New Jersey bankruptcy attorney for help.
Before you file for bankruptcy in New Jersey, consider: