New Jersey Bankruptcy Lawyers
Speak to a New Jersey bankruptcy attorney about debt relief.
It's the same story all across the country: Your heart is in the right place but the money just isn’t coming in fast enough.
A personal bankruptcy attorney can help you develop a plan to start fresh so that you can rebuild your credit and start saving money for your future.
Just fill out the free case evaluation form below or call 877-833-2410 to schedule a no-obligation consultation with a New Jersey bankruptcy lawyer. Start taking control of your financial future!
For the names and office locations of the New Jersey lawyers in your area click here.
New Jersey Bankruptcy Laws
Filing bankruptcy in New Jersey could help you get on top of debts relating to medical bills, credit cards, and even mortgage debt. The two most popular types of personal bankruptcy, Chapter 7 and Chapter 13, are designed to help in different situations.
Chapter 7 cases typically move fairly quickly, and are designed to wipe out unsecured debts like credit card debt.
Chapter 13 cases restructure debts to make them more affordable to pay, and typically involves mortgage debt, car loans and other secured debts.
Deciding which chapter may be best suited for you depends on the types of debt you have, as well as your income, assets and other factors.
Filing Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, debts may be completely wiped out and forgiven by the bankruptcy court. Chapter 7 cases generally move quickly, and a discharge can be received in as little as a few months.
In order to file Chapter 7 bankruptcy, you must qualify under the Chapter 7 means test, which compares your household income to the median income for your household size. If your income is below the median, you typically can file Chapter 7. If not, you may file Chapter 13 bankruptcy.
Chapter 7 bankruptcy involves a process called "liquidation", in which certain assets of the debtor may be used by the bankruptcy court to repay creditors. However, New Jersey laws provide exemptions from sale, and many bankruptcy cases involve no liquidation at all.
New Jersey bankruptcy exemptions protect the following items in a Chapter 7 bankruptcy:
- Wages: 90% of earnings, up to 250% above the poverty level (may be adjusted depending on family size)
- Up to $1,000 of furniture and household goods
- All clothing
- Burial plots
- Up to $1,000 of other personal property
Filing Chapter 13 Bankruptcy
Chapter 13 bankruptcy cases work by creating an affordable debt payment plan through the bankruptcy court. During this plan, which lasts three to five years, debtors can pay back priority debts, such as missed mortgage payments, and have other debts like credit cards significantly reduced or eliminated.
Chapter 13 is typically used by those facing mortgage foreclosure. With the bankruptcy filing comes a court order known as the automatic stay, which halts foreclosure and all other collection efforts for the duration of the case.
Other reasons to file Chapter 13 bankruptcy include not qualifying for Chapter 7 under the means test, having valuable assets not protected by the exemptions listed above, and a moral conviction to pay all creditors.
Learn More About Your Options with a New Jersey Bankruptcy Lawyer
Bankruptcy laws are designed to protect you and give you a second chance. Connect with a New Jersey bankruptcy lawyer today and put these laws to work for you.
Simply fill out our free bankruptcy case review form or call 877-833-2410 today to arrange your free, no-obligation consultation.
New Jersey bankruptcy laws may have changed since our last update. For
the latest information on your state's bankruptcy laws, speak to a local
New Jersey bankruptcy lawyer.