How Does New Jersey Chapter 7 Bankruptcy Work?
Financial difficulties can be difficult to manage, but for those looking for debt relief, Chapter 7 bankruptcy in New Jersey provides a new beginning. This blog covers the fundamentals of New Jersey Chapter 7 bankruptcy, along with eligibility requirements, advantages, and the steps necessary to restore financial stability.
How to File for Chapter 7 Bankruptcy in New Jersey?
When declaring bankruptcy in New Jersey, you must be aware of both federal law and the state’s exemption laws. This article provides instructions for filing for Chapter 7 bankruptcy in New Jersey.
It is inevitable to encounter financial difficulties. However, bankruptcy can be helpful if you are among the millions of people in New Jersey who are having financial difficulties as a result of a job loss, illness, or other circumstances. Chapters 7 and 13 are explained here, along with information on filing and New Jersey’s property exemption laws, as well as checklists to help you stay organized and comprehend the Chapter 7 bankruptcy process.
What Is the New Jersey Bankruptcy Process?
In most ways, declaring bankruptcy in New Jersey is no different than declaring bankruptcy in another state. The Chapter 7 bankruptcy process, which is governed by federal law rather than New Jersey state law, functions by terminating the agreements you have with your creditors. It is what provides you with a new beginning.
The laws of New Jersey, however, are important because they dictate what property you are allowed to keep in your bankruptcy case. We go over some of the fundamentals first, and then we go over other filing information you will need.
How Can I Pick the Correct New Jersey Chapter 7 Bankruptcy?
If you are curious about the differences between Chapter 7 and Chapter 13, you are in the right place. Our helpful Chapter 7 versus 13 charts and the brief explanation below help clarify things.
Filing for Chapter 7 in New Jersey
Chapter 7 is the first option for bankruptcy for several reasons. It only takes a few months to finish, making it quick. It is also inexpensive, and you do not give your creditors any money.
People who primarily own the things they need to live and work and only a little else are good candidates for Chapter 7 bankruptcy. Because the Chapter 7 trustee, the person in charge of the case, sells needless luxury goods and gives the money to creditors, people with greater assets may lose them in Chapter 7. Contact our Chapter 7 bankruptcy attorneys NJ for legal assistance.
Additionally, Chapter 7 does not provide a payment plan option for making up missed auto or mortgage payments, in contrast to Chapter 13. Therefore, you risk losing your house or vehicle if you have to make loan payments when you file.
Will Filing for Chapter 7 Bankruptcy in New Jersey Erase My Debts?
Credit card balances, past-due utility payments, medical expenses, personal loans, and other debts are all erased in bankruptcy. If you are ready to give up the home or vehicle that serves as collateral for the loan, you may even be able to eliminate a mortgage or auto payment. However, not all debts can be discharged. Make sure that filing for bankruptcy will result in the discharge (removal) of enough debt to justify the filing.
How Can I Be Eligible for New Jersey’s Chapter 7?
You will not be shocked to hear that there are a number of standards you must fulfill in order to be eligible for bankruptcy. If you have already filed, you should determine whether sufficient time has elapsed to permit you to petition again, as you are only eligible for a discharge every few years. According to the section you intend to file and the chapter you have already filed, there are different waiting periods.
Qualifications for New Jersey chapter 7 bankruptcy
In the event that your family’s gross income is less than the state median income for a family of the same size, you might qualify for Chapter 7 bankruptcy. Multiply the total gross income over the previous six months by two. On the U.S. trustee‘s website, compare the number to the income charts (click “Means Testing Information”).
When Can I Utilize the Bankruptcy Exemptions in New Jersey?
If you have lived in New Jersey for more than 180 days, you can file for bankruptcy. You must, however, reside in New Jersey for a minimum of 730 days prior to submitting. If not, you would apply the exemptions from the prior state.
You would use the exemptions of the state in which you spent the majority of the 180 days prior to the two years immediately preceding your bankruptcy filing if you lived in more than one state during the two years prior to filing. According to 11 U.S.C. § 522(b)(3)(A).
Should I Work with Chapter 7 Bankruptcy Attorneys NJ?
For most people, seeking advice is worthwhile. An attorney for bankruptcy will assist you:
- Get accepted into the chapter of your choice.
- Assess the appropriate time to file.
- Assist you in maintaining the property you desire
- Be careful not to encounter fraud or other problems.
- In your scenario, explain when you will be able to stop paying the debts you will be erasing.
Creditors will likely call you until you file. Since informing creditors of your bankruptcy may persuade them to seek more extreme measures to collect before they lose the right to collect at all, it is typically best to ignore them. However, creditors will be forced to stop contacting you if you retain legal representation and direct them to our attorney.
What Happens After Filing for Bankruptcy in New Jersey?
Soon after you file, your creditors will no longer harass you. It takes a few days because the “automatic stay” order, which stops most creditors from pursuing you for payment, is mailed to your creditors. This is what will occur next:
- You will provide financial records that support the claims made in your bankruptcy filing.
- The one appearance that all filers are required to attend is the 341 meeting of creditors, which you will attend.
- After completing a debtor education course, you will submit the certificate of completion.
These events have to take place before you get Chapter 7 bankruptcy discharge in New Jersey. A repayment plan confirmation hearing will also be attended by Chapter 13 filers, who will also finish the three- to five-year payment plan.
With over 50 years of combined legal experience, our attorneys at The Law Offices of SRIS, P.C. bring unparalleled knowledge and competence to every case. In conclusion, by relieving qualifying debts and burdensome obligations, New Jersey Chapter 7 bankruptcy gives people a new financial beginning. Speaking with a competent lawyer can make the process clearer, ensure a clear route to debt relief, and restore economic stability for individuals experiencing severe financial stress. Contact us today.
FAQ’s:
Important documents to prepare for Chapter 7 bankruptcy filing include recent tax returns, proof of income, asset information, debt documentation, and personal identification.
Depending on their debt type and income, individuals may file under Chapter 7 (liquidation) or Chapter 13 (reorganization) in accordance with New Jersey bankruptcy statutes.
A checklist helps streamline the process and prevent delays when filing for bankruptcy.
In order to file, you need to submit a petition to a bankruptcy court in New Jersey, finish a credit counseling course, and include information about your income, assets, and debts. Speaking with a bankruptcy lawyer New Jersey can help ensure that the filing procedure is accurate.
