Below are a few facts regarding the bankruptcy process in New Jersey so you can gain a better understanding of what to expect during proceedings.
What Chapter is Right for Me?
The hardest part about petitioning the court for bankruptcy protection is figuring out which chapter you should file. There are actually six different chapters of bankruptcy protection available to debtors in the state, but it is likely you will most likely chose between Chapter 7 and Chapter 13 bankruptcies. These are the most commonly filed petitions in New Jersey and can provide the most relief in the lowest amount of time.
Chapter 7 Bankruptcy
Chapter 7 is the most commonly filed petition because it gets rid of the most debt in the fastest amount of time. This chapter involves liquidating one’s assets in exchange for the discharge of debt. Below are some details regarding Chapter 7 so you can decide if this is a chapter you might want to pursue:
Liquidation Bankruptcy Details:
- - Can be filed by both consumers and businesses
- - Debt can be completely discharged with the liquidation of assets
- - There are several assets that can be exempt, including the debtor’s home, certain personal effects and pension plans
- - Debtors can emerge from bankruptcy protection in as little as three months
- - Provides debtors with a “clean slate”
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also known as reorganization bankruptcy, is the second-most popular chapter sought by debtors in New Jersey. However, it is starkly different than Chapter 13 because not all debts can be wiped away. Most debtors who don’t qualify for Chapter 7 may file for Chapter 13, so let’s take a look at more details regarding this chapter to see if it may work for you:
Reorganization Bankruptcy Details:
- - Can only be filed by consumers
- - Assets are not liquidated
- - Debts may be reduced but are never entirely discharged
- - Debtors are placed on a court-appointed payment plan to reimburse creditors
- - Takes between three to five years to emerge from Chapter 13
- - Ideal for debtors facing foreclosure (creditors will not be able to proceed with attempting to repossess a home)
Hiring the Ideal New Jersey Bankruptcy Lawyer
We are here to make sure you don’t have to sift through hundreds of legal professionals and can find the bankruptcy lawyer in New Jersey who will make your needs their top priority. When you work with one of our featured attorneys, rest assured you will obtain quick and easy debt relief with help from a legal professional you can trust.
Filing for bankruptcy can be a lengthy and difficult process, especially if you don’t know much about it. With all the different chapters you can choose from, if you select the wrong one, it may lead you to incur even more debt than you started with. Our New Jersey bankruptcy attorneys will make sure that doesn’t happen. They will analyze your finances and determine the chapter you should file according to your position.
Call today to get started on your case with a lawyer who will protect your rights.