New Jersey Bankruptcy Courts
If you are considering filing for bankruptcy, take comfort in knowing that you are not alone. It has been estimated that, over a lifetime, everyone has a one in ten chance of going that same route. This means that many of the people around you have already done so. Before getting started, it might be interesting to understand a little more about New Jersey bankruptcy courts.
Bankruptcy Courts and Laws
Bankruptcy Courts are located within each of the 94 federal judicial districts nationwide. This means that bankruptcies cannot be filed in a state court. Bankruptcy laws are put in place in order to help people who are having financial difficulties either by getting a fresh start through the liquidation of their assets so that they can pay their debts or by creating a repayment plan for them.
Bankruptcy laws also offer protection for businesses that are in trouble and establishes a mechanism for distributions to their creditors either through reorganization or liquidation. These dealings are covered under Title 11 of the United States Bankruptcy Code. Most cases are filed under three main chapters, which are Chapter 7, Chapter 11, and Chapter 13.
How are bankruptcy courts established?
Bankruptcy courts are created at the legislative level and, as such, are established by Congress under its legislative powers. These courts are were bankruptcy cases must be filed in order for all of them to follow a uniform federal system and not be subjected to the different rules and regulations that states may have in place.
What are core matters in bankruptcy?
Some issues in bankruptcy cases are so integral to the process that they are classified as core matters. Among them we find:
- Interpreting the bankruptcy code itself
- How these claims are handled
- What debts can be discharged
- How Chapter 11 debtors are reorganized
- Chapter 13 repayment plans
These core matters are decided by a bankruptcy judge who may also be called on to decide on non-bankruptcy matters.
New Jersey Bankruptcy Courts
In New Jersey, the court is divided into three separate units known as “vicinages,” based on the locations of the three federal courthouses in the state’s District.
- The Newark vicinage consists of Bergen, Essex, Hudson, Morris, Passaic, Sussex, and Union counties.
- The Trenton vicinage consists of part of Burlington (except for the townships of Cinnaminson, Delran, Edgewater Park, Evesham (Marlton), Maple Shade, Moorestown, Mount Laurel, Palmyra, Riverside, and Riverton), Hunterdon, Mercer, Middlesex, Monmouth, Ocean, Somerset, and Warren counties.
- The Camden vicinage consists of Atlantic, part of Burlington (the townships of Cinnaminson, Delran, Edgewater Park, Evesham (Marlton), Maple Shade, Moorestown, Mount Laurel, Palmyra, Riverside, and Riverton), Camden, Cape May, Cumberland, Gloucester, and Salem counties.
Determining your Bankruptcy Court
When you file for bankruptcy, it is important to make sure to do so in the appropriate bankruptcy court. Mainly, you must do so in the federal district which corresponds to the place where you live. If you have recently moved, it must be in the place where you lived within the 180 days prior to filing. Even after you have identified the correct court, it is always advisable to contact them directly to confirm.
Work with a New Jersey Bankruptcy Attorney
Your New Jersey bankruptcy lawyer will help you understand the confusing process of filing for bankruptcy and clarifying how the system works. Being well informed about your choices can be the first step towards achieving some peace of mind. Make an appointment with the Law Office of Stuart M. Nachbar, P.C.to get started on the road to a better financial future.