New Jersey Bankruptcy Differences
As things stand now, with the limitations imposed by the COVID-19 pandemic and the thousands of jobs that have been lost, it is not surprising to find many people considering filing for bankruptcy. Having lost a job, being without income, and continuing to accumulate debt that is impossible to be paid off at the end of each month, is a situation in which many people find themselves. This is when thinking about filing for bankruptcy starts to sound not only like an interesting possibility but more like the answer to all the financial problems. If this is your case, you should know the different bankruptcy options that are available in New Jersey and what each one of them would mean to you and to your financial future.
This is the most common type of bankruptcy filed by individuals. It is beneficial for those who owe a great amount while having a limited income and no or almost no assets. It is also referred to as “liquidation” because any assets will, in fact, be liquidated. Any proceeds will be divided and paid out to the people to whom you owe money. However, if there are no assets, there is nothing to liquidate.
Why should you go for a Chapter 7 bankruptcy in New Jersey?
Mainly because it will allow you to discharge most of your debts and get a clean, fresh start financially speaking. Keep in mind that not all debts can be discharged. You will still have to pay student loans, certain taxes, and support payments to children or ex-spouses.
The process of a Chapter 7 bankruptcy usually takes some six months after which you receive a discharge. You should know that you can only receive a Chapter 7 discharge every eight years. Talk to your New Jersey bankruptcy lawyer to get a clear understanding of this procedure and whether it is the right one for you.
Chapter 13 filing is more complex and is used to allow an individual to rebuild their economic standing over a period that is usually set at three to five years. That is why it is also known as “wage earners plan” or “reorganization”.
Why should you go for a Chapter 13 bankruptcy in New Jersey?
In this case, some of your unsecured debts can be discharged (among them credit card debt) while assets like a car or a home can be kept by making payments through the Chapter 13 plan. This plan works like a budget, specifying where your expenses and income should be allocated during the life of the plan.
Chapter 13 works in cases where you have fallen behind on your mortgage payments and are being threatened with foreclosure. If your income allows you to continue making your mortgage payments, this is a good route for you since it allows you to pay what you owe spread out over five years. In other words, it gives you breathing room and the opportunity to recover your financial stability. Talk to your New Jersey bankruptcy attorney to be clear on the implications of taking this option.
Get Legal Help Now
Bankruptcy law is extremely complicated and each decision you make can have repercussions that may affect your future. Do not try to navigate this complicated maze on your own, the Law Office of Stuart M. Nachbar, P.C. has the bankruptcy attorney in New Jersey that you need now. They will be able to walk you through the New Jersey bankruptcy differences and help you make the most appropriate decision for your circumstances. Make an appointment today and start getting that heavy load off your shoulders.