How Do You File for Bankruptcy in NJ: A Comprehensive Guide

Filing for bankruptcy in New Jersey can be a daunting task, but understanding the process can make it more manageable. This guide will walk you through the steps, requirements, and considerations involved in filing for bankruptcy in NJ.

Understanding Bankruptcy Types

There are different types of bankruptcy that individuals can file for, primarily Chapter 7 and Chapter 13. Understanding the differences is crucial.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, often called 'liquidation bankruptcy,' involves selling off non-exempt assets to pay creditors. It's typically suited for those with limited income and significant unsecured debts.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is known as a 'reorganization bankruptcy.' It allows individuals to keep their assets while repaying debts through a court-approved plan over three to five years.

Steps to File for Bankruptcy in NJ

1. Gather Financial Information: Compile all necessary financial documents, including income records, debts, assets, and expenses.
2. Credit Counseling: Attend a credit counseling session from an approved agency within 180 days before filing.
3. File the Petition: Submit your bankruptcy petition, along with schedules and statements of financial affairs, to the NJ bankruptcy court.
4. Automatic Stay: Once filed, an automatic stay goes into effect, halting most collection actions against you.
5. 341 Meeting: Attend the meeting of creditors, where you'll answer questions under oath about your financial situation.
6. Complete a Debtor Education Course: Before your debts can be discharged, complete a debtor education course.
7. Discharge: If everything is in order, the court will discharge eligible debts, releasing you from liability.

Considerations and Legal Assistance

Bankruptcy laws are complex, and mistakes can be costly. It's often beneficial to consult with a qualified attorney. For instance, consulting with a birmingham bankruptcy attorney can provide valuable insights and assistance.

FAQ Section

• What are the costs associated with filing for bankruptcy in NJ?

  Filing fees for Chapter 7 are approximately $335, while Chapter 13 costs around $310. Additional costs may include attorney fees and credit counseling charges.

• How long does the bankruptcy process take in NJ?

  The duration varies; Chapter 7 typically takes 3-6 months, whereas Chapter 13 can last 3-5 years due to the repayment plan.

• Can I keep my house and car if I file for bankruptcy in NJ?

  In Chapter 7, you may keep them if they are exempt and you can continue payments. Chapter 13 may allow you to keep them by restructuring your debts.

For more personalized guidance, consider reaching out to a local expert such as a bronx bankruptcy attorney to discuss your specific situation and options.