Filing Bankruptcy in NJ: What You Need to Know?

If you are looking for a law firm that can help you in filing bankruptcy in New Jersey, the Law Offices of Scott J. Goldstein, LLC can be of service.

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Filing bankruptcy in NJ allows individuals to address overwhelming debt through legal relief. New Jersey residents can file Chapter 7 bankruptcy to eliminate most unsecured debts or Chapter 13 bankruptcy to reorganize debts through a repayment plan. Both options trigger an automatic stay that stops creditor collection efforts.

The process requires meeting specific eligibility requirements, completing credit counseling, filing a petition with the bankruptcy court, and attending required hearings before debts can be discharged.

If you’re considering bankruptcy, the Law Offices of Wenarsky & Goldstein LLC provides experienced guidance throughout the New Jersey bankruptcy process.

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Understanding Bankruptcy Options in New Jersey

The cost of living in New Jersey creates financial strain for many residents. Housing costs near New York City, car payments, and student loans can quickly become unmanageable.

Chapter 7 Bankruptcy

Chapter 7 involves liquidating nonexempt property to pay creditors. To qualify, you must pass a means test comparing your household income to New Jersey’s median income for similar households. If your monthly income falls below the median, you typically qualify for Chapter 7.

Chapter 13 Bankruptcy

If you do not qualify for Chapter 7, Chapter 13 of the bankruptcy code might be an option. It allows debtors to reorganize their debt and create a monthly repayment plan. A feasible payment plan will enable them to repay some or all of their remaining debt in the next three to five years.

Chapter 13 allows you to reorganize debt through a 3-to-5-year repayment plan. This option is best suited for individuals with a regular income who wish to retain their homes. To qualify, you must pay the greater of:

Priority nondischargeable debt
Nonexempt property value
Disposable income

The New Jersey Bankruptcy Filing Process

Filing bankruptcy requires completing several mandatory steps:

Collect necessary financial documents
Complete credit counseling course
File a bankruptcy petition with the bankruptcy court
Attend the 341 Meeting of Creditors
Complete debtor education course

Chapter 13 filers must also attend a confirmation hearing for their repayment plan.

Secured vs. Unsecured Debts

Secured Debts

Secured debts have property attached as collateral, such as mortgages or car loans. These debts cannot be discharged without losing the property unless you sign a reaffirmation agreement and maintain payments.

Unsecured Debts

Unsecured debts have no collateral attached. Common examples include:

Credit card debt
Medical bills
Personal loans

Unsecured debts can typically be discharged entirely in Chapter 7 or partially paid through Chapter 13 plans.

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Which Debts Can Be Discharged?

Most unsecured debts can be eliminated through bankruptcy, including credit card balances, medical expenses, and older tax obligations. Chapter 13 can discharge certain debts that Chapter 7 cannot, such as some divorce-related debts or willful property damage.

Non-Dischargeable Debts

Some debts cannot be eliminated through bankruptcy:

Student loans
Child support payments
Recent tax obligations
Court-ordered damages from drunk driving or personal injury cases

New Jersey filers can choose between state or federal bankruptcy exemptions to protect essential assets during the process.

How a New Jersey Bankruptcy Attorney Can Help

Successfully filing for bankruptcy requires accurately completing multiple forms, listing all income sources, property, and debts. A bankruptcy attorney can:

Determine which bankruptcy chapter suits your situation
Ensure all paperwork is filed correctly
Represent you at required hearings
Protect your rights throughout the proceedings
Help you understand implications for your financial future

Mistakes in the bankruptcy process can result in the dismissal of the case. Having experienced legal representation increases your chances of a successful outcome.

Filing bankruptcy offers a fresh start for New Jersey residents struggling with overwhelming debt. The Law Offices of Wenarsky & Goldstein LLC has the knowledge and experience to guide you through every step of the bankruptcy process.

Contact us today to schedule a consultation and discover which bankruptcy option is best suited for you.

Call the Law Office of Wenarsky & Goldstein

At the Law Offices of Wenarsky & Goldstein, LLC, our New York and New Jersey attorneys are experienced and knowledgeable in bankruptcy, estate planning and probate, guardianship, special needs planning, and real estate law. To learn more about how we can assist you with your legal needs, call us today at 973-453-2838.

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973.453.2838