Documents Needed to File Bankruptcy in New Jersey
When you make the decision to file for bankruptcy, you must be prepared to document all your assets, debts, income, and expenses. This may result in over 50 pages of forms. While an attorney is not required to file for bankruptcy, it is certainly advised.
Bankruptcy rules in New Jersey are strict, and if you do not file the forms properly and in a timely manner, it can result in severe consequences including a dismissal of your bankruptcy case. A practiced attorney could help you make sure you are filing all necessary documents needed to file bankruptcy in New Jersey so that you can have a greater chance at a successful petition. Call today to learn more about bankruptcy qualifications.
Requirement to Complete Credit Counseling
In 2005, Congress passed the Bankruptcy Act that requires individuals who file for bankruptcy to complete credit counseling from an approved credit agency within six months before filing for bankruptcy. The counseling session takes about 90 minutes and can be completed online, in person, or over the phone. The Act also requires individuals to complete a financial management course after they file for bankruptcy.
After the person completes the credit counseling session, they will receive a certificate. In addition to the certificate, they must fill out Exhibit D Individual Debtor’s Statement of Compliance with Credit Counseling Requirement. The certificate and Exhibit D must be filed at the same time they file their bankruptcy petition.
Bankruptcy Supporting Documents
In addition to credit counseling, before someone files for bankruptcy, they also need to itemize their financial information and fill out their respective forms, including information about their:
- Current sources of income (Form 6I)
- Major financial purchases within the last 24 months
- Living expenses each month (Form 6J)
- Debts (Form 6D)
- Personal (Form 6B) and real property (Form 6A)
In addition to the information outlined above, the person should gather their tax returns for the last two years, real estate deeds, car titles, and any loan documents they have. Once they have collected this information, the next step is to determine which of these assets are exempt from bankruptcy proceedings. Exempt property cannot be used to pay back creditors.
A seasoned attorney could help ensure that an individual has all the documents needed to file bankruptcy in New Jersey.
Filing a Petition in New Jersey
When an individual is ready to file for bankruptcy, the person must file a Form B1 Voluntary Petition, along with the forms mentioned above. It is critical they are honest and forthcoming about their financial situation and all their assets. If a judge or creditor has reason to believe otherwise, it may affect the outcome of a bankruptcy petition.
In New Jersey, a person must file a bankruptcy petition in the Bankruptcy Court Clerk’s Office located in the vicinage where they live or have their principal place of business. There are three vicinages: Camden, Newark, and Trenton. To find out which vicinage to file in, refer to the Debtor Assistance Resource Guide.
Consulting a New Jersey Bankruptcy Attorney
Upon filing a bankruptcy petition, the court will take control of the person’s debts and non-exempt property. A bankruptcy trustee will then be assigned to the case to ensure that all creditors are paid.
If you are considering filing for bankruptcy in New Jersey, it is important to take a detail-oriented approach to avoid missing any important paperwork. An attorney could guide you through the process and help you keep track of the documents needed to file bankruptcy in New Jersey. They could help you create a petition with a greater chance of success so you can begin to move forward.