Process of Filing for Bankruptcy in New Jersey
You may be experiencing fear and concern just thinking about the idea of filing bankruptcy. These feelings, coupled with facing overwhelming debt, can lead you to believe there is no end in sight. It may comfort you to know that help is available for you to pave a way forward away from financial distress.
An experienced New Jersey bankruptcy attorney could help by reviewing your financial circumstances and by explaining the process of filing for bankruptcy in New Jersey. They can also serve as your guide throughout the process, helping you find a solution you feel comfortable with.
Beginning the Bankruptcy Process in New Jersey
The procedure for filing bankruptcy in New Jersey takes place in multiple steps. One of the first steps in the bankruptcy process can be for an attorney to review the claimant’s financial situation. As part of this process, the attorney can also determine exemptions to which the person may be entitled.
Exemptions are the values of certain property that the debtor is able to keep away from their creditors. Property that can be protected from creditors through the use of exemptions can include bank accounts, household goods, and pensions.
There are two types of bankruptcy a person may qualify for. A bankruptcy attorney can determine whether someone may qualify for a chapter 7 bankruptcy or chapter 13 bankruptcy. A chapter 7 bankruptcy is a bankruptcy that typically can help a person remove most, if not all, of their debt. A chapter 13 bankruptcy is a payment plan of the person’s debt over a certain period. Before and after a person files bankruptcy, there are counseling courses they need to take.
Before the bankruptcy process can begin in the court system, a credit counseling course must be taken. A credit counseling course helps determine whether bankruptcy is the best choice instead of other options, such as setting up a payment plan with creditors. A plan may be proposed to pay the person’s debts as part of this counseling.
However, the claimant is not required to follow that plan. In other words, they can still file bankruptcy instead of following any proposed plan that is offered as part of the credit counseling course.
After someone files for bankruptcy, they would need to take a course commonly referred to as a personal financial management course. This course is designed to cover financial management issues, including techniques for managing money and preparing a budget.
Meeting of the Creditors
Typically, there is only one appearance that the claimant has to make in their bankruptcy case. This appearance is an important part of the process of filing for bankruptcy in New Jersey and is referred to as a meeting of the creditors. At this meeting, the person will meet with the trustee in their bankruptcy case who is an individual who oversees and administers bankruptcy matters.
The trustee can review the bankruptcy claim and ask questions about the information provided in the claim. Creditors can also ask questions if they decide to appear at this meeting.
The primary goal in many bankruptcies is obtaining a bankruptcy discharge. A bankruptcy discharge is an order issued through the bankruptcy court that releases a person from any further personal liability regarding certain types of debt. However, some types of debts may not be discharged in bankruptcy including student loans, spousal support, and child support.
A Lawyer Could Explain Process of Filing for Bankruptcy in New Jersey
The bankruptcy process can become much clearer as you gain an understanding of what to expect. The benefits of filing bankruptcy may outweigh the drawbacks of continuing to battle with the idea of whether to file bankruptcy.
If you are unsure of how to proceed, speak with an attorney. An accomplished bankruptcy attorney could explain the New Jersey process of filing for bankruptcy, review your situation, and help you form a plan of action to appropriately handle your financial circumstances.