Financial hardship can strike anyone, regardless of background or circumstance. If you're struggling with overwhelming debt, you're not alone. Bankruptcy exists as a legal tool to provide a fresh start for individuals facing financial burdens.
While navigating the complexities of bankruptcy law can be daunting, seeking legal guidance can empower you to make informed decisions about your financial future. Here at Simon Law Group LLC, our team of knowledgeable New Jersey bankruptcy attorneys understands the challenges you face and is dedicated to helping you achieve a path towards financial relief.
To file for bankruptcy in New Jersey, you must have resided in the state for at least 180 days prior to the filing date. There are two main bankruptcy types that individuals in New Jersey might consider, Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.
Often referred to as "liquidation," Chapter 7 allows for the discharge of most eligible debts. This means the court erases your legal obligation to repay them. This option can be suitable for individuals with limited assets and high debt, who wouldn't be able to realistically repay their creditors through a Chapter 13 plan (see below).
To qualify for Chapter 7 bankruptcy in NJ, a means test compares your household income to the state's median, but exceeding it doesn't guarantee disqualification; consult an attorney for current eligibility details
This option focuses on creating a repayment plan to satisfy your creditors over a three-to-five-year period. Under Chapter 13, you propose a plan to repay all or a portion of your debts using your future income. This option can be beneficial if you have non-exempt assets you want to keep, or if you have steady income and want to catch up on missed payments.
Financial hardship can manifest in many ways, but some common signs that bankruptcy might be a solution include:
Filing for bankruptcy in New Jersey involves several key stages:
While the overall process can take anywhere from 3-6 months on average, the exact timeframe can vary depending on the complexity of your case and potential New Jersey bankruptcy court backlogs. Consulting with a New Jersey bankruptcy attorney can provide a more accurate estimate for your specific situation.
Filing for bankruptcy isn't a decision to take lightly. Here are some potential drawbacks to consider:
There are limitations on filing for subsequent bankruptcies in New Jersey. Generally, you'll need to wait a certain period before being eligible to file again, depending on the Chapter you filed under. However, the focus should be on moving forward and rebuilding your credit after your NJ bankruptcy. Rebuild your credit by securing a credit card for beginners, making on-time payments on all accounts, and potentially becoming an authorized user on a loved one's card with good credit.
The complexities of New Jersey bankruptcy law can be daunting. A knowledgeable and seasoned NJ bankruptcy attorney from Simon Law Group LLC can be your invaluable partner throughout the process. These are just a few of the highlighted benefits of working with a bankruptcy attorney to file NJ bankruptcy.
At Simon Law Group LLC, our team of qualified New Jersey bankruptcy attorneys understands the challenges you face. We are dedicated to helping you navigate the legal complexities of bankruptcy and achieve a path towards financial relief. Schedule a consultation today to discuss your specific situation and explore your options.