Clear answers to common questions about Chapter 7 and Chapter 13 bankruptcy in New Jersey.
Bankruptcy is governed by federal law but administered through the United States Bankruptcy Court for the District of New Jersey.
The information below addresses common procedural, eligibility, and practical questions individuals ask when considering Chapter 7 or Chapter 13 relief.
Each case depends on individual financial circumstances.
Chapter 7 eliminates qualifying unsecured debt, while Chapter 13 creates a structured repayment plan over three to five years.
Eligibility depends on income analysis and financial review under federal guidelines.
Yes. Employment does not prevent filing. Income level affects chapter eligibility.
Timing depends on document completion, eligibility review, and required pre-filing credit counseling.
In many cases, collection activity and wage garnishments pause upon filing.
Filing may pause foreclosure proceedings. Long-term outcomes depend on chapter selection and repayment feasibility.
Once filed, creditors must generally direct communication through legal channels.
The automatic stay is a federal court order that temporarily halts most collection activity upon filing.
Asset retention depends on exemption protections and equity analysis.
Vehicle retention depends on loan status, equity, and chapter selection.
Many qualified retirement accounts receive protection under federal law.
Exemptions are determined under applicable federal or state law, depending on eligibility.
Bankruptcy affects credit reporting but may provide long-term financial stabilization.
Many individuals begin rebuilding credit after discharge through responsible financial practices.
Many individuals begin rebuilding credit after discharge through responsible financial practices.
Most individuals attend a required 341 meeting of creditors. Additional hearings depend on the case.
A required meeting where a trustee reviews financial disclosures under oath.
Many Chapter 7 cases conclude within several months.
Repayment plans typically last three to five years.
Filing frequency depends on prior case history and discharge timing.
Many unsecured debts may be included, subject to eligibility.
While individuals may file pro se, bankruptcy involves strict procedural requirements and financial disclosures.
Every bankruptcy case depends on individual financial circumstances.
Schedule a consultation to review your eligibility and strategy.
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