NJ Bankruptcy
When people face financial issues that are beyond repair they turn to bankruptcy. Those who elect to claim bankruptcy in New Jersey make the decision for a variety of reasons. For most, they wish to rid themselves of their legal obligations so they can pay off their debts. Reasons for why people turn to filing bankruptcy in New Jersey include halting foreclosure on their home by catching up on outstanding payments, preventing the repossession of automobiles and other properties, decreasing or eliminating unaffordable medical bills, avoiding having their utilities turned off, and halting wage garnishment. These events often take place while people are either losing their jobs, trying to recuperate from expensive divorce settlements, or while they are dealing with a lawsuit. Claiming bankruptcy in New Jersey allows for debtors to face these issues and work towards financial recovery.
Debtors are able to seek protection when filing bankruptcy because NJ bankruptcy laws protect claimants from being harassed by creditors. These laws also allow debtors to contest claims in NJ Bankruptcy Court if they feel creditors are fraudulent and attempting to collect more than they owe. In disputing claims, debtors are able to put an end to dishonest creditors that are trying to taking advantage of their situation.
When claiming bankruptcy in New Jersey, claimants are granted certain exemptions. In New Jersey, claimants have a choice of following the New Jersey bankruptcy exemptions or the Federal exemptions. This is where retaining bankruptcy lawyers is important because upon reviewing each case, they are able to recommend which option will be most beneficial for each claimant.
NJ bankruptcy lawyers also assist with helping debtors decide whether bankruptcy is in their best interest and, if so, they are able to recommend the type of bankruptcy for which debtors should file. In NJ, the two most common types of bankruptcy sought are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Generally speaking, NJ Chapter 7 Bankruptcy is for debtors who either don't own too much non-exempt property, or that don't generate enough income to cover their debts. Chapter 7 claimants are looking to have the debts that qualify "wiped out" or, in the other words, forgiven. NJ Chapter 13 bankruptcy is geared more towards claimants that have the ability to and who want to repay their debts. Many times Chapter 13 is also used if income is too high to qualify for Chapter 7 or if the claimant has too much non-protected assets. More often than not these individuals are able to maintain possession of their assets as outlined in their personal bankruptcy Plan.
Due to the fact that our legal process is complex, constantly changing and difficult to understand without the appropriate legal expertise, it is recommended that those seeking bankruptcy in NJ consult a professional. At Reinherz and Reinherz Law Offices, our bankruptcy professionals have the experience required to help claimants successfully gain access to a fresh start.
- NJ Chapter 7 Bankruptcy
- NJ Chapter 13 Bankruptcy
- NJ Bankruptcy Laws
- NJ Bankruptcy Court
- New Jersey Bankruptcy Exemptions
- Filing Bankruptcy in New Jersey
