New Jersey Personal Bankruptcy Lawyer
Personal Bankruptcy in New Jersey
Bankruptcy is a legal process that occurs when a borrower is indebted to a lender or creditor. The process allows for the borrower to repay the creditor through a mutually agreed upon payment plan or by eliminating the debt altogether. In some cases, the borrower may liquidate his or her assets to repay the creditor. There are two types of personal bankruptcy that are commonly filed in New Jersey:
Chapter 7 bankruptcy
and
Chapter 13 bankruptcy.
Both types of personal bankruptcy present advantages and disadvantages, which is why people should always consult with a New Jersey bankruptcy attorney and review their options before deciding to file.
New Jersey Chapter 7 Bankruptcy Attorney
Chapter 7 Bankruptcy, also referred to as a straight bankruptcy, occurs when a person liquidates his or her assets to repay a portion of his or her debts to creditors. During Chapter 7, the person filing for bankruptcy will turn over all of his or her non-exempt property to a bankruptcy trustee who will then go through the process of liquidating the assets and distributing collected funds to the creditors. Within 4 months of filing, the person’s debts will be discharged and he or she will no longer be in debt. Through this type of bankruptcy, people are granted a new start and will have the chance to repair and re-build their credit over time.
Chapter 13 Bankruptcy in New Jersey
Chapter 13 Bankruptcy, also referred to as reorganization bankruptcy, is a great choice for individuals who want to pay off their debts, but need 3 to 5 years to do so. He or she will agree to pay a set monthly amount, which will be distributed amongst creditors to repay the debts owed. Unlike Chapter 7 bankruptcy, Chapter 13 allows for people to keep their property, which is why many people opt for this type of filing.
If you are considering filing for personal bankruptcy, contact a New Jersey Bankruptcy Attorney at Liberty Credit Law, PC today to schedule an initial consultation!