Due to the fact that many people, as well as businesses, struggle with debt and financial distress, filing for bankruptcy has become a matter of great interest. The New Jersey bankruptcy laws are very clear and provide debtors with two main options when it comes to filing, which are Straight Bankruptcy, or Chapter 7 bankruptcy, and Reorganization, which can be done under either Chapter 13 or Chapter 11, depending on each situation. Because of the fact that so many people are facing such financial difficulty, there is plenty of information on the bankruptcy laws in New Jersey to be found online, either on the government’s website or on specialized platforms, dedicated to providing individuals with explanations on federal bankruptcy process and the most common matters regarding bankruptcy as they pertain to New Jersey residents. However, as much info as can be found online, individuals are strongly encouraged to discuss their case with New Jersey bankruptcy lawyers, in order to make sure that they file for the right type of bankruptcy and that they choose the most suitable options for them. |
As mentioned above, the two main options that New Jersey residents have when it comes to bankruptcy filing is going for full liquidation or trying to stay in business by making a repayment plan. Many debtors try the second options, because they want to keep as many assets as possible, without acknowledging the danger of such a repayment plan, as legal fees are higher and the process is more complex, no matter how good their New Jersey bankruptcy lawyers are, not to mention the fact that their entire cash will be tied up over the entire repayment period. On the other hand, the advantages of Chapter 7 bankruptcy are numerous, the most important of which is that debtors get to start fresh. After the discharging of the bankruptcy, debtors will no longer owe anything, except for the debt for secured assets, but they can choose to sign a Reaffirmation Agreement. In addition, by filing for this type of bankruptcy, debtors can benefit from instant protection against creditors and their sometime extra zealous efforts of collecting what’s owed. Another great advantage of Chapter 7 is that any asset you acquire post bankruptcy and all of your wages are yours, not the creditors, the only exception being inheritances.
Last, but not least, when you file for Chapter 7 bankruptcy, there are no debt limitations, no minimum requirements that you have to meet, therefor this type of filing is available to many more debtors than Chapter 13. It is also a lot quicker, as your bankruptcy can be completely discharged in 3 to 6 months, after which you will enjoy a clean start. However, as you can imagine, there are also downsides of filing for any type of bankruptcy and each and every case has its particularities, reason fro which it is important for individuals, as well as for businesses, to find and hire experienced New Jersey bankruptcy lawyers to help them assess the case and choose the best possible course of action.
To learn more about Chapter 7 bankruptcy or to find New Jersey bankruptcy lawyers, please follow this link.
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