New Jersey residents encounter financial difficulties from a variety of sources. Some are recovering financially from divorce, long-term illnesses or injuries, or some other life-altering calamities that end up leading to an overwhelming amount of debt. Others simply made ill-advised financial decisions. Whatever caused you to end up under a mountain of debt, Chapter 7 bankruptcy might give you a fresh start financially.
If you qualify for Chapter 7, many debts can be completely forgiven but not all. For instance, student loans cannot be discharged except in extreme cases, but credit card debt, medical bills and other unsecured debt can be. Furthermore, it is possible that any monetary deficiencies left over after a car repossession or foreclosure will also be discharged.
However, not all people qualify for a Chapter 7 bankruptcy. Fortunately for those who do not pass the means test, especially homeowners who want to keep their homes, Chapter 13 may be a better option. Chapter 7 filers are able to keep many of their assets, but, again, in order to keep some assets, Chapter 13 may be more beneficial. A New Jersey bankruptcy attorney will be able to help you determine for which chapter you qualify.
Making the decision to file for bankruptcy is not always easy. Having even a basic understanding of how filing for Chapter 7 or Chapter 13 bankruptcy will benefit you could make that decision easier. Our website contains a lot of information about bankruptcy and how it can help you and your family obtain a clean slate on which to start over financially.
