Many New Jersey residents find themselves in financial distress for one reason or another. By the time they consider filing bankruptcy, creditors could be calling incessantly and demanding payment. Fortunately, one of the benefits filers enjoy is that filing for bankruptcy can stop harassing phone calls from creditors.
In many instances, appeals of an order entered in a U.S. Bankruptcy Court here in New Jersey or elsewhere are heard by the U.S. District Court in the same geographic area. Recently, a ruling that approved a Chapter 13 bankruptcy plan was reversed by an out-of-state court. The issue was whether the filer was allowed to pay his attorneys' fees before his mortgage under the plan.
When New Jersey residents are in financial distress, they might begin to think that bankruptcy would be a viable way to deal with the overwhelming amount of debt they incurred for whatever reason. Unfortunately, there are so many myths surrounding Chapter 7 bankruptcy that some people might not file for fear that those myths are true. However, understanding the facts about bankruptcy can help dispel those myths.
New Jersey residents could have some misconceptions regarding bankruptcy. Many people believe that the court will require them to give up all of their property. Others believe that they will be able to discharge all of their debts. Neither of these statements about bankruptcy is true.