Being overwhelmed by debt can cause a great deal of stress, fear and anxiety. Those feelings may be alleviated by making the decision that filing for bankruptcy in New Jersey is your best option. However, the process is paper intensive and complex, which may only bring back those emotions. Fortunately, you do not have to go through the process alone.
Attorneys who have chosen to help individuals and families who are struggling under a mountain of debt can make the process less stressful. The first question many people have is whether they should file a Chapter 7 (liquidation) or Chapter 13 (reorganization) petition, which are the most common consumer bankruptcy alternatives. The best option for you will depend upon an examination of your financial situation.
Some steps must be taken regardless of which type of bankruptcy you file. You will be required to take a credit counseling course prior to filing, and a certificate of completion must be filed with your initial paperwork. Before you receive a Chapter 7 discharge or complete a Chapter 13 payment plan, you must take a second course and provide the court with proof of completion.
The second thread common to both chapters is the meeting of creditors. This hearing provides the trustee with the opportunity to verify the information in your paperwork while you are under oath. It also allows any of your creditors the opportunity to express to the court why the debt you have with them should not be discharged in a Chapter 7 or to object to the repayment plan proposed in a Chapter 13 petition.
This is merely a broad outline of the bankruptcy process in New Jersey. Numerous details will need to be resolved, but the end result is often a fresh financial start. Having an attorney with you every step of the way will help ensure that no details are missed and the process goes smoothly. Filing for bankruptcy should not be feared, but embraced as a way to potentially provide you with a new lease on life without the stress of how to pay your bills.