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.
The stay that goes into place upon filing a bankruptcy petition prevents creditors from pursuing any actions to collect the debt. This also prohibits the filing of any lawsuits, garnishments and levies against a New Jersey resident as well. Furthermore, at the end of the process, many of your debts could be discharged, which means that you will no longer be responsible for paying them.
Of course, there are certain debts that are not ordinarily eligible for discharge, such as taxes, child support and student loans. In addition, when you file, the court might require the sale of certain assets you own in order to pay creditors, depending on the circumstances and on whether you file a Chapter 7 or Chapter 13 bankruptcy. When you file could also affect your financial situation.
You should probably not wait until your mortgage lender has filed a foreclosure or your wages are being garnished to file, since that can complicate matters. Ultimately, the decision of when to file needs to take into consideration as many eventualities and factors as possible in order to make sure that your petition does more for you than just to stop harassing phone calls from creditors. Experienced legal counsel can explain your rights and options.