There is a great deal of information out there about NJ Chapter 7 bankruptcy, but sometimes it helps to start at the very beginning. By understanding just what Chapter 7 bankruptcy is and what it can and can’t do for you, you can take the next step toward deciding whether filing New Jersey bankruptcy is the right choice for your financial future.
Chapter 7 Bankruptcy Basics
Chapter 7 bankruptcy is a process of getting rid of debts you cannot pay, through liquidation. A bankruptcy trustee is appointed who collects your available assets, sells those which can be sold, and uses the resulting funds to pay back those debts that can be paid in a certain order set forth in the bankruptcy code. At the point where there are no funds remaining for repayment, any outstanding debts are discharged through the court, and your slate is wiped clean.
That basic explanation is only for starters. There are countless exceptions, peculiarities, and tiny details that make each case totally unique. Not all debts can be discharged in bankruptcy, among them student loan debts and many taxes, so if you face certain types of debt this strategy will not help you. In addition, there is a means test which may disqualify you for a New Jersey Chapter 7 bankruptcy if your income is too high.
If that already seems unclear, it is only because the United States Bankruptcy Code is very complex. Chapter 7 helps many people escape the pressure of crushing debt, but the morass of paperwork, exemptions, exceptions, and rules surrounding the process can be very confusing. Retaining the services of a qualified New Jersey Chapter 7 bankruptcy lawyer to help navigate these turbulent waters is always the best bet.