If you’re considering filing for Chapter 7 bankruptcy in New Jersey, it’s important to understand how the process works. Chapter 7 bankruptcy is a legal process that allows you to eliminate most of your unsecured debts, such as credit card debt, medical bills, and personal loans. Here’s how it works:

Step 1: Meet with a Bankruptcy Attorney

The first step in the process is to meet with a bankruptcy attorney. They will help you determine whether Chapter 7 bankruptcy is the right choice for your financial situation. They’ll also explain the process and what to expect.

Step 2: Complete Credit Counseling

Before you can file for bankruptcy, you’ll need to complete credit counseling from an approved agency. This counseling will help you understand your financial situation and explore other options besides bankruptcy.

Step 3: File Your Bankruptcy Petition

Once you’ve completed credit counseling, you can file your bankruptcy petition with the New Jersey bankruptcy court. You’ll need to provide detailed information about your financial situation, including your income, expenses, debts, and assets.

Step 4: Attend the Meeting of Creditors

As we discussed earlier, the meeting of creditors is a meeting between you, your bankruptcy trustee, and any creditors who choose to attend. During this meeting, you’ll answer questions about your financial situation under oath.

Step 5: Discharge of Your Debts

If everything goes smoothly, the court will discharge your debts about 3-4 months after you file for bankruptcy. This means that you’re no longer legally obligated to pay these debts.

It’s important to note that not all debts can be discharged through Chapter 7 bankruptcy, such as student loans and most taxes. Additionally, filing for bankruptcy will impact your credit score, so it’s important to understand the consequences before making a decision.

In conclusion, Chapter 7 bankruptcy can be a valuable tool for eliminating unsecured debts and getting a fresh start financially. However, it’s crucial to understand the process and work with an experienced bankruptcy attorney to ensure that the process goes smoothly. If you’re considering filing for Chapter 7 bankruptcy in New Jersey, contact a bankruptcy attorney today to learn more.

Schedule a free telephone appointment to discuss your unique debt situation with attorney Jennifer Weil at my Setmore page.