Filing Bankruptcy in New Jersey: Chapter 7 vs. Chapter 13
Many people who are seriously considering filing for bankruptcy do not realize that there is more than one type of bankruptcy. In New Jersey, an individual can qualify for a chapter 7 and/or chapter 13 bankruptcy. So, which one is right for you? In a chapter 7 bankruptcy filing, a debtor must meet certain income requirements in order to qualify. Further, if a debtor has assets exceeding certain permitted exemption amounts, they may be required to sell or hand over the property to the trustee. However, a chapter 7 case is a relatively quick process (the entire process usually takes from three to five months) and upon conclusion all unsecured debts are discharged.
Debtors may choose to file a chapter 13 bankruptcy in New Jersey for a variety of reasons, which includes not qualifying for a chapter 7 or trying to prevent a foreclosure on their home. In a chapter 13 bankruptcy, a plan is approved by the trustee whereby the debtor then pays the trustee all their disposable income for the entire plan period (3 to 5 years). A chapter 13 plan may also permit a debtor to get all their unsecured debts discharged.
For a free evaluation of whether filing a chapter 7 or chapter 13 bankruptcy in New Jersey is the right choice for you, contact Daniel Gershburg, Esq., P.C. today!