Chapter 7 | Chapter 13 | |
---|---|---|
Filing fees | $338 | $313 |
Attorney fees* | $500 - $3,500 | $1,500 - $6,000 |
Total | $838 - $3,838 | $1,813 - $6,313 |
A Chapter 7 bankruptcy in New Jersey will cost you, on average, somewhere between $965 - $1550 in attorneys’ fees. Keep in mind, however, that no two cases are exactly the same.
The biggest expense for folks filing Chapter 7 bankruptcy in New Jersey usually takes the form of attorney's fees, followed by the $338 court filing fee. Folks who can't afford (or don't want) a lawyer for their New Jersey bankruptcy don't have to have one and can file "pro se" instead.
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New Jersey Bankruptcy Means Test. Most folks who file for Chapter 7 bankruptcy in New Jersey have to qualify to file under the means test , which compares your household income to that of similar-sized households in New Jersey to make sure you don't make “ too much” money.
One of the main requirements for you to remember is that you have to bring 2 full copies of your bankruptcy documents to file Chapter 7 bankruptcy in New Jersey.
Alternatively, if you want to keep your car, but the loan balance far exceeds its actual value, you can redeem the vehicle by paying only it's value to the creditor and have the discharge entered in your Chapter 7 bankruptcy in New Jersey eliminate the remaining loan balance.
In exchange for dissolving all past due debts, the trustee of the bankruptcy will liquidate the assets, such as cars, homes, and other property of value in a Chapter 7 Bankruptcy proceeding.
The individual will be allowed to keep his or her valuable assets over a 3- to 5-year period.
All creditors and their addresses must be listed and filed with the Bankruptcy Court. Some creditors may have multiple addresses and may be represented by collection agencies or law firms. Be sure to include all parties and addresses attached to each particular debt so that they all get notice of your bankruptcy filing.
If any creditor calls you about collecting on a discharged debt, be sure to tell them about your filing and give them your docket number. If they continue to call or contact you in writing, consult with an attorney. This conduct is a violation of the discharge order and carries steep financial penalties.
Yes. All debts must be accurately listed in the required forms for filing a bankruptcy petition. Creditors need to be given notice of an impending discharge of their debt so that they have the opportunity to object to its inclusion in the bankruptcy.
The process typically takes just a few months and ultimately results in a discharge of all eligible debt.
Chapter 13 of the bankruptcy code is designed to allow a debtor to put together a plan for repayment of their debts. This method of filing is best suited for those with a regular income that also desire to remain in possession of their property once the proceeding is complete.
Filing too early can cause several issues like having too much monthly income to pass the means test, or having the entire case dismissed for filing too soon after a previous bankruptcy proceeding.
Chapter 13 involves creating a repayment plan that will pay some or all of a person's debt over the course of three to five years. There are several more distinctions that are best discussed with an experienced attorney who can advise as to which chapter to file under based on a person's specific financial goals.
Filing for bankruptcy will negatively affect a person's credit score. The bankruptcy will remain on their report for 10 years if filing for Chapter 7, and for 7 years if filing for Chapter 13. If a Chapter 13 repayment plan was not successfully completed, it will also remain on the credit report for 10 years.
Chapter 7 is referred to as "liquidation," because it usually involves gathering all of a person's assets and selling them off to pay their creditors as much as possible. Chapter 13 involves creating a repayment plan that will pay some or all of a person's debt over the course of three to five years.
Bankruptcy is most helpful to people with unsecured debt, like credit cards and medical bills, because these kind of debts are dischargeable. You can potentially walk away from them completely. Secured debts are those which are tied to a specific item as collateral.
A Chapter 13 case may be more beneficial to you if you have secured debt. There are also debts which are non-dischargeable in a bankruptcy case. Non-dischargeable debts include things like child support, alimony, most tax debt, etc. If the bulk of your debts are non-dischargeable a Chapter 7 bankruptcy may not offer the relief you are seeking.
There are also debts which are non-dischargeable in a bankruptcy case. Non-dischargeable debts include things like child support, alimony, most tax debt, etc. If the bulk of your debts are non-dischargeable a Chapter 7 bankruptcy may not offer the relief you are seeking.
A Chapter 7 is what you think of as a traditional bankruptcy, where you walk away from your debt and get a fresh start. A Chapter 7 case lasts for a significantly shorter amount of time than a Chapter 13 case. A Chapter 13 can be much more complicated.
A Chapter 7 is what you think of as a traditional bankruptcy, where you walk away from your debt and get a fresh start. A Chapter 7 case lasts for a significantly shorter amount of time than a Chapter 13 case. A Chapter 13 can be much more complicated. A Chapter 13 involves a repayment plan that will run for three to five years.
First you will need to determine if you are eligible to file a Chapter 7 by passing the means test. If you are below a certain threshold for your state you will qualify, otherwise you need to complete both parts of the means test calculation to determine your disposable income.