The decision to file for bankruptcy is one of the hardest financial decisions to make. Some see it as admitting defeat. Others see it as a moral failing. Filing for bankruptcy is none of those things. Instead, bankruptcy is a "Fresh Start" designed to wipe your financial slate clean.
As is the case more many legal questions the answer here is: it depends. If you are able to pay your debts with your current income then bankruptcy is not right for you. The purpose of bankruptcy is to give a person a fresh start, not get people capable of paying their debts released from their obligations.
Probably not. The United States Bankruptcy Code allows for certain exemptions of property. This means that property up to the exemption limit remains yours in a bankruptcy. When all of your property is exempt it is called a "no asset" bankruptcy. Many, if not most, chapter 7 bankruptcies are no asset. In a no asset bankruptcy you will not lose any of your possessions but will be debt free at the end.
If your assets exceed the exemption limit there are other options available to you. One is filing a chapter 13 bankruptcy. In a chapter 13 bankruptcy, a payment plan is created where your creditors receive some of their money back over a 3-5 year period. Generally, no assets are liquidated during a chapter 13. Like in a Chapter 7 at the end of a Chapter 13 all your remaining debts are discharged.
If you are a New Jersey resident considering bankruptcy or are unsure if bankruptcy is a good choice for you, contact the Herron Law Firm for a FREE no-obligation consultation. We will review your current debts and assets to provide clear advice on your best options moving forward.
If bankruptcy is the right step we offer affordable legal fees and offer payment plans. Contact us today if you are interested in learning more about the bankruptcy process.