Bankruptcy Lawyers in New Jersey

Bankruptcy in New Jersey

Bankruptcy in New Jersey is governed by federal law, primarily under the U.S. Bankruptcy Code. However, each state, including New Jersey, has specific exemptions that debtors can use to protect certain assets. The most common types of bankruptcy for individuals are Chapter 7 and Chapter 13. Chapter 7, often called 'liquidation bankruptcy,' involves selling non-exempt assets to pay creditors, while Chapter 13 allows for debt restructuring and repayment over three to five years. In New Jersey, the means test determines eligibility for Chapter 7. This test compares your income to the median income for a household of your size in New Jersey. If your income is below the median, you may qualify for Chapter 7. Chapter 13 is available for individuals with a regular income who can pay their debts over time. The bankruptcy process begins with filing a petition in the appropriate district court. New Jersey has three bankruptcy courts: Newark, Trenton, and Camden. Once filed, an automatic stay is issued to prevent creditors from pursuing collection actions. Debtors must complete credit counseling before filing and a debtor education course after filing to receive a discharge. Bankruptcy can offer a fresh start, but it also has long-term financial and legal consequences. It's important to understand both the immediate relief and the future implications, such as the impact on credit scores and the ability to obtain future loans.

New Jersey Laws & Regulations

New Jersey allows debtors to choose between federal and state exemptions when filing for bankruptcy. State exemptions can be particularly beneficial for protecting equity in a primary residence through the homestead exemption, although New Jersey's homestead exemption is relatively limited compared to other states. Other exemptions include motor vehicles, personal property, and tools of the trade, which are also limited in value. One unique aspect of New Jersey bankruptcy law is the treatment of tenants by the entirety. Married couples can protect property owned as tenants by the entirety from being used to satisfy the debts of one spouse in bankruptcy. Additionally, New Jersey law provides a wildcard exemption, allowing debtors to exempt any property of their choosing up to a certain value. New Jersey's approach to bankruptcy is designed to balance the interests of debtors and creditors, ensuring that debtors can retain essential assets while fulfilling their obligations to creditors as much as possible.

Typical Attorney Costs in New Jersey

New Jersey State Bar Association

How to Find a Bankruptcy Lawyer in New Jersey

Finding a bankruptcy lawyer in New Jersey involves researching their experience, reputation, and fees. Start by using the New Jersey State Bar Association's Lawyer Referral Service. This service can help you locate a qualified attorney based on your specific needs and location. Consultations with several attorneys can provide insight into their approach and whether they understand your unique situation. Asking about their experience with cases similar to yours and their familiarity with New Jersey's specific bankruptcy laws can help ensure you choose the right representation.

Frequently Asked Questions