Filing for Chapter 13 In New Jersey

Filing for bankruptcy in New Jersey will require the assistance of an experienced bankruptcy attorney. For filing a Chapter 13 bankruptcy petition in New Jersey, there are many forms that have to be submitted. Even a small error can prove costly and your petition can be dismissed.

Chapter 13 in New Jersey

Generally individual debtors in New Jersey file for bankruptcy protection under Chapter 7 also known as liquidation or Chapter 13 also known as a wage earner’s plan. Unlike Chapter 7 proceedings, a Chapter 13 proceeding allows you to keep your assets. You should consider filing under Chapter 13 if:

You have regular income and
You want to pay off your creditors but you need time to pay

In a Chapter 13 bankruptcy proceeding, you make payment according to a court approved payment plan.

Documents

In New Jersey, you must submit your Chapter 13 petition on the prescribed form along with details of your financial affairs, a schedule of your assets and liabilities, your current income and expenditure including accommodation, transportation, medical expenses, taxes, utility bills, etc. You must also submit a schedule of any unfulfilled contracts and unexpired leases. Once you file the petition, your creditors are prohibited by operation of law from contacting you or taking steps to collect their debts. If any creditor contacts your or takes step you collect the dues, you can sue the creditor for damages.

Plan and discharge in New Jersey

Once you file a Chapter 13 bankruptcy petition in New Jersey, you must submit a payment plan to the court. Once the court approves the petition, you must start making the payments under the plan to the bankruptcy trustee who will then forward the payments to the creditors. You will receive a discharge once you make all the payments under the plan. Chapter 13 will discharge most of your debts except tax debts, child support, alimony, etc. In New Jersey most Chapter 13 plans allow for payment within 3 years. However the court can approve plans that provide for payments within 5 years. The court can grant a hardship discharge if you cannot make payments according to the plan for reasons beyond your control. Once you receive a discharge, the discharged debts cannot be collected from you. The balance of such discharged debts will appear as zero on your credit report.

Getting Legal Help

Consult with an experienced bankruptcy attorney if you are considering Chapter 13 bankruptcy in New Jersey. The attorney can assist you with the forms, schedules and the payment plan.

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