New Jersey Bankruptcy Lawyers

Bankruptcy in New Jersey

Bankruptcy is governed by the Federal Bankruptcy Code, a complex body of law.  When an individual or business cannot meet its financial obligations, it may begin a process of bankruptcy to protect creditors and itself.

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy, otherwise known as "liquidation" bankruptcy is the most common form of bankruptcy.  Chapter 7 refers to a chapter of the Federal Bankruptcy Code. Chapter 7 bankruptcy cancels your debts. Under this section of the code, the bankruptcy court may liquidate or sell off some of your property for the benefit of your creditors.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy, sometimes called reorganization bankruptcy, is another type of bankruptcy. Chapter 13 bankruptcy differs significantly from Chapter 7 bankruptcy. A Chapter 7 bankruptcy wipes out most of your debts. A Chapter 13 bankruptcy uses your income to pay your creditors some or all of what you owe to them over a period of time. The heart of Chapter 13 bankruptcy involves a structured repayment plan to discharge your debts.

When does bankruptcy end?

Once a bankruptcy proceeding ends, your liability ends. When the bankruptcy court enters a discharge order in a Chapter 7 case, or you complete your payments according to the repayment plan in a Chapter 13 case, you are discharged from your debts and can start over with a clean financial slate. The record of your bankruptcy remains on your credit record for up to ten years.

If you are going through extreme financial hardship, bankruptcy may be the only solution. An attorney skilled in bankruptcy law can tell you if it is the best solution for you.

Contact an attorney at the law offices of Mark A. Bernstein with all your bankruptcy questions.  The firm serves clients in Camden, Burlington, Atlantic, Mercer, Gloucester, and Salem Counties.

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