How to File for New Jersey Bankruptcy

Bankruptcy is a serious action that provides legal protection from creditors and gives you a financial fresh start. Although bankruptcy proceedings occur in federal court, there are some state laws that affect the process. This page will show you how to go about filing for bankruptcy in New Jersey.
Disclaimer

The content in this page is not a substitute for professional financial or legal advice. Please contact your financial adviser and attorney before using the information presented here.

New Jersey Bankruptcy Lawyer - When Do I File?

This New Jersey attorney discusses when a person is ready to file bankruptcy. He points out that the decision to file bankruptcy is really a personal decision, not a legal decision. If your debts are so overwhelming that you are worrying about them several times a day and debt collector phone calls are disrupting your life, it may be time to consider bankruptcy.

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Introduction
- Bankruptcy is generally governed by federal law. In New Jersey, as in all other states, you file for bankruptcy in the U.S. District court that covers the county you live or operate a business in. Some aspects of the process are governed by state law—so the amount of assets you can keep, for example, will be governed by New Jersey statute.
Step 1: What is Chapter 7 Bankruptcy?
- Chapter 7 bankruptcy, which is sometimes referred to as straight bankruptcy or liquidation, is a legal process that eliminates your debts by selling your assets and forgiving the remaining debt. Not all assets need to be sold, and not all debts will be eliminated, however— the specifics can vary from state to state. If you don't qualify for Chapter 7 bankruptcy, you may be able to file under Chapter 13, which restructures your debt rather than wiping it away.
Step 2: Chapter 7 New Jersey Means Test
- You will qualify to use Chapter 7 bankruptcy if your income is be below the Census Bureau determined median for similarly sized families in New Jersey.
1. Single individual: $57,120http://research.lawyers.com/New-Jersey/Bankruptcy-in-New-Jersey.html
2. Two person family: $69,853http://research.lawyers.com/New-Jersey/Bankruptcy-in-New-Jersey.html
3. Three person family: $85,397http://research.lawyers.com/New-Jersey/Bankruptcy-in-New-Jersey.html
4. Four person family: $103,034http://research.lawyers.com/New-Jersey/Bankruptcy-in-New-Jersey.html
Step 3: New Jersey Bankruptcy Asset Exemptions

Your personal circumstances will govern which exemption method you select. New Jersey permits you to elect either the federal exemptions or a state specific list of New Jersey exemptions. A bankruptcy attorney can help you decide which method is best for you, as the decision can be complicated, depending on your personal circumstances.
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