What is Chapter 7 bankruptcy?

In simplest terms, Chapter 7 bankruptcy is a legal way for people who are overwhelmed by unsecured debt to wipe the slate clean and start over. For those who qualify, Chapter 7 bankruptcy can eliminate a wide variety of debt, including:

  • Medical bills
  • Credit card debt
  • Payday loan debt
  • Collection accounts

Chapter 7 bankruptcy can eliminate unsecured debt even if the debtor has already been sued and a judgment has already been entered. The order eliminating these debts is called a “discharge order,” and it prohibits creditors and collection agencies from ever trying to collect on discharged debts.

Some people considering Chapter 7 bankruptcy are fearful that they will lose their cars, homes, and other property if they seek the help they need. Fortunately, most people who file for Chapter 7 don’t lose any property at all. That’s because state and federal law create exemptions to protect certain property. New Jersey exemptions are described in greater detail below.

Cost to file chapter 7 in New Jersey

he chapter 7 filing fees in New Jersey are $338, but that doesn’t tell the whole story of the real cost to file bankruptcy. Bankruptcy lawyers usually charge between $1,000 and $2,000 to file a chapter 7 case, in addition to the filing fee.

New Jersey Bankruptcy Court Locations

Should you choose to file bankruptcy in New Jersey, you’ll need to know where the bankruptcy courts are. The U.S. Bankruptcy Court, District of New Jersey, has three locations:

Newark: Martin Luther King, Jr. Federal Building, 50 Walnut St., Newark, NJ 07102, (973) 645-4764

Trenton: Clarkson S. Fisher US Courthouse, 402 E. State St., Trenton, NJ 08608, (609) 858-9333

Camden: U.S. Post Office and Courthouse, 401 Market St., Camden, NJ 08101, (856) 361-2300

A New Jersey bankruptcy attorney can help you determine whether Chapter 7 bankruptcy is right for you, assess your eligibility, help you choose the right exemptions for your circumstances, and ensure that your rights are protected as you pursue financial freedom. Get the information you need today to make the best decisions for your future.

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