If you have lost your job, you may be worried about how you are going to pay your bills. One of the options could be to go into bankruptcy. If you have no income, the likelihood is that you will qualify for a Chapter 7 bankruptcy. A Chapter 7 bankruptcy is also known as liquidation bankruptcy, which means that it may require that you give up some assets if they do not fall under the exemptions in New Jersey.
The Bankruptcy Abuse Prevention and Consumer Protection Law of 2006 did make it more difficult for people to file for bankruptcy, which is why it’s a good idea to look into your legal options and to avoid trying to go through bankruptcy on your own.
How should you approach a Chapter 7 bankruptcy?
It is important to look at a Chapter 7 bankruptcy as one step on the path to long-term stability. The goal is to reduce or eliminate your debts so that you do not end up in the same position in the future.
Your attorney will talk to you about bankruptcy and if it is actually the right choice for you. If you are not far behind on bills or potentially have a new job starting soon, then other methods of reducing debt or tackling missed payments may be appropriate. This is something that your attorney will talk to you about thoroughly so that you know that bankruptcy is truly the correct choice.
Our website has more information on bankruptcy and what you can expect if you decide to file. It may not be an easy choice, but it could be one that helps you obtain long-term financial stability.