Filing a Chapter 7 bankruptcy in New Jersey can offer many protections for a person who finds that they have a large amount of debt that they cannot repay. Under Chapter 7, an individual can expect to find that creditors are no longer able to collect judgments or make harassing calls due to the stay issued when a petition is filed. In addition, the bankruptcy code can offer the opportunity to discharge many debts.
In one recent case that may be of interest to readers in New Jersey, a former executive of Wal-Mart filed for a Chapter 7 bankruptcy. The case was filed in her home state after she found that a business that she owned had economic difficulties. The woman left her job at the large retailer to open a salon and day spa in 2006.
In her bankruptcy petition, the woman in this case disclosed to the court that she owed a total of $402,396. A large part of this debt may be attributable to a loan that she and her former husband co-signed several years before the petition. Her ex-husband also filed for bankruptcy protections after the salon and day spa suffered difficulties.
Like many others who file for a Chapter 7 in our state, the woman in this case likely found that she was unable to afford the debts that she had accumulated. By choosing to file for the bankruptcy, she was able to stop the collection efforts of her creditors for the duration of the case. In addition, she may find that she is able to discharge many of her debts, thus helping her to start again financially. This may be a great benefit for her, as it would be for many of those who find themselves in a similar situation in our state.
Source: Arkansas Business, “Gadison Files for Bankruptcy,” Dec. 7, 2012