Seeking to end financial stress when amounts of debt become overwhelming is a good decision for many people in New Jersey and elsewhere, as one recent report has appropriately noted. In fact, it is said that filing for a personal bankruptcy can result in emotional as well as financial relief. This can occur due to the protections offered by the Bankruptcy Code.
There are decisions to be made when a person finds that they are unable to keep current with the debts that they have accumulated. Beyond the choice to file for personal bankruptcy, a person in New Jersey must also consider which bankruptcy alternative best applies to their personal situation. For most, the choice will be between Chapter 7 liquidation and Chapter 13 debt reorganization.
Chapter 7 bankruptcy is typically a total liquidation and may be the best available option for those who do not earn a sufficient income to handle their debts and have few assets. In contrast, a Chapter 13 is intended as a chance for those with a stable income that have high levels of debts that they cannot currently repay. This Chapter allows the filer to come up with a plan for repayment over a stated period of time, subject to the approval of the court.
Choosing to file for a personal bankruptcy can be a tough choice for some. However, the relief that can be obtained when a successful bankruptcy is discharged can be of great value to individuals and families. In addition, the chance to begin a new financial life is an invaluable opportunity to achieve financial stability once again.
Source: U.S. News and World Report, "Surviving the Emotional Toll of Bankruptcy," Daniel Bortz, Jan. 18, 2013