New Jersey personal bankruptcy can allow property retention

| Mar 28, 2013 | Personal Bankruptcy |

The decision to file for a bankruptcy is sometimes a difficult one for some people in New Jersey. However, many find that they are unable to repay the debts that they have accumulated. This has been especially true during the recent recession, as many individuals lost their jobs or homes. In many cases, these debts come through no fault of the individual who has them, but a personal bankruptcy may still help.

The good news for our New Jersey readers is that a personal bankruptcy can offer relief from the overwhelming costs of high debt. This most often comes through the discharge that occurs when a Chapter 7 personal bankruptcy is complete. In addition, many find that they can keep much of the property that they owned when they filed the bankruptcy, depending on the type of personal bankruptcy sought.

There are two common types of personal bankruptcy. These are Chapters 7 and 13. Though the qualifications vary according to the option selected, it is generally the case that those with steady incomes use Chapter 13 and others use Chapter 7.

The personal bankruptcy process can appear complicated to some. Because of this, and the potential impact on matters such as a credit rating, it can be important for people to seek information about the available alternatives. This review of the applicable laws and procedures can also ensure that an individual is able to retain as much of other personal property as possible. Making the proper decision when filing for a personal bankruptcy can mean a fresh financial start, usually free of overwhelming debts.

Source: The Kansan, “Know options before turning to bankruptcy,” March 14, 2013