New Jersey Bankruptcy FAQs
What are the main differences between Chapter 7 and Chapter 13 bankruptcy in New Jersey?
Chapter 7 is a liquidation bankruptcy that eliminates most unsecured debts within 4-6 months by selling nonexempt assets to pay creditors. Chapter 13 is a reorganization bankruptcy lasting 3-5 years, where you keep your assets but must make monthly payments to creditors through a court-approved repayment plan. Chapter 13 allows you to catch up on missed mortgage payments and potentially strip second mortgages from your home.
What are the income limits for filing Chapter 7 bankruptcy in New Jersey?
As per the recent annual “means test” periodic update, the median income limits for Chapter 7 bankruptcy in New Jersey are:
- Single person: $ 83,102
- Family of two: $100,763
- Family of three: $130,239
- Family of four: $157,404
These limits are adjusted periodically based on the state’s economic conditions and cost of living factors.
How long does a bankruptcy filing stay on my credit report?
Chapter 7 remains on your credit report for 10 years, while Chapter 13 lasts 7 years from the filing date. However, the impact on your credit score lessens over time, especially with good financial habits post-bankruptcy.
Can I keep my home if I file for bankruptcy?
Keeping your home in bankruptcy depends on factors such as your mortgage status, equity in the home and the type of bankruptcy you file. In Chapter 7, you may retain your home if your equity is within New Jersey’s exemption limits and your payments are current. Chapter 13 typically allows catching up on missed payments, improving your chances of retaining the property.
How can I start repairing my credit after bankruptcy?
Post-bankruptcy credit repair involves positive financial actions like:
- Paying bills on time.
- Opening a secured credit card.
- Maintaining low balances.
- Regularly checking your credit report for inaccuracies.
Over time, consistent positive actions can help improve your credit score.
Free Bankruptcy Assessment
The Law Offices of Darin D. Pinto, P.C., invites you to get in touch via 908-913-6168 so a lawyer can assess your specific bankruptcy situation in Westfield. Attorney Pinto’s team will promptly respond to your email.