Most people are eligible to file for New jersey bankruptcy protection. Whether or not you are eligible to file is based on several different factors and typically the most common issue in these cases is whether or not you can file but which bankruptcy Chapter is most applicable determined by your goals and financial situation. A corporation, limited liability company, person, small corporation, and partnership are eligible for Chapter 7 bankruptcy petition.
This does not require the person to make any payments to debtors and can take up to about four months. Once the filing and the case have been completed, certain debts will be discharged. There is no max or minimum amount of debt required to file. However, the general information for Chapter 7 criteria is that:
- The debtor has no assets worth much value
- The reason for the financial situation must have been unintentional
- The projected net household income is less than the reasonable and necessary monthly expenses.
- The debtor’s average monthly gross household income is less than the average for a typical household of this size in New Jersey.
Only a person is eligible to file for Chapter 13 bankruptcy in New Jersey. This has a debt limit that is different from Chapter 11 cases. A person can file for Chapter 13 protection in New Jersey if their unsecured debts are less than $394,724. A person will be required to make monthly payments to a trustee if their Chapter 13 bankruptcy case is approved. To determine which form of bankruptcy is most appropriate for you, schedule a consultation with an experienced bankruptcy attorney today.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney/client relationship. If you are seeking legal advice, please contact our law firm directly.