New Jersey Bankruptcy Laws
Bankruptcies proceedings in New Jersey are controlled by the federal and stately laws that are implemented following the provisions in the United States code. This means that the state government has partial control on how the petitions regarding bankruptcy will run. The local bankruptcy courts usually make decisions based on the cases that are presented by the debtors in accordance to bankruptcy laws . Debtors will usually apply for the bankruptcy petitions when they are unable to make payments on their credits and if they fail to come to terms with the creditors. Once the petition has been approved by the courts the creditors halt any credit reclamation proceedings and conform to the court rulings.
New Jersey Bankruptcy Exemptions:
New Jersey State does have some consumer exemptions in place to help protect some of the items from being sold to repay debt. For example, insurance up to $500 per month, health policy, disability benefits, personal property like burial money, household goods, and unemployment compensation.
New Jersey Chapter 7 Bankruptcy Laws:
There are various types of bankruptcy categories that are represented by the federal court, but the most common cases in New Jersey are regarded as either chapter 7 or chapter 13 cases.
The chapter 7 cases are more common since they mostly address the personal bankruptcy cases and are easy to deal with as well as cheaper when compared to the other type of cases. chapter 7 bankruptcy laws offer the debtors a chance to liquidize their assets that are not covered by exemptions of the state. Some of the exemptions that one will enjoy under the chapter 7 cases include homestead, personal possessions, insurance, public benefits, alimony and other miscellaneous assets.
New Jersey Chapter 13 Bankruptcy Laws:
Chapter13 bankruptcy laws on the other hand are much trickier since they are a bit expensive and as opposed to liquidizing assets, they provide the debtor with a chance to repay the creditors fully or partially over a given period of time. The chapter 13 exemptions are numerous since the creditors do not have legal authority to get proceeds from the sale of the debtor’s possessions. Most people opt for the prior type of cases, but upon rejection resort to the chapter 13 cases.
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