How Fast Can You File for Bankruptcy in New Jersey?

The entire process of bankruptcy can be completed within months or years in New Jersey. Initial filings can take place soon after you recognize the need for financial relief.

While you can declare bankruptcy quickly in New Jersey, it is important to make that decision based on a complete understanding of your financial situation and the bankruptcy process. Preparing your bankruptcy petition may take time, considering the amount of financial information it must include. If you declare Chapter 13, you must submit your repayment plan within 14 days of filing. For Chapter 7, the average length of bankruptcy is less than six months. For Chapter 13, the average length of bankruptcy is less than five years in New Jersey.

For a free case evaluation from Young, Marr, Mallis & Associates, call (609) 755-3115 to speak with our New Jersey bankruptcy lawyers today.

How Fast Should You File for Bankruptcy in New Jersey?

Declaring bankruptcy is a major financial decision that should not be made overnight. That said, delaying bankruptcy when it can help you reestablish your financial stability can worsen your situation in New Jersey.

Deciding to enter into bankruptcy isn’t a split-second decision. Our Cherry Hill, NJ bankruptcy lawyers will meet with you, review your finances and debts to creditors, and provide the insight you might need to confirm your decision to file for bankruptcy. It is important that you feel comfortable taking this route and fully understand what declaring bankruptcy will entail in New Jersey.

Debtors should not delay declaring bankruptcy when they are in considerable debt. As interest begins to accrue on your debt, it can become insurmountable, and paying off debts all at once may be impossible based on your income. Quickly declaring bankruptcy can allow you to erase certain dischargeable debts, like medical and credit card debt, so you can refocus your finances and gain some stability in New Jersey.

How Fast Can You Declare Bankruptcy in New Jersey?

Once you decide to declare bankruptcy in New Jersey, the process can happen fast. It begins with filing a bankruptcy petition with the court.

Preparing your bankruptcy petition can take time, so filing for bankruptcy as soon as you realize you need relief is important. Your bankruptcy petition will include important information about your debt, creditors, income, assets, expenses, and other financial details. During this time, you must also decide what chapter of bankruptcy best suits your situation. Typically, debtors in New Jersey will be eligible for either Chapter 13 or Chapter 7. The former requires asset liquidation, and the latter requires debtors to submit repayment plans.

After you declare bankruptcy, you will likely go through hearings with a judge. The judge might require you to enter into mediation with creditors in an attempt to resolve certain issues without the court’s involvement. Depending on the success of mediation, the initial steps of the bankruptcy process may take a matter of days or weeks in New Jersey. If mediation is unsuccessful, the judge will make certain decisions regarding your bankruptcy case in New Jersey.

How Fast Can You Finalize Your Repayment Plan in New Jersey?

If you declare Chapter 13 bankruptcy in New Jersey, you must submit your repayment plan for the court’s approval. This must be done relatively quickly after a debtor enters into bankruptcy in New Jersey.

Debtors must submit their repayment plan within 14 days of filing a bankruptcy petition with the court in New Jersey. When designing your repayment plan, our attorneys will consolidate all owed debt under one fixed interest rate and choose a timeframe that supports your income, based on your other expenses.

In most instances, repayment plans are designed to last over a three to five-year period in New Jersey. During this time, you will repay creditors by paying scheduled monthly installments to satisfy your debt. Once approved, the repayment plan will go into effect. This typically happens within a month of a debtor filing a bankruptcy petition in New Jersey.

When designing your repayment plan, you will not have to pay anything to creditors as an automatic stay will be in effect. This prevents creditors from harassing you for repayment. Dischargeable debts will not be included in your repayment plan as they will be eliminated when you file for Chapter 13 in New Jersey. Dischargeable debts vary based on the chapter of bankruptcy debtors file for. Not everyone is eligible for Chapter 13 bankruptcy. Eligibility is based on income and whether or not debtors are capable of passing a means test.

How Fast Is Liquidation Bankruptcy in New Jersey?

Liquidation bankruptcy, or Chapter 7, is typically the fastest form of bankruptcy for debtors in New Jersey. When you declare this type of bankruptcy, you can totally address your debt within a matter of a few short months.

Chapter 7 requires debtors to liquidate certain assets to pay back lenders. Debtors can identify which liquidation exemptions they plan on using to protect important assets from being taken during bankruptcy. New Jersey permits debtors to use federal liquidation exemptions, which are more expansive than state liquidation exemptions. If you plan on using liquidation exemptions to protect your home or car from liquidation, you must include that on your initial bankruptcy petition.

On average, liquidation bankruptcy takes between four and six months in New Jersey. Once you file, dischargeable debts will be eliminated, leaving you with no need to repay them. Many debts that are dischargeable in Chapter 7 are applicable to debtors, like credit card debt.

After your bankruptcy is complete, you will have no more outstanding debt to creditors in New Jersey. If Chapter 7 suits your situation, that can be accomplished in less than a year after declaring bankruptcy in New Jersey.

Learn More About Bankruptcy in New Jersey Today

Call Young, Marr, Mallis & Associates at (609) 755-3115 to get a free and confidential review of your case from our Marlton, NJ bankruptcy lawyers.