The Chapter 7 Bankruptcy Filing Process

Because the law offices of William H. Oliver, Jr. & Associates have helped thousands of clients file for bankruptcy, our lawyers are prepared to bring our approach and premier service to help you address the Chapter 7 bankruptcy process as efficiently and effectively as possible. Chapter 7 bankruptcy filing is common, but unique; it does not involve the reorganization of unsecured debt into a payment plan.

Instead, it provides people the ability to get a fresh start through the discharge of unsecured debt. Below is a description of the process.

Filing Chapter 7 Bankruptcy in New Jersey

The process begins when debtors file bankruptcy petitions containing information related to:

  • Property details, including home, automobiles and other valuables
  • Creditors and how much they are owed
  • Average household income over the last six months. This includes paychecks in the last 60 days in addition to anticipated increases or anticipated expenses after filing, when applicable.
  • Executory contracts into which you have entered (including leases), as applicable
  • Your most recent tax return in addition to proof that you have filed all past tax returns
  • Proof of attendance at a credit counseling class

The petition will also include details related to "exempt property," or property that you get to keep. Property that is not delineated as exempt may be subject to liquidation. It is important to realize that Chapter 7 bankruptcy may not be advisable for people who have significant assets. Chapter 13 bankruptcy may be favorable.

One of the benefits of filing is the issuing of an automatic stay. This prevents collectors and agents from undertaking debt collection actions such as calling you, taking you to court or garnishing any accounts.

After a month, the trustee will hold a creditor meeting where you may be questioned about assets and debts. Our attorney and team will assist you with this process as necessary. It is important to realize that oftentimes no assets are considered or they are all considered "exempt."

After the process is complete, all debts will be discharged from the bankruptcy judge. We encourage you to get in touch if you have any questions about the process.

To schedule a free initial consultation to discuss Chapter 7 bankruptcy timelines or other relevant issues with our Monmouth County Chapter 7 bankruptcy lawyer, call local: 732-988-1500 or fill out our contact form.