If you have found yourself in an unmanageable debt situation, and after carefully reviewing your options have concluded that personal bankruptcy is the proper path for you to take to get out of that situation, then before you can either discharge your debts under Chapter 7 or come up with a payment plan under Chapter 13 there are some additional steps that you may need to undertake. These involve credit counseling and debtor education.
Whatever may be going on in life, a person can always find solace and comfort when they walk through the front door of their home. The prospect of losing this sense of relief and escape from the world can devastate a person and an entire family.
Trying to achieve a fresh start is a common reason given by New Jersey residents for filing for bankruptcy. Student loan debt can pose financial challenges in a Chapter 7 or a Chapter 13 bankruptcy, because of special rules that make discharge of such debts extremely difficult. It might not be easy, but there are circumstances under which student loans might be eligible for discharge.
If you have not personally had an unpleasant experience dealing with a debt collector, you may know someone who has. In either event you may wonder if the collector has gone too far in its efforts to collect.
Chapter 7 bankruptcy is conversationally referred to as "fresh start" bankruptcy because, unlike its Chapter 13 counterpart, it eliminates or "discharges" most consumer debts. But Chapter 7 should not be mistaken as a means of completely doing away with all personal debts that one may have. Some debts may remain after the completion of the bankruptcy.