When can you file bankruptcy in New Jersey?

Filing for bankruptcy in New Jersey can be done when you find yourself overwhelmed with bills that cannot budget your way out of in a reasonable period of time. Perhaps you have lost your job or suffered a serious illness, which caused your bills to skyrocket. Federal bankruptcy law requires you to have completed an approved credit counseling class within 6 months prior to your filing bankruptcy, so that is one task you have to complete before filing.

In addition to the required credit counseling course, there are many things you should and should not do before filing bankruptcy. If you discover that you have done something that could be seen as bankruptcy fraud, get legal advice before continuing any further with the process. Talk to a trusted financial professional who knows the bankruptcy laws in New Jersey to make sure you have not accidentally make any serious mistakes.

The financial professional may be able to help you avoid bankruptcy entirely, but if he or she is not able to do that you can still receive valuable advice regarding the different bankruptcy options available to you. These options are so specific to your personal financial situation that you would do well to do some homework on your own, but make sure you find a reputable attorney to give you advice.

As an example of how specific the laws can be, if you live in Bergen County and you have a family of 5 you can make up to $8,915 (after November 1, 2010) and still possibly be eligible for Chapter 7 bankruptcy. The monthly income figure changes depending on the county you live in and the size of your family.

You may be advised not to file bankruptcy if you have very recently paid back a debt that you owed a relative or friend yet have been unable to pay your other debts. If you have recently transferred property to a relative in an attempt to protect that asset from your possible bankruptcy that could cause you problems too.

The bottom line is that you should not file bankruptcy in New Jersey until you have taken the time to talk to an experienced bankruptcy attorney and have taken the time to plan and understand all your bankruptcy options.