New Jersey is one of the most expensive states to live in, in America. It comes as no surprise then that many Americans in the Garden State have become overwhelmed by debt. When this happens, some people consider the possibility of filing for bankruptcy. However, the thought of losing their assets and having the ding on their credit report may not sit well with them.
If you are considering filing for Chapter 7 bankruptcy in the state of New Jersey, it is helpful to understand the different terms associated with a bankruptcy case. One of those terms involves the kind of debts creditors claim against you, known as unsecured claims. These kinds of claims involve no collateral and may end up being discharged in bankruptcy, although some unsecured claims will have to be paid in any case.