Many people in financial distress shy away from Chapter 13 bankruptcy because they don't want to deal with a repayment plan that typically lasts from three to five years. Instead, they'd rather file for Chapter 7, as it's a faster process that results in the discharge of debt.
New Jersey has a high cost of leaving compared to many other American states. It comes as no surprise then that people often find themselves with high-interest and long-term debt that they need to repay. These debts can spiral out of control, causing even financially responsible people to fall behind if they become ill, make a bad investment or have a break in employment.
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.
When faced with massive debt, bankruptcy may be the best option to get your finances back on track. With chapter 13 bankruptcy, you must make payments as obligated by the court to ensure you remain in good standing. This entails creating a reasonable budget, which can be difficult for many people. In this case, U.S. News & World Report offers the following tips.
When you file for Chapter 13 bankruptcy in New Jersey, you can expect to deal with a trustee throughout much of the process. The duties of a trustee are going to be different depending on the type of bankruptcy. Under Chapter 7 bankruptcy, per FindLaw, the trustee would be handling the liquidation of the debtor’s property and paying the creditors the proceeds. But since Chapter 13 bankruptcy does not involve liquidation, the duties of a trustee under Chapter 13 will be different. Instead, you can expect a Chapter 13 trustee to primarily be concerned with taking care of your debt payments.