Chapter 7 bankruptcy may allow people to rid themselves of debt

People in New Jersey have many different bills that they need to pay and many different items that they purchase. Their bills and purchases are usually made based on what they can afford. This true whether they are buying something outright or buying it with credit and having manageable monthly payments. It is fairly common for people to have some kind of debt and that is not a bad thing as it is what allows most people to own homes, cars and other necessities of life.

Debt can become overwhelming though, especially if there are unforeseen circumstances that arise. For example, if people are seriously injured and require significant medical treatment, they may no longer be able to keep up with their other monthly obligations while paying for the medical bills. Over time the debt can continue to build and soon they may not know if they will ever be able to rid themselves of the debt.

Discharge of debt in Chapter 7 bankruptcy

People who find themselves in this position may have options to rid themselves of their debt. One of those options could be Chapter 7 bankruptcy. Through this process many assets can be liquidated to pay off debt, but most debts that remain after are discharged.

This means that people will no longer be liable for any portion of the debt and the creditor can no longer take any collection action for the debt. While most debts are discharged, there are some exceptions. Debts for child support or alimony, debts from a car accident caused by the debtor while under the influence, some taxes, debts from willful or malicious actions, student loans and other debts may not be discharged and people will continue to be liable for them.

When people in New Jersey have overwhelming debt, it can control their lives and make life very difficult. People may be able achieve a fresh start though through a Chapter 7 bankruptcy. These can be complicated matters though and consulting with an experienced attorney could be beneficial.


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