Important facts about Chapter 7 bankruptcy in New Jersey

On Behalf of | Mar 28, 2022 | Bankruptcy

New Jersey is considered one of the wealthiest states in the entire United States. That is based on the median household income, which is quite a bit above the median for the whole United States. Of course, it is not as simple as earning a high income. New Jersey is also an expensive state in which to live because of all of the money that must be spent to maintain a comfortable lifestyle. Some of the facets of such a lifestyle are as follows:

  • Commute: Many New Jersey residents have very long commutes, which not only means that a great deal of time is spent on the road but it also often involves tolls, gas, and wear and tear on the commuter’s vehicle.
  • Property taxes: New Jersey’s property taxes are among the highest in the country.
  • Home rentals and purchases: According to statistics, it is 43% higher to rent a home in New Jersey than the average cost across the nation. It is also one of the most expensive states in which to buy a home.

Higher costs means more debt

It is logical that people who have to spend more money to maintain their lifestyle may also incur a greater amount of debt than people who are able to spend less. According to statistics, for example, New Jersey is one of the top 10 states when it comes to student loan debts. Credit card debt is the second highest in the country.

Because New Jersey residents have such large debts, many of them file for Chapter 7 bankruptcy protection. According to experts, the number of bankruptcy filings are expected to increase even more. Chapter 7 is a way for people with overwhelming debt to start from scratch legally. In many cases, if a person with heavy debts files for bankruptcy, they may not lose everything and they are able to start over.

Getting solid legal advice

If you have overwhelming debt and are considering filing for Chapter 7 bankruptcy protection, it may be wise to consult a knowledgeable New Jersey bankruptcy lawyer who can become well acquainted with your case and offer the right advice in your situation. You will need advice that will be appropriate for your unique financial situation. The lawyer can help you with that and can make sure that you understand what to do now and in the future.

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