In an unprecedented move, the New Jersey Bankruptcy Court is mounting an informational campaign through the news media to educate the residents of New Jersey of the new bankruptcy laws.
Bankruptcy Filings were down by 39 percent in New Jersey and 37.6 percent nationally in 2006. The New Jersey Bankruptcy Court believes that a widespread misperception among its residents about the availability of bankruptcy has contributed to the continued sag in bankruptcy filings happening still today.
Unfortunately, these common misperceptions about bankruptcy aren’t confined to the residents of New Jersey alone. Nationwide, there are many inaccurate rumors flying around about the new bankruptcy laws. Many people even still believe that the bankruptcy law was completely abolished when the law changed and is no longer available to anyone. This of course is the opposite of the truth.
You have an economic right to file a Chapter 7 bankruptcy once every eight years if you can satisfy the new income requirements which are based on your state’s median income and your household size. In the case where your income is too high to file a Chapter 7 bankruptcy, you still have the legal right to stop all creditor harassment and pay back a reduced percentage of your debt through a Chapter 13 bankruptcy. Consulting with an experienced bankruptcy attorney is a fail-proof way to determine which bankruptcy chapter is a better fit for your specific situation.
Bankruptcy HQ commends the New Jersey Bankruptcy Court for being proactive in attempting to cure this problem and better inform its public.