Bankruptcy

What is Chapter 7 Bankruptcy?

A Chapter 7 Bankruptcy is a type of bankruptcy that allows individuals or businesses to eliminate most of their unsecured debts such as credit card debt, medical bills, and personal loans, by liquidating certain assets. This form of bankruptcy is often referred to as "liquidation" bankruptcy, and it's one of the most common types of bankruptcy filings for individuals.

How much does Bankruptcy Document Preparation Cost?

We charge a flat non-refundable rate of $200 for simple bankruptcy petition preparation. A $150 non-refundable deposit is due before our work starts and $50 is due prior to you receiving finalized documents. 

This does not include your court filing fees or credit counseling fees.  While we prepare the many documents that are needed for your to file your bankruptcy petition, you remain fully responsible for these other costs.

What is the court filing fee for a Chapter 7 Bankruptcy?

In the United States Bankruptcy Court for the District of New Jersey, the filing fee for a Chapter 7 petition is $338.00. This fee must be paid directly to the court via money order, certified check, or bank check, payable to the "Clerk, United States Bankruptcy Court." Cash and personal checks are not accepted. The filing fee must be paid in full at the time the petition is filed.

An up-to-date fee schedule can be found on the Court's website at: Bankruptcy Court Fees (New Jersey) 

What if I cannot pay the full court fee at the time of filing?

The Courts may review an application for an Installment Schedule or an application to Waive the Fee. 

If an Installment Schedule application is granted by the Court, you will pay four installments equal to 25%  ($84.50) of the full filing fee. The first installment must be paid directly to the Court at the time the petition is filed. The final installment must be made within 120 days after the petition if filed. If installment payments are not made, the case may be dismissed by the Court and debts will not be discharged

The Court may waive the filing fee upon application only if your income is less than 150% of the official poverty guidelines for a specific family size and you are unable to pay the fee installments.

More information on Installments and Waivers may be found on the Court website: Installment and Waiver Application Information 

Are Credit Counseling and Financial Management required? Cost?

Yes, you must obtain Credit Counseling within the 180 days before the bankruptcy petition is filed and Personal Financial Management education before receiving a discharge. 

The Costs of each of these certifications is determined by the approved provider of your choosing. For more information click here.

Will filing for Bankruptcy stop collection actions?

Yes, temporarily. 

Filing for Chapter 7 bankruptcy, an Automatic Stay goes into effect, which temporarily halts most collection actions, including creditor harassment, lawsuits, wage garnishments, and foreclosure proceedings. This gives you relief while the bankruptcy is ongoing.

Will filing for Bankruptcy stop Eviction proceedings?

Yes, temporarily and IF filed before a landlord obtains a judgement of eviction. 

Filing for a Chapter 7 bankruptcy can temporarily stop eviction proceedings due to the Automatic Stay provision that takes effect as soon as you file. The Automatic Stay halts the eviction process, including scheduled court hearing or actions to remove you from the rental property. 

Are their Exceptions to the Automatic Stay for Evictions?