Answers to the most common questions from Newark residents considering bankruptcy.
Chapter 7 filing fee is $338; Chapter 13 is $313. Attorney fees: $1,500-$2,500 for Chapter 7, $3,500-$5,000 for Chapter 13. Credit counseling: $25-50 total. Full cost breakdown.
The means test compares your income to the New Jersey median. Below median = automatic Chapter 7 qualification. Above = detailed calculation.
Yes, with time limits. Use the 1328(f) screener to check. Learn about filing again.
Your homestead exemption protects $27,900 (federal exemption) of equity. In Chapter 13, you can keep your home and catch up on payments. See all exemptions.
New Jersey protects $4,450 (federal exemption) in vehicle equity. In Chapter 13, you can keep your car. Exemption details.
In Chapter 7, your refund may be an asset the trustee can claim if it exceeds exemptions. In Chapter 13, it may need to be turned over. Timing matters.
Chapter 7: 3-4 months. Chapter 13: 3-5 years. Full timeline.
A brief hearing about 30 days after filing. The trustee asks questions under oath. Most last 5-10 minutes. Full guide.
The automatic stay stops all collection activity immediately when you file -- lawsuits, garnishments, foreclosures, repossessions, and calls.
Yes, immediately upon filing. Learn more.
Yes. Medical bills are fully dischargeable in both chapters.
Generally no, except in rare hardship cases. Learn more.
Chapter 7: 10 years on report. Chapter 13: 7 years. Many see recovery within 1-2 years. Rebuilding tips.
Chapter 7 is faster; Chapter 13 lets you keep property. Given Newark's 61.2% Chapter 13 dismissal rate, understanding the risks is essential. Compare side by side.
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility.
Free Discharge Screener