New jersey bankruptcy law
Bankruptcy is a term given to legal proceedings of a court in which the debtor asks for relief from his debts which he owes to his creditors. This proceeding includes a debtor, a creditor, and a third party if any. Bankruptcy was brought into action so that an individual or a business can revive their financial situation, but it is not necessary that a person will always be relieved from his debts as he may also have to work on a repayment plan.
The bankruptcy laws have been standardized as far as the United States of America is concerned, the 11th Title of the United States Code deals with bankruptcy laws. Recently 25 changes have been made because of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Most of these changes have been brought into play from the date 17 October, 2005. When a creditor calls for bankruptcy upon the debtor it is called an involuntary bankruptcy and when a debtor files a petition for bankruptcy for himself it is called voluntary bankruptcy.
Bankruptcy matters are governed by the Federal Jurisdiction. There are various types of bankruptcies and these are claimed under Chapter 7 which deals with basic liquidation, Chapter 9 which deals with municipal bankruptcy, Chapter 11 which deals with reorganization for business Chapter 12 which deals with the rehabilitation plans for families, Chapter 13 which deals with parties who have a regular source of income and thus their repayment plan is given accordingly and chapter 15 deals with international cases. Families or individuals in New Jersey usually file for bankruptcy either under chapter 7 or chapter 13, but one needs to qualify for these chapters by giving a means test. This test takes out an average of the income of the state and if a partys income is below the median income then he qualifies to file a petition under Chapter 7 and may get the relief that he requires, if he doesnt qualify for the means test under chapter 7 then the other parts of the test will decide if he qualifies for filing under Chapter 7
Chapter 13 is usually for those who can afford a repayment plan and have a regular income scheme. This is done by discussing the matter in the presence of all the parties and the judge who decides on the plan. One needs to get all his assets in order and then decide on which property he would like to keep in the New Jersey Exemption, and the rest of the property will be sold out to pay the creditors. A party needs a trustee to collect the New Jersey Bankruptcy Forms to file a petition and once the petition is filed the creditor cannot make any contacts with the debtor in regards to his claim, this period is called the Automatic Stay. Later after a month has passed, the court calls for a meeting which is called the 341 meeting, which includes the creditor, debtor and any third party if involved. Any concealment of property may hinder the judgment.
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