Contact
(844) 562-3572
[email protected]
TextBack Number
+1 877-721-2590
Deliveries:
354 Eisenhower Parkway
Suite 1250
Livingston, NJ 07039
- Additional Office Locations
(844) 562-3572
[email protected]
TextBack Number
+1 877-721-2590
Deliveries:
354 Eisenhower Parkway
Suite 1250
Livingston, NJ 07039
Financial hardship can strike without warning, leaving individuals and businesses overwhelmed by debt, threatened by creditors, and uncertain about the future. Whether you are facing mounting credit card balances, a looming foreclosure, wage garnishment, or a business on the verge of insolvency, understanding your legal options is the first and most important step toward regaining control. At the Law Office of Barry E. Janay, P.C. (LOBEJ), our bankruptcy attorney Jersey City NJ team provides compassionate, strategic, and results-driven legal representation to help clients throughout Hudson County and the greater New Jersey area navigate the bankruptcy process with clarity and confidence.
Bankruptcy is not a failure; it is a legal tool designed to give honest, hardworking individuals and businesses a second chance. The United States Bankruptcy Code exists precisely because the law recognizes that debt can sometimes become unmanageable through no fault of the debtor, and that society is better served by giving people a fresh start than by trapping them in a cycle of financial despair. At LOBEJ, we help clients understand this process, evaluate all of their options, and make informed decisions that serve their best long-term interests.
Bankruptcy proceedings are governed entirely by federal law and are handled in the United States Bankruptcy Court for the District of New Jersey, which has locations in Newark, Trenton, and Camden. Jersey City and Hudson County residents file in the Newark vicinage. The bankruptcy process offers several distinct chapters, each designed to address different financial situations with different tools and outcomes.
Chapter 7 bankruptcy, commonly called liquidation or straight bankruptcy, is the most frequently filed form of consumer bankruptcy. It allows eligible individuals and businesses to discharge, that is, permanently eliminate most forms of unsecured debt, including credit card balances, medical bills, personal loans, utility arrears, and certain other obligations. The process is relatively fast, typically concluding within four to six months of filing, and there is no ongoing repayment obligation to unsecured creditors. Eligibility for Chapter 7 is determined by the means test, which compares the debtor’s average monthly income over the six months before filing to the median income for a comparable household in New Jersey. Debtors whose income falls below the median typically qualify automatically; those above the median must pass a more detailed calculation.
Chapter 13 bankruptcy, sometimes called a wage earner’s plan, is designed for individuals with regular income who want to reorganize their debt rather than liquidate. Under Chapter 13, the debtor proposes a three-to-five-year repayment plan that pays back some or all of their debts in an amount they can actually afford, based on their disposable income after allowable expenses. Chapter 13 is particularly valuable for individuals who are behind on mortgage payments and want to save their home from foreclosure, who have non-exempt assets they want to protect, or who have debts that are not dischargeable in Chapter 7, such as certain tax obligations or domestic support arrears, that can be addressed through a reorganization plan.
Chapter 11 bankruptcy is primarily a business reorganization tool, though high-debt individuals can also file under Chapter 11 in certain circumstances. It allows companies to continue operating while restructuring their debts, renegotiating contracts, and reorganizing their financial affairs under court supervision, with the goal of emerging from bankruptcy as a leaner, more viable business.
One of the most powerful and immediately impactful benefits of filing for bankruptcy, under any chapter, is the automatic stay. The moment a bankruptcy petition is filed with the court, the automatic stay goes into effect as a matter of federal law, halting virtually all collection activity against the debtor. This means creditors must immediately cease all lawsuits, wage garnishments, bank account levies, foreclosure proceedings, repossessions, and even phone calls and letters demanding payment.
For individuals living under the crushing stress of relentless creditor contact, the automatic stay provides immediate breathing room. For businesses, it can stop a landlord from pursuing an eviction, prevent a secured lender from seizing equipment, and halt a lawsuit that was days away from a damaging judgment. The automatic stay is not permanent; creditors can ask the bankruptcy court to lift it under certain circumstances, but it provides critical protection during the period when the debtor and their attorney are developing a legal strategy. Our bankruptcy attorney Jersey City NJ team at LOBEJ acts quickly upon engagement to ensure clients receive its full benefit, filing carefully prepared petitions that are complete and accurate from the outset and minimizing the risk of early dismissal or creditor challenges.
Once the petition is filed, the process involves a series of procedural steps that must be navigated carefully to ensure a successful outcome. Shortly after filing, the bankruptcy trustee schedules a 341 Meeting of Creditors, a relatively informal proceeding at which the debtor must appear, testify under oath, and answer questions from the trustee and any attending creditors. The meeting is typically brief and straightforward when the debtor has been thorough in their disclosure and is represented by experienced counsel, but it nonetheless requires careful preparation.
In a Chapter 7 case, the trustee reviews the debtor’s assets to determine whether any non-exempt property can be liquidated to pay creditors. New Jersey allows debtors to choose between federal and state exemptions, and selecting the right set is a strategically important decision that can significantly affect how much property the debtor retains. In most consumer Chapter 7 cases, debtors keep all of their property because it falls within the applicable exemptions, and the case concludes with a discharge order eliminating qualifying debts.
In a Chapter 13 case, the trustee reviews the debtor’s proposed repayment plan to ensure it meets the legal requirements of the Bankruptcy Code. Creditors may object, and the court must confirm the plan before payments begin. The debtor then makes monthly payments to the trustee for three to five years, after which any remaining dischargeable debts are eliminated.
At LOBEJ, we handle every step of this process from the initial consultation and means test analysis to petition preparation, the 341 meeting, plan confirmation proceedings, and the ultimate receipt of the discharge order. We also represent clients in any adversary proceedings or contested matters that arise during the case, including disputes over the dischargeability of specific debts.
Many people approach the bankruptcy process with fear and uncertainty about what comes next. The reality is that for most clients, bankruptcy is the beginning of a genuine financial recovery, not the end of financial viability. Once the discharge is entered, the debts that have been eliminated are gone permanently. Creditors cannot pursue collection on discharged debts, and any attempt to do so is a violation of the discharge injunction that can be sanctioned by the court.
Credit recovery after bankruptcy is very achievable. Many clients begin receiving new credit offers within months of their discharge, and with disciplined financial management, maintaining low credit card balances, paying bills on time, and avoiding taking on more debt than they can manage, it is possible to rebuild a solid credit profile within two to three years. LOBEJ provides clients with practical guidance on credit rebuilding strategies as part of our holistic approach to the post-bankruptcy recovery process.
Our broader legal practice at LOBEJ also provides critical support for clients whose financial challenges intersect with other areas of law. Our Bankruptcy Debtor Protection services extend beyond the bankruptcy filing itself to encompass the full range of debtor rights issues. Clients dealing with aggressive creditors can also access skilled support through our Commercial Collections practice. Business owners emerging from financial difficulty often benefit from our Business Law team’s assistance in restructuring their operations and contracts for a stronger future. Individuals and families managing the financial dimensions of estate planning alongside a bankruptcy matter can rely on our Wills, Trusts & Estate team for comprehensive planning support. For those dealing with unexpected crises that have created the financial difficulties in the first place, our Crisis Planning practice offers structured legal support designed to stabilize and reorient. At LOBEJ, we walk with our clients not just through the bankruptcy process, but through everything that comes before and after it.
No. A Chapter 7 bankruptcy remains on your credit report for ten years, and a Chapter 13 remains for seven years, but these are not permanent marks. Many clients are surprised by how quickly they are able to rebuild their credit after receiving a discharge. The existing debt burden that was damaging your credit score is eliminated, and with responsible financial behavior going forward, your credit score can recover substantially within a few years of discharge.
Whether you can keep your home depends on which chapter you file, how much equity you have in the property, and whether you are currently on your mortgage. Under Chapter 13, catching up on mortgage arrears through the repayment plan is one of the primary reasons people choose this chapter over Chapter 7. Under Chapter 7, New Jersey’s homestead exemption protects a limited amount of home equity, but if your equity significantly exceeds the exemption, the trustee may seek to liquidate the property. LOBEJ will analyze your specific situation and advise you on the best strategy for protecting your home.
Certain categories of debt are not dischargeable in bankruptcy, regardless of which chapter is filed. These include most student loans (unless the debtor can demonstrate undue hardship), domestic support obligations such as child support and alimony, recent income tax debts, debts incurred through fraud or misrepresentation, debts for willful and malicious injury to another person or their property, and fines or penalties owed to a government entity. Our bankruptcy attorney Jersey City NJ team will identify all of your debts, analyze their dischargeability, and counsel you on how to address non-dischargeable obligations within your overall strategy.
The court filing fee for Chapter 7 is currently $338, and for Chapter 13 it is $313. Attorney fees depend on the complexity of the case, the chapter being filed, and the amount of work involved. At LOBEJ, we provide transparent, upfront fee information and work with clients to structure fee arrangements that are accessible during what is often a financially difficult period. In Chapter 13 cases, a portion of attorney fees can sometimes be paid through the repayment plan.
The automatic stay takes effect immediately and automatically the moment the bankruptcy petition is filed with the court, not after a hearing, not after the creditor is notified, but instantly upon filing. This means that a wage garnishment scheduled for that afternoon, a foreclosure sale set for that morning, or a bank levy that was about to be executed must stop as soon as the petition hits the court’s electronic filing system. Creditors who violate the automatic stay are subject to sanctions. LOBEJ acts quickly in urgent situations to ensure clients receive this protection without delay.
The below conversational form is designed to help us better understand your needs and determine how we can assist you most effectively. Please answer the questions to the best of your ability.
Phone
(844) 562-3572
Email
[email protected]
Fax
(908) 379-8754
Primary Address
354 Eisenhower Parkway Suite 1250 Livingston, NJ 07039
New York Office
90 Broad St. 25th Floor, New York, NY 10004
Satellite Office
766 Shrewsbury Ave., Suite E-202 Tinton Falls, NJ 07724