Finding Creative Solutions To Your Legal Challenges

When to consider New Jersey bankruptcy

On Behalf of | Jun 16, 2023 | Bankruptcy |

A New Jersey resident facing overwhelming financial difficulties might consider filing for bankruptcy. There were 387,721 bankruptcy filings in the U.S. in 2022, according to the Administrative Office of the U.S. Courts. Whether or not you should file for bankruptcy depends on several factors.


If your debt is overwhelming, bankruptcy can provide relief. Bankruptcy is a legal process that erases some or all of your debts. You can usually eliminate debts such as credit cards, unsecured loans and medical bills. However, debts such as child support and taxes are exempt.

Monthly payments

Perhaps you’re struggling to make monthly payments for credit cards, medical bills or unsecured loans. Filing for bankruptcy can erase most debts or help you create a manageable repayment plan.


If you are sick of constant calls and letters from debt collectors and creditors, bankruptcy can help. When you file for bankruptcy, the court issues an automatic stay against your creditors. This means that your creditors and bill collectors must cease collection activity. If a debt collector continues to contact you after the stay has been issued, they’re violating the bankruptcy code.

Fresh start

Perhaps your debt is so heavy that it’s causing mental and physical distress. And you feel that a fresh financial start will make things better. Filing for bankruptcy can give you a fresh start. It will temporarily lower your credit score, but you can rebuild your credit.

Filing for bankruptcy might provide the relief that you seek. But you might also consider other options before deciding on bankruptcy. For example, you could negotiate with creditors for lower monthly payments or interest rates. You might also consider a debt consolidation loan with manageable monthly payments.