New Jersey Bankruptcy: Frequently Asked Questions


While it’s true that everyone’s financial situation is unique, there are a number of commonly asked questions about the bankruptcy process that apply to all debtors. To help our readers, we compiled a list of the questions most frequently asked by our bankruptcy clients. Use this page as a reference when getting started with your own bankruptcy case.

  • How could bankruptcy help me? Many people don’t have a good understanding of what it means to file for bankruptcy, so it can seem daunting and confusing. In short, bankruptcy (chapter 7) gives debtors relief from their unsecured debts. Many, if not all of your unsecured debts can be wiped clean! Filing for bankruptcy can also: stop your home from being foreclosed upon, help you save your vehicle from repossession, put a stop to annoying debt collectors, and prevent any of your utilities from being shut off.


  • Should I file for Chapter 7, 11 or 13? File for chapter 7 if you have very little disposable income and significant unsecured debts. You should consider chapter 13 if you do have a decent income and would be able to pay back some or all of your debts if they were reorganized more optimally. Chapter 11 bankruptcy is intended to be used by businesses and people who owe substantial amounts of money.


  • Would I even qualify for bankruptcy? In order to determine if you’d qualify to file a NJ bankruptcy petition, you’ll have to discuss your personal financial details with your bankruptcy attorney. In general, you will need to disclose: a list of all of your debts, any property you own (personal and real estate), pension(s), stocks, and life insurance policies. It is impossible for us to determine whether or not you’d qualify for bankruptcy without discussing your personal finance details with you.


  • Will I lose everything I own? This is one of the most common misconceptions held by many people regarding bankruptcy. In filing for chapter 7 bankruptcy, you’d be able to keep anything that is considered ‘exempt’ from your creditors. You can learn more about New Jersey state and federal bankruptcy exemptions here.


  • Does filing for bankruptcy involve me physically attending court? You will have to attend court for something called the Meeting of Creditors, which helps your bankruptcy trustee decide what assets to liquidate. The good news is that your New Jersey bankruptcy attorney will attend the meeting with you.


  • What will happen to my credit score? Filing for bankruptcy definitely does drag your credit score down. We try to look at it as “there’s nowhere to go but up!” A bankruptcy on your credit report is better than having a large number of unpaid debts that you’ve chosen to ignore.


  • Will I be 100% debt-free after a bankruptcy discharge? Chapter 13 will help you set up a payment plan that is achievable for you and will not involve liquidation of your assets. A chapter 7 discharge means nearly all of your debts will disappear, with the exception of student loans, child support/alimony, fines, and any debts (loans) that were acquired illegally.


  • Will Veitengruber Law help me repair my credit after bankruptcy? Absolutely! We will help you set up an appropriate budget so that you can stay out of debt. We’ll also walk you through the process of repairing your credit score. Veitengruber Law will give you a number of helpful suggestions that will steadily increase your credit score after your bankruptcy discharge.
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I Need a NJ Bankruptcy Attorney I Can Trust!

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As a general rule, people are scared to death to meet with attorneys. Asking for help can be extremely daunting to most of us, and even more so when you have to admit that you’ve made some mistakes managing your money. The mere thought of beginning the search for a New Jersey bankruptcy attorney is overwhelming enough that many people put it off much longer than they should.

The truth of the matter is, that if you have found yourself in a legal situation that is rather complicated and/or involves a significant amount of money or debt, you should not handle this problem alone. The right attorney will be interested in the details surrounding your case, and will become your biggest ally.

The best kind of attorney will coach you along the way, giving you the information you need to make sound and informed decisions about your legal problems. You should feel a good rapport with the attorney with whom you will be working closely in order to get your life back on track.

Meeting with a bankruptcy attorney is one of the hardest things you may ever have to do, and Veitengruber Law knows and understands this. Admitting that you may be about to lose your home and possibly many of your possessions is a difficult thing for anyone to go through.

Upon walking into our offices, you will be immediately put at ease by our extraordinary staff members. Every member of the Veitengruber Law family takes pride in giving great face time to all of our clients. We want you to feel comfortable and relaxed from the moment you walk in the door. It is our goal that all of our clients be able to relate to us as people who are here to help. We know that the more relaxed you are, the more likely you will be to open up to us. This is when our relationship with our clients blossom and become extremely worthwhile for everyone involved.

At Veitengruber Law, we want you to feel at home. We are probably the least pretentious law firm in all of Ocean County, NJ. We will never feed you a line just to get your business! In all honesty, we are IN THE BUSINESS OF HELPING people just like you, and we wouldn’t have it any other way.

Whether your legal problem stems from out-of-control debt or simply one particular loan that may be able to be modified to make your life easier, we are the NJ attorney team you want working for you. Are you being harassed by a debt collector? Is your house in danger of being lost to foreclosure? Do you wish you had a “Start Over” button?

We can help you with any of those problems and so many more. Don’t let fear get in the way of asking for quality legal help in New Jersey. You might also be glad to learn that your first consultation with us will be free of charge. We’re not scary – we promise. 🙂

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