✔  Chapter 7 Bankruptcy: If you file for Chapter 7 bankruptcy in New Jersey, most of your debt will be discharged, giving you a fresh financial start, but certain debts like child support, alimony, and student loans cannot be cleared away. In this type of bankruptcy, a court-appointed trustee sells off your assets and distributes the proceeds to your creditors, keeping a commission. There are many complexities to Chapter 7 bankruptcy law that you need to understand before pursuing this path.

✔  Chapter 13 Bankruptcy: In a Chapter 13 bankruptcy, you as the debtor propose repayment plans to creditors, offering to pay off all or part of your debts over 3 to 5 years using future income. To qualify for Chapter 13, you must have regular income and disposable income to dedicate to the repayment plan. Filing Chapter 13 often helps avoid foreclosure. The process involves many additional legal complexities regarding bankruptcy law in New Jersey.

KNOW YOUR FORECLOSURE RIGHTS IN NEW JERSEY

✔  As the homeowner, you are the mortgagor or borrower who takes out the mortgage loan. The lender, such as a bank, that provides the loan is the mortgagee or creditor. If homeowners fail to make their mortgage payments, they may face foreclosure, which allows the creditor to repossess the home. Unfortunately, creditors have the legal right to foreclose if payments are not made.

New Jersey's foreclosure laws provide homeowners with rights and options to mitigate losing their home. For example, the state's Fair Foreclosure Act requires creditors to send a "Notice of Intent to Foreclose" at least 30 days before filing a foreclosure complaint in court. This notice gives homeowners time to pursue options to avoid foreclosure.

Although foreclosure is an arduous process, the Notice of Intent to Foreclose gives homeowners in New Jersey an opportunity to take necessary steps to correct deficiencies in their mortgage and avoid foreclosure. If homeowners fail to take action after receiving the notice, the foreclosure process will continue. However, even at this stage, homeowners may still have options to pursue. Call us today to discuss your specific situation.