East Orange: 973-677-9000
Paterson: 973-247-9445
Jersey City: 201-659-6226
Toll Free: 888-827-5493
FREE Initial
Consultation Se Habla Espanol
Go to Practice Area Categories

Chapter 13 bankruptcy offers debt relief to New Jersey residents

For New Jersey residents who are facing insurmountable debt but have incomes that make them ineligible for Chapter 7 bankruptcy, Chapter 13 may provide just the debt relief for which they are hoping. Chapter 13 bankruptcy, sometimes referred to as reorganization bankruptcy, reorganizes debts to allow the consumer to pay just a portion of the outstanding debts. Also known as a "wage earner's plan," Chapter 13 also allows the filer to keep assets, so it may be a great option for those worried about losing property or nonexempt assets.

A Chapter 13 bankruptcy filing, once approved, allows filers to repay a portion of their debts through a court-approved repayment plan that lasts either three or five years. After the plan has been completed, any remaining discharge-eligible debts are typically cleared away. In addition, if a medical emergency or other financial hardship – such as loss of employment – occurs that makes it impossible for the filer to complete the Chapter 13 repayment plan, there is the option to convert to a Chapter 7 bankruptcy. Or, the court may allow the filer to discharge the remaining debts due to hardship, or modify the repayment plan.

Another benefit is that a Chapter 13 bankruptcy typically looks more favorable than a Chapter 7, as it shows the individual is at least making an effort to repay his or her debts. Also, Chapter 13 bankruptcies are noted on credit records for only seven years, which is three years fewer than with Chapter 7 filings. And with a Chapter 13 filing, there's no "means test" to pass first.

Individuals hoping to file are, however, required to complete a course of credit counseling by an approved agency before they are allowed to qualify for a Chapter 13 bankruptcy. A bankruptcy attorney will be able to recommend approved agencies. An experienced New Jersey bankruptcy lawyer will be able to offer invaluable counsel and guidance throughout all areas of the complicated bankruptcy filing process.

Source: consumerrecoverynetwork.com, "Pros and Cons of Chapter 13 Bankruptcy", Mrs. Moneyjar, March 1, 2017

No Comments

Leave a comment
Comment Information


Tell Us About Your Case

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.



  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Review Us
Goldman & Beslow, LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

FindLaw Network

qr code

7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
Fax: 973-675-5886
E-mail the firm

NEWARK OFFICE 168 Bloomfield Avenue
Newark, NJ 07104
Newark Law Office

Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

JERSEY CITY OFFICE 26 Journal Square,
Suite 603
Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

Back to Top