Chapter 7 and Chapter 13 Bankruptcy That Gives You a Real Fresh Start in New Jersey
Bankruptcy has a bad reputation it mostly does not deserve. For a lot of people, it is not the thing that ends a financial life. It is the thing that finally lets one begin again. The collection calls stop. The lawsuits stop. The balance that grew every month no matter what you paid finally goes away or gets reset to something you can actually handle. If you are reading this, you are probably closer to that relief than you think.
From our office in Hackensack, David Stevens represents individuals and business owners across Northern New Jersey, from New Brunswick and up. When you call, you talk to the lawyer who will actually handle your case, not a screener at a filing factory.
What bankruptcy actually does
Bankruptcy is a legal process, created by federal law, that gives honest people who are in over their heads a way out. It does two main things. It stops creditors from chasing you, and it either wipes out debt entirely or reorganizes it into a plan you can afford. Which of those happens, and how, depends on which chapter fits your situation.
The most important thing to understand up front is that this is a tool, not a punishment. Congress wrote these laws precisely because good, careful people end up buried in debt through no real fault of their own. A medical emergency, a job loss, a divorce, a business that hit a wall, a lender who changed the terms. The bankruptcy code exists for exactly these moments.
The chapters, in plain language
Most people have heard of the numbers but do not know what they mean. Here is the short version.
The automatic stay: relief on day one
Here is the part that changes people’s lives the fastest. The moment your bankruptcy case is filed, a court order called the automatic stay goes into effect. It legally stops most collection activity in its tracks. That means the phone calls, the collection letters, the lawsuits, the wage garnishments, and in most cases a scheduled foreclosure sale all have to stop. Not slow down. Stop.
For a lot of our clients, the first quiet evening after filing, the first dinner without the phone buzzing, is the moment they finally breathe. If a creditor keeps contacting you after the stay is in place, they can face real consequences, and we handle that for you.
What you keep
This is the single biggest fear people bring in the door, and it is usually based on a myth. The idea that bankruptcy means losing everything is simply wrong for most people. New Jersey filers can choose between the state exemptions and the federal exemptions, and most people use the federal set because it tends to protect more home equity. Those exemptions are designed to let you keep the things that matter, a modest home’s equity, a vehicle you need to get to work, retirement accounts like 401(k)s and IRAs, tools of your trade, and ordinary household goods.
We will not pretend every case is identical, because they are not. But in the large majority of the filings we handle, people keep what they care about and walk away from the debt that was crushing them. Before you file, you will know exactly what is protected, because we map it out with you first.
Where your case is heard
New Jersey bankruptcies are filed in federal court, and which courthouse depends on where you live. Clients in Bergen, Passaic, Morris, Hudson, Sussex, and Essex counties file in the Newark vicinage. Clients down in Monmouth County, including Red Bank and Middletown, file in the Trenton vicinage instead. These are different courthouses with their own trustees and their own rhythms, and knowing how each one works is part of why we keep the practice focused on this region rather than spread thin across the whole country.
How the process works
Most people have never done this before, and the unknown is a big part of the stress. The shape of it is simpler than you would expect.
It starts with a free conversation. You tell David what is going on, he asks the questions that matter, and you leave understanding your options. If moving forward makes sense, the next step is gathering your real financial picture, your income, debts, assets, and expenses, so the plan is built on facts and not guesses. There is also a short, straightforward credit counseling course required before filing, which we walk you through.
Once we file, the automatic stay kicks in immediately. In a Chapter 7, there is usually a single, brief meeting with the trustee a few weeks later, and for most people that is the only appearance required. A Chapter 13 or a business reorganization runs longer because it involves a repayment or restructuring plan, but you are not doing any of it alone. We handle the filings, the deadlines, and the communication with the court and the trustee.
A few myths worth clearing up
Bankruptcy is not the end of your credit
It is a reset, not a life sentence. Many people begin rebuilding within a year or two, and lenders understand that a filer has shed the debt that was dragging them down. Carrying unpayable balances hurts your long-term credit far more than dealing with them does.
You are not a failure
Debt trouble happens to hardworking, responsible people constantly. Setting down the shame is often the first real step forward.
Not every debt disappears, and that is okay
Some obligations, like most recent taxes, child support, and student loans, are treated differently. We tell you honestly, before you file, what will be discharged and what will not, so there are no surprises.
Tax debt has its own rules in bankruptcy, and its own options outside of it. Our Tax Debt Resolution & Insolvency page covers both.
Frequently asked questions
Why people choose ClearPath for bankruptcy
David built this firm on the idea that a debt case deserves a lawyer who picks up the phone. This is a focused practice, not a filing factory. You are not handed off to a paralegal and pushed through a template. You work directly with the attorney who knows the local courts and trustees and who will see your case through from the first call to the discharge.
If you are scared right now, that is normal, and it is not a reason to wait. The sooner you understand your options, the more of them you have. You are going to be okay.
If a creditor challenges your discharge or files an adversary proceeding, that is handled as its own matter. Learn more on our Bankruptcy Litigation & Adversary Proceedings page.
Ready to talk?
There is no charge to find out where you stand. Call the office, tell us a little about what is going on, and we will tell you honestly whether bankruptcy is the right path, even if the answer is that it is not.
ClearPath Law 2 University Plaza, Suite 400, Hackensack, N.J. 07601