| Filing for bankruptcy and taking your case to NJ | | | | bankruptcy process was complete. With the |
| bankruptcy court can be a difficult task. Deciding to file | | | | enactment of the Bankruptcy Abuse Prevention and |
| for bankruptcy is never easy, but it may be your only | | | | Consumer Protection Act, this changed. Now back |
| option if you are only making the minimum payments | | | | taxes that are the result of failing to file a tax return or |
| on your debts or if you can't create a budget to get | | | | filing a late tax return can no longer be discharged. This |
| yourself out of debt in the next five years. While many | | | | Act has made many changes to the NJ bankruptcy |
| of your debts may be discharged under your | | | | court and how bankruptcy cases are handled. |
| bankruptcy, there are several debts that cannot be | | | | Student Loans |
| discharged through NJ bankruptcy court. You must | | | | Unless you were in an accident and are now |
| continue to pay these debts even after your | | | | completely unable to work, student loans are no longer |
| bankruptcy case has been discharged. | | | | dischargeable. In the past, private student loans could |
| Alimony & Child Support | | | | be discharged under a Chapter 7 bankruptcy. With the |
| Alimony and child support cannot be discharged under | | | | Bankruptcy Abuse Prevention and Consumer |
| a bankruptcy. With most other debts, collection efforts | | | | Protection Act, private loans were given the same |
| must cease once a creditor is informed that the debtor | | | | standing as government-guaranteed loans and are no |
| is filing for bankruptcy. Alimony and child support | | | | longer dischargeable. To have student loans |
| collections may continue because they are exempt | | | | discharged, you must prove that repaying them is an |
| from this rule. The Bankruptcy Abuse Prevention and | | | | undue hardship on you or your family. The only way to |
| Consumer Protection Act made support debts the | | | | do this would be to prove that you can no longer work |
| highest priority debts in a bankruptcy case, even | | | | due to a disability or severe injury. This is just another |
| above taxes. If you owe child support or alimony, your | | | | way the Bankruptcy Abuse Prevention and Consumer |
| ex-spouse may file a proof of claim with the court and | | | | Protection Act has changed the workings of the NJ |
| you will be held responsible for continuing these | | | | bankruptcy court. |
| payments. An attorney can advise you more on | | | | Going to NJ bankruptcy court can cause a lot of |
| alimony and child support and how they are affected | | | | frustration and nervousness. If you are working with an |
| by the New Jersey bankruptcy court. | | | | experienced and qualified bankruptcy attorney, you will |
| Back Taxes | | | | be able to choose the best bankruptcy solution for |
| In the past, debtors often filed Chapter 13 bankruptcies | | | | your particular needs. While filing for bankruptcy does |
| because they owed back taxes. If they made | | | | make life harder, it can also give you a fresh start and |
| payments on these taxes as a part of a Chapter 13 | | | | help you get back on your feet. |
| repayment plan, this is all that was owed once the | | | | |