Can I Be Turned Down for Chaper 7 Bankruptcy in New Jersey?
Chapter 7 bankruptcy, or liquidation bankruptcy, allows creditors to liquidate their own assets and discharge debt when the effort to repay becomes hopeless. Businesses that file under Chapter 7 are shut down and their assets sold off, while individuals are allowed to keep very little. Some states, however, provide for substantial exemptions for home equity, life insurance, annuities and certain other assets. Because Chapter 7 is the most drastic form of bankruptcy, and the one most damaging to creditors, there are limits to who can obtain a discharge of debt under Chapter 7.
