Chapter 7

Chapter 7 Bankruptcy in New Jersey

A Clean Slate for Individuals Facing Unmanageable Debt

Chapter 7 bankruptcy, often called “liquidation bankruptcy,” is designed for individuals and families who are overwhelmed by debt and don’t have the income to repay it. If you’re constantly being harassed by creditors, facing wage garnishment, or watching your bills pile up with no relief in sight, Chapter 7 could offer the fresh start you need.

At Davis Law Collective LLC, we guide you through the Chapter 7 process with compassion, discretion, and clarity—because we know this is more than paperwork. It’s your peace of mind.

What Chapter 7 Can Do:

Eliminate credit card debt, medical bills, payday loans, and personal loans
Stop creditor harassment, lawsuits, and wage garnishments
Offer fast relief—many cases are completed in 3–4 months

What You Can Keep:

Many clients are surprised to learn they don’t lose everything in Chapter 7. New Jersey bankruptcy laws allow you to protect:

Your primary home equity (up to exemption limits)
A modest vehicle
Household goods, retirement accounts, and wages

We’ll evaluate your situation to determine what assets are protected under federal or New Jersey exemptions.

Eligibility for Chapter 7:

You must pass the Means Test, which compares your income to New Jersey’s median income for your household size. If you don’t qualify, we’ll explore Chapter 13 or other alternatives.