For many in New Jersey, the choice to file for bankruptcy is not easy, but it is often necessary. Faced with overwhelming amounts of debts that cannot be repaid, a person may seek a Chapter 7 bankruptcy in order to get a fresh financial start. This new start can offer relief to those drowning in personal debt.
A Chapter 7 bankruptcy can offer a person in New Jersey and elsewhere nearly complete relief from their debts in many cases. Once a discharge is issued, a person is no longer liable for the debts that were included in the bankruptcy filing. Additionally, there may be property that is able to be kept using bankruptcy exemptions.
One man's situation shows how bankruptcy can be of help in dire situations. The Las Vegas developer filed for Chapter 7 bankruptcy recently after he became unable to repay his large debts. The man had guaranteed loans personally that were used to develop large commercial projects. When the recession struck and the real estate market collapsed, he, like many others, were unable to afford the loan payments.
Filing for a bankruptcy, the developer reported that he had only $4,738 in assets. This was in stark contrast to his nearly $507 million in debts. He additionally reported that he spends $4,305 each month -- a sum which is being covered by a credit entity.
Before the recession, the developer sought to develop a $2 billion project to be named City Crossing. When that failed, the development filed for bankruptcy in 2008. The developer did not file for personal debt relief under Chapter 7 until April 23 of this year. Like others, he likely attempted to repay his debt prior to facing a bankruptcy. Like many in New Jersey who go through the bankruptcy process, hopefully this man will be able to start over and regain his financial footing.
Source: Las Vegas Sun, "Las Vegas developer lists over $500 million in debt in bankruptcy filing," Steve Green, May 8, 2012