Chapter 7 vs. Chapter 13 Bankruptcy: Which Is Right for Cherry Hill Families?

When financial struggles become overwhelming, many families in Cherry Hill begin searching for real solutions that can provide relief. Bankruptcy may sound intimidating, but it’s a legal tool designed to help you regain control of your finances. Two of the most common options are Chapter 7 and Chapter 13 bankruptcy. Understanding how these work can help you decide which path is best for your situation.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is often called a “fresh start” bankruptcy because it allows individuals to discharge most unsecured debts, such as:

• Credit card balances
• Medical bills
• Personal loans

In many cases, you won’t have to give up everything you own. New Jersey law provides exemptions that may allow you to keep essential assets, like a vehicle or household items.

Benefits of Chapter 7

• Fast process (often completed in 4–6 months)
• Wipes out many types of debt
• Stops creditor calls and lawsuits

Considerations

• Not everyone qualifies (income limits apply)
• It does not stop foreclosure long-term if you’re behind on a mortgage
• Certain debts, like student loans or child support, are not discharged

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy works differently. Instead of eliminating most debts immediately, it creates a repayment plan that lasts three to five years. This option allows you to catch up on missed payments while keeping valuable assets, such as your home.

Benefits of Chapter 13

• Helps stop foreclosure and repossession
• Lets you catch up on mortgage or car payments
• Consolidates debt into one manageable monthly payment

Considerations

• Requires steady income to stick to the repayment plan
• Lasts longer than Chapter 7
• You must make payments for the full term to receive a discharge

Which Option Is Better for Cherry Hill Families?

The right choice depends on your financial situation:

• Choose Chapter 7 if your income is limited, you don’t have significant assets at risk, and you want a quicker resolution.
• Choose Chapter 13 if you’re behind on a mortgage or car loan, need time to catch up, and have enough income to support a repayment plan.

Every family’s circumstances are unique. What works for one household in Cherry Hill may not be the best path for another. That’s why it’s important to carefully review your options before moving forward.

Take the Next Step Toward Financial Relief

If you’re unsure whether Chapter 7 or Chapter 13 bankruptcy is the right choice for your family, Boyle & Valenti Law, P.C. is here to guide you. We’ll help you review your finances, explain the options available under New Jersey law, and work with you to find a path that fits your needs.

Call Boyle & Valenti Law, P.C. today at 856-499-3335 to schedule a consultation and take the first step toward a more secure financial future.