The Cassidy Law Firm Blog

Monday, August 4, 2025

The Bankruptcy Process: What to Expect from Start to Finish

If you're facing mounting debt, endless calls from creditors, or the threat of lawsuits, bankruptcy may be your only way out. But for many people in New Jersey, filing for bankruptcy isn’t about giving up—it’s about getting back on track. The process might seem intimidating at first, but understanding each step can bring clarity and peace of mind.

Here’s what you can expect from start to finish when filing for bankruptcy in New Jersey, including how a local law firm in Shrewsbury can help.

Step 1: Meet with a New Jersey Bankruptcy Attorney

The first step is sitting down with a bankruptcy attorney to talk through your situation. When you meet with The Cassidy Law Firm, we’ll review your income, expenses, debts, and assets to determine whether bankruptcy is right for you—and if so, which type.

Most individuals in New Jersey file under Chapter 7 or Chapter 13:

  • Chapter 7 wipes out many debts and is typically quicker.

  • Chapter 13 involves a repayment plan and may help you keep certain property.

We’ll also explain what bankruptcy can and cannot accomplish. For example, not all debts are dischargeable, and there may be other options depending on your circumstances.

Step 2: Complete a Credit Counseling Course

Before you can officially file for bankruptcy in New Jersey, you’ll need to complete a credit counseling course. This is required by federal law and must be done through a government-approved provider.

The course typically lasts between 60 and 90 minutes and can be completed online or over the phone. Once you finish, you’ll receive a certificate that must be included with your bankruptcy petition.

Step 3: Filing Your Bankruptcy Petition in New Jersey

Once you're ready, your attorney will file a bankruptcy petition with the appropriate federal bankruptcy court in New Jersey. This filing includes detailed schedules outlining your debts, income, property, and financial history.

At this point, something important happens: the automatic stay goes into effect. This puts a stop to most collection efforts, including:

  • Wage garnishments

  • Lawsuits

  • Creditor phone calls

  • Repossession and foreclosure (temporarily, in some cases)

Your creditors will receive notice that you’ve filed, and they must stop trying to collect from you while the case is pending.

Step 4: The Meeting of Creditors (341 Hearing)

About a month after filing, you’ll attend a meeting with the bankruptcy trustee, called the 341 meeting. If you’re working with a Shrewsbury-based attorney or another local lawyer in Monmouth County, this meeting typically takes place within driving distance and often lasts less than 10 minutes.

The trustee will ask you a few basic questions about your finances and the information you submitted. Creditors are allowed to attend, but they rarely do. As long as your paperwork is accurate and you’re honest in your responses, the meeting is typically brief and straightforward.

Step 5: Fulfill Remaining Requirements

After the 341 meeting, you’ll need to complete a second financial education course. This is called the debtor education or financial management course, and it's required before your case can be finalized.

If you filed under Chapter 13, you’ll also begin making payments according to your court-approved plan. This plan typically lasts three to five years, allowing you to catch up on certain debts while keeping your property.

Step 6: Receive Your Discharge

The final step in the bankruptcy process is receiving your discharge—this is the court order that eliminates your eligible debts.

  • In Chapter 7, this typically occurs approximately 60 to 90 days after your 341 meeting.

  • In Chapter 13, it happens after you complete your repayment plan.

Once your discharge is granted, creditors can no longer attempt to collect on those debts. It’s your financial reset—a chance to move forward without the weight of old obligations holding you back.

Keep in mind that certain debts, like student loans, recent taxes, and child support, are not dischargeable. But for many New Jersey residents, the relief from credit card balances, medical bills, and personal loans is life-changing.

Talk to a New Jersey Personal Bankruptcy Attorney Today

Bankruptcy isn’t just about paperwork—it’s about your future. And when you're dealing with financial pressure, the last thing you need is confusion about the process.

At The Cassidy Law Firm in Shrewsbury, we handle every part of your case with care. We’ll handle the court filings, speak with the trustee, and manage communication with creditors. Our team has helped people across New Jersey file for bankruptcy and move forward with confidence.

If you’re thinking about filing for bankruptcy, contact us today for a free consultation.


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