Overwhelmed by Debt in Camden County? Chapter 7 Can Give You a Fresh Start.
If creditors are garnishing your wages, threatening lawsuits, or repossessing your vehicle, you are not without options. Chapter 7 bankruptcy is a powerful federal tool that can stop collection actions immediately and eliminate most unsecured debts — giving you the clean slate you need to move forward.
We represent individuals throughout Camden County, including residents of Cherry Hill, Voorhees, Haddonfield, Collingswood, Gloucester Township, Winslow Township, Pennsauken, Haddon Township, and Lindenwold. Many Camden County residents commute to Philadelphia for work, and economic shifts on both sides of the Delaware River can lead to job loss, mounting medical bills, and unmanageable credit card debt.
What Chapter 7 Bankruptcy Does for You
Chapter 7 — sometimes called “liquidation bankruptcy” — is designed for individuals who cannot realistically repay their debts. Unlike Chapter 13, which creates a repayment plan, Chapter 7 discharges qualifying debts entirely, usually within 3–4 months. Here is what it can do:
✅ Stops wage garnishments immediately: The automatic stay halts all wage garnishments the moment your petition is filed. Your full paycheck is restored.
✅ Stops lawsuits and judgments: Pending creditor lawsuits, debt collection actions, and efforts to enforce existing judgments are frozen by the automatic stay.
✅ Stops vehicle repossession: If your car is being threatened with repossession, filing Chapter 7 triggers the automatic stay and gives you time to address the situation.
✅ Stops creditor harassment: All collection calls, threatening letters, and contact from debt collectors must cease immediately under federal law.
✅ Eliminates credit card debt: Credit card balances are unsecured debts that are typically discharged completely in Chapter 7.
✅ Eliminates medical bills: Overwhelming medical debt — one of the leading causes of bankruptcy — is dischargeable in Chapter 7.
✅ Eliminates personal loans and payday loans: Unsecured personal loans, payday loans, and similar debts can be wiped out.
✅ Can stop eviction proceedings: In many cases, the automatic stay can temporarily halt eviction proceedings, giving you time to find alternative housing.
Chapter 7 Bankruptcy Process in Camden County
Chapter 7 cases for Camden County are conveniently filed at the U.S. Bankruptcy Court, Camden Vicinage, located right in the county at 401 Market Street, Camden, NJ 08101.
The Chapter 7 process typically takes 3–4 months from filing to discharge. After filing, you will attend a brief meeting of creditors (341 meeting) where a trustee reviews your case. In most consumer cases, there are no assets to liquidate, and your debts are discharged without losing any property thanks to New Jersey’s bankruptcy exemptions.
Attorney Michael Siddons has guided hundreds of individuals through the Chapter 7 process and can help you understand what property is protected under New Jersey exemptions.
New Jersey’s Bankruptcy Exemptions
New Jersey allows you to protect essential property when filing Chapter 7. While New Jersey does not have a homestead exemption, you can still protect personal property, retirement accounts, life insurance, and other assets. Many Camden County residents who file Chapter 7 keep everything they own because their assets fall within protected categories. Attorney Siddons will evaluate your specific situation to ensure your property is protected before filing.
Do You Qualify for Chapter 7?
To file Chapter 7 in New Jersey, you must pass the “means test,” which compares your income to the median income for a household of your size in New Jersey. If your income is below the median, you automatically qualify. Even if your income is above the median, you may still qualify after accounting for allowable expenses. You must also:
- Complete a credit counseling course from an approved agency before filing
- Not have received a Chapter 7 discharge in the past 8 years
- Complete a financial management course before receiving your discharge
During your free consultation, Attorney Siddons will run the means test and let you know immediately whether you qualify.
Frequently Asked Questions — Camden County Chapter 7
Will I lose my home if I file Chapter 7 in Camden County?
Not necessarily. While New Jersey does not have a homestead exemption, if you are current on your mortgage and the equity in your home is minimal, you can typically keep your home in Chapter 7. Attorney Siddons will evaluate your specific situation.
Will Chapter 7 stop a wage garnishment that has already started?
Yes. The automatic stay stops existing garnishments immediately upon filing. In some cases, you may even be able to recover garnished wages taken within 90 days before filing.
How long does Chapter 7 stay on my credit report?
Chapter 7 remains on your credit report for 10 years from the filing date. However, many clients see their credit scores begin improving within 12–18 months after discharge because their debt-to-income ratio improves dramatically.
Can Chapter 7 eliminate tax debt?
Some older income tax debts can be discharged in Chapter 7 if they meet specific criteria (generally taxes that were due more than 3 years ago, filed on time, and assessed more than 240 days ago). Attorney Siddons can evaluate whether your tax debts qualify.
Get Help Now — Free Consultation
If you are facing wage garnishments, creditor lawsuits, vehicle repossession, or overwhelming debt in Camden County, do not wait. Contact Siddons Law Firm today at (609) 285-3999 for a free consultation. We are a federally designated Debt Relief Agency and proudly help people throughout Camden County file for bankruptcy relief under the United States Bankruptcy Code.