Chapter 13 Bankruptcy in New Jersey
If you’re behind on mortgage payments and worried about losing your home, Chapter 13 may provide a structured way to catch up. Filing can trigger the automatic stay, which may pause foreclosure and certain collection actions while your case moves forward. Chapter 13 is often called a wage earner plan because it allows individuals with regular income to propose a repayment plan lasting 36–60 months. Robert H. Johnson LLC helps you evaluate whether a court-approved plan could give you the time and structure needed to regain control.
Problems We Help Solve Every Day
Behind on Mortgage Payments
If missed payments are stacking up and a sheriff’s sale feels close, Chapter 13 may allow you to pause foreclosure and propose a plan to catch up over time.
Car Loan Arrears
Falling behind on your vehicle loan can put reliable transportation at risk. A structured repayment plan may help you retain your car while addressing past-due amounts.
Tax Debt or Priority Debts
Certain debts that cannot be discharged in Chapter 7 may be managed through a Chapter 13 repayment structure. This creates a defined timeline instead of ongoing uncertainty.
Irregular or Self-Employment Income
If you are self-employed but have steady income, Chapter 13 may still be an option. Careful budgeting and documentation help determine whether a workable plan can be proposed.
Common Mistakes That Complicate Chapter 13
Waiting Until the Sale Date Is Imminent
The earlier you review your options, the more flexibility you may have in structuring a plan.
Proposing a Plan That Isn’t Realistic
The bankruptcy court must approve your repayment plan. Clear income analysis helps avoid proposing payments that are unsustainable.
Assuming Self-Employment Disqualifies You
Being self-employed does not automatically prevent filing, but income must be documented carefully.
Quick Guidance Before You File
Understand the Timeline
Chapter 13 plans typically last between 36 and 60 months, depending on income and other factors.
Review All Debts and Arrears
Mortgage arrears, vehicle loans, tax obligations, and unsecured debts must be evaluated together.
Prepare Income Documentation
Whether you are salaried or self-employed, consistent income documentation supports plan approval.
Confirm Plan Feasibility
A workable plan must fit within your budget while satisfying legal requirements.
Ready to Put a Plan in Place?
Many people reach this point after trying to negotiate with lenders or manage arrears alone. The next step is working with someone who regularly prepares and proposes Chapter 13 plans in New Jersey courts.
What to Expect From Start to Finish
Your case begins with a detailed review of income, expenses, debts, and arrears to determine feasibility. If Chapter 13 appears appropriate, required credit counseling is completed and a repayment plan is drafted based on realistic numbers. The proposed plan is filed with the bankruptcy court and must receive court approval before moving forward. Throughout the 36–60 month period, you receive structured guidance so you understand each phase of the process.
Optional Step Overview:
- Complete pre-filing credit counseling.
- Prepare and file petition, schedules, and proposed repayment plan.
- Attend the meeting of creditors.
- Seek confirmation of the repayment plan from the court.
- Make payments under the approved plan.
Compare Chapter 13 With Chapter 7
This overview highlights common differences between the two options.
| Scenario / Concern | Chapter 13 | Chapter 7 |
|---|---|---|
| Best For | Individuals with regular income who need time to catch up on secured debts. | Primarily unsecured debt with limited disposable income. |
| Mortgage Arrears | May allow structured repayment over 3–5 years. | Does not provide a repayment plan for catching up on arrears. |
| Timeline | 36–60 month court-approved repayment plan. | Typically several months from filing to discharge. |
| Income Requirements | Requires steady income sufficient to fund a plan. | Subject to means testing eligibility. |
Not sure which fits your situation? We’ll help you evaluate both.
Your Chapter 13 Questions, Answered
Can Chapter 13 stop foreclosure in NJ?
Filing may trigger the automatic stay, which can pause foreclosure proceedings while your case is active. A repayment plan can then be proposed to address arrears over time.
How long is a Chapter 13 plan?
Plans typically last 36–60 months, depending on income and legal requirements.
Can I file Chapter 13 if I’m self-employed?
Yes, if you have steady income and can document it properly. Income consistency and feasibility of the plan are key considerations.
What does court approval mean?
Your proposed repayment plan must meet legal standards and be confirmed by the bankruptcy court before it becomes binding.
Protect What Matters and Build a Structured Path Forward
Chapter 13 is designed to provide time, structure, and legal protection when you are facing foreclosure or significant arrears. Robert H. Johnson LLC serves clients from Cherry Hill and nearby communities including Camden, Marlton, Mt. Laurel, and Pennsauken, as well as throughout New Jersey. If you’re looking for a Chapter 13 bankruptcy attorney in New Jersey, begin with a focused evaluation and a clear understanding of your options.