In the past, people were supposed to be ashamed of filing for bankruptcy. Fortunately, filing for bankruptcy has become more acceptable -- especially since the recession. Unfortunately, this acceptance has not eliminated misconceptions about life after bankruptcy.
Most New Jersey residents receive a clean financial slate since most, if not all, of their debts are discharged or paid off, depending on whether a Chapter 13 or a Chapter 7 was filed. Even though your credit score will be impacted by the bankruptcy, you can recover over time. This is because creditors know that a successful bankruptcy means your debt has most likely been reduced significantly, leaving with you with a more desirable debt-to-income ratio.