Legal Question in Bankruptcy in New Jersey

Re: Please suggest the right solution!!

Your questions are highly technical and involve venue -- proper filing location -- and plannning/decisions about the effect of employment on whether you can/must file Chapter 7 (liquidation) or Chapter 13 (reorganization - individual wage earner plan), in addition to the immigration question that you have raised. You need to consult directly with bankruptcy counsel. It cannot be done effectively on the Internet. If you cannot get a free consultation from a local bankruptcy attorney, you should go to legal aid.

I have been a bankruptcy practitioner for many, many years and have found both workouts and consumer credit counselling to be dismal failures. For a workout to be successful, you must get all creditors to agree -- very difficult at best. CCC can get the agreement, but at a stiff price. CC usually involves an unworkably stiff budget for too long, with absolutely no money for travel, gifts or any recreation.

Most importantly, workouts and CCC usually do absolutely nothing to actually repair your credit, contray to popular belief. If you start with a bad credit report, you end up that way (i.e., the negative entries remain), even after you have completed the workout or CCC.

I get calls all the time from bitter people who have completed CCC, but who cannot get a mortgage (or a competitive rate) simply because the adverse entries remain on the credit report for the statutory period. Interestingly enough, these people are usually told by mortgage brokers to file bankruptcy and wait two years.