New Jersey Bankruptcy Law Blog

If you're currently trying to figure out how to overcome serious financial problems, you're definitely not alone in your struggle. Many New Jersey residents are facing similar situations. The good news is that there are often multiple options available to help you get your financial life back on track. In fact, some options may not only provide a means for immediate debt relief, but may help you lay the groundwork for a stronger financial future.

Sometimes, people need a way to wipe the slate clean and start fresh. However, it can be difficult to know what path to choose if you aren't really aware of what types of debt solutions are available in your particular situation. For this reason, it often helps to speak with someone who is well versed in the laws that govern such matters. You may be eligible for several different debt relief plans; which one you choose may greatly influence your financial status down the line.

The biggest difference between Chapter 7 and Chapter 13 bankruptcy is that in Chapter 13 you repay your debts based on the bankruptcy plan. If you file Chapter 13 in New Kersey, you may wonder how the court creates the repayment plan. There are a few considerations the court makes when developing your plan to ensure fairness to your creditors and to you.

To begin with, according to the U.S. Courts, the court uses your disposable income to figure Chapter 13 payments. This is basically the income you need to support your family. If you own a business, it includes basic operating expenses as well. The court uses your income for the past six months to come up with your average monthly income. It will not include Social Security payments, child support or some personal injury settlement payments.

If you struggle with debt, you may face a time when your house goes into foreclosure. One missed payment can start the process. In New Jersey, your foreclosure is made public, which means you become subject to scammers who want to try to take advantage of you. According to USA.gov, you may come across foreclosure scams in advertisements or through direct contact. These scams involve making big promises but delivering nothing.

The approach may vary for each scam. They may promise you assistance in saving your home if you pay them money. Some may offer legal help even though they are not an attorney. They may say they can assist with filing bankruptcy and even have you sign documents. They may seem convincing because they prey on your vulnerability and your desire to save your home.

If you are looking to exert tighter control over your expenses, it is a good idea to watch out for the latest trends in American spending that are adding to people’s personal debts.  In its yearly analysis of household debt for the United States, Nerdwallet discovered Americans wrestled with a number of particular expenses in the year 2018. These expenses generally outpaced the median income of Americans and are something New Jersey residents should watch out for.

First off, many Americans are still facing the specter of higher medical costs. Since the year 2008, medical expenses have risen faster than the rate of median income. Unfortunately, medical expenses are not easy to control. Purchasing treatment, drugs or other forms of care is often critical to preserving health or is even needed to save one’s life. Even with health insurance, costs may not fall enough to make an appreciable difference. Some people are even stuck with thousands of dollars in debt.