File for bankruptcy or take another path for debt relief?

Many New Jersey families are currently stuck between rocks and hard places regarding finances. The cost of living is high and everyday expenses may be difficult to meet if anything out of the ordinary occurs to throw things off-track. For instance, if you or your loved one needs surgery or if one of the income earners in your household loses a job, it might be enough to tip the financial scales out of balance.

Such problems are often temporary, so there's no need to panic; however, your ability to rectify the situation may hinge upon your knowledge of various debt relief options, such as bankruptcy, as well as on state laws governing such matters.

Need for debt relief

People can't simply randomly file for bankruptcy to avoid paying their bills. On the other hand, such options exist for those who have no means to meet their expenses. If your financial situation has gotten to the point that your debt continues to increase while your means for satisfying your debt doesn't, then bankruptcy might be the best course of action.

Eligibility factor

You have to qualify for bankruptcy before filing. It's possible that you might be eligible for one type but not another. This is why it's helpful to speak to someone well-versed in bankruptcy law before making any final decisions. For instance, Chapter 7 bankruptcy eligibility is based on income. If your income is higher than the New Jersey median, you likely will not qualify.

Debt management versus debt relief

If you think your problem is more about the fact that you spend a greater amount of money than you earn, then you might simply want to devise a debt management plan where you restructure your spending and payment routines to pay off debt and restore financial stability. If, however, you can think of 10 different types of repayment plans but still have no means for making any of them happen, then immediate debt relief might be a better option.

Who can help?

Some New Jersey residents take finance courses online while others turn to financial advisers for guidance. You may also find solutions by enlisting support from someone who has successfully helped others obtain debt relief and rebuild stronger financial futures. Every person's financial situation is unique. The trick is to find the solution that best fits your particular needs and ultimate financial goals.

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