November 2019 Archives

More older Americans going to bankruptcy court over medical bills

Bankruptcy was once rare among older adults, but now people 65 and older account for 12% of personal bankruptcies compared to just 2% in 1991. Medical debts produce much of the financial hardship among older people in New Jersey as they grapple with dwindling incomes and depleted savings. Among those 65 and older who filed for bankruptcy, 60% of them cited high medical bills as their reason for seeking a discharge or reorganization of debts.

Understanding how extended bouts with debt could affect your life

It may come as no surprise that dealing with the trials of financial strain can be a stressful and intimidating experience. Unfortunately, debt can come in various forms and fashions, each of which could have a lingering impact on your life and leave you in search of advice on the available options for relief.

Homeowners look to bankruptcy for escape from debt

New Jersey homeowners facing financial difficulties could find themselves suffering even greater losses as a result of a tax break that expired. Since 2008, people who had their mortgage debt forgiven through a foreclosure or short sale could claim an exemption from being taxed on the forgiven debt. They could exclude up to $2 million in forgiven mortgage debt from their taxable income. However, this exemption, like other temporary tax breaks, expired at the end of 2017 and has not been extended. Therefore, a homeowner who was unable to pay the mortgage until ending the situation with a foreclosure or short sale may be taxed on the amount of the forgiven debt.

Email Us For A Response

Tell Us About Your Case

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Keep In Touch

East Orange Office
7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017

Phone: 973-414-8069
Fax: 973-675-5886
Map & Directions

Newark Office
168 Bloomfield Avenue
Newark, NJ 07104

Phone: 973-419-5266
Map & Directions

Paterson Office
100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510

Phone: 973-419-7631
Map & Directions

Jersey City Office
26 Journal Square,
Suite 603
Jersey City, NJ 07306

Phone: 201-205-2496
Map & Directions