Goldman & Beslow, LLC Goldman & Beslow, LLC 2026-07-15T10:00:13Z https://www.nj-bankruptcylaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1200469/2020/01/cropped-site-icon2-1-32x32.jpg On Behalf of Goldman & Beslow, LLC Attorneys At Law <![CDATA[What happens when a credit card company sues you in New Jersey]]> https://www.nj-bankruptcylaw.com/?p=50511 2026-07-15T10:00:13Z 2026-07-15T10:00:13Z You have 35 days to respond Once you receive a lawsuit, New Jersey gives you 35 days to file a written response with the court. If you do not respond, the credit card company wins automatically, with no hearing, no argument, and no chance to tell your side. This is called a default judgment, and it gives the creditor serious legal power over your finances.

A judgment puts your paycheck and bank account at risk

Once a creditor has a judgment against you, they can go after your wages and your bank account. New Jersey generally caps consumer wage garnishment at the lesser of 10% of your gross pay or 25% of your disposable income if your earnings are 250% or less of the federal poverty level. If your income exceeds that threshold, the court can authorize a higher percentage up to the federal 25% limit. They can also freeze your bank account and take what is in it. What makes this especially serious is that a judgment in New Jersey is valid for 20 years and can be renewed for another 20.

Bankruptcy can put an immediate stop to collection activity

Whether a creditor has already taken you to court or obtained a judgment against you, filing for Chapter 7 or Chapter 13 bankruptcy triggers an automatic stay. This immediately stops all collection activity, including the lawsuit, the garnishment and the bank levies. Chapter 7 can wipe out credit card debt entirely, while Chapter 13 lets you reorganize what you owe and catch up over time. Either way, filing gives you breathing room to work through your situation without creditors closing in.

You do not have to figure this out alone

A credit card lawsuit moves fast, and the clock starts ticking the moment the complaint reaches you. Speaking with a bankruptcy attorney sooner rather than later gives you a clearer picture of where you stand and what options are still available before a judgment limit what you can do.  ]]> On Behalf of Goldman & Beslow, LLC Attorneys At Law <![CDATA[3 student loan relief options New Jersey borrowers must know before filing for bankruptcy]]> https://www.nj-bankruptcylaw.com/?p=50507 2026-07-12T08:37:06Z 2026-07-12T08:37:06Z before they file for bankruptcy.

Income-driven repayment plans

The Department of Education offers plans that change monthly payments based on income and family size. According to Federal Student Aid, these choices limit monthly bills to a small part of extra income. For many borrowers, this change drops the monthly bill to $0. Borrowers must prove their income each year to keep this help. Checking these plans is a smart step before assuming bankruptcy is the only way to handle large student debt. Short payment pauses also offer help.

Deferment and forbearance options

Short payment pauses offer fast help when sudden money problems happen. Deferment and forbearance choices let borrowers delay payments or lower their monthly bills for a short time. The federal government sets strict rules for these programs. Borrowers can apply for a pause under several common events:
  • Economic hardship: Losing a job or facing a sudden drop in income lets borrowers qualify for short-term help.
  • Medical emergencies: Facing serious health issues that stop a person from working can qualify a borrower for a payment pause.
  • Military service: Deploying for active duty gives automatic access to certain deferments.
These choices stop default while borrowers fix their personal finances. Once short-term money issues pass, borrowers can look at lasting debt cancellation choices.

Federal student loan forgiveness

Certain jobs and situations let borrowers clear their debt without filing for bankruptcy. The Public Service Loan Forgiveness program serves as a main path for government and nonprofit workers. After making 120 qualifying payments, eligible public servants can clear their remaining balances. Other cancellation programs exist for teachers, people with total and permanent disabilities and students whose schools committed fraud. Checking these federal discharge programs helps borrowers find every choice before they take formal legal action.

Where this leaves borrowers

Bankruptcy remains a strong legal tool for people facing large debt loads. However, clearing student loans through this process involves strict legal steps. Government relief programs offer a more direct fix. Checking federal repayment plans, short pauses, and forgiveness choices gives borrowers a clear view of their finances. This knowledge lets New Jersey residents make smart choices about their money before they go to court.]]> On Behalf of Goldman & Beslow, LLC Attorneys At Law <![CDATA[Is bankruptcy better than using retirement savings to pay off debt?]]> https://www.nj-bankruptcylaw.com/?p=50505 2026-07-10T18:05:46Z 2026-07-10T18:05:46Z When debt becomes unmanageable, many people look at their retirement accounts and wonder if cashing out is the responsible choice. Others consider bankruptcy to address the debt but worry it could permanently derail their financial future. Who is right? Although there is not a simple answer, there are some key points that can help guide you through this question. The following will touch on these points and help you begin to move forward.

3 reasons why using retirement savings can be a bad idea

Retirement funds are often one of the largest assets we own. As such, it may be tempting to pull out these funds to help manage debt. Three reasons this can backfire include:
  1. You may end up paying more in fees from taxes and early withdrawal penalties, reducing how much you can put towards the debt
  2. You may sacrifice years of compounding growth, making it harder to rebuild savings  
  3. Debt may remain if the withdrawal does not cover the full balance
These issues matter because using retirement funds can be irreversible, while other solutions may manage the debt while still preserving protected assets like qualifying retirement funds.

3 times bankruptcy may be the better option

Bankruptcy is not a one-size-fits-all remedy, but it can provide structured relief when debt is primarily unsecured, such as credit cards, medical bills and personal loans. Chapter 7 may discharge qualifying unsecured debts relatively quickly, while Chapter 13 may allow for a more realistic court-supervised repayment plan that can address arrears on secured debts like a mortgage or car loan. Bankruptcy can make sense in the following situations:
  1. Your debt payments are preventing you from meeting basic living expenses  
  2. You are using credit to cover necessities and balances keep rising  
  3. You are considering draining retirement accounts just to stay current
The key point is that bankruptcy can sometimes protect retirement assets while eliminating or reorganizing debts that are otherwise consuming your income. Choosing between bankruptcy and using retirement savings is a high-stakes decision with long-term consequences. For many households, preserving retirement funds and exploring bankruptcy or other debt relief options first is the safer path. A consultation with an experienced bankruptcy attorney can help you compare outcomes based on your income, assets and the specific debts you owe.]]> On Behalf of Goldman & Beslow, LLC Attorneys At Law <![CDATA[What is the bankruptcy means test?]]> https://www.nj-bankruptcylaw.com/?p=50502 2026-07-02T08:42:44Z 2026-07-02T08:42:44Z If you are in serious debt, then you may be contemplating bankruptcy. Bankruptcy is a process that can help you resolve large amounts of debt. There are two common forms of bankruptcy for individual filers. You may be eligible for Chapter 7 bankruptcy to wipe away most of your debts within a few months. Or, you may be eligible to reorganize your debts into a payment plan through Chapter 13 bankruptcy.  You must complete a means test before you file for an individual bankruptcy. A means test determines whether you are eligible for Chapter 7 or Chapter 13 bankruptcy. Here is what you should know:

How does the means test impact your bankruptcy filing?

Many people are not eligible for Chapter 7 bankruptcy. To determine who can file for Chapter 7 bankruptcy, debtors must file a means test. A means test compares your income and debt to the median income of your community. This test evaluates whether you can afford the basic necessities, such as food and clothing, based on where you live, your income level and household size. If your income is below your community’s median income for your household size, then you may be eligible for Chapter 7 bankruptcy. However, if your income is above the median income, then you may be required to file for Chapter 13 bankruptcy.  The means test can also impact your Chapter 13 bankruptcy filing. If your income level is less than the median income for your community, then you may be required to pay off your debts for three years. However, you may have a five-year commitment period to pay off your debts if your income is above the median income for your community. Legal guidance can help you file the correct means test forms for Chapter 7 and Chapter 13 bankruptcy.  ]]> On Behalf of Goldman & Beslow, LLC Attorneys At Law <![CDATA[Does bankruptcy automatically eliminate all credit card debts?]]> https://www.nj-bankruptcylaw.com/?p=50500 2026-06-17T22:13:52Z 2026-06-17T22:13:52Z When might credit card balances persist post-bankruptcy? Sometimes, a filer fails to include specific debts in their bankruptcy paperwork. Debts not included in the paperwork may remain valid even after the discharge of other qualifying debts. The spending habits of the filer can also influence eligibility for a complete credit card debt discharge. In cases where lenders can prove that an individual made multiple luxury purchases shortly before filing for bankruptcy, that unnecessary spending could affect how much of the balance the filer can actually discharge. Additionally, using a credit card in the days immediately before a bankruptcy can raise questions about fraud. If the credit card lender can show that a person used their credit without a good faith intent to repay those charges, the courts may agree to exclude part of the balance from the bankruptcy discharge or to exclude the entire account in more serious cases. Learning more about the rules that apply during personal bankruptcy can help people with credit card debts maximize relief derived from a bankruptcy filing. People who limit their credit card use in the weeks before they file bankruptcy paperwork often have less risk of lenders contesting the inclusion of specific debts in their bankruptcy.]]> On Behalf of Goldman & Beslow, LLC Attorneys At Law <![CDATA[Can one spouse file Chapter 7 without affecting the other?]]> https://www.nj-bankruptcylaw.com/?p=50499 2026-06-11T02:43:07Z 2026-06-11T02:43:07Z The law in New Jersey Individual bankruptcy filings are entirely legal for married people in New Jersey. Your spouse doesn't become a co-filer simply by virtue of being married to you. That said, the court still wants a complete picture of your household finances to determine whether you qualify. Your spouse's income may count, even if their name isn’t on the petition.

Do you have joint debts or shared property?

If you and your spouse share a debt, such as a joint credit card or a co-signed loan, your discharge eliminates your liability, but not theirs. Creditors can redirect their claim to your spouse once your case closes. It’s something that often surprises couples who assume that an individual filing protects them both. The same goes for shared property. While your spouse’s separate assets will be safe if you file alone, the property you own together may be included in the process depending on how title is held and the applicable exemptions.

Don’t fly blind into a major financial decision

Filing bankruptcy alone may seem straightforward, but the ripple effects on your spouse are real and worth careful consideration. Reaching out for early legal guidance can help you map out those consequences before you commit and determine whether filing individually or jointly better protects your household.]]> On Behalf of Goldman & Beslow, LLC Attorneys At Law <![CDATA[Garnishments can derail a household budget]]> https://www.nj-bankruptcylaw.com/?p=50494 2026-05-28T10:21:11Z 2026-05-28T10:21:11Z If you’re dealing with creditors demanding payments at a time when you can’t pay, you may eventually face legal action for those accounts. That may lead to you ending up with a wage garnishment, which means that money is withheld from either your bank account or paycheck.  If you’re living paycheck to paycheck or have a tight budget, a wage garnishment can be devastating. It can sometimes mean that paying normal household expenses, such as rent and utilities, becomes impossible.

What should you do if you’re facing a wage garnishment?

One of the first things you should do if you’re facing a wage garnishment is to determine what type of debt it’s for. This can help you to determine how to proceed. There’s not always a lot you can do for things like student loans or past-due taxes, except to try to apply for a payment plan. 

Are there limits on how much can be garnished?

Wage garnishments typically require a court order, so the amount of the garnishment should be listed in that document. Federal law places limits on how much of your disposable income can be taken to satisfy the debt. Understanding what will come out of your check may make it easier to budget until the garnishment ends.  In some cases, the answer to handling a wage garnishment is filing bankruptcy. This makes it possible to handle these debts either through a Chapter 7 liquidation bankruptcy or a Chapter 12 wage earner’s bankruptcy. In these cases, some debts are discharged at the conclusion of the bankruptcy. Working with someone who’s familiar with these matters may be beneficial, so they can help you to determine how to proceed as you seek financial relief.   ]]> On Behalf of Goldman & Beslow, LLC Attorneys At Law <![CDATA[How would bankruptcy affect a car loan with a cosigner?]]> https://www.nj-bankruptcylaw.com/?p=50492 2026-05-14T17:56:52Z 2026-05-14T17:55:41Z cosign the vehicle loan with them. This can enable them to piggyback on the other person’s good credit to in order to get the vehicle. What happens if their financial situation deteriorates to a point where they can no longer keep up with all of their debts and need to file for bankruptcy? How will this affect the cosigner on the loan?

You must inform the cosigner

If you file for bankruptcy, that can leave your cosigner on the hook for the outstanding payments on the vehicle. The very reason the lender wanted you to have a cosigner was so they had someone to hold responsible for payment if you were not paying as agreed. This is true even if you are allowed to keep the car under a Chapter 7 exemption. While you may be freed of the obligation to pay, your cosigner won’t necessarily be. If you file for Chapter 13 and you restructure your vehicle payments, the lender may agree to hold off on collecting from your consigner, provided you abide by the new payment schedule. To find the best solution for you as well as for your cosigner, it is wise to seek experienced legal guidance as early as possible to understand the options relevant to your unique situation.]]> On Behalf of Goldman & Beslow, LLC Attorneys At Law <![CDATA[Is mortgage modification or bankruptcy better for homeowners?]]> https://www.nj-bankruptcylaw.com/?p=50488 2026-05-13T23:41:00Z 2026-05-13T23:37:08Z Each option has certain benefits Some homeowners can potentially avoid bankruptcy and foreclosure by negotiating specific mortgage modifications with their lenders. Successful negotiations may require legal representation, as lenders are not always receptive to modification requests when people have already fallen behind on their financial obligations. Mortgage modifications help people catch up on missed payments, make their mortgage obligations more sustainable and prevent foreclosure. A mortgage modification can lock in a lower interest rate. People can also change the type of mortgage they have. For those with adjustable interest rates or a future balloon payment due, converting the type of mortgage to one that is more predictable can help them maintain a sustainable budget. Lenders may agree to extend the mortgage repayment period. Homeowners can even ask to move the payments they missed to the end of the repayment timeline instead of scrambling to come up with thousands of dollars for multiple missed payments immediately. Mortgage modifications are often effective tools for those with reliable income or assets they may not be able to exempt in a bankruptcy. Bankruptcy filings are especially helpful in scenarios where homeowners are already three or more payments behind on their mortgages. With foreclosure imminent, the automatic stay can prevent the lender from initiating foreclosure or force them to halt the process. In a Chapter 13 bankruptcy case, property owners have more leverage to negotiate a mortgage modification with their lender. The company may be more open to the idea of altering the mortgage to minimize the legal expenses and other losses triggered by foreclosure. A Chapter 7 bankruptcy can provide a much faster bankruptcy timeline than Chapter 13 proceedings. Filers who can exempt their home equity and other valuable assets and who can pass a means test may benefit from eliminating other debts to help them rework their budgets and make their mortgage payments consistently every month. The best option depends on what caused missed mortgage payments, the income of the property owner and other case-specific details. Reviewing mortgage paperwork and any communications about potential foreclosure with an attorney can help homeowners evaluate mortgage modification as an option or begin the bankruptcy process. Taking action promptly can help people protect their homes.]]> On Behalf of Goldman & Beslow, LLC Attorneys At Law <![CDATA[Why balance transfers can worsen credit card debt]]> https://www.nj-bankruptcylaw.com/?p=50487 2026-05-12T13:43:02Z 2026-05-12T13:43:02Z Credit card debt is a leading cause of financial strain in the United States. The fact is that life happens, and unexpected medical bills, car repairs or gaps between paychecks can leave even the most careful budgeter relying on credit cards to get by.  Anyone who carries a balance from one month to the next typically accrues interest. They could also be at risk of fees imposed by the credit card company. It's completely understandable to feel anxious about your finances when those balances keep growing despite your best efforts. In some cases, an existing credit card might offer a generous balance transfer. Other times, a new card offer comes with an introductory balance transfer offer. Although a transfer might seem helpful, it may actually trap a borrower in worse debt. 

Transfers don’t reduce what people owe

The main reason that credit card balance transfers may not be truly helpful is that they do nothing to reduce or eliminate financial obligations. The full amount is still due. The main change is that a different credit card company now has the right to demand payment from the borrower.  The offer may come with a low rate, but it is likely promotional. If the borrower doesn't pay what they owe in full before the promotional period ends, the remaining balance may begin accruing interest at a much higher rate going forward. Additionally, fees are standard when transferring a balance. The total amount of credit card debt might increase as well. When the original card suddenly has available credit again, it can be tempting to use it. Many people find themselves with balances on both cards, doubling their monthly obligations and stress.

You have options

Recognizing the risks that come from transferring balances can help people avoid potentially costly mistakes. If you're struggling with overwhelming credit card debt, you deserve to know all your options, including solutions that can provide real, lasting relief rather than temporary fixes. People struggling with overwhelming credit card debt may benefit from exploring the options for filing for personal bankruptcy. Bankruptcy protection can provide relief when debt becomes unmanageable, but it's not right for every situation. Consulting an experienced attorney can help people make this determination.]]>