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.
People living in New Jersey and around the country are sometimes contacted by debt collectors regarding very old accounts. In many cases, this kind of contact is legal, but it does not mean that the debt is valid or that the debtor is at risk of a lawsuit or other adverse actions.
You may be considering filing for Chapter 7 or Chapter 13 bankruptcy if you are struggling with your finances. While both options may provide some relief from your debt and give you a better financial future, it is important to note the ways in which these bankruptcy types differ. Chapter 7 bankruptcy gives New Jersey residents a “clean slate” from most of their debt, while Chapter 13 bankruptcy involves a repayment plan.
Once you have filed for Chapter 13 bankruptcy, you may feel as though you are getting back on track with your finances. Chapter 13 helps debtors set up a payment plan to repay their debt over a certain period of time. In some cases, the bankruptcy decreases the amount of debt you owe through negotiations with creditors. A bankrupcy, however, can affect your credit score and may make it difficult to apply for loans or qualify for other financial items as well. Some people may turn to using a credit card as a way to rebuild their credit once their bankruptcy has been discharged. You should be extremely careful when doing this, as some credit cards are not designed to help you financially.
Owning and running your own business can be a thrilling experience, which is why some New Jersey business owners may not like the idea of going back to being an employee and taking orders from someone else. And yet if you are going through Chapter 13 bankruptcy, becoming an employee again may actually be helpful and could help save your business from being sold to pay your debts.
At Goldman & Beslow, we know that when you owe a significant amount of debt in New Jersey, you may start experiencing annoying behavior by creditors that sometimes reaches the level of harassment. Examples include calling you several times a day and making threats against you. As a last resort, creditors may even bring lawsuits against you.
When you decide to file Chapter 13 bankruptcy, you may have many questions regarding your finances going forward. There are strict rules you must follow to stay within the guidelines of the court. The main one is following your repayment plan. However, what happens when you have changes in your income that give you some extra money each month. Can you put that into a New Jersey bank savings account?
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 Jersey, 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.
If you are facing foreclosure on your home in New Jersey, you have a lot more to worry about than losing your home. There are scammers out there who prey on people like you. They make big offers and in the end, only manage to steal your money, leaving you in sometimes worse shape than before. According to USA.gov, these scammers gather your information from public foreclosure postings. They may contact you directly in many cases, pretending to be a professional who can help you avoid foreclosure.
When employees are given information about how their benefits will function throughout their term at a company, they expect to receive nothing less than they were promised. In situations where retirement benefits such as pensions, 401K's and other options are available to people in New Jersey, they often pay their dues to receive their entitlements upon their retirement.