New Jersey Bankruptcy, Real Estate and Business Law Blog

5 Reasons You Need a Lawyer for Bankruptcy

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Some people view bankruptcy as the end, but you should view it as a new beginning. When debt becomes unmanageable, contacting a lawyer for bankruptcy is important. A bankruptcy lawyer can help you compare your options and find out if you qualify for this type of relief. Many people who delve into the benefits of bankruptcy wonder if they actually need a lawyer. After all, if you are pursuing this option due to financial stress, the cost of hiring a lawyer could seem unnecessary. There are several reasons that hiring an attorney can actually minimize your stress, expenses, and time spent on this process. Reason #1: Proper Paperwork and Deadlines People who file bankruptcy for the first time may be shocked by how much legal paperwork bankruptcy requires. Be prepared to fill out the same information in different ways many times before your discharge is granted. Each of these documents…
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How to Rebuild Credit After Bankruptcy

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Many people who file for bankruptcy are afraid of what could happen to their credit reports. You have a credit report on file with the three credit reporting agencies (CRAs). These CRAs are Equifax, TransUnion and Experian. The information on your credit report is compiled into a FICO credit score, which is used by most lenders. After a bankruptcy, it is likely that your credit score has taken a hit regardless of your filing status. However, the good news is that your credit score is not permanent. You can begin repairing your credit during or after your bankruptcy. Steps to Repair Your Credit After Bankruptcy Steps to repair your credit after bankruptcy may include: Pulling your credit report. To get an idea of what needs to be repaired, you will have to pull your three credit reports from Equifax, TransUnion and Experian. You can receive one free credit report from…
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Do I Qualify for Chapter 13 Bankruptcy?

Can I repair my credit after bankruptcy?

While no one relishes the idea of filing for bankruptcy, it may be the best option to get out from suffocating debt. Chapter 13 bankruptcy is a type of bankruptcy that many debtors use. However, to file under Chapter 13, you will first need to find out if you meet standards to qualify for Chapter 13 bankruptcy. Difference Between Secured and Unsecured Debt Unlike secured debts, unsecured debts are not secured by property. This means that creditors cannot take property away from you to satisfy debts. Common examples of unsecured debts include: Medical fees Lawyer fees Credit card bills Utility fees Student loans Secured debts are tied by way of liens to property which creditors can seize as payment for debt. Who Qualifies for Chapter 13? According to United States Courts, if your unsecured debt totals less than $394,725 and your secured debt is no more than $1,184,200, you may…
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Bankruptcy and Your Credit Rating

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Many people are afraid of what could happen to their credit scores if they file for bankruptcy. The three credit bureaus have financial information that scoring agencies take into account when creating your credit scores. Lenders use these credit scores (there are many types) to make decisions on whether to offer lines of credit to borrowers. There are many misconceptions about bankruptcy. There is a common misconception that bankruptcy permanently ruins your ability to access credit. This is not the case. If you are considering filing for bankruptcy, then worrying about credit scores should not be at the top of your priorities list. Protecting your assets and improving your immediate financial situation should be a greater priority. Are your properties at risk of being seized by creditors? Are your wages being garnished? If so, then you should know that waiting to file for bankruptcy could cause more damage to your…
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Why Are More Senior Citizens Applying for Bankruptcy?

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Bankruptcy occurs when the “legal status of a person or other entity cannot repay debts to creditors.” In the U.S., filing for bankruptcy is usually a last resort for people after they have failed to pay off their debts. However, a recent study by the Social Science Research Network highlights a trend of bankruptcy increasing among older Americans. According to the study, the bankruptcy rate for senior citizens increased by 200 percent from 1991 to 2016. Why Are Senior Citizens Filing for Bankruptcy? Lower incomes, unaffordable health care costs and a national drop in pension fees contributed to this new trend. Although Medicare provides great coverage for senior health care, it is unable to cover everything. Medicare may not cover dental care, hearing aids, eye exams and other procedures. Medicare often requires copays, coinsurance, and other deductibles that can prove to be difficult to afford. Forty-one percent of the average…
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