2010 July Archive

Many people do not realize that there are multiple ways for an individual to file for bankruptcy in the state of New Jersey, depending on an individual’s assets and income. The Chapter 7 bankruptcy process takes about five months from the filing until discharge. If the debtor meets all of the criteria, all unsecured debt is discharged (eliminated). In a very small number of cases, the trustee may liquidate assets, if the debtor owns certain assets with a substantial value.

On the other hand, chapter 13 bankruptcy requires an individual to pay a monthly payment to a trustee for a period of thirty six to sixty months. The monthly payment is based on asset values, monthly income and expenses. A debtor may file under chapter 13, instead of a chapter 7, for various reasons, such as the inability to meet the chapter 7 criteria or to save a house from foreclosure. Chapter 13 requires a debtor to pay to a trustee all disposable income for the entire plan period. A chapter 13 may permit an individual to eliminate all unsecured debt, like a chapter 7, in addition to providing other benefits.

While many people adopt the approach that filing for bankruptcy in New Jersey will ruin their credit score, they fail to realize that large amounts of debt can wreak havoc on one’s ability to obtain credit. Although bankruptcy will negatively affect a credit score, an individual who obtains a chapter 7 or chapter 13 discharge may reestablish and repair their credit, within a reasonable time period. While filing for bankruptcy is not necessarily an option for all people, it is the most viable option for some.

In order to determine whether or not filing for bankruptcy in New Jersey is right for you, it may be in your best interest to retain the services of an experienced New Jersey bankruptcy attorney who will examine your financial situation and help you make the best decision. At the Law Offices of Robert Manchel, our legal team will walk you through the bankruptcy process, ensuring that you understand every detail along the way. To find out more about filing bankruptcy in New Jersey, call us today at 866-503-5655.

According to an NBCChicago.com report, banks and lending institutions throughout the country are resorting to new methods of collecting mortgage payments that are past due, namely cutting their losses and handing over mortgage accounts to third parties. The lenders are now selling or transferring delinquent loans to debt collection agencies for amounts that are considerably less than the payoff. After the transfer, the lenders are wiping their hands clean of the whole thing.

While this approach may cut banks loose from customers who are unable to pay, it does not let those customers off the hook. Reportedly, these collection agencies, which are not governed by the same regulations as the lenders, are resorting to aggressive tactics as a means of collecting debts in full. Essentially, this trend represents banks and other financial institutions giving up on their customers, no longer wanting to work with them, and simply settling for minimal payment from debt collection agencies.

Despite many financial institutions declaring that they want to work with their customers to resolve their mortgage arrears and reinstate their mortgages, there are a number of financial institutions that are resorting to tactics that result in defeating the homeowners ability to modify their loan or successfully resolve mortgage foreclosures. In some cases, filing for bankruptcy protection may end up being the best option for an individual or family, but all options should be carefully considered nevertheless.

To find out more about the process of filing bankruptcy, resolving tax liens, and resolving mortgage arrears or foreclosures under New Jersey state law, please contact experienced New Jersey mortgage foreclosure attorney Robert Manchel. Mr. Manchel will examine your specific situation, and will help you make the best decision possible for your financial future. For more information about how bankruptcy may be a beneficial option, please call the Law Offices of Robert Manchel today at 866-503-5655.

With the economy in such an unsteady state, New Jersey residents continue to have difficulties finding work, paying their bills on time, and living a lifestyle that isn’t consumed by their debt. According to an nj.com article, the number of bankruptcy cases filed in the state of New Jersey increased by 27% during the 12-month period ending this past May, from statistics recorded just 12 months prior to that period. Though not as high, the number of bankruptcy cases filed in Mercer County, during that same time period, also increased, by a total of 21%. Fortunately, New Jersey bankruptcy laws are set in place to help individuals alleviate debt, which enable them to regain their sense of financial independence that they deserve.

Statewide in New Jersey, more than 4,100 bankruptcy cases were filed in the month of March – the highest single month total in recent years, since federal bankruptcy laws went into effect. Businesses are unable to secure lines of credit, homeowners are unable to meet their payment requirements of adjustable mortgages, and the number of individuals living paycheck to paycheck is growing at an alarming rate. If you choose to file for bankruptcy, whether you are an individual consumer filing a Chapter 7 or Chapter 13, an experienced New Jersey bankruptcy attorney can help sort through the numbers and get your finances back in order.

If you live in New Jersey and are experiencing financial hardship, filing for bankruptcy may be your best option. To find out more about the process of filing bankruptcy under New Jersey state law, please don’t hesitate to contact the Law Offices of Robert Manchel. Our experienced legal team will examine your specific situation, and will help you make the best decision possible for your financial future. For more information about effectively filing for bankruptcy, please don’t hesitate to contact Robert Manchel today at 866-503-5655.