Bankruptcy

According to a recent Wall Street Journal article, the number of baby boomers filing for bankruptcy is on the rise. Data gathered by the Administrative Office of the U.S. Courts shows that in 2007, nearly half of all individuals filing for bankruptcy in the United States were between the ages of 45 and 64. A full 42% of all filings belonged to Baby Boomers, representing a disproportionate number of filings associated with older Americans.

The findings of the study, set to appear in the September issue of the American bankruptcy Institute’s ABI Journal, show that the number of bankruptcy filings belonging to individuals between the ages of 55 and 64 increased by 65% during the five year period of 2002-2007. Comparatively speaking, the number of filings belonging to individuals 25 years of age and younger decreased by 60% during the same time period.

Variable mortgages are cited as one possibility for why Baby Boomers were hit so hard financially in recent years. Reportedly, many mortgage companies targeted older individuals with offers of low mortgage payments, which have since increased due to variable mortgage rates, a process that has been extremely scrutinized as of late. However, Baby Boomers are certainly not the only age group that has been adversely affected by the declining economy or may be sorting out New Jersey debt after bankruptcy.

At the Law Offices of Robert Manchel, our experienced New Jersey bankruptcy attorneys have assisted many individuals with the important decision as to whether bankruptcy is in their best interest. We will also guide you through the process and explain the disadvantages of New Jersey bankruptcy. If you’re thinking of filing for Chapter 7 or Chapter 13 bankruptcy protection, please contact our offices for more information. Call 866-503-5655 to speak to one of our skilled bankruptcy attorneys today.

While virtually everyone has heard of bankruptcy, the vast majority of people probably have numerous questions about the process and application. One of the most commonly asked questions is, “How will filing for bankruptcy in New Jersey effect my credit?” The answer, not surprisingly, varies from case to case.

Although filing for bankruptcy commonly has a negative impact on a credit rating and FICO score, a person considering filing for bankruptcy in New Jersey must consider the present credit score condition. That is, the majority of people contemplating bankruptcy are in serious financial debt, which probably means that their financial position has already negatively impacted their credit rating. The lower your credit score at the time of the filing, the less of an impact the bankruptcy will effect the score. Also, on a positive note, the lasting impact of bankruptcy is positive, with the discharge marking the beginning of the road to credit score recovery.

The poor state of the economy, together with the country’s present limited money supply, results in difficulty forecasting the future impact of bankruptcy on an individual’s ability to obtain credit. Recently New Jersey mortgage companies have been requiring a debtor to wait about three years to refinance or obtain a new mortgage, after receiving a chapter 7 bankruptcy discharge. Mortgage companies require twelve months of continuous and timely trustee and mortgage payments, as a condition to obtaining refinancing or a new mortgage, in connection with a New Jersey chapter 13 bankruptcy.

Filing for bankruptcy and New Jersey bankruptcy filing costs has an immediate impact on a consumer’s life. Not only will creditors stop contacting you, but they will no longer be able to file suit or take any other legal action against the bankruptcy debtor. Upon the bankruptcy filing, a creditor may not garnish your wages, levy upon your bank accounts, or continue and/or commence a foreclosure action. Furthermore, your home’s utilities cannot be shut off and repossession attempts on your vehicle will be stopped.

While all of the above sounds wonderful given the stress that debt creates, there may be unforeseen negative consequences associated with filing for bankruptcy due an individual’s particular circumstances. That is why any individual considering bankruptcy must seek counsel with an experienced New Jersey bankruptcy attorney.

The skilled New Jersey bankruptcy lawyers at the Law Offices of Robert Manchel will examine your financial situation and help determine whether or not filing for bankruptcy in New Jersey is right for you. For more information, please call us today at 866-503-5655.

Federal bankruptcy law is generally the same in all 50 states, and federal law typically has precedent over state laws. However, bankruptcy law may be applied differently in New Jersey, as compared to other states in connection with three separate matters. While these differences may not be apparent to the average lawyer, an experienced New Jersey bankruptcy law attorney will understand these issues and ensure the optimum application of the local laws for the best results for a client.

Firstly, debtors are allowed to claim exemptions under the federal bankruptcy code. However, New Jersey permits debtors to choose between exemptions allowed by federal law, and those allowed by New Jersey. Depending on the circumstances, one of the advantages of New Jersey bankruptcy is that an individual may benefit by choosing the state exemptions, although it should be noted that the majority of filers in New Jersey still choose and benefit by selecting the federal exemptions over state.

Another aspect of federal bankruptcy law and state law that could lead to discrepancies amongst states is the fact that the federal bankruptcy code relies on state laws and courts to define certain terms of the bankruptcy code. New Jersey’s courts may establish a different meaning to certain terms that are in the bankruptcy code, as compared to other states. For example, the term “judgment” may be defined differently in New Jersey than elsewhere. Finally, the bankruptcy code may be interpreted differently by a New Jersey trustee of judge, than in other states. The bankruptcy laws are voluminous, complicated, and open to various interpretations, which are subjective based on the judge or trustee assigned to the matter.

In any event, bankruptcy laws are difficult to understand. Individuals seeking to file for bankruptcy in New Jersey should retain the services of an experienced bankruptcy attorney in New Jersey who can help explain the different options that are available. For more information about filing for bankruptcy in New Jersey, please call the Law Offices of Robert Manchel at 866-503-5655.

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.

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.

On Wednesday, March 24, Bank of America announced that it would eliminate as much as $3 billion in principal owed by thousands of delinquent homeowners whose mortgage balance was at least twenty percent greater than the value of their house. Bank of America’s new program is directed at borrowers who received high-risk loans form Countrywide Financial, a company purchased by Bank of America in 2008.

Bank of America’s newly announced loan modification program both differs from, and supplements, the government’s own modification program announced in 2009, in that it provides a reduction in principal owed, rather than merely a lowered interest rate. With home sales and prices dropping substantially, some commentators have welcomed this shift toward principal reduction, while others are more cautious, emphasizing that this represents yet another temporary fix to a larger crisis.

Bank of America will directly contact borrowers it deems eligible for the program. Eligibility is established where borrowers can demonstrate a hardship in making current payments, are at least sixty days delinquent on their loan payments, and owe at least 120% of the outstanding loan balance. The plan is designed specifically to address troublesome loans such as option ARMs, or adjustable-rate mortgages, of which there are an estimated 900,000 currently in existence.

If you are burdened with a high risk home mortgage, and are having difficulty making regular payments, this is certainly welcome news. However, there are many Americans who either will not be afforded access to this program, or will find that even with a mortgage modification they are unable to avoid a foreclosure action. In which case, it is time to call the Law Offices of Robert Manchel at (866) 503-5655. Our New Jersey bankruptcy attorneys can provide options for saving your house from foreclosure, with or without bankruptcy protection. Contact Robert Manchel today for a free consultation.

Source:http://www.nytimes.com/2010/03/25/business/25housing.html

As the final post in our 10 Reasons to Hire a New Jersey Bankruptcy Attorney blog series, we will discuss how a competent New Jersey bankruptcy lawyer can help you select the right bankruptcy to file.

Choosing which kind of NJ bankruptcy to file can be a harrowing decision. That’s why many indebted individuals choose to discuss their hopes and fears about their finances with a trustworthy bankruptcy New Jersey lawyer. Bankruptcy options abound and include:

• Chapter 7
• Chapter 11
• Chapter 13
• Financial/debt counseling
• Other actions

A competent and trustworthy attorney can review your lists of assets and liabilities, your financial history, your potential to earn more money, and your goals for the future, to help you determine what’s the best kind of bankruptcy to file.

In some cases, bankruptcy will be voluntary; in other cases, a debtor can be involuntarily forced to file for bankruptcy. A good attorney can explain the nuances of voluntary vs. involuntary filing and develop customized solutions and strategies.

Often, debtors who struggle with the specter of foreclosure, want more than anything to protect their homes (or other large assets). They may have been told that filing for Chapter 13 instead of for Chapter 7 will ‘help save their house.’ However, the situation may not always be so clear. A good lawyer can help you make the best decision.

In some cases, debtors may want to work with a credit/debt counselor for an interim period to see whether some debts can be controlled before bankruptcy needs to be filed. In other cases, bankruptcy may be the most immediate and obvious solution.

To summarize: picking the ‘right’ kind of bankruptcy to file requires a deep analysis of your current financial situation, your goals, values, and how all of these factors interpolate with NJ bankruptcy law.

Given how crucial it is to choose the best method of financial reorganization, it makes sense to retain an experienced, responsive, and accessible attorney, like Robert Manchel. Since 1992, the Law Offices of Robert Manchel have helped hundreds of indebted consumers resolve their financial problems, keep major assets like houses and cars, shut down creditor harassment, negotiate effectively with trustees, and learn better practices for financial management to avoid problems down the line. To get help now to resolve your foreclosure or bankruptcy situation, connect with our associates at (866) 503-5655.

Please refer back to our blog for more important information and updates relating to New Jersey foreclosure and bankruptcy resolution.

Given the unceasing stream of creditor harassment and financial pressures beating on your door, you may loathe to entertain the idea of retaining a New Jersey bankruptcy lawyer. Unfortunately, you need not spend an arm and a leg upfront to get excellent service.

As the ninth post in our 10 Reasons to Hire a New Jersey Bankruptcy Attorney blog series, we will address the role of the minimal upfront investment that is required when hiring a NJ bankruptcy attorney. First of all, debt resolution professionals in New Jersey often make grand promises, but fail to deliver consistent results. Moreover, many of these professionals require significant upfront payments and don’t provide much in the way of credentials, recommendations, or affiliations.

The good news is that you can retain a respected and time-proven bankruptcy NJ lawyer without significant risk — and without putting yourself at the mercy of excessive fee schedules:

1. Free consultation – A good NJ bankruptcy attorney will provide a free consultation to answer questions, discuss the process and their philosophy. You can use this consultation to ask questions about the lawyer’s credentials and about your possible options and remedies.
2. Fair fees – Some attorneys allow you to pay fees from trustee disbursements. For instance, attorney Robert Manchel (of the Law Offices of Robert Manchel), allows clients who file for Chapter 13 bankruptcy to pay his fees via disbursement — this way, clients get the most favorable possible resolution.
3. No pressure – A good lawyer will not mind if you interview several other attorneys before you make a decision about whom to retain. By shopping around and exploring your options, you can feel more comfortable about your decision.
4. Selling points – A respectable attorney will discuss ‘selling points’ with you, such as credentials, affiliations, professional organizations, recommendations from clients and/or legal peers, and reviews from independent agencies.

As an indebted individual under both financial and emotional stress, you want a clear path forward — a path that is going to give you structure, certainty, and more than a little bit of hope. We at the Law Offices of Robert Manchel understand those needs. Dial us toll free at 1 (866) 503-5655 to set up a free consultation. Since we practice exclusively in foreclosure and bankruptcy law in New Jersey, we can provide practical, informed, and customize solutions.

To find out how to receiving help in choosing the correct bankruptcy to file, please read our next post.

Should you retain the services of a bankruptcy lawyer in New Jersey even if your case seems cut and dry?

Let’s assume that you are ‘attorney averse.’ In other words, you want to do everything you can to solve your own problems and manage your own debt and money issues. Some people may have the talents and skills to do so. But most people — including most lawyers and financial specialists — can quickly find themselves overwhelmed by paperwork, creditor harassment, and complications.

In the eighth post of our 10 Reasons to Hire a New Jersey Bankruptcy Attorney blog series, we will discuss how a strategically-focused New Jersey bankruptcy attorney can help you resolve complications as they arise, keep you on a straight and narrow path to rehabilitating your finances and budget, protecting key assets, and stopping creditors from harassing you.

What complications could arise?

1. Discovery of new assets and/or liabilities — As you fill out your paperwork and examine your debts and assets under the microscope, you may discover critical new information. For instance, you may find that you have an inheritance or a trust that was left to you somewhere. Or, you may uncover some old credit card debt from the late 1990s. How do you report these new assets and liabilities? How do you prioritize repayments? Questions abound, and if you don’t understand the subtleties of the New Jersey bankruptcy code, you could potentially make an inaccurate statement that could delay or vastly complicate your filing.
2. New creditors could appear out of the woodwork — While you are filing for bankruptcy, a new creditor — or creditors — may initiate actions against you. These actions can even include lawsuits. Unless you have a reliable attorney on your team to strategize how to respond to these individuals or organizations, your entire debt management plan can be thrown off.
3. Circumstances in your own life can change — dramatically — If suddenly, you lose your job or lose a significant income stream, the ‘facts on the ground’ can change significantly. In cases like these, it’s extremely helpful to be able to turn to a competent and reliable NJ bankruptcy lawyer to figure out how to respond effectively.
4. Simple is never so simple — As author Nassim Taleb points out in his book, The Black Swan, it is essential to expect the unexpected. If you proceed with your bankruptcy filing on your own under the assumption that, since you have a simple case, the resolution should be simple; you may be in for some unwelcome surprises. Taleb uses the example of a Thanksgiving turkey to illustrate this point. The turkey spends most of his life blissfully eating feed and clucking about with his fellow turkeys. Then one day — a day that starts like any other — the farmer comes in and chops off his head. The moral is that you never know when some radical unfortunate event will completely change your circumstances. Thus, it behooves you to exercise an abundance of caution when it comes to planning your finances.

For help discerning a creditable, proactive strategy for your NJ bankruptcy filing, connect with the Law Offices of Robert Manchel today at (866) 503 5655. Attorney Manchel deals exclusively with foreclosure resolution and bankruptcy cases, and he is certified as a consumer law bankruptcy attorney by the American Board of Certification.

To learn about the minimal upfront investment required when seeking the help of a New Jersey bankruptcy attorney, please refer to our next post.

Do you really need the services of a New Jersey bankruptcy attorney, or can you resolve your personal financial crisis on your own? Obviously, different debtors have different needs. But before you dismiss the idea of retaining an attorney, our seventh post in the 10 Reasons to Hire a New Jersey Bankruptcy Attorney blog series will help you consider the downsides of not seeking assistance from a bankruptcy attorney. For instance:

1. Ruined credit rating and FICO score – Individuals who fail to take effective action in a timely manner can wind up with abysmally low FICO scores and ruined credit ratings. Once you are unable to get credit, your financial leverage will be severely limited. For instance, you may not be able to find money to buy a house, lease a car, or purchase a key asset for your business. Similarly, you may not be able to get a credit card. Moreover, once you get into a bad credit situation, it can be very difficult to climb your way out. Credit repair can be a time intensive, fraught, and aggravating process.
2. Creditor harassment – Ignoring your mounting debts can ‘feel good’ in the short term; but if you ‘go numb’ to your obligations to creditors, chances are, your creditors won’t return the favor. Harassing letters, phone calls, and other kinds of contact can scare you and your family, create needless aggravation and anxiety, and can actually be precursors to lawsuits or other kinds of legal action. When you retain a bankruptcy NJ lawyer, on the other hand, you can end creditor harassment and begin down the road to financial recovery.
3. Garnishments and losses of services – If you persist in ignoring your debts and putting off retaining a NJ bankruptcy lawyer, you can suffer an array of consequences, including, but not limited to: garnishment of your wages; utility shutdown; repossession of your car or other assets; eviction; foreclosure; and, a bank account levy.
4. Anxiety, stress, and depression – The longer you delay attending to your debt situation, the more the uncertainty may annoy you, cause problems with relationships, force you to overwork, and create psychological problems. For instance, higher levels of stress and anxiety can increase cortisol levels in the body, which can result in a predisposition for more severe illnesses. So there is a very real risk that putting off dealing with your debts could physically impact your health.
5. You will likely have to get a lawyer anyway – If you delay retaining a competent attorney, chances are high that your debt problems won’t go away and that, in fact, they will snowball. Thus, you will be forced to retain an attorney after all – but now you will be saddled with even bigger problems.

To tackle your financial problems straight on and get sound, practical advice for moving forward, connect with the Law Offices of Robert Manchel today at 866-503-5655.

Please refer to our next post to learn what potential complications are likely to arise when dealing with bankruptcy and how to best handle such issues.