Bankruptcy

According to new statistics released on November 8 by the Administrative Office of The United States Courts, bankruptcy cases, including business and non-business, that were filed in federal courts for the 2010 fiscal year (a 12 month period that began on October 1, 2009 and ended on September 30, 2010) topped 1.59 million, which is approximately 13.8 percent more than the total bankruptcy filings in 2009.

Non-business filings for bankruptcy totaled about 1.53 million, which is up an estimated 14.4 percent from 2009, and is the highest number of non-business bankruptcy filings for a fiscal year since 2005. However, business bankruptcy filings somewhat dropped, the first time there has been a decrease since 2006. There was a total of 58,322 business bankruptcies filed during the 2010 fiscal year, which is down seven percent from 2009.

Overall, for the 2010 fiscal year, bankruptcy filings rose in most chapters. Chapter 7 bankruptcy filings totaled approximately 1.14 million, which is up about 15.9 percent from 2009. Chapter 13 bankruptcy filings rose about 9.2; with over 430,000 filings made.

In New Jersey, there were 40,775 total filings for bankruptcy in the 2010 fiscal year. It was a 19.7 percent increase from 2009, when 34,070 bankruptcy filings were made.

Filing for bankruptcy can be a difficult decision and one that shouldn’t be taken lightly. The New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel have experience in dealing with the bankruptcy process in New Jersey. Our lawyers will examine your particular situation and help you determine whether filing for New Jersey bankruptcy is the right course of action. Call us today at 866-503-5655.

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In our last blog post, we featured tips from an article from CNN Money about how Americans can manage their money better, particularly during these trying economic times. We covered good debt versus bad debt, how you should pay off your debts, and using your credit card smartly. Taking control of your finances and watching your spending habits can help prevent you and your family from falling into serious debt and potential bankruptcy in New Jersey.

The article also discussed several other money managing tips. They caution against falling into “the minimum trap,” which is when you only pay the minimum amount on your credit card bill. Paying your bill in this manner will hardly cover the interest charges and will take you months, if not years, to pay off your total balance. In the end, if you only pay the minimum, you will spend much more than the original amount you charged to your credit card.

You should also be aware of where you borrow your money to pay off debt. While it could be convenient to borrow against your 401(k) or your house, doing so can be very risky. You could potentially lose your home in a New Jersey foreclosure.

One of the most important recommendations the article makes is to plan for the unexpected. Start creating a safety net of a few months of living expenses in case of any emergency. Not having a disaster fund can seriously cripple your finances, if you suddenly have an expensive car repair or something of that nature that requires immediate action.

If you have a mortgage, one shouldn’t be so quick to pay down the mortgage instead of paying down the credit card debt, as a mortgage is likely to have a lower interest rate. Also, one is able to deduct the interest paid on the first $1 million of a mortgage loan, which can be very helpful. However, if your mortgage happens to have a high interest rate and you need to lower your monthly payments, you may want to consider refinancing your home.

If you find that you are still struggling with your debts, you should get help as soon as you realize the necessity. There are many debt counseling agencies with a good reputation that could help you consolidate your debts and help you manage your finances better. But be careful—there are also many disreputable debt counseling agencies.

Being smart about your finances can save you from many headaches and improve your quality of life. However, depending on your situation, it may be a good idea to file for bankruptcy in New Jersey. Every bankruptcy case is different, so you might want to consult with a New Jersey bankruptcy attorney to learn about your options. At the Law Offices of Robert Manchel, our lawyers have helped countless individuals navigate through the New Jersey bankruptcy process. If you have questions about filing for bankruptcy in New Jersey, please contact our office to talk with one of our knowledgeable and experienced bankruptcy lawyers. Call us today at 866-503-5655.

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With America’s culture of consumerism, it should come as no surprise to find that Americans are heavily loaded with debt from credit cards. The average household in America that possesses at least one credit card has an average of over $10,000 in debt from credit cards.

CNN Money has a list of top things Americans need to know about handling their finances. First, they acknowledge that some debt can actually be good—such as borrowing money to pay for college or a home, but that you should be cautious not to borrow more money than you can pay back. They also advise shopping around to find the best interest rates. However, there is bad debt, such as using a credit card to purchase things like vacations that can’t be paid off in full within a few months. Using a credit card for expensive items that can’t be paid off timely is a fast way to find yourself in serious debt. They recommend putting cash aside each month to save for a big ticket item before charging your credit card, so you can pay the full amount when it is due and avoid paying high interest charges.

The article also urges Americans to think about what it is they’re purchasing. They suggest making a list of your typical monthly spending habits and then cut out the items you don’t really need. Save the money you would have spent or use it to try to reduce your debt faster.

When paying off your debts, first pay off the highest- interest rated debts, which CNN Money says is the solution to efficiently getting out of debt. Pay the balances of credit cards or loans that charge the highest interest, while you pay the minimum balance due on other debts. Once the high interest debts are paid off, pay off the next highest, and so forth. Soon you will find your debts greatly reduced.

Managing your money wisely can help you avoid filing for bankruptcy in New Jersey. However, in some cases, it may be in your best interest to file for New Jersey bankruptcy. Everyone’s situation is different, and it may be a good decision to speak with a New Jersey bankruptcy lawyer to find out your legal rights and options. The attorneys from the Law Offices of Robert Manchel have worked with many individuals, regarding their decision as to whether bankruptcy is the best solution. We can help guide you through the bankruptcy process and answer any questions you may have. If you are considering filing for bankruptcy in New Jersey, please contact our office to speak with one of our skilled and knowledgeable bankruptcy attorneys today. Call us at 866-503-5655.

Check our blog later this week for part II on how you can handle your money more wisely and potentially avoid filing for bankruptcy in New Jersey.

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Bankruptcy does not discriminate. Regardless of which walk of life a person may come from, anyone can find themselves having to file for bankruptcy protection. According to a credit.com article, the number of individuals filing for bankruptcy protection continue to rise, and the demographics associated with those filings continue to change. That is, while the previous median age of those filing for bankruptcy in 1991 was 36.5 years old, the most recent data, collected from 2007, shows the median age to have risen to 43 years of age. Furthermore, reports are also showing the elderly Americans, who once made up a mere 2.1% of bankruptcy filings (1991) across the country, currently make up 7%, according to 2007 figures.

Elderly Americans, who generally have less disposable income due to their limited earning power, cite credit card debt, as the primary reason why they are forced to file for bankruptcy. Unfortunately, data shows that many elderly Americans use credit card debt to pay for everyday purchases, particularly since social security checks, personal savings, and pensions are insufficient to fully support themselves. Also the elderly must foot the cots of medical bills and medication costs. Analysts project that the overall number of bankruptcy filings will continue to rise through the end of 2010, and that rate of filings by elderly Americans will increase as well. While the economy continues to slowly recover from its economic downturn, 1.3 million Americans are expected to file for bankruptcy.

The bankruptcy process can be quite complicated, and it is always advisable to seek the assistance of an experienced bankruptcy attorney if you are thinking of filing. At the Law Offices of Robert Manchel, our skilled New Jersey bankruptcy lawyers will examine the circumstances of your situation and help you determine what the best course of action should be in regard to your finances. For more information about filing for bankruptcy in New Jersey, please contact our offices today at 1-866-503-5655.

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Homeowners in New Jersey are more seriously delinquent than homeowners in Connecticut and New York, according to a Wall Street Journal online article. Reportedly, the number of New Jersey loans in foreclosure reached 6.28%, while the number of seriously delinquent loans reached 10.54%. Comparatively speaking, the U.S. average during the same time period stood at 4.57% and 9.11%, respectively. New Jersey ranks behind only Florida and Nevada in terms of the number of loans in foreclosure.

While foreclosure seems like a hopeless process, there are options for homeowners who want to save their house. Many people fail to realize that filing for bankruptcy in New Jersey can actually allow an individual to remain in their home, provided they choose to file chapter 13 bankruptcy protection rather than chapter 7. While chapter 7 bankruptcy protection may, under some circumstances, allow an individual to save their home, it does not allow an individual to save a house once that house has gone into foreclosure. However, New Jersey chapter 13 bankruptcy protection does allow one to save their home once it goes into foreclosure.

Per your chapter 13 bankruptcy plan, a monthly payment will be paid each month to a trustee. These payments may last anywhere from 36-60 months. This payment may include unsecured sources of debt, such as credit card bills and hospital fees, in addition to the pre filing mortgage arrears. An individual who can make the monthly bankruptcy, as well as their monthly mortgage payments, will be allowed to remain in their house. At the end of the plan payments, their past mortgage payments will be considered settled, cured and resolved.

At the Law Offices of Robert Manchel, our experienced New Jersey bankruptcy attorneys will guide you every step of the way during your bankruptcy protection proceedings. For more information about how chapter 13 bankruptcy can save your home from foreclosure, please contact our office today at 866-503-5655.

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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.

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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.

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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.

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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.

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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.

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