new jersey bankruptcy options

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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To better understand how you can make the most out of your NJ bankruptcy options, the fifth post in our 10 Reasons to Hire a New Jersey Bankruptcy Attorney blog series will address this issue. The experienced New Jersey bankruptcy attorneys here at the Law Offices of Robert Manchel can help you plan a strategic, ethical, organized plan of action to get your finances under control, wrangle your debts, stop creditors from harassing you, and protect your assets. Mr. Manchel has been working hard on behalf of New Jersey debtors since 1992, and he exclusively handles bankruptcy and foreclosure cases. Mr. Manchel has demonstrated success time and again for his clients, and he is happy to provide references and/or testimonials upon request. You can also call the offices at 1-866-503-5655 any time to discuss your circumstances and get a competent and no obligation consultation.

What can an attorney like Mr. Manchel do to improve your chances of good outcome? Here is a short list:

• Stop the garnishing of wages
• Get utilities turned back on
• End creditor harassment
• Reduce anxiety about money and about your future
• Develop a plausible and reasonable battle plan to get you and your family back to financial health
• Help get your New Jersey driver’s license back
• Get many of your most pressing debts excused or eliminated
• Eliminate certain debts because they have expired due to statue of limitations
• Protect key assets like your home, car, or boat
• Get certain pieces of property exempted, such as real estate
• Put you and your family on the road to financial rehabilitation by connecting you with competent counselors, financial planners and independent consumer debt organizations
• Rearrange child support obligations, thus reducing the amount of money you have to pay in the short term
• Eliminate income taxes and other taxes under certain special cases
• Learn the basics of debt management, budgeting, and prudent planning so you don’t wind up repeating mistakes of the past

Mr. Manchel works closely with all clients and provides easy accessibility. He believes passionately that informed, educated and respected clients do better in the long term, and he and his associates go the extra mile to provide information and strategies to ensure long term success.

Please read our next post to grasp how experience and knowledge will benefit you with your bankruptcy filing endeavors.

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