nj chapter 13 bankruptcy

With such a sparse job market, many recent college graduates are finding it difficult to obtain gainful employment, and as a result are defaulting on their student loans. While many lenders offer lower payment programs meant to assist graduates who are less financially stable, the student loan default rate continues to rise. According to Consumer Reports, the most recent data available shows that the national default rate for student loans is currently at 7%.

Especially problematic, seems to be those student loans that are associated with for-profit schools, or those schools which are run by private companies seeking to make a profit from a student’s education. Currently, the trade-off between a degree and a high paying job seems to be more or less hit or miss. That is, in comparison to past college students and their abilities to find higher paying jobs, recent crops of college graduates are finding it extremely difficult to find any employment whatsoever.

Difficulties staying current with loan payments – housing, or otherwise- can seriously inhibit an individual’s ability to lead a productive life. While it may seem as though your New Jersey student loan debt situation is hopeless, there are options available to you that can alleviate the pressures associated with late payments and creditor phone calls. Although student loans cannot be eliminated through bankruptcy, the bankruptcy laws allow people to eliminate most types of debt, which will provide an individual much needed relief.

At the Law Offices of Robert Manchel, our skilled bankruptcy attorneys assist individuals in the state of New Jersey who are looking to file for Chapter 7 or Chapter 13 bankruptcy protection. For more information about your bankruptcy options in New Jersey, please contact our experienced New Jersey Chapter 13 bankruptcy attorneys today. Call 866-503-5655 today to find out more about our zero upfront Chapter 13 filing fees.

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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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