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Bankruptcy is often a source of shame and embarrassment to those who file, but it doesn’t need to be. As joblessness is on the rise and money is tight, more people than ever are availing themselves of New Jersey’s fair-minded bankruptcy options. This area of the law was designed expressly to release debtors from the anxiety and mounting pressure that comes with excessive or unsecured debt. There is no reason that you shouldn’t try to find a solution that fits your specific situation today. Often, all you need to begin the process of recovery is some good advice and a plan. This section does not include reestablishing credit after bankruptcy, which is presented in a separate section of this website.
New Jersey Bankruptcy Protection
People generally know how and why they needed the assistance of New Jersey bankruptcy protection. Virtually, all clients explain that their financial situation was totally unexpected. Also, most people know how to avoid the financial problem in the future. In any event, our New Jersey bankruptcy website provides some information that may be helpful. To start with, do your best to be positive and proactive about the future.
Balancing Family Income and Making Payments On Time
Obviously, the family income should be maximized and the expenses should be minimized. These decisions should be established prior to the bankruptcy filing. If the mortgage payment is too high and the house is under water, one may consider surrendering the house in bankruptcy and renting a house for substantially smaller monthly payments. Apply the same theory with regard to a car payment. There are various methods in which to obtain an auto and rental housing with poor credit. The benefit in releasing the stress that stems from these high payments may outweigh the loss of these items.
Discuss Your Budget
It is extremely important to determine and address the root causes of your bankruptcy in NJ. If the issue was overspending, for example, it helps to create a budget and stick to it for a time until you get used to some more conservative behaviors. You could create a plan to build up savings over time as well, either by paying into an account every month or by making an annual budget with money left over.
Families should take the time to create a detailed budget of monthly income and expenses. The process should include the children, if of a certain age. Review all expenses and attempt to make reduction, where possible. For example, use less water, make your lunches, eat out less, reduce telephone extras and reduce your cable bill. Although there are unexpected bills, the family should comply with the budget, as best as possible. Attempt to include in the budget a monthly amount for savings, which should be deposited in a bank, each month.
Obtaining Favorable Credit
Obtain a copy of your credit report and possibly retain a professional to assist you with your credit report corrections. Banks provide different criteria regarding the issuance of secured and unsecured credit cards. Prior to obtaining credit, ask various lenders and banks about their credit guidelines to obtain the most favorable terms, based on your financial situation. When opening a bank account, interview different banks about their secured and unsecured credit card guidelines. When applying for credit, complete the application at home, answer truthfully, but in the manner most favorable to you. Also, do not raise red flags to your lenders. If you are not approved for credit, ask why, so that you may make the proper changes in the future.
Married couples should establish credit jointly and separately. Monitor your credit reports.
New Jersey Bankruptcy Recovery Attorneys
The nuts and bolts of bankruptcy recovery in New Jersey are simpler than you might imagine, but there are exceptions that you may overlook unless you consult with an experienced NJ bankruptcy recovery attorney who has years of experience with bankruptcy law in New Jersey.
It is not unusual for people who file for Chapter 7 or Chapter 13 in New Jersey to believe they can never qualify for credit again. However, the truth is that patience, forbearance and good habits are all you need to begin rebuilding almost immediately.
At The Law Offices of Robert Manchel, our attorneys offer valuable advice on every aspect of filing a bankruptcy case in New Jersey and can help you decide what the next step should be for your particular situation. Please contact skilled New Jersey bankruptcy attorney Robert Manchel today to learn more about how you can successfully recover from bankruptcy. Call 866-503-5655 to schedule a free consultation.