It isn’t news to say that the current economic circumstances have hit the middle class hard. People who have been financially responsible their whole lives and for whom the thought that bankruptcy could never be in their futures are facing the unthinkable now with job losses, home foreclosures, illnesses that deplete a lifetime of savings and force them into severe financial hardships. Credit card debt quickly spires out of control when trying to make ends meet with ever increasing interest rates while lives spin deeper into debt with fewer options each day.
But there are options. Painful to acknowledge and deal with, but there are options that can offer a financial respite and new beginning. The first thing to understand is that you aren’t alone and asking for help isn’t a weakness, it’s a strength. It’s taking control of a bad situation to once again put your life on a firmer financial footing so that you can begin again to build for a future.
Depending on your individual situation, there are two bankruptcy options: Chapter 7 bankruptcy and Chapter 13 bankruptcy. If you can qualify for Chapter 7 bankruptcy, your credit cards and other unsecured debts, including medical debt and utility bills, are wiped out to allow for a fresh start. It does not, however, allow for the discharge of some debts such as IRS debt, student loans, or child support that will not be discharged regardless of your income situation. Additionally, it does not protect your assets from possible seizure and sale by the government.
Chapter 13 bankruptcy will help to stop foreclosure on your home and other property allowing you to continue to make payments within terms of the repayment plan to get caught up over a period of time, usually three to five years. A Chapter 13 bankruptcy is for those who have consistent income with property they wish to protect or debts that cannot be discharged through Chapter 7 bankruptcy. With a Chapter 13 bankruptcy, all of the assets are protected from seizure as long as payments are maintained.
Filing bankruptcy is a complicated process that is unwise to take on without the advice of a good bankruptcy lawyer in NJ who will guide you through the process and ensure that it is filed correctly for your protection. Your attorney knows what can and can’t be done and will advise you on the best course of action for your individual needs and circumstances. Choose a bankruptcy attorney who will offer a free consultation to talk with you about your situation so you can feel confident about your decision and your future.