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Deciding If Bankruptcy Is Right for You
Experienced, Caring NJ Bankruptcy Lawyers Guide You Through the Bankruptcy Process
The decision to file for bankruptcy is important and complicated. Bankruptcy is a good option if you’re facing overwhelming debt after past or present illness, a job loss, marital discord or just overspending. If your home needs to be saved from foreclosure and a reasonable loan modification is not possible, bankruptcy may give you the time to catch up. Your goals are important when determining whether to file and what type of bankruptcy to file for. If bankruptcy is not right for you, options such as loan modifications might be appropriate.
Usually, your future creditworthiness should not determine whether to file. If bankruptcy relief is needed, then make the decision to file. Credit may be rehabilitated and sometimes it does not take long. Every situation requires discussion and review.
Common Questions About Bankruptcy
1. How will bankruptcy affect my credit?
A bankruptcy filing will appear on your credit report for seven to 10 years. That does not mean that you can’t obtain credit. Many people are able to obtain credit within a short period of time, depending on income and recent payment history. It is, of course, important to have equity if obtaining a mortgage or money down when making a purchase. Bankruptcy alone does not stop one from obtaining credit.
2. What kind of bankruptcy should I file for?
Depending on your individual circumstances, your lawyer will determine what type of bankruptcy should be filed. Your lawyer will determine your goals to reach that determination. The goal may be to save your home or wipe out credit card debt. The overall situation will determine which type is best.
3. What is the difference between Chapter 7 and Chapter 13?
There are many differences, as well as similarities, between Chapter 7 and Chapter 13. Your lawyer will determine your goals to decide which is best.
Usually, if an asset is being saved, a Chapter 13 bankruptcy is the answer. Sometimes, taxes, fines, and penalties require a payable plan that a Chapter 13 provides.
4. Can I modify my mortgage to reduce my interest or principal?
There is legislation pending that may change the rights of mortgagors. It could allow mortgagors to go into bankruptcy court to ask the judge to lower their mortgage interest rate or even the loan balance to the current value of the real estate. At the time this article was written, nothing has been passed into law.
Your mortgage company is and has always been permitted to work out a reasonable arrangement with you to help you save your home. The problem is that often they decide not to help. That is why it is important to call our office to explore the assistance that the bankruptcy law affords.
Contact the Experienced South Jersey Bankruptcy Lawyers at Brenner Spiller & Archer, LLP
There are options available that can help you confront your overwhelming debt and allow you to get the financial relief you need. At Brenner Spiller & Archer, LLP, we provide friendly, caring and affordable legal services. We serve clients throughout central and south Jersey with offices in Collingswood, Mount Holly, Vineland, and Freehold. If you need a bankruptcy lawyer, call 856.963.5000 today to schedule your free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.