Category: Debt Management

By Admin | December 7, 2022

According to the Statista Research Department, 522,808 non-business bankruptcy cases were filed in 2020 alone. Even though filing for bankruptcy is fairly common, many people have no idea what the process entails.

Can you keep any credit cards after filing for bankruptcy? What will happen to your credit score?

Our bankruptcy lawyers at Brenner Spiller & Archer are here to help. Contact us today.

Our attorneys receive dozens of questions like these every day. Unfortunately, the answer typically involves more than a simple yes or a no. We have compiled answers to a few of our most frequently asked questions about bankruptcy and credit cards below. 

1. Can I Keep a Credit Card in Chapter 7 Bankruptcy?

Unfortunately, you typically cannot keep your credit card accounts when you file for Chapter 7 bankruptcy. Bankruptcy treats all of your creditors the same, and this includes your credit card company.

Filing for Chapter 7 bankruptcy cancels all of your financial contracts, including credit card agreements, leases, and secured car loans. But this doesn’t mean you cannot keep your vehicle(s) and/or lease(s).

Once your credit card company finds out that you filed for Chapter 7 bankruptcy, they will likely cancel your credit card because they can no longer enforce your obligation to pay your credit card balance.

2. Can I Exclude a Credit Card from Chapter 7 Bankruptcy?

When you file for Chapter 7 bankruptcy, you will list all of your debts. That includes all of your credit cards. Therefore, you cannot exclude a credit card from Chapter 7 bankruptcy to avoid losing it.

3. Can I Keep a Company Credit Card if I File for Bankruptcy?

Many individuals use separate credit card accounts for their businesses. So you may wonder if you will lose that credit card in bankruptcy along with all your others.

Whether or not you can keep this card depends on how the account is set up. If the company credit card is set up in the company’s name and you are just an authorized user, you can likely keep the company credit card. You are likely to be able to keep the card because, in this case, the debt obligations owed are billed to the company directly. 

However, if you are an obligor on the company credit card account, this means that you and your company are jointly responsible for paying the debt. As an obligor, you typically have to pay the bill and then seek reimbursement.

If this is the case, you will likely need to include the company credit card account on your list of debts when you file for Chapter 7 bankruptcy. This generally means that the issuer of the card will close the account.

4. Can I Keep a Future Credit Card If I File for Bankruptcy?

Luckily, filing for Chapter 7 does not prohibit you from ever having another credit card. In fact, you might receive numerous credit card offers in the mail after your Chapter 7 bankruptcy is processed. Typically, credit card companies advertise to recent bankruptcy filers because:

• Former bankruptcy filers are typically more cautious about using credit;
• You cannot file for Chapter 7 bankruptcy again for at least eight years; and
• Bankruptcy wipes out all of your debt, giving you more money to spend on new credit card bills.

But please understand that securing a credit card right after you finish filing for Chapter 7 bankruptcy is not always a good idea. If you struggled with high amounts of credit card debt, you might consider consulting with a debt relief attorney before you open another credit card account.

Once those bills start adding up, you might find yourself in the same situation a year or so into the future—but you won’t have the ability to file for bankruptcy for another seven years. 

Still Have Questions About Bankruptcy and Credit Cards? Contact Our Bankruptcy Attorneys at Brenner Spiller & Archer

We understand that many of our clients are dealing with a very difficult time in their lives. Filing for bankruptcy is never an easy decision, but we can help you achieve a fresh financial start through the bankruptcy process. 

Our legal team at Brenner Spiller & Archer, has over 35 years of experience assisting our clients with bankruptcy matters. Our experience in the bankruptcy industry has given us an extensive knowledge base from which to pull when assessing your specific circumstances and needs. We have earned the reputation of providing solid legal expertise and unwavering service to our clients. We have the experience necessary to represent you effectively in your bankruptcy case and secure a desirable resolution. Contact our office today to schedule your free consultation. We look forward to assisting you.

By Admin | October 7, 2021

Each year, millions of Americans struggle to keep up with their mortgage. Financial issues from the sudden death of a loved one, prolonged unemployment, and other issues can leave a homeowner overwhelmed without many options. This is around the time when homeowners start considering a short sale.

A short sale allows a homeowner to sell their home for less than they owe on their overall mortgage. If approved, a homeowner can reduce their financial burden by getting rid of the home. With the help of a real estate attorney, a short sale can be a great solution for most people, it’s not always the right solution for everyone.

Pros of Short Sales

Avoid a Foreclosure

Depending on the circumstances, people who consider a short sale do so with the interest of avoiding foreclosure. If the seller has assessed the situation and come to the conclusion that they simply won’t be able to keep up with the payments, a short sale would definitely be an advantage.

Less Credit Impact

A person’s credit can be strongly affected by a foreclosure. It’s a mark of unpaid debt that could remain on your credit report for well over 7 years. With a short sale, your credit may still be affected, but it may not be as harmful as a foreclosure.

Selling Could Be Easier

Depending on location and various real estate factors, short sales are often in a league of their own. By undercutting other homes in the area and simply offering the home at a lower price, short sales often sell quickly, barring any bank delays. In fact, short sales are often a dedicated target for investors, house “flippers”, and first-time homebuyers.

Cons of Short Sales

You’re Not In Full Control

When a house is listed for sale in the traditional way, everything from the price to the offers is on your terms. But when the house is being sold in a short sale, the bank is directly involved. The bank ultimately decides if a short sale is valid depending on the offers received; they even have the power of negotiation.

Your Credit May Be Affected

Perhaps not as badly as a foreclosure, however, a short sale is still classified as a debt that wasn’t completely paid.

It Can Take a While

Though the popularity of short sales as a bargain has increased in recent years, how quickly your home sells in a short sale largely depends on factors outside of your control. There’s the criteria of your location, rates on the market, the value of the home – all this and the skepticism of some buyers’ willingness to buy the property. Some buyers will try to lower the price to unreasonable lows that can delay and distract the selling process.

Get Your Free Consultation With Residential Real Estate Attorney Andrew Archer

If you’re facing foreclosure but looking for an alternative, a short sale may be one of the best ways for you to avoid both bankruptcy and foreclosure. The attorneys and staff at Brenner Spiller & Archer provide friendly, caring, and affordable legal services.

We serve clients throughout central and south Jersey with offices in West Berlin, Mount Holly, Vineland, and Freehold. If you need an experienced real estate attorney, call 856.963.5000 or contact us online to schedule your free consultation.

By Admin | June 2, 2021

The U.S. economy isn’t lifting everyone in New Jersey out of debt. If you want to avoid foreclosure and save your home, or you’re wondering how to get a loan modification, you need the help of a foreclosure attorney.

Dealing with your lender and negotiating mortgage issues are simply too complex to manage alone. An experienced foreclosure and loan modification law firm can defend your rights by helping you avoid foreclosure.

File a Notice of Appearance

After consulting with a foreclosure and loan modification attorney, a notice of appearance is filed with the court. This is done to allow the attorney to represent you. Your lender will send details and information about the case to the attorney.

Answer the Summons & Complaint

In order to foreclose on your property, the lender must file a lawsuit against you. To that end, you’ll receive a summons and complaint from a process server. You are then a defendant in a lawsuit and your lender is the plaintiff.

To achieve the goal of keeping your home, you must fight the lawsuit. The first step involves preparing your answer to the summons and complaint. Your attorney will answer on your behalf and initiate the defense against foreclosure.

An experienced litigator can prepare the response and fight the lender’s lawsuit. They’ll review the summons and complaint to identify errors and do everything possible to defeat the lender’s foreclosure lawsuit in court.

Court Appearances

You may be required to appear at one or more settlement conferences where you and the lender representative discuss a mutually agreeable resolution to avoid foreclosure. Your attorney will attend any settlement conferences in your stead.

Foreclosure Defense Strategy

If your attorney is pursuing a loan modification, they may utilize one or more foreclosure defense strategies to avoid foreclosure. The attorney may argue a “bogus” mortgage assignment or unfair lending practices or failure of condition precedent. The foreclosure defense strategies chosen will depend on the circumstances of your case.

Get Your Free Consultation With an Experienced Attorney

Because a loan modification is a permanent way to save your home, your foreclosure defense attorney may work towards this end. An experienced attorney can help you achieve this goal.

Foreclosure and loan modification are complex matters. Lenders are unlikely to warm to the idea of direct negotiations with the mortgagor. Contact Brenner Spiller & Archer to schedule your free consultation.

By Admin | February 3, 2021

Debt is a frustrating beast. No one enjoys debt and losing control of it only adds to the mental (and monetary) stress. The good news is that there are two popular options to help manage overbearing repayments: debt consolidation and bankruptcy. Here’s how to tell which one will best help your situation.

What is Debt Consolidation?

When someone runs into money troubles, it often means they have several loans and bills to repay to different banks and companies, but may not have the money to fully pay them back on time.

Debt consolidation is one option for repaying these creditors. In debt consolidation, all loans and bills are lumped into one single repayment plan instead of several separate repayments.

This makes repayment easier to manage, as well as offering lower monthly payments and lower interest rates.

What is Bankruptcy?

A bankruptcy filing is another way to manage or dismiss bills and loans that are difficult to repay. Most people are offered two types of bankruptcy: Chapter 7 and Chapter 13.

In Chapter 7 bankruptcy, the person filing will have most (if not all) of their debts wiped clean and will not need to repay any of them. When someone files for Chapter 13 bankruptcy, the borrower pays back at least parts of his or her debts.

The Differences Between Debt Consolidation and Bankruptcy

Mental Strain

Debt consolidation, though reduces stress by offering one repayment each month, still leaves a constant reminder of your debts until all payments have been made. Bankruptcy can eliminate your worries with a clean slate (Chapter 7) or fewer repayments (Chapter 13).

Credit Score

Debt consolidation won’t affect your credit score, meaning if you have a low score, it will stay low. Bankruptcy, while initially lowering your credit score, can eventually increase it.

Privacy

Debt consolidation is entirely private, so friends, family, and coworkers never have to know. Bankruptcy may cause your employer to find out (if your Chapter 13 plan pulls repayments from your paychecks). Bankruptcies are also publicly available, so if someone searches hard enough, they can find out.

Obtaining Credit

Debt consolidation may allow you to keep credit cards, though more purchases using credit only adds to your debt. Bankruptcy can inhibit you from obtaining credit for three to five years.

Creditor Interaction

Debt consolidation doesn’t block creditors and lenders from contacting you, asking for more or faster repayments. Bankruptcy (and an automatic stay) prohibits creditors from contacting you or shutting off utilities and repossessing vehicles.

Collateral

Debt consolidation doesn’t guarantee that lenders can’t take your home or car if you list it as collateral. Bankruptcy will prohibit lenders from collecting your house or vehicle.

Which is best for you?

Though this gives you a quick snapshot of debt consolidation and bankruptcy, to really get an idea of which is best for you, you should sit down with a lawyer and go through the details of your situation. Give us a call today to learn which path you should take.

Contact Our NJ Debt Relief Attorneys

The attorneys at Brenner Spiller & Archer provide friendly, caring, and affordable legal services. We serve clients throughout central and south Jersey with offices in West Berlin, Mount Holly, Vineland, and Freehold.

Call (856) 963-5000 Today to Get Your Free Consultation

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

By Admin | June 15, 2020

Foreclosure is a term that’s plagued with financial and social stigma and it brings to mind struggle, irresponsibility and loss. But though it has this stigma, many don’t realize that foreclosure could really happen to anyone. Anything from an unexpected loss in the family to prolonged unemployment, or even a sudden illness could lead to a financial situation that leaves people struggling to keep their homes.

As if a foreclosure wasn’t bad enough, it can also wreak havoc on a homeowner’s credit score, making for an ugly financial situation. The good news is that there are at least six alternatives to foreclosure:

Talk to Your Lender about Loan Modification

As with most bills, a lot of financial situations could be remedied by simply being honest with your lender. If you have missed payments and trouble paying, talk to your lender about a loan modification. Though you must qualify depending on their standards, a loan modification could mean a lower interest rate, a longer amount of time to pay, and of course lower payments.

Rent Out a Room or the Property

It seems like an obvious action to take, but it’s an alternative that’s often overlooked. If a homeowner is having trouble paying the mortgage, it may be worthwhile to make use of extra space in the home and rent out a room to a tenant. If this isn’t possible, it may be worthwhile to rent out the entire property – this way, most of the mortgage gets covered while the homeowner seeks a more affordable place to live.

Refinance

If you have a good or even passable credit rating and enough equity in the home, refinancing is a good option to at least look into. Refinancing can bring with it a better rate, no matter how slight, and in turn bring more affordable payments.

Forbearance

Also known as a payment plan, forbearance is an arrangement that allows you to work out a temporary payment plan with your lender. It’s also known as a hardship program – in these cases, the payments may be lowered or stopped altogether to allow a homeowner to catch up.

Friendly Foreclosure

A “friendly foreclosure” is just another term for a process called a “deed-in-lieu.” It’s fairly straightforward on paper: rather than allow the bank to foreclose your home, you would return the deed of the home on your own volition.

Short Sale

The most common route taken by those facing foreclosure, a short sale is just that: selling the house for less than what is owed under approved parameters to get out of paying more than the home is worth. The impact to your credit is still there but can be significantly lower than foreclosure and friendly foreclosure.

Our Experienced, Friendly Debt Attorneys Can Help Save Your Home

Your home is your castle. It’s likely the largest investment you’ve ever made and it’s the place where you and your family feel safe. However, when unmanageable debt threatens your home, it’s completely understandable if you feel overwhelmed and frustrated. The mortgage company wants its payments and when a homeowner gets into significant arrears, it can be very difficult to avoid foreclosure.

However, all hope is not lost. At the law firm of Brenner Spiller & Archer, we care about our clients and have helped countless homeowners in South Jersey remain in their homes through a variety of methods. Contact our West Berlin, NJ office today to speak with an experienced, friendly lawyer who will explain your rights and options, answer all of your questions, and do what’s necessary to save your home.

Contact Us Online or Call 856-963-5000 to Get Your Free Initial Consultation