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New Jersey Debt Relief Blog

What should I not do before filing bankruptcy?

There are many things that you may do that could lead you to having to file bankruptcy in New Jersey. However, once you make the decision to file, there are things you should absolutely not do. Some moves you make could lead to further trouble for you. It is a good idea to be aware of these things so you do not end up causing more issues for yourself as you try to file bankruptcy.

According to the Huffington Post, one thing you should avoid doing is incurring more debt. This can be looked as being devious and considered fraud. The court may not allow you to discharge new debt in your bankruptcy. Also, avoid transferring or selling any assets. The court may see this as trying to avoid paying your debts and consider it fraud. It could demand those items back. Any fraud charge could end you up in criminal court, along with hurting your bankruptcy case.

How does Chapter 11 differ for a small business?

Chapter 11 bankruptcy is reserved for businesses. It is a restructuring of debt. While all sizes of businesses can file under the chapter, things may be different for a small business than for a larger one. One of the important parts of Chapter 11, according to the U.S. Courts, is the creditors' committees. This committee is a group of the seven largest unsecured creditors. They investigate your business and finances and help to formulate the bankruptcy plan.

The tricky part when it comes to a small business is that there may not be enough creditors to form a committee. In this case, your business will be under more oversight from the U.S. trustee than cases that have the committee. The trustee will conduct the investigation that the committee would usually handle.

Preventing foreclosure by planning ahead

When homeowners in New Jersey are informed that their house is in foreclosure, many of them immediately panic and all realistic thoughts go flying out the window. While the thought of foreclosure is daunting to many, and rightfully so, people who plan ahead may have the chance to halt the process of foreclosure to allow themselves enough time to reassess and recreate a better agreement. 

According to the U.S. Department of Housing and Urban Development, there are several helpful programs that struggling homeowners may consider in an effort to stop the process of foreclosure. Some of these include the following:

  • Principal Reduction Alternative
  • Home Affordable Refinance Program
  • Home Affordable Modification Program
  • Second Lien Modification Program

Steps to take after bankruptcy

If you’ve recently filed for bankruptcy in Monmouth County, you may be wondering what steps to take next. Getting your finances back on track can take some time, but it is possible provided you have the right information, such as tips on how to create a viable budget. U.S. News & World Report offers the following advice in this case.

Review Your Financial History

Could your marriage fail because of your student loans?

In case you need another reason to get your debt problem under control, there is an additional issue plaguing consumers in New Jersey and elsewhere.

SunTrust Bank studied the effect of student loan debt on relationships, specifically, marriages. While it was no surprise that financial stressrs of all types create tension between spouses, researchers discovered that student loan debt was cited in 13 percent of respondents as the reason for their divorces.

Handling a leading threat to small business

At William H. Oliver, Jr. & Associates, many of our bankruptcy clients are what you would call successful businesspeople. Their companies are growing and profitable. If you are new to the concept of declaring chapter 11 bankruptcy in New Jersey, you might think of it as the mark of a dying business — but that is rarely the case.

In fact, bankruptcy is often a way that our clients' businesses are able to maintain operations and continue to expand. We believe that standing by our clients throughout the six-year chapter 11 process helps them repay their renegotiated debts with confidence and regularity. We also find that business owners are often able to streamline their practices during bankruptcy, leading to even greater success in the future.

How does a foreclosure affect a credit rating?

Foreclosure can happen to pretty much anyone. All it takes is a financial emergency and you get behind on your mortgage. If you are facing foreclosure and see no way to stop it, you may wonder how this is going to affect your credit. To begin with, creditors do not look favorable on foreclosures, according to Financial Samurai. It shows you did not live up to end of the contract with your mortgage lender.

The action will cause a huge reduction in your credit score. Surprisingly, the better your score, the more you will be affected. For example, if your score is 780, then you can expect a drop of up to 160 points once the foreclosure is complete, but if your score is 680, you will probably lose up to only 105 points.

Reviewing other benefits of bankruptcy

We have gone over many bankruptcy-related issues on this blog, from the options that people who are considering bankruptcy may have to the ins and outs of different types of bankruptcy. Many people are aware that filing for bankruptcy can help a person from a financial point of view if they are buried in debt and being held back by what they owe. However, bankruptcy can be advantageous for many other reasons, which we will look into in this post.

Aside from a fresh financial start and new opportunities that were not possible due to debt, filing for bankruptcy can turn a person's life around in other ways. Some people are able to find a sense of mental freedom following a successful bankruptcy petition. For example, they may sleep better at night because they no longer have unmanageable balances in their head, while others may feel inspired to pursue new opportunities and start over. In fact, filing for bankruptcy can open the door to all sorts of opportunities that may have been impossible beforehand. Whether someone is an entrepreneur or needs to be debt-free for any reason, bankruptcy can change life in many ways.

Can you avoid having to file for personal bankruptcy?

You have recently hit hard times and are feeling the pressure of financial strain. The thought of filing for personal bankruptcy in New Jersey has crossed your mind, but first you are wondering if there is anything else you can do before you make such an impactful decision. Fortunately, there are adjustments that you can make to hopefully boost your financial well-being and avoid having to make a decision that could have many long-term consequences. 

According to Fox Business, if you are experiencing the stress of combing through multiple messages from creditors every day, you have other options besides bankruptcy for keeping them quiet until you are able to pay off your debts. Some of the things you can do include the following:

  • Liquidation: Even though it may be difficult to sell off some of your possessions, doing so could give you extra cashflow that can be used to pay down mounting debts. Often, you can find things around your home that while valuable, are not being used. 
  • Avoid temptation: While it may be intriguing to file for bankruptcy and avoid having to pay any of your debts, that decision could ultimately affect your financial security and credit reputation for many, many years to come. 
  • Communicate with creditors: Do not be afraid to ask for an extension on bills that need to be paid. Be flexible in setting up agreements for paying down your debts. Often, credit companies will be willing to negotiate a deal if you can prove that you will stick to your end of the deal.  

Don't get dragged down by student loan debt

If you took out student loans to finance a university or other post-secondary degree, chances are good that you may be feeling the weight of those loans right now. Unpaid student loan debt can be an albatross around your neck when attempting to secure financing for a home, car or other necessary purchases.

Unpaid student loan debt has reached an unprecedented high. As of April of this year, there was $1.48 trillion owed to the government for outstanding student loans. The total delinquency rate on these loans is over 11 percent. Student loan debt is a nationwide crisis.

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With offices in Toms River and Neptune, attorney William H. Oliver is ready to answer your questions and help you find the right debt relief solution. Evening and Saturday appointments are available. Call local: 732-988-1500 or fill out our contact form.

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