Last updated 15 hours ago
Making the decision to file for bankruptcy is never an easy one. For some people, however, a Chapter 7 bankruptcy can provide the fresh start they need to get back on their feet and start rebuilding their financial future. If you’re frustrated over your debts and unsure of how to resolve them, consider talking to a bankruptcy attorney. Your bankruptcy attorney can help you decide whether a Chapter 7 bankruptcy might be right for you.
Do You Need a Fresh Start?
The federal bankruptcy code was created primarily to give honest debtors a new start in life. Many individuals become buried under a significant amount of debt due to reasons beyond their control, such as divorce or a prolonged illness. When you file for a Chapter 7 bankruptcy, most types of debts are discharged, which means you do not need to pay them back. Additionally, as soon as you file, you’ll be granted an automatic stay. This immediately stops the collection actions of most creditors, giving you some much-needed relief.
Do You Have a Low Income?
Unlike a Chapter 13 bankruptcy, a Chapter 7 bankruptcy does not require you to pay back some or all of your dischargeable debts over a period of time. This makes it particularly ideal for individuals who have a low income and for those with no income.
Do You Have Few Assets?
Since you will not be required to adhere to a payment plan for your debts in a Chapter 7 bankruptcy, a trustee will evaluate your property to determine whether it could be sold to pay your creditors. If you do not own property or have few assets, a Chapter 7 bankruptcy could be the right choice for you. Even if you do have property, some or all of it may be exempt from liquidation, such as your car, equity in your home, and Social Security payments.
For more guidance on deciding whether a Chapter 7 bankruptcy is right for you, contact the caring team at Low & Low Bankruptcy Lawyers. Since 1965, we have helped individuals gain a second chance to rebuild their finances and work toward a better tomorrow. If you live in the Hackensack, Jersey City, or Elizabeth, NJ areas, you can contact us at (201) 546-5753.
Last updated 7 days ago
A personal budget is an essential tool for ensuring financial security and avoiding problems such as bankruptcy. Creating a budget is easier than it might sound. Simply record all of your day-to-day expenses in a notebook for 30 days. Then, analyze your expenses and group them into categories, such as utilities, childcare, transportation, and entertainment. Your next step is to determine your total monthly income and compare it to your monthly expenses. If your income doesn’t total more than your expenses, it’s time to reduce your spending.
Watch this video for more helpful tips on managing your finances and creating a personal budget that works for you. This financial expert offers some examples of expense categories, and discusses simple ways of reducing your spending and increasing your income.
When bankruptcy is your best option for coping with debt, turn to the trusted team at Low & Low Bankruptcy Lawyers. Residents of Hackensack and beyond can call (201) 546-5753 to learn how our bankruptcy lawyers can help.
Last updated 14 days ago
Have you begun receiving phone calls from debt collection agencies? You can protect yourself by learning about the applicable laws. In some cases, you may even file a complaint against a debt collection agency for inappropriately contacting you. Under the Fair Debt Collection Practices Act (FDCPA), it is illegal for debt collectors to contact you in a manner that is abusive or deceptive. For example, they may not contact you at an unreasonable time, such as before 8 a.m. or after 9 p.m.
In addition, debt collectors are not legally allowed to contact you at work after you inform them not to do so. Protect yourself by obtaining the name of the debt collection agency and the representative, and the agency’s contact information during the first phone call. Then, send a letter via certified mail to the agency telling them to stop contacting you. If the agency persists in calling you, keep a record of when they call in case you decide to file a complaint.
If your debts have driven you to bankruptcy, let the friendly team of bankruptcy attorneys at Low & Low Bankruptcy Lawyers help you on the path toward financial stability. Give us a call at (201) 546-5753 to set up a free consultation in Hackensack about the bankruptcy process.
Last updated 20 days ago
In today’s trying economic times, it can be difficult to stay on top of all of your financial obligations. Mortgage payments, car loans, credit card bills, utilities—they can all add up until you feel like you’re drowning in a sea of debt. When you are out of work, these debts can stack up even quicker. If you have been struggling to make ends meet every month, it may be time to consider filing for bankruptcy. Depending on your situation, bankruptcy can potentially give you a clean slate and liquidate your debts. Because bankruptcy is a complicated legal matter, you should consult your Hackensack bankruptcy attorney to discuss which option is best for you. Take a look at this infographic from Low & Low Bankruptcy Lawyers of Hackensack to understand when it might be time to file for bankruptcy. Please share this useful information with your friends and family.
Last updated 15 days ago
Many people mistakenly assume that they’ll never qualify for a mortgage after filing for bankruptcy. In fact, the Federal Housing Administration (FHA) has protocols in place for borrowers recovering from bankruptcy. Even with a credit history that is less than ideal, you could qualify for an FHA mortgage loan in just a year or two.
Re-Establishing Credit History
In order to qualify for an FHA mortgage loan after filing for bankruptcy, you’ll need to re-establish a good credit history. Be sure to make all of your payments on time and strive to pay off any remaining debts, such as student debt. Consider opening a secured credit card that is linked to your savings account to re-establish credit history.
Getting a Loan After a Chapter 13 Bankruptcy
If you file for a chapter 13 bankruptcy, you’ll make payments according to a court-ordered schedule. It is possible to obtain an FHA mortgage loan while you’re still making those payments; however, you must wait at least one year from the date that you began making payments. You must make all your payments as scheduled to qualify for a loan. When you submit your loan application, you’ll need to submit a detailed explanation of the bankruptcy and you’ll need to re-establish good credit history.
Obtaining a Loan After a Chapter 7 Bankruptcy
If you filed for a chapter 7 bankruptcy, you’ll need to wait at least two years from the discharge date before applying for an FHA loan. You’ll also need to submit an explanation of the bankruptcy, re-establish credit history, and meet all other FHA requirements.
Proving Extenuating Circumstances
Regardless of which type of bankruptcy you underwent, you may be able to qualify for an exception. You’ll need to prove that extenuating circumstances beyond your control led to the bankruptcy and that you are financially responsible. You’ll still need to wait 12 months after the discharge date to submit a loan application.
If you have questions about filing for bankruptcy, you can receive all the information you need to make an informed decision with help from the team at Low & Low Bankruptcy Lawyers of New Jersey. Our bankruptcy attorneys in Hackensack will guide you through the process and thoroughly answer all of your questions. Call (201) 546-5753 today to learn more about bankruptcy.