Hackettstown New Jersey Legal Blog

Creditor harassment is hard to deal with when faced with massive debt. Some practices are not actually lawful, which many consumers don't know when they're actively being pursued for money that remains unpaid. The Balance recommends taking the following steps if you're currently experiencing creditor harassment. 

Creditors use multiple methods of communication when reaching out to people. For instance, you may be contacted via phone, email, postal mail, or even text. No matter how you're contacted, be sure to keep accurate records about the items you're sent. When it comes to phone calls, jot down the time when the call took place, the name of the caller, and the subject of the conversation. This information will be exceedingly helpful if you do file a claim for creditor harassment. It will also help you determine whether any wrongdoing has occurred. 

Those who successfully complete the Chapter 11 process may experience a number of financial benefits, getting rid of their debt and welcoming new opportunities. However, the emotional advantages of Chapter 11 should not be overlooked either. People who are buried in debt may be facing incredibly difficult emotional challenges due to their circumstances, including depression, unbearable anxiety and so on. Moreover, these emotions can get in the way of their sleep and disrupt other facets of their lives (such as their job performance and relationships). By getting rid of debt through Chapter 11, some people are able to leave these emotional hurdles behind.

The bankruptcy process can generate negative emotions as well, especially stress and uncertainty. However, once the process is complete, those who took the right approach and were able to secure a favorable outcome may be able to leave adverse emotions behind. After getting rid of debt via Chapter 11, they may notice improvements in their relationships as well as their careers and personal interests. It is imperative for people who are going through these tough emotions to tackle their problems promptly and before their lives unravel in other ways.

Hackettstown residents who feel as though they are drowning in debt may find a Chapter 7 bankruptcy to be their best option at getting back to enjoying a comfortable financial position. Indeed, the benefit of having certain debts discharged is likely one of the primary reason why Chapter 7 is the most popular form of personal bankruptcy (as evidenced by the fact that the American Bankruptcy Institute reports that an average of over 62 percent of all cases in 2018 were filed under this chapter). Yet one question that those considering a Chapter 7 bankruptcy should ponder is how long such an action might prevent them from securing a traditional loan again (specifically a mortgage). 

While a personal bankruptcy can help one struggling with debt, it also has a significant impact on their credit rating. Lenders may be hesitant to loan them money out of fear that their recent financial struggles make it more likely that they might default on a loan. There are not, however, any set regulations that prevent a lender from offering a mortgage to one who has recently filed for bankruptcy. If a bankruptcy filer has a large enough down payment to offset any risk, they might even qualify for a mortgage soon after their filing date. 

As a New Jersey resident who has watched your debt spiral out of control, you may be feeling the pressure from your creditors as they attempt to collect what you owe them. Often, this seemingly constant barrage of phone calls can prove immensely stressful, but you may be able to put a stop to the communications by filing for bankruptcy. How?

According to LendingTree, once you begin bankruptcy proceedings, an automatic stay takes effect, and during this time, most of your creditors may no longer legally contact you in an attempt to collect on your debts. While the automatic stay period does not last forever (in most Chapter 7 bankruptcy cases, it last somewhere between 90 and 120 days) it can provide you with a period of relief while you work through your bankruptcy case and attempt to get a better handle on your finances.