Hackettstown New Jersey Legal Blog

If you find yourself facing foreclosure on your home in Hackettstown, then people may begin to advise you that filing for personal bankruptcy is the easiest way to ensure that you keep it. Several of those that we members of our team here at Jonathan Stone Attorney at Law have worked with in the past have been given similar advice, only to later discover that bankruptcy is not the automatic answer to foreclosure that it has been made out to be. Before you make this decision, it is important that you understand exactly how bankruptcy can affect foreclosure. 

As you contemplate your bankruptcy options, you may immediately be drawn to the appeal of a Chapter 7 case. This allows you to have eligible debts completely discharged (which is why it tends to be the more popular personal bankruptcy option). Yet when it comes to stopping your home from being foreclosed, it might not work. If your mortgage lender has already initiated a foreclosure sale, all a Chapter 7 does is the delay the sale with its automatic stay. Once your case is discharged four to six months later, you will still be facing foreclosure. Your lender can also petition the court to lift the stay in its case to allow the sale to go through. 

If you’re a small business owner in New Jersey, filing for Chapter 11 bankruptcy is a daunting prospect. Because Chapter 11 allows for a reorganization of debt it doesn’t necessarily mean that your business is lost forever. The Balance offers the following explanation so you can understand your options when it comes to getting your business finances in order.

Layoffs may occur

Poor spending habits can easily lead to debt for many people in New Jersey. Identifying bad habits is the first step to changing your behavior and fixing your finances once and for all. The following are a few examples of spending habits you must change if you want to avoid financial instability.

AARP cautions against letting late fees pile up regarding credit card payments. You can avoid these late fees by implementing automatic payments through your bank, for both credit cards as well as other recurring bills. That way you won’t need to worry about remembering to make payments each month, which can be difficult when you have numerous bills to pay. 

Many people choose to move forward with a bankruptcy because they are struggling with credit card debt, a problem that has become especially common in the U.S. Not all of the people who take on a significant amount of credit card debt do so out of irresponsibility. In fact, some find themselves in this tricky position because of a health crisis or an injury that left them unable to work, prompting them to turn to their credit card to buy groceries or take care of bills. Worse, interest may have made their debt balloon out of control.

For some people in New Jersey, Chapter 7 bankruptcy is a smart way to tackle credit card debt. There are, of course, many different options when it comes to eliminating credit card debt through bankruptcy so it is important to review all of your choices before settling on one particular route. Chapter 7 bankruptcy can be a great way to discharge credit card debt and find a new financial start. By taking this route, you may be able to completely free yourself from the debt that has been bringing you down for months (or maybe years). However, each case is unique and a creditor may decide to file a complaint.