If you are plagued by medical expenses, bills, credit card debt, mortgages and other expenses, you may feel overwhelmed by the monthly payments required just to stay afloat. It may get to the point where you are unable to keep your head above water, and the chances of paying off your expenses may seem impossible. Chapter 7 bankruptcy allows people in this situation to wipe away much of their debt and start again with a clean financial slate.
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?
Whether you have recently filed for bankruptcy or you have already had your bankruptcy discharged, you may be feeling the effects of bankruptcy on your credit score. There are methods you can take to rebuild your credit and get a fresh financial start. If credit card debt was a contributing factor to your initial need to file for bankruptcy, you are not alone. Yet, even after your bankruptcy is discharged, you may get invitations from credit card companies as a way to rebuild your credit and get back on your feet. It is important to stay on the alert for subprime credit card companies, as they can cause you to become stuck in debt once again.
For people who have recently seen the doctor, been sent to the emergency room or have had a medical procedure performed, the recovery process may entail more than just physical healing. It may take even longer for patients to heal financially from the medical expenses and debt accrued as a result of their medical treatment. In fact, a CNBC report announced that medical expenses were the number one cause for bankruptcies in the United States. Furthermore, it found that people who carry healthcare insurance were slightly more likely to declare bankruptcy than those who did not have medical insurance.
Debt can often seem like a form of bondage to those in Hackettstown who suffer from it. Missed payments, late fees and other penalties can quickly add up to the point of one facing a seemingly insurmountable financial obstacle. In such cases, personal bankruptcy offers protection from further collection efforts, thus halting the growing liabilities compounding one's troubles. Chapter 7 bankruptcy also offers the added advantage of allowing certain debts to be discharged. It is for this reason why this particular form of bankruptcy consistently ranks as the most popular, with the American Bankruptcy Institute reporting it comprising over 67 percent of all non-business bankruptcy filings from the second quarter of the 2018 fiscal year.
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.
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.
If you are struggling with overwhelming debt in New Jersey, you may be considering bankruptcy as the only way out. If so, you likely have many questions about Chapter 7 versus Chapter 13 so you can make an informed decision as to which one is right for you.
If you’ve recently filed for chapter 7 bankruptcy in New Jersey, it may seem like there is no end in sight to the cycle of debt. However, it is possible to recover from chapter 7, provided you take the right steps. Forbes offer a few effective tips on how you can rebuild your credit and work towards a brighter financial future in the aftermath of a bankruptcy filing.
Filing for Chapter 7 bankruptcy can be a good way for people in New Jersey to take control of their debt once and for all. However, you want to make sure your finances remain stable after filing, or you could wind up in the same exact predicament after so long. In this case, MoneyCrashers.com offers the following tips on how you can bounce back after bankruptcy.