Robert Manchel

According to new statistics released on November 8 by the Administrative Office of The United States Courts, bankruptcy cases, including business and non-business, that were filed in federal courts for the 2010 fiscal year (a 12 month period that began on October 1, 2009 and ended on September 30, 2010) topped 1.59 million, which is approximately 13.8 percent more than the total bankruptcy filings in 2009.

Non-business filings for bankruptcy totaled about 1.53 million, which is up an estimated 14.4 percent from 2009, and is the highest number of non-business bankruptcy filings for a fiscal year since 2005. However, business bankruptcy filings somewhat dropped, the first time there has been a decrease since 2006. There was a total of 58,322 business bankruptcies filed during the 2010 fiscal year, which is down seven percent from 2009.

Overall, for the 2010 fiscal year, bankruptcy filings rose in most chapters. Chapter 7 bankruptcy filings totaled approximately 1.14 million, which is up about 15.9 percent from 2009. Chapter 13 bankruptcy filings rose about 9.2; with over 430,000 filings made.

In New Jersey, there were 40,775 total filings for bankruptcy in the 2010 fiscal year. It was a 19.7 percent increase from 2009, when 34,070 bankruptcy filings were made.

Filing for bankruptcy can be a difficult decision and one that shouldn’t be taken lightly. The New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel have experience in dealing with the bankruptcy process in New Jersey. If you need help with the bankruptcy process, our lawyers will examine your particular situation and help you determine whether filing for New Jersey bankruptcy is the right course of action. Call us today at 866-503-5655.

In our last blog post, we featured tips from an article from CNN Money about how Americans can manage their money better, particularly during these trying economic times. We covered good debt versus bad debt, how you should pay off your debts, and using your credit card smartly. Taking control of your finances and watching your spending habits can help prevent you and your family from falling into serious debt and potential bankruptcy in New Jersey.
The article also discussed several other money managing tips. They caution against falling into “the minimum trap,” which is when you only pay the minimum amount on your credit card bill. Paying your bill in this manner will hardly cover the interest charges and will take you months, if not years, to pay off your total balance. In the end, if you only pay the minimum, you will spend much more than the original amount you charged to your credit card.
You should also be aware of where you borrow your money to pay off debt. While it could be convenient to borrow against your 401(k) or your house, doing so can be very risky. You could potentially lose your home in a New Jersey foreclosure.
One of the most important recommendations the article makes is to plan for the unexpected. Start creating a safety net of a few months of living expenses in case of any emergency. Not having a disaster fund can seriously cripple your finances, if you suddenly have an expensive car repair or something of that nature that requires immediate action.
If you have a mortgage, one shouldn’t be so quick to pay down the mortgage instead of paying down the credit card debt, as a mortgage is likely to have a lower interest rate. Also, one is able to deduct the interest paid on the first $1 million of a mortgage loan, which can be very helpful. However, if your mortgage happens to have a high interest rate and you need to lower your monthly payments, you may want to consider refinancing your home.
If you find that you are still struggling with your debts, you should get help as soon as you realize the necessity. There are many debt counseling agencies with a good reputation that could help you consolidate your debts and help you manage your finances better. But be careful—there are also many disreputable debt counseling agencies.
Being smart about your finances can save you from many headaches and improve your quality of life. However, depending on your situation, it may be a good idea to file for bankruptcy in New Jersey. Every bankruptcy case is different, so you might want to consult with a New Jersey bankruptcy attorney to learn about your options. At the Law Offices of Robert Manchel, our lawyers have helped countless individuals navigate through the New Jersey bankruptcy process. If you have questions about filing for bankruptcy in New Jersey, please contact our office to talk with one of our knowledgeable and experienced bankruptcy lawyers. Call us today at 866-503-5655.

With America’s culture of consumerism, it should come as no surprise to find that Americans are heavily loaded with debt from credit cards. The average household in America that possesses at least one credit card has an average of over $10,000 in debt from credit cards.
CNN Money has a list of top things Americans need to know about handling their finances. First, they acknowledge that some debt can actually be good—such as borrowing money to pay for college or a home, but that you should be cautious not to borrow more money than you can pay back. They also advise shopping around to find the best interest rates. However, there is bad debt, such as using a credit card to purchase things like vacations that can’t be paid off in full within a few months. Using a credit card for expensive items that can’t be paid off timely is a fast way to find yourself in serious debt. They recommend putting cash aside each month to save for a big ticket item before charging your credit card, so you can pay the full amount when it is due and avoid paying high interest charges.
The article also urges Americans to think about what it is they’re purchasing. They suggest making a list of your typical monthly spending habits and then cut out the items you don’t really need. Save the money you would have spent or use it to try to reduce your debt faster.
When paying off your debts, first pay off the highest- interest rated debts, which CNN Money says is the solution to efficiently getting out of debt. Pay the balances of credit cards or loans that charge the highest interest, while you pay the minimum balance due on other debts. Once the high interest debts are paid off, pay off the next highest, and so forth. Soon you will find your debts greatly reduced.
Managing your money wisely can help you avoid filing for bankruptcy in New Jersey. However, in some cases, it may be in your best interest to file for New Jersey bankruptcy. Everyone’s situation is different, and it may be a good decision to speak with a New Jersey bankruptcy lawyer to find out your legal rights and options. The attorneys from the Law Offices of Robert Manchel have worked with many individuals, regarding their decision as to whether bankruptcy is the best solution. We can help guide you through the bankruptcy process and answer any questions you may have. If you are considering filing for bankruptcy in New Jersey, please contact our office to speak with one of our skilled and knowledgeable bankruptcy attorneys today. Call us at 866-503-5655.
Check our blog later this week for part II on how you can handle your money more wisely and potentially avoid filing for bankruptcy in New Jersey.