Bankruptcy

The Administrative Office of the U.S. Courts recently released data regarding bankruptcy filings in the United States for the 2010 calendar year. Total bankruptcy filings in the U.S. are at a five year high.
U.S. bankruptcies increased about eight percent in 2010 compared to 2009, which is the fifth straight year filings have increased. Combined, personal and business bankruptcies increased to about 1.59 million, compared to about 1.47 million in 2009. However, the rate was the slowest since 2005, when there were about two million bankruptcy filings. In 2005, the bulk of the bankruptcies, were due to filing before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) revisions, were effective.
Personal bankruptcy filings rose about nine percent in 2010, totaling about 1.41 million, while the unemployment rate also remained above nine percent. Chapter 7 bankruptcy filings, which involves the liquidation of assets, increased about eight percent in 2010, totaling approximately 1.13 million, as compared to 2009 when 1.05 Chapter 7 filings were reported. Chapter 13 bankruptcy filings rose eight percent to 438,913 in 2010, compared to 406,962 filings in 2009.
In New Jersey, there were 41,365 total filings for personal bankruptcy, which is a 14.2 percent increase from 2009, when there were 36,233 personal bankruptcy filings.
However, business bankruptcy filings in the U.S. declined approximately 7.5 percent, which the article states may be due to financing becoming easier for businesses to obtain. Chapter 11 filings, which permit the reorganization of business activities, declined to 13,713, compared to 15,189 in 2009.
With tough times facing our nation, including the economy, unemployment, and the foreclosure crisis, many Americans are finding it difficult to manage their finances, and may be facing bankruptcy. Deciding to file for personal bankruptcy is a difficult decision, and one that should be reached after a great deal of consideration. Consulting with a New Jersey bankruptcy lawyer can help you understand the bankruptcy process and can advise you on the best course of action regarding your specific financial situation. Call The Law Offices of Robert Manchel today at 866-503-5655 to learn how Mr. Manchel can help you.

According to a recent article in USA Today, the number of retired people that are filing for bankruptcy has significantly increased, and the rate was increasing even before the recession began.
According to a study conducted by the University of Michigan Law School, people aged 65-years-old and older are the fastest-growing part of the population that are filing for bankruptcy protection. The study also discovered that elderly Americans carry approximately 50 percent more credit card debt than younger Americans.
There are many facets to the problem. Once retired, a person’s expenses, such as medical bills and taxes, continue to rise, while their income declines. If long-term care is needed, it also significantly adds to expenses. Additionally, Social Security has not had an adjustment for cost-of-living inflation in a long time. Many senior citizens also suffered losses in their retirement and pension accounts during the height of the recession. Many more people are retiring while carrying a mortgage than previous generations, which also adds to costs. Often, these circumstances lead the elderly to attempt to live off their credit cards, only making matters worse.
Bankruptcy can be the best option for some retirees and may help stop the depletion on their limited income from creditors. Many elderly Americans mistakenly believe that filing for bankruptcy will drain their retirement accounts and leave them penniless. The reality is that retirement and Social Security accounts (up to roughly $1 million) are exempt from creditors, so retirees will continue to have a steady source of income after filing for bankruptcy. Also, medical bills and credit card debt are categorized as “unsecured debt”, which will likely be eliminated by bankruptcy.
If you have recently retired and find yourself struggling to pay your bills, filing for bankruptcy may be a good option for you. However, every person’s financial circumstances are different, and that is why it is wise to consult with a New Jersey bankruptcy lawyer who can help you determine the best course of action. At The Law Offices of Robert Manchel, our attorneys have helped many people in New Jersey understand and go through the bankruptcy process. Call our law office today at 866-503-5655 to learn how we can help you.

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.

Bankruptcy does not discriminate. Regardless of which walk of life a person may come from, anyone can find themselves having to file for bankruptcy protection. According to a credit.com article, the number of individuals filing for bankruptcy protection continue to rise, and the demographics associated with those filings continue to change. That is, while the previous median age of those filing for bankruptcy in 1991 was 36.5 years old, the most recent data, collected from 2007, shows the median age to have risen to 43 years of age. Furthermore, reports are also showing the elderly Americans, who once made up a mere 2.1% of bankruptcy filings (1991) across the country, currently make up 7%, according to 2007 figures.
Elderly Americans, who generally have less disposable income due to their limited earning power, cite credit card debt, as the primary reason why they are forced to file for bankruptcy. Unfortunately, data shows that many elderly Americans use credit card debt to pay for everyday purchases, particularly since social security checks, personal savings, and pensions are insufficient to fully support themselves. Also the elderly must foot the costs of medical bills and medication costs. Analysts project that the overall number of bankruptcy filings will continue to rise through the end of 2010, and that the rate of filings by elderly Americans will increase as well. While the economy continues to slowly recover from its economic downturn, 1.3 million Americans are expected to file for bankruptcy.
The bankruptcy process can be quite complicated, and it is always advisable to seek the assistance of an experienced bankruptcy attorney if you are thinking of filing. At the Law Offices of Robert Manchel, our skilled New Jersey bankruptcy lawyers will examine the circumstances of your situation and help you determine what the best course of action should be in regard to your finances. For more information about filing for bankruptcy in New Jersey, please contact our offices today at 1-866-503-5655.