Bankruptcy

According to a recent Wall Street Journal article, the number of baby boomers filing for bankruptcy is on the rise. Data gathered by the Administrative Office of the U.S. Courts shows that in 2007, nearly half of all individuals filing for bankruptcy in the United States were between the ages of 45 and 64. A full 42% of all filings belonged to Baby Boomers, representing a disproportionate number of filings associated with older Americans.
The findings of the study, set to appear in the September issue of the American bankruptcy Institute’s ABI Journal, show that the number of bankruptcy filings belonging to individuals between the ages of 55 and 64 increased by 65% during the five year period of 2002-2007. Comparatively speaking, the number of filings belonging to individuals 25 years of age and younger decreased by 60% during the same time period.
Variable mortgages are cited as one possibility for why Baby Boomers were hit so hard financially in recent years. Reportedly, many mortgage companies targeted older individuals with offers of low mortgage payments, which have since increased due to variable mortgage rates, a process that has been extremely scrutinized as of late. However, Baby Boomers are certainly not the only age group that has been adversely affected by the declining economy or may be sorting out New Jersey debt after bankruptcy.
At the Law Offices of Robert Manchel, our experienced New Jersey bankruptcy attorneys have assisted many individuals with the important decision as to whether bankruptcy is in their best interest. We will also guide you through the process and explain the disadvantages of New Jersey bankruptcy. If you’re thinking of filing for Chapter 7 or Chapter 13 bankruptcy protection, please contact our offices for more information. Call 866-503-5655 to speak to one of our skilled bankruptcy attorneys today.

While virtually everyone has heard of bankruptcy, the vast majority of people probably have numerous questions about the process and application. One of the most commonly asked questions is, “How will filing for bankruptcy in New Jersey affect my credit?” The answer, not surprisingly, varies from case to case.
Although filing for bankruptcy commonly has a negative impact on a credit rating and FICO score, a person considering filing for bankruptcy in New Jersey must consider the present credit score condition. That is, the majority of people contemplating bankruptcy are in serious financial debt, which probably means that their financial position has already negatively impacted their credit rating. The lower your credit score at the time of the filing, the less of an impact the bankruptcy will effect the score. Also, on a positive note, the lasting impact of bankruptcy is positive, with the discharge marking the beginning of the road to credit score recovery.
The poor state of the economy, together with the country’s present limited money supply, results in difficulty forecasting the future impact of bankruptcy on an individual’s ability to obtain credit. Recently New Jersey mortgage companies have been requiring a debtor to wait about three years to refinance or obtain a new mortgage, after receiving a chapter 7 bankruptcy discharge. Mortgage companies require twelve months of continuous and timely trustee and mortgage payments, as a condition to obtaining refinancing or a new mortgage, in connection with a New Jersey chapter 13 bankruptcy.
Filing for bankruptcy and New Jersey bankruptcy filing costs has an immediate impact on a consumer’s life. Not only will creditors stop contacting you, but they will no longer be able to file suit or take any other legal action against the bankruptcy debtor. Upon the bankruptcy filing, a creditor may not garnish your wages, levy upon your bank accounts, or continue and/or commence a foreclosure action. Furthermore, your home’s utilities cannot be shut off and repossession attempts on your vehicle will be stopped.
While all of the above sounds wonderful given the stress that debt creates, there may be unforeseen negative consequences associated with filing for bankruptcy due an individual’s particular circumstances. That is why any individual considering bankruptcy must seek counsel with an experienced New Jersey bankruptcy attorney.
The skilled New Jersey bankruptcy lawyers at the Law Offices of Robert Manchel will examine your financial situation and help determine whether or not filing for bankruptcy in New Jersey is right for you. For more information, please call us today at 866-503-5655.

Federal bankruptcy law is generally the same in all 50 states, and federal law typically has precedent over state laws. However, bankruptcy law may be applied differently in New Jersey, as compared to other states in connection with three separate matters. While these differences may not be apparent to the average lawyer, an experienced New Jersey bankruptcy law attorney will understand these issues and ensure the optimum application of the local laws for the best results for a client.
Firstly, debtors are allowed to claim exemptions under the federal bankruptcy code. However, New Jersey permits debtors to choose between exemptions allowed by federal law, and those allowed by New Jersey. Depending on the circumstances, one of the advantages of New Jersey bankruptcy is that an individual may benefit by choosing the state exemptions, although it should be noted that the majority of filers in New Jersey still choose and benefit by selecting the federal exemptions over state.
Another aspect of federal bankruptcy law and state law that could lead to discrepancies amongst states is the fact that the federal bankruptcy code relies on state laws and courts to define certain terms of the bankruptcy code. New Jersey’s courts may establish a different meaning to certain terms that are in the bankruptcy code, as compared to other states. For example, the term “judgment” may be defined differently in New Jersey than elsewhere. Finally, the bankruptcy code may be interpreted differently by a New Jersey trustee of judge, than in other states. The bankruptcy laws are voluminous, complicated, and open to various interpretations, which are subjective based on the judge or trustee assigned to the matter.
In any event, bankruptcy laws are difficult to understand. Individuals seeking to file for bankruptcy in New Jersey should retain the services of an experienced bankruptcy attorney in New Jersey who can help explain the different options that are available. For more information about filing for bankruptcy in New Jersey, please call the Law Offices of Robert Manchel at 866-503-5655.

Many people do not realize that there are multiple ways for an individual to file for bankruptcy in the state of New Jersey, depending on an individual’s assets and income. The Chapter 7 bankruptcy process takes about five months from the filing until discharge. If the debtor meets all of the criteria, all unsecured debt is discharged (eliminated). In a very small number of cases, the trustee may liquidate assets, if the debtor owns certain assets with a substantial value.
On the other hand, chapter 13 bankruptcy requires an individual to pay a monthly payment to a trustee for a period of thirty six to sixty months. The monthly payment is based on asset values, monthly income and expenses. A debtor may file under chapter 13, instead of a chapter 7, for various reasons, such as the inability to meet the chapter 7 criteria or to save a house from foreclosure. Chapter 13 requires a debtor to pay to a trustee all disposable income for the entire plan period. A chapter 13 may permit an individual to eliminate all unsecured debt, like a chapter 7, in addition to providing other benefits.
While many people adopt the approach that filing for bankruptcy in New Jersey will ruin their credit score, they fail to realize that large amounts of debt can wreak havoc on one’s ability to obtain credit. Although bankruptcy will negatively affect a credit score, an individual who obtains a chapter 7 or chapter 13 discharge may reestablish and repair their credit, within a reasonable time period. While filing for bankruptcy is not necessarily an option for all people, it is the most viable option for some.
In order to determine whether or not filing for bankruptcy in New Jersey is right for you, it may be in your best interest to retain the services of an experienced New Jersey bankruptcy attorney who will examine your financial situation and help you make the best decision. At the Law Offices of Robert Manchel, our legal team will walk you through the bankruptcy process, ensuring that you understand every detail along the way. To find out more about filing bankruptcy in New Jersey, call us today at 866-503-5655.

With the economy in such an unsteady state, New Jersey residents continue to have difficulties finding work, paying their bills on time, and living a lifestyle that isn’t consumed by their debt. According to an nj.com article, the number of bankruptcy cases filed in the state of New Jersey increased by 27% during the 12-month period ending this past May, from statistics recorded just 12 months prior to that period. Though not as high, the number of bankruptcy cases filed in Mercer County, during that same time period, also increased, by a total of 21%. Fortunately, New Jersey bankruptcy laws are set in place to help individuals alleviate debt, which enable them to regain their sense of financial independence that they deserve.
Statewide in New Jersey, more than 4,100 bankruptcy cases were filed in the month of March – the highest single month total in recent years, since federal bankruptcy laws went into effect. Businesses are unable to secure lines of credit, homeowners are unable to meet their payment requirements of adjustable mortgages, and the number of individuals living paycheck to paycheck is growing at an alarming rate. If you choose to file for bankruptcy, whether you are an individual consumer filing a Chapter 7 or Chapter 13, an experienced New Jersey bankruptcy attorney can help sort through the numbers and get your finances back in order.
If you live in New Jersey and are experiencing financial hardship, filing for bankruptcy may be your best option. To find out more about the process of filing bankruptcy under New Jersey state law, please don’t hesitate to contact the Law Offices of Robert Manchel. Our experienced legal team will examine your specific situation, and will help you make the best decision possible for your financial future. For more information about effectively filing for bankruptcy, please don’t hesitate to contact Robert Manchel today at 866-503-5655.

As the final post in our 10 Reasons to Hire a New Jersey Bankruptcy Attorney blog series, we will discuss how a competent New Jersey bankruptcy lawyer can help you select the right bankruptcy to file.
Choosing which kind of NJ bankruptcy to file can be a harrowing decision. That’s why many indebted individuals choose to discuss their hopes and fears about their finances with a trustworthy bankruptcy New Jersey lawyer. Bankruptcy options abound and include:

• Chapter 7
• Chapter 11
• Chapter 13
• Financial/debt counseling
• Other actions

A competent and trustworthy attorney can review your lists of assets and liabilities, your financial history, your potential to earn more money, and your goals for the future, to help you determine what’s the best kind of bankruptcy to file.
In some cases, bankruptcy will be voluntary; in other cases, a debtor can be involuntarily forced to file for bankruptcy. A good attorney can explain the nuances of voluntary vs. involuntary filing and develop customized solutions and strategies.
Often, debtors who struggle with the specter of foreclosure, want more than anything to protect their homes (or other large assets). They may have been told that filing for Chapter 13 instead of for Chapter 7 will ‘help save their house.’ However, the situation may not always be so clear. A good lawyer can help you make the best decision.
In some cases, debtors may want to work with a credit/debt counselor for an interim period to see whether some debts can be controlled before bankruptcy needs to be filed. In other cases, bankruptcy may be the most immediate and obvious solution.
To summarize: picking the ‘right’ kind of bankruptcy to file requires a deep analysis of your current financial situation, your goals, values, and how all of these factors interpolate with NJ bankruptcy law.
Given how crucial it is to choose the best method of financial reorganization, it makes sense to retain an experienced, responsive, and accessible attorney, like Robert Manchel. Since 1992, the Law Offices of Robert Manchel have helped hundreds of indebted consumers resolve their financial problems, keep major assets like houses and cars, shut down creditor harassment, negotiate effectively with trustees, and learn better practices for financial management to avoid problems down the line. To get help now to resolve your foreclosure or bankruptcy situation, connect with our associates at (866) 503-5655.
Please refer back to our blog for more important information and updates relating to New Jersey foreclosure and bankruptcy resolution.