Bankruptcy Fact and Fiction
Some people shy away from bankruptcy or wait too long to file because of misinformation. Sadly, they needlessly suffer through hardships or forfeit hard-earned assets. At Scura, Wigfield, Heyer, Stevens & Cammarota, LLP, we try to spare people from unnecessary suffering by giving them the facts to make informed decisions.
We realize that you may be embarrassed about your debt problems or intimidated about talking to a lawyer. We are not here to judge you. We are here to answer your questions. We are here to help you protect what you have and make the most of a bad situation.
We help individuals, couples and small business owners of northern and eastern New Jersey file for bankruptcy. Contact us for a free initial consultation at our offices in Wayne, Hoboken, Hackensack or Newark, NJ.
Common Myths About Bankruptcy
From handling hundreds of cases over the years, we are familiar with the many bankruptcy myths and misconceptions:
- I have to spend down my savings and retirement first. You do not have to be destitute to file for bankruptcy. The purpose of bankruptcy is to help people get out of debt before they become homeless and penniless.
- I will lose everything I own. In reality, most of our clients do not forfeit any property. The bankruptcy exemptions usually protect retirement accounts, personal possessions, equity in your home and your car and most of what you own. Our attorneys will identify any property you might have to surrender as a trade-off for discharging debts.
- I earn too much money to file for bankruptcy. Even if your income makes you ineligible for a Chapter 7 discharge, you can qualify for protection from creditors and debt reduction through Chapter 13 or Chapter 11. The allowable deductions under the means test, especially in New Jersey, also many times will in fact allow our clients to file a Chapter 7 bankruptcy.
- My credit rating will be ruined. I will never get a loan again. Right now, you are a bad credit risk. Your credit score will most likely rebound and improve fairly quickly after filing for bankruptcy. Within a year or two after bankruptcy, most people can get credit cards and loans again.
- Bankruptcy is for crooks and deadbeats. Many famous and successful people throughout history, from Thomas Jefferson to Henry Ford, have declared bankruptcy. We help people every day who have accumulated high debt through innocent and honest circumstances such as job loss, health problems, business ventures or reliance on credit cards to make ends meet.
- Everyone will know I went bankrupt. Bankruptcies are public record, but it is rare that others find out that someone filed bankruptcy. They would have to do a particular legal search or be searching legal publications.
- I should try debt consolidation or a mortgage modification. Many people end up in bankruptcy or foreclosure after shelling out thousands of dollars in up-front fees for loan modification or debt reduction programs that only made matters worse. Many of these companies are shady or incompetent, and they have no clout with lenders or creditors. Bankruptcy, which is administered by a federal court, offers guaranteed relief from creditors and true debt relief.
- I owe the IRS. Bankruptcy can't help me. Some income tax debts can be discharged if they are at least three years old and qualify under certain other requirements. Bankruptcy can also spread your tax debts over several years without additional penalties and interest.
Get the Truth From Experienced New Jersey Bankruptcy Lawyers
Our advice is to take what you have heard from family, friends or other well-meaning sources with a grain of salt. Your situation is unique and you need accurate information, not anecdotes or wives' tales, to solve your debt crisis and protect your long-term interests.
Call us at 973-870-0434 or contact us online today to arrange a free consultation. The law firm of Scura, Wigfield, Heyer, Stevens & Cammarota, LLP, has offices in Wayne, Hoboken, Hackensack & Newark, New Jersey. We welcome clients of Passaic County, Hudson County, Essex County, Bergen County, Morris County & Sussex County.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.