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Chapter 7 Bankruptcy Vs. Chapter 13 Bankruptcy in New Jersey

How Do You Rent a New Apartment After Filing for Bankruptcy in NJ?

When you file for bankruptcy, you often feel marked by the filing. Whether you’re buying a new car or looking for a new apartment to rent, you remain conscious that your bankruptcy will follow you. Bankruptcy remains reported for a time on your credit score.

If you intend on finding a new apartment or a new house to rent, you will need to be open about your financial history. This includes any past bankruptcy filings or prior evictions. Some landlords will obviously reject people if they do not feel your records satisfy their needs for a tenant. This can be highly stressful for people who needed bankruptcy relief.

If you are looking for a new place to live and are afraid that bankruptcy will hold you back from success, then you may want to consider a few factors before moving forward in order to know where you stand and how you can convince a landlord to give you a new lease on an apartment.

Is it Better to File Chapter 7 or Chapter 13 Bankruptcy in New Jersey?

When someone researches bankruptcy for the first time, they come across individuals discussing their experiences with two entirely different forms of bankruptcy: Chapter 7 or Chapter 13. Bankruptcy, with its numerous chapters and subchapters, might be an overwhelming to an ordinary person. It might take hours of research, for example, before one realizes that Chapter 11 is usually only an option for businesses and not private individuals trying to eradicate debt.

Without an experienced bankruptcy professional guiding your way, Chapter 7 and Chapter 13 might seem like nebulous concepts. How do you know, for example, whether you should consider liquidation? How do you know which option can better help you reorganize your credit and dispel unsecured debt? In cases like these, you need to consider what Chapter 7 Bankruptcy and Chapter 13 Bankruptcy both bring to the table, how they can help you understand and navigate your financial situation, and what you should do when and if you choose to file for bankruptcy as an individual in New Jersey.

How Will NJ Bankruptcy Affect My Credit Score?

A lot of uncertainty comes when filing for bankruptcy. You set out in life with dreams of financial prosperity, only to need bankruptcy relief when life gets in the way. There are several anxieties and fears that will emerge and overwhelm you when you as an individual initially file for either Chapter 7 or Chapter 13 Bankruptcy Relief. Even though you know this is the best decision for you in the current moment, you cannot help but think of the future and what negative ramifications might sprout from his decision.

One of the most common concerns is that filing for bankruptcy will damage or decrease your credit score. Will declaring bankruptcy bring your credit score down far enough to the point where you will be denied loans and mortgages? What other elements of your life will this impact? While bankruptcy will unavoidably impact your credit score, many do not know in which ways it will be affected. The reality, however, is far less frightening than whatever imagined apocalyptic scenario you imagined. While it might take years to purge a bankruptcy record from your credit history, the reality is you can raise your credit score to a solid level within months of your filing.

Stripping of IRS or State of New Jersey Tax Debt in Bankruptcy

Liens can be a complicated problem for many individuals dealing with heavy debt issues. A lien is a claim or legal right against assets, most often property or real estate, which are utilized as collateral. Pay the lien, and you reclaim all rights to your possessions and settle your debts. However, if you fail to pay off your liens, the organization that filed said debt can then repossess your property, auction it off, and collect on the income to pay off the debt.

WHAT HAPPENS IF YOUR LIFE CIRCUMSTANCES CHANGE DURING THE COURSE OF YOUR CHAPTER 13 BANKRUPTCY CASE

Chapter-13-Bankruptcy

It is nearly impossible to predict what the future holds in life. Therefore, when you enter a five-year chapter 13 bankruptcy plan, you never know what life changes may be thrown your way during the plan period. You may lose your job, obtain a significant increase in income, or receive an inheritance amongst other possibilities. This blog will explore how common life changes will impact your chapter 13 plan and what your options are to react to those changes.

How Are Medical Bills Treated in Chapter 13 Bankruptcy?

hospital hallway with nurse in background

Medical bills are one of the biggest financial burdens that Americans worry about each year. Different from your monthly credit card bills or mortgage payments, medical bills can often be so large threat they become a scary afterthought that most people simply don’t want to deal with. For this reason, medical bills are also one of the most common reasons that Americans seek debt relief through Chapter 13 bankruptcy.

Things to Consider Before Filing Chapter 13 Bankruptcy in New Jersey

man considering Chapter 13 bankruptcy

If you are struggling financially and cannot find an easy way to pay off the debts you owe, filing for Chapter 13 bankruptcy in New Jersey may be the best option for regaining control of your finances. However, before you begin the bankruptcy filing process, it is important that you consider all of the pros and cons. Filing for Chapter 13 doesn’t have to be a frightening affair but it isn’t something that should be taken lightly either. The bankruptcy process can affect your future credit, your self-image and your reputation but it can also improve your short-term quality of life. Are you considering Chapter 13 to put a stop to harassing phone calls and letters from your creditors? Be sure to weigh out the benefits and drawbacks with our experienced bankruptcy attorneys before you file.

Chapter 13 Bankruptcy [Video]

Blog Thumbnail Image for Chapter 13 Video-John Scura

[John J. Scura III, Esq. explains how Chapter 13 bankruptcy can help you save your house in four minutes]

I wanted to go over some issues with respect to Chapter 13 bankruptcy.

Chapter 13 bankruptcy can help save a house from foreclosure:

Chapter 13 bankruptcy, primarily, is used for someone trying to save a house from foreclosure. It's probably the number one reason we use Chapter 13. I'd say, 70% to 80% of our cases are for that reason.  The Chapter 13 is a powerful legal strategy.  No matter what stage of foreclosure your house is in ... In New Jersey, you can file the Chapter 13 bankruptcy, file a plan of reorganization, and catch up on any amount you fell behind on the mortgage.

How Chapter 13 Bankruptcy in NJ Can Stop Creditor Harassment

woman with stop hand motion

One of the most frustrating things about finding yourself in a difficult financial situation are the constant harassing phone calls from creditors. While your creditors do have a right to do what they can to collect payments on debts that you owe, if you are unable to make any payments the never-ending barrage of phone calls can be overwhelming and leave you feeling hopeless. If you have been considering filing for Chapter 13 bankruptcy, it is important to note that this will not only give you a chance to take control of your finances once again but the process will also put an end to harassing phone calls from creditors.

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