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Scura, Wigfield, Heyer, Stevens & Cammarota Blog

How Will 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

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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?

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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

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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 Can Stop Creditor Harassment

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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.

Can You Protect Your Home In Chapter 7 or Chapter 13 Bankruptcy?

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If you own a home and you are in financial turmoil, you may be wondering what will happen to your home if you file for bankruptcy. For many, the primary concern that they have when entering the bankruptcy process is that their home is protected. This blog will explore the implications of filing for personal bankruptcy in a chapter 7 or chapter 13 on an individual’s residential real property.

As an aside, in either chapter 7 or chapter 13 a debtor would need to continue to pay their mortgage and property taxes in order to avoid an eventual foreclosure.

When Chapter 13 Bankruptcy is the Best Choice for Debt Relief

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Chapter 13 bankruptcy is often the best choice of debt relief for individuals and families who don't qualify under another bankruptcy chapter or would be unable to completely eliminate their unsecured debt under the new bankruptcy laws of 2005. Chapter 13 can also be an excellent way to prevent foreclosure and repossession while restructuring your monthly debt payments into a supervised installment agreement.

Do You Have an Automatic Right to Dismiss a Chapter 13 Bankruptcy Case?

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One of the unsettled areas of bankruptcy law at this moment is whether a debtor has an absolute right to voluntarily dismiss a Chapter 13 bankruptcy case.  Decisions are varying on this issue depending on where the cases are being heard.  This blog will explore this issue and the arguments in favor of each side. 

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