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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.

Do I 'Qualify' for a Chapter 7 Bankruptcy in New Jersey?

Clients often ask if they qualify for a Chapter 7 bankruptcy.  People may not know much about bankruptcy before calling my office, but there is a general anxiety as to whether they will be "forced" into repaying some of their debt.

Are All Debts Dischargeable in Chapter 7 Bankruptcy?

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Chapter 7 bankruptcy can be an extremely helpful way to get back on your feet financially after you have been struggling. It allows you to “start fresh” and try again. In that process, most of your debts can be forgiven entirely, which means that those harassing phone calls and intimidating letters will stop coming. It results in significant freedom for many individuals and companies that are stressed financially.

Surrendering Real Property In Chapter 7

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It’s common that many clients surrender their real property in Chapter 7 cases, and assume that surrendering the property will alleviate any issues or obligations owed by them. Unfortunately, the term “surrender” does not automatically mean a debtor is free and clear of any responsibility concerning the real property. The act of surrendering collateral simply means that the debtor no longer intends to make the loan payments, or as stated by the First and Fourth Circuit courts “means not taking an overt act to prevent the secured creditor from foreclosing its interest in the secured property.” In re Calzadilla, 534 B.R. 216, 218 (Bankr. S.D. Fla. 2015).   However, receiving a bankruptcy discharge does eliminate the debtor’s personal obligation to repay the note and mortgage.

Can a Debtor Avoid a Condo or HOA Lien in Chapter 7 Bankruptcy?

newly built condominiums

During the course of a Chapter 7 bankruptcy proceeding, a debtor may seek to avoid a lien filed by a condominium or homeowner association against the debtor’s real property for failure to pay maintenance fees. However, it’s important to examine the classification of the lien prior to determining whether the lien can avoidable in bankruptcy.

How to Find the Right Attorney for Chapter 7 Bankruptcy in New Jersey

man searching for a Chapter 7 bankruptcy attorney on laptop

Filing Chapter 7 bankruptcy in New Jersey can be an extremely stressful and personal experience. You need to have the right person to walk you through the process. Having an experienced, compassionate, and understanding attorney will make the process easier. Your lawyer will also help you decide how you should treat specific property and which options will be the best for your family and your personal finances. However, there are so many options when it comes to lawyers. How can you tell which attorney and which firm is the right choice for you?

Business Chapter 7 Bankruptcies

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Sometimes businesses just fail. The debt can become overwhelming and creditors can begin exercising their rights for repossession of equipment (leased or financed), levies on bank accounts, and enforcement of personal guarantees against the business’ shareholders/members.  An insolvent business has two bankruptcy options: Chapter 11 and Chapter 7. 

Chapter 11 is a good option for businesses looking to restructure their debts under a plan of reorganization, while continuing to operate during that process.  Chapter 7 is a good option for businesses who choose to close, liquidate their assets, and dissolve the corporate structure.  

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.

Can a Debtor Keep a Credit Card In a Chapter 7 Bankruptcy?

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Credit Cards and Chapter 7 Bankruptcy

Personal Credit Cards

A common question that many individuals contemplating bankruptcy ask during our firm’s free consultation is whether they can retain a credit card during bankruptcy.  In almost all cases, once a credit card institution receives notice of the bankruptcy filing, it will almost immediately cancel the debtor’s credit card.

Get a Fresh Start from Your Debts With Chapter 7

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What could you and your family do with a fresh start from your credit card debt and other loans? Chapter 7 bankruptcy may be the best option for helping you get out from under your burden of debt, while keeping your house and family car.

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