Middlesex County Estate Planning and Bankruptcy Legal Blog

When you bought your house, the mortgage payments were manageable. You may have had a smooth-running budget that allowed you to cover all your bills and even set something aside for home improvements in the future. However, as happens with many homeowners in New Jersey and elsewhere, something set you back. It may have been one major event like a job loss or a series of small expenses that quickly got out of control. Now you are behind on your mortgage.

It doesn't take much to fall behind on a large payment like your mortgage. Before you know it, you are thousands of dollars delinquent, and the mortgage lender is offering you the choice to try a short sale or get ready for foreclosure. Do you know which is best for you?

You may feel that swiping your credit card is the easiest payment option under a variety of circumstances. Whether you are making the most of a rewards program or simply cannot stand to carry cash, this alternative payment option can come with its benefits, but there could be a catch.

Whether it begins with a month where you forget to make a payment or if a change in financial circumstances leaves you struggling to keep up, falling behind on a credit account can be disastrous. As your troubles continue to mount, you could be wondering just what will happen to your account.

If you're among many New Jersey residents who celebrate one or more holidays from Thanksgiving through New Year's, you may also be among those who purchase gifts for friends and family or who spend money traveling, dining out, hosting parties or on other festivities. That's all well and good if you have the cash to foot the bill; however, in many cases, people use their credit cards, thinking they'll pay it off at the end of the month and then they don't.

Leaving a balance on your credit card when a pay cycle ends typically prompts increased interest charges. If you go through several cycles without paying your entire debt, you stand to lose a lot of money in interest alone, not to mention you will still have outstanding debt on your card -- or cards. You may want to avoid several things during the holidays if you hope to avoid serious financial problems. It's also good to know where to seek support if a problem does arise.

Bankruptcy is a viable option that allows for New Jersey consumers to deal with their debt in an organized and efficient manner. However, many people who could benefit from this choice do not move forward because they have concerns over how this process will affect their personal property, specifically Chapter 7 bankruptcy. You may also wonder if filing will mean that you have to give up certain things that are important to you. 

Chapter 7 also goes by the name liquidation bankruptcy. This means there is a liquidation of certain assets in order to pay off as much of the outstanding debt as possible. While there are things you may not be able to keep, chances are that you will be able to retain most of your personal property. You do not have to let fears and misconceptions keep you from moving forward with a step that could be good for your financial future.