Numerous New Jersey residents struggle to meet their debt obligations. Are you one of them? If so, you more than likely explored various debt relief options available to you. You might find Chapter 7 bankruptcy intriguing since it could provide you with a fresh financial start free from most of your debts, but what does that actually mean?.
If you are someone saddled with debt, including tax debt, it is common to wonder what options are available for relief. Bankruptcy is often a good solution for those suffering under the weight of insurmountable debt, but what if your debt is related to taxes owed?
How many times have your children asked for a treat or toy at the store when you've had to say "No" because you barely had enough money for the groceries in your cart? You are certainly not the first parent in Brunswick to face serious financial trouble. The question is: How do you tell your kids? (Or, should you?)
When the mail arrived today, was there another overdue notice? Did you avoid answering the phone because you knew it would be a creditor? How many times have you thought about bankruptcy - anything to get out from under the crushing weight of your debt - only to dismiss it out of fear?
If you find that you are drowning in debt you can't pay and can't see a way out, bankruptcy may be a valuable option for you to consider to stabilize your financial future. Bankruptcy can provide you with a fresh start and clean slate after things outside of your control have spiraled, dragging you down.
Filing for bankruptcy is seen by many as something that people do when they are unable to stay in control of their bills, but it's not always that simple. The reasons for filing for bankruptcy can be influenced by a person's age. A younger person's filing often comes as a result of running up too much credit card debt during a time when they did not fully understand credit. A middle age person might file after experiencing unexpected expenses, such as medical bills or home repairs, or after a period of unemployment. Seniors too find themselves considering bankruptcy, and it can be a hard step for many to take. However, it may be the right step, depending on what they have at stake. Here is some information seniors may want to take into account if considering bankruptcy as a debt relief option.
Many people fall behind on their debt payments due to situations beyond their control. If you're facing overwhelming financial difficulties for any reason, you may be able to file for Chapter 13 debt relief. This is different from filing for Chapter 7, which allows for a liquidation of your assets and a discharge of all or most of your debts. Filing for Chapter 13 is a way to restructure your debt, continue to pay it off and perhaps get some relief from certain obligations.
Filing for bankruptcy is a big decision. Many people may suffer financial hardship for a variety of reasons, from costly medical bills to job loss, and can find themselves looking for debt relief through filing bankruptcy. While filing is a freeing in some ways, such as not having to worry about bill collectors calling during dinner, or while you are at work, it can also mean taking a setback to your credit score. Although the thought can seem a bit scary, it isn't the end of the world and it is possible to rebuild your credit after bankruptcy.
Special or unforeseen circumstances may leave you unable to pay your debts, and anyone can file for bankruptcy. However, changes made to bankruptcy laws in 2005 require debtors to pass a means test in order to qualify. Because Chapter 7 bankruptcy discharges your debts, you must first prove you are unable to pay them by passing a means test.
People find themselves in debt for a variety of reasons. When hit with unexpected bills due to an illness, or unable to pay daily bills due to job loss, credit cards may be the only way to make ends meet. It may be the best short-term solution, but debt can rack up very quickly, especially with high interest credit cards. Suddenly, you may be faced with an amount of debt that seems insurmountable. When that happens, there are different debt relief options to consider and which option is best for you will depend on your specific situation.