Bergen County Bankruptcy Benefits Attorney
Bergen County and Passaic County Lawyer Helping Clients Understand Automatic Stays and Other Benefits
Financial issues can be overwhelming and it can be difficult to know what the right move is for you. Should you file for bankruptcy? How can it help you? Which type of bankruptcy is right for you?
At The Law Offices of Susan S. Long, we can answer your questions about the benefits of bankruptcy and provide you with the support you need. We understand that this may be a hard decision for you. That is why we will work personally with you to ensure that you have the information you need to make informed decisions about your financial future. Our Bergen County bankruptcy benefits lawyer will also provide you with confidential and supportive counsel so you can feel comfortable throughout the process.
Benefits of Bankruptcy
Bankruptcy is designed to help individuals who are in debt get the relief they need. Through Chapter 7 or Chapter 13 bankruptcy you can:
- Save your home: In Chapter 7 or Chapter 13, you can stop foreclosure on your home. When you file for bankruptcy, the Automatic Stay goes into effect. This stay prevents creditors, including your lender, from taking action against you during the bankruptcy. In a Chapter 7, the Automatic Stay may provide you with additional time to attempt to negotiate a modification with your lender. In a Chapter 13 bankruptcy, your repayment plan include your late payments to your lender and can be stretched as long as 5 years to do so.
- Discharge your debts in Chapter 7: Chapter 7 bankruptcy is often referred to as a “fresh start” bankruptcy. This is due to the fact that you can discharge many of your debts through this process, including credit card debts and medical bills. You will also be protected from having to pay your discharged debts in the future. After you have received discharge, it is illegal for a creditor to pursue payment from you for those pre-bankruptcy debts.
- Get a faster loan modification: In 2011, the District of New Jersey implemented the Loss Mitigation Program and Procedures (LMP) to help debtors who are seeking to stop foreclosure and obtain a loan modification. If you file a request for loss mitigation, the court will supervise negotiations between you and your lender. It is a faster process, which aims to be completed within 90 days and hold the lender accountable for an answer.
- Strip a second mortgage: If your house is “under water,” meaning that it is worth less than your first mortgage, you can strip/discharge your second mortgage at the completion of a Chapter 13 bankruptcy.
- Catch up on late payments: Through the Chapter 13 payment plan, you can catch up on late payments and keep your home, car and other important secured assets.
- Lower your car payments: If you have owned your vehicle for a certain amount of time, you can cram down your loan (reduce the loan to the value of your vehicle) and lower your interest rate.
- Discharge or pay tax debt: In Chapter 13, you can take up to five years to repay taxes owed to the state or IRS. Additionally, in either a Chapter 7 or Chapter 13, certain tax debt that is more than three years old may be dischargeable.
- Start rebuilding your credit: A bankruptcy will stay on your record for 10 years and will affect your credit score. However, if you are unable to pay your debts now, your credit is already in jeopardy. By filing for bankruptcy now, you can begin rebuilding your credit immediately by paying your remaining and future bills on time. Many of our clients have been able to secure credit soon after their bankruptcy.
When you hire our firm, our attorney will work directly with you to understand your situation and help you understand your options. For answers to the most common questions, visit our web page on common bankruptcy questions.
Contact The Law Offices of Susan S. Long
Call The Law Offices of Susan S. Long at 201-749-5418 or contact us online for a free initial consultation. Evening and weekend appointments are available upon request.