Under the right set of circumstances, Chapter 7 and Chapter 13 bankruptcy are useful, productive tools for managing debt. However, while declaring bankruptcy can be an effective financial strategy, it isn’t necessarily appropriate for each and every debtor’s situation.
If you’re a New Jersey resident who has been struggling to mend a financial problem, you should discuss your legal options with a knowledgeable and experienced attorney before you decide to file for bankruptcy. Depending on factors like your disposable income, the assets you possess, and the nature of the issue you are trying to resolve, an alternative plan such as debt consolidation or a pre-foreclosure forbearance plan may yield a more productive solution. To discuss New Jersey alternatives to bankruptcy that may be right for you, contact the bankruptcy attorneys of Sadek & Cooper Law Offices at (856) 354-3310 for a free and confidential legal consultation.
Manage Debt with Alternative Options to Filing for Bankruptcy in New Jersey
Technically speaking, a debtor may file for bankruptcy as many times as he or she wishes. However, there is a crucial caveat: due to strictly enforced waiting periods, it is impossible to obtain a second or successive discharge until a certain number of years has passed. For example, if you wish to file under Chapter 7 with a prior Chapter 7 discharge, you must wait at least eight years to receive a second discharge.
Further, waiting periods are not the only consideration debtors must keep in mind. Filing for bankruptcy more than once can also diminish the powers of the automatic stay, which normally freezes collection actions while a case is in effect. Therefore, if you have a prior bankruptcy in your recent history, you should be especially cautious about filing again when other alternatives may be open to you.
Even if you have never filed for Chapter 7 or Chapter 13 in your life, filing for bankruptcy in New Jersey may simply be the wrong option for your circumstances at this time. For instance, bankruptcy might not be the optimal solution if your primary source of debt is rooted in alimony, child support, or student loans, or if your main reason for considering bankruptcy is simply ending creditor harassment. In these and many other situations, a number of alternatives may be more pragmatic. Fortunately, consumer bankruptcy is not the only way to address missed payments, creditor harassment, and other financial issues associated with debt. Depending on your resources and the objectives you are trying to achieve, more useful alternatives to bankruptcy could include:
• Debt Consolidation – Like bankruptcy, debt consolidation involves negotiating with your creditors in order to settle your debts. Depending on the situation, lump sum or monthly payments may be made.
• Mortgage Modification – If you can no longer keep up with your mortgage payments, the mortgagee may be willing to modify your mortgage plan so that payments are more manageable.
• Pre-Foreclosure Forbearance Plan – By entering a pre-foreclosure forbearance plan, you may be able to obtain an extension, typically of up to six months, to make mortgage payments.
• Short Sale – In a short sale, the mortgagor sells his or her property for less than (“short” of) the mortgage amount. Short sales are subject to approval by the mortgagee.
When you contact Sadek & Cooper Law Offices for your free bankruptcy consultation in New Jersey, we can assess your situation to determine whether Chapter 7, Chapter 13, or a bankruptcy alternative would be most appropriate. Once we have identified a strategy for addressing your financial issue, we can begin the process of creating a plan to carry out that strategy in a timely and advantageous manner.
Facing Foreclosure? Contact Our New Jersey Bankruptcy Alternatives Attorneys
Every year, bankruptcy helps hard-working New Jersey residents like yourself rebound from insolvency and get their debts under control. However, like most problems, financial problems often have more than one solution. Bankruptcy is only one of the potential options, and it may – or may not – be the right option for you.
Let the experienced South Jersey bankruptcy lawyers of Sadek & Cooper Law Offices help you find the ideal solution to your financial issue. Whether you are primarily concerned about vehicle repossession, home foreclosure, wage garnishment, secured debt, unsecured debt, the collapse of your small business, creditor harassment, the loss of a job, or other financial concerns, we will evaluate your circumstances in painstaking detail to create a personalized plan that’s designed to work for you.
Sadek & Cooper Law Offices serves clients throughout Southern New Jersey, including Atlantic County, Burlington County, Camden County, Gloucester County, Ocean County, and Salem County. With experience working on thousands of diverse cases, our attorneys possess the skill and knowledge needed to effectively and efficiently help our clients manage debt. To talk about some alternatives to bankruptcy in a free and confidential consultation, call Sadek & Cooper Law Offices at (856) 354-3310 as soon as possible.