Personal Bankruptcy Law Firm New Jersey
Personal bankruptcy is not always the end of the world. For families drowning in debt and unable to take any action to dig themselves out of the financial hole, filing for bankruptcy can often be a lifesaver. For those of us who are not at that point yet but are rapidly approaching the point of no return, the question of alternatives to bankruptcy arises. Do you have options?
The answer is yes! There a number of alternatives to bankruptcy available to New Jersey residents. New Jersey lawyers for bankruptcy are available to answer your bankruptcy questions and advise you on the best next steps to take.
Alternatives to Bankruptcy: The Basics
When it comes to seeking alternatives to personal bankruptcy, start with the basics. Look at your spending. Get it all on paper. Spend a week recording what you spend and then look for ways to cut back. Can you cancel cable? Do you eat out often? Can you refinance your home? Have you looked into taking driving classes to lower car insurance payments? Look at your own finances and see where you might be able to find ways to cut back on your family’s spending.
If you have looked at your finances and are living as frugally as possible while still sinking financially, there are a few basic alternatives for bankruptcy.
• Investigating interest rate reductions
• Calling your creditors and attempting to create a payment plan out of court
• Applying for a debt consolidation loan
• Finding a credit counseling agency to help you create a credit consolidation plan
• Filing for bankruptcy protection
Before investigating these options, a bankruptcy lawyer will take a look at your assets and income. You may qualify as “judgement proof.” The term “judgement proof” refers to individuals with too little income and valuable assets to be able to repay creditors. In essence, it states that you simply do not have the income or assets required to allow you to repay any of your debts. Bankruptcy questions revolving around whether you are able to repay your loans are best left to an experienced lawyer.
Let’s take a quick look at the rest of the alternatives.
Lawyers for bankruptcy understand that creditors do not actually want to take you to court. It’s a costly and time-consuming process for them. Most creditors would much rather find a way to settle the debt outside of court and are willing to work out a feasible payment plan. If you are uncomfortable calling creditors in order to negotiate a deal, call a personal bankruptcy lawyer for assistance.
Debt Consolidation Loans
A debt consolidation loan turns multiple debts into one small monthly payment to a debt consolidation agency. A debt consolidation company will contact your creditors and arrange so that all debts are categorized under one account. Therefore, you will have one monthly payment — as opposed to multiple payments to multiple creditors. Be sure to investigate the interest rates on these loans!
Credit counseling agencies are available to assist in creating consolidation plans. They work similarly to debt consolidation loans. Again, watch the interest rates and be sure to do your research to ensure the counseling service you are working with is reputable. Lawyers for bankruptcy are far too familiar with families seeking personal bankruptcy help after falling victim to a scam.
The last alternative you have is to file for bankruptcy protection under Chapter 7 or Chapter 13. This is a process that is complicated enough to require an experienced bankruptcy lawyer’s assistance. If you are unable to utilize any of the above alternatives to bankruptcy, call a lawyer today to learn about filing for bankruptcy protection.
Ask For Help
The most important thing to remember is that you are not alone with your bankruptcy questions. Before you panic, call an experienced attorney to review your options and get the help you need in hard times.