Since Covid-19 has hit there is so much uncertainty and many people are getting deeper in credit card debt and personal loans. They are making payments each month which is killing them and not putting a dent in principal.
Besides everybody worrying about Covid-19, many people are losing sleep and suffering from anxiety as a result of the massive monthly payments they are making each month on credit card debt and personal loans.
What makes it even worse is that we have seen clients who give these companies authority to take the money out of their bank accounts each month which adds to the stress and lack of sleep. I am no doctor, but I know that if your body is under an incredible amount of stress, you weaken your immune system which may make you more vulnerable to contract this horrible virus.
If you cannot deal with the debt, we are here to help you at Taieblaw.
There are two options for you.
The first thing is to go to our website at www.bankruptcywithcare.com and see how we have helped over seven thousand people over the last 36 years and then schedule your free initial consultation.
We will then thoroughly do a budget analysis to see what you bring in each month and what your expenses are. We have extensively analyzed budgets for years and Steven N. Taieb is the author of The Debt Trap: How Your Life Choices Impact On Your Financial Future. There is a very extensive chapter on budgeting in Mr. Taieb’s book. If your budget shows that you have disposable income at the end of the month, you will most likely repay a percentage of your creditors under chapter 13. If you have a deficit or minimal amount of disposable income, you could do a chapter 7 if you are under the median income.
The next step is to check the means test. Even with the pandemic over the last ten months, the median income has increased again which shows the income of NJ wage earners has increased this year. Now if you live alone, you will qualify under the means test if you earn $71,064 averaged over the last 6 months. For a family of two the number is now $87,432; for a family of three it is $111,046 and a family of four can earn $132,708. For each additional member of a family, you add $9000.
Usually, if you are above the median income, you will most likely have to file for a chapter 13 bankruptcy except where your budget shows a deficit and you have enough deductions to take from the means test. Then you would be eligible for chapter 7 if you can beat the means test.
In addition, it is always essential that the lawyer analyze what property the clients own. If clients own property that is not exempt or protected, a chapter 7 trustee can sell the property. If your clients have a home with too much equity or too much personal property or savings that is not exempt, it is imperative to put them in a chapter 13 so they will not lose their property. They will have to pay a chapter 13 trustee the value of the non-exempt property over the life of the plan. Also, if you are behind on mortgage, rent, car payments and other debts that you need to reorganize, you must do a chapter 13 if you have the income to save the property.
The whole purpose of the bankruptcy code is to help honest debtors, who through unforeseen circumstances, have gotten into a horrible financial situation and they need a fresh start. What can be more of an unforeseen circumstance than this horrible pandemic that has hit the entire world.
Since the courts are now open in New Jersey and creditors are now pursuing their state law remedies to get paid on credit cards and other unsecured debts and mortgage companies are moving foreclosures to judgments, you do not want to delay.
Even though sheriff sales are still not being scheduled it is better to use the bankruptcy process to help you now before foreclosures get out of control.
Things are hard enough now and you don’t want creditors to pursue you while everyone is struggling.
If you are sick, stressed out, or losing sleep over your debt, we can help you get a fresh start by filing a bankruptcy for you. For more information go to www.bankruptcywithcare,com or call us at 856-235-4994.
AGAIN, PLEASE NOTE WE ARE OPEN FOR BUSINESS TO HELP ANYBODY WHO IS IN FINANCIAL DISTRESS AND CAN HELP YOU EITHER IN OFFICE OR VIRTUALLY.
Steven N. Taieb, Esquire has been a south jersey bankruptcy attorney for 36 years and is board certified in consumer bankruptcy law by the American Board of Certification which is accredited by the American Bar Association.
We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy Code.