Since the Covid-19 Pandemic hit, most people have been DELAYING dealing with their debt since there are moratoriums on evictions and foreclosures. Even though the courts are open in New Jersey and creditors are pursuing collection cases, the key word is DELAY since people are so uncertain.
In certain circumstances under the law, one should delay filing bankruptcy due to legal issues which can hurt one’s case. However, for most people delay can be catastrophic and people can lose property or put them in a situation where a bankruptcy may not be able to help them if they delay.
The next thing that people have to realize is interest on your debt keeps on escalating. I have always said it is ridiculous to make minimum payments since it does not put a dent in principal. It could take years to satisfy the debt especially if you have a 30% interest rate. Also, once a creditor gets a judgment, it is good for 20 years in New Jersey and this gives a creditor the ability to go after your property, i.e. your wages, bank accounts, personal property or they can have a lien if you own real estate.
Thus, if you have debt which you cannot control, it will continue to get larger and larger.
If you are getting a tax refund or a stimulus check, it does not make sense to use that money to make minimum payments. The only time you should use that for your debts is if it satisfies your debt in full.
Please note the bankruptcy code takes a universal approach and covers all your debt. It will stop a utility from shutting you off and stop any creditor who is pursuing you via wage garnishment or bank levy. Thus, if you are getting a tax refund or a stimulus check, you want to get the bankruptcy stay in effect.
Your debt is not going to magically go away. If anything, it will get larger each month. Please do not be misled by all the advertisements on tv, radio and the internet.
The whole purpose of bankruptcy is to help honest people who through no fault of their own got into financial problems. In addition to having creditors pursue you if you delay getting the bankruptcy stay in effect, there is a much bigger problem regarding the moratoriums. Even if you cannot be evicted or foreclosed upon at the present, those debts are not going away. The legislation only temporarily stops the creditors from pursing you now. However, the mortgage or rent arrears are not forgiven.
We have helped people who have been behind on mortgage or rent payments for 36 years.
It is much easier to do a chapter 13 plan if you want to catch up on your mortgage arrears if you are one year behind than if you are two years behind since you only can do a sixty-month plan. Thus, if you keep on delaying, you will put yourself in a situation where you will not be able to pay the mortgage arrears over five years and then you will be at the mortgage company’s mercy if you try to obtain a loan modification. As I have stated on numerous occasions, some clients are approved and others are not. Thus, you do not want to put yourself in that situation.
With regard to rental arrears, it is even harder if you delay since the law requires a prompt cure which usually means eighteen months or less depending on what bankruptcy Judge is assigned. Thus, if you delay for months, you will not be able to do a feasible plan.
I cannot emphasize how delaying the inevitable bankruptcy filing can really hurt your chances of saving your property since a new chapter 13 case only permits a five-year plan.
Thus, if you are behind on your mortgage or any other debt, 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.
If you want to save your home, then you must file for a chapter 13 bankruptcy. If you do not want to save the home or own no real estate and qualify, you can file for a chapter 7 bankruptcy to get a fresh start and clean the slate.
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.
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 save your property and 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. However, if you delay too long, then it can really affect your case and put you in a precarious situation.
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.