For people struggling financially due to the Covid 19 Pandemic, is a $1,400 stimulus check or tax refund truly going to resolve their financial issues and make them debt free?
If a stimulus check or tax refund can get you totally debt free where you have no balance on your debts, then I advise you to certainly use the money to get caught up so that you can be debt free.
However, the problem that I have seen over the last 36 years of helping people with financial problems is that people in debt are robbing Peter to pay Paul and then are back to where they started from in debt.
It is a major mistake to waste tax refunds or stimulus checks when you are not totally straightening out your financial problems.
If you have either substantial medical bills, credit card debt, personal loans or are behind on utilites, car payments or any other debt, a bankruptcy may be an option for you to clean the slate and get a fresh start.
People do not realize that their credit is severely affected by making late payments or having a repossession or lawsuit on their records. Also, if you get sued, a judgment is good for 20 years and a creditor can levy your wages, seize your bank account or pursue other property that you own. Also, if you own real estate in New Jersey, a judgment creates a lien on your property.
A bankruptcy creates an automatic stay which immediately stops a creditor from pursuing you. (If you have filed other bankruptcy cases, please discuss your situation with Taieblaw.) A bankruptcy will stop a wage garnishment, levy or utility shut off or any other action taken by a creditor.
The one thing that you have to understand is that a bankruptcy takes a universal approach, so it deals with ALL your creditors.
In addition, since there is means testing to file bankruptcy, the numbers have increased effective April 1,2021. In New Jersey to qualify for a Chapter 7, a family of one can earn $71,941, a family of two can earn $88,511, a 3-member household can earn $112,416 and a family of 4 can earn $134,345. You add $9,000 for each additional family member. These numbers are averaged over a six-month period prior to filing.
Chapter 7 eliminates your debt while chapter 13 allows you to reorganize your debt. Both get honest people a fresh start.
Therefore, if you are overwhelmed with debt, look at the whole picture before you spend your stimulus check or tax refund on bills that will not resolve your financial situation.
The whole purpose of bankruptcy is to help honest people who through no fault of their own got into financial problems.
Remember, delay is not the answer. You have to move quickly to get the stay into effect and get creditors off your back. So, use your stimulus check or tax refund to give yourself peace of mind.
Thus, if you are behind on any debt and cannot get totally current, 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 your 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.
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 856-600-0819. 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.