By the time a New Jersey resident considers seeking bankruptcy protection, he or she has likely tried just about everything else to deal with mounting debt. People in this situation may have been out of work for some time, and the worry of monthly bills is overwhelming. Foreclosure could also be a very real possibility. These situations can be very frightening, but people should remember that there are debt relief options that can help them make a fresh start.
It was the threat of foreclosure that urged the wife of a former mayor to file for Chapter 7 bankruptcy protection recently. According to reports, the mayor and his wife owe up to a half-million dollars in consumer debts. They have been facing a number of financial challenges, including legal expenses related to criminal charges, and were just one day away from losing their home when the former mayor’s wife filed for bankruptcy.
Chapter 7 is the most common form of bankruptcy and allows a person to discharge their unsecured debt. This can include medical bills, personal loans and even credit card debt.
Filing for bankruptcy protection will also provide for an automatic stay. In other words, the filing stops creditors from trying to collect on the couple’s debts. This also includes a home that may be the subject of foreclosure proceedings. It can be an immediate sense of relief for people who have been dealing with aggressive and harassing collection agencies.
Once the decision is made to pursue Chapter 7 bankruptcy protection, it is important to work with an experienced New Jersey bankruptcy attorney to gather credit card statements, loan documents, paystubs and other financial records regarding your financial circumstances. Having a clear picture of your finances can help you create a strategy for making a fresh financial start.
Source: WDSU 6 News, “Nagin’s wife files bankruptcy day before home set for foreclosure sale,” Gina Swanson, May 7, 2014