Bankruptcy in Winslow Township
The economic downturn has affected people throughout Winslow Township as it has affected people throughout the country. Job loss, the subprime mortgage debacle and the recession have left some in Winslow Township facing foreclosure and the loss of their homes.
If spiraling debt has left you unable to pay even the minimum balance due on your credit cards or you are behind on your mortgage, filing for Chapter 7 or Chapter 13 bankruptcy may be your best option for getting out of debt without losing your home.
How Filing for Bankruptcy Can Save Your Home in Winslow Township
If your bank is threatening to foreclose on your home while debt collectors continue to call and send you stern warning letters, filing for Chapter 7 or Chapter 13 bankruptcy will put a temporary end to both. Under the terms of U.S. bankruptcy law, filing for Chapter 7 or Chapter 13 initiates an automatic stay, requiring debt collectors and banks to stop collection and foreclosure actions against you. Once your bankruptcy is approved, you should have more money available to pay your monthly mortgage payments in order to avoid the loss of your home.
Filing for Chapter 7 or Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 both allow people to get out from under crushing debt while saving their homes. However, there are some major differences between the two.
First, in order to file for Chapter 7 bankruptcy, your income must be equal to or less than the state of New Jersey’s median income for households similar in size to yours. Secondly, if you qualify for Chapter 7, your unsecured debt will be wiped out. Unsecured debt includes things like credit card debt, certain kinds of loans, medical bills, a second mortgage, even back taxes in some cases.
If you don’t qualify for Chapter 7 you can still file for bankruptcy under the terms of Chapter 13. Under Chapter 13, you propose a repayment plan that allows you to make a single monthly payment to a bankruptcy trustee who then distributes payments to your creditors. You may be required to make payments on your plan for anywhere from three to five years. However, after the term of your repayment plan has ended, any remaining unsecured debt will be wiped clean.
What about My Credit Report?
In most cases, a Chapter 7 bankruptcy will appear on a credit report for 10 years. Alternatively, a Chapter 13 bankruptcy can stay on a credit report for anywhere from seven to 10 years. However, this does not mean that you won’t qualify for credit cards or loans. While it’s true that the interest rates on both will be higher and the offers fewer, filing for bankruptcy doesn’t mean you’ll never own a credit card or qualify for a loan again.
Contact Winslow Township Bankruptcy and Foreclosure Attorneys
Don’t wait until your bank has initiated foreclosure actions against you — contact Neuner & Ventura, LLP, today to learn how our bankruptcy attorneys can help you.
*Free consultation for individuals and most small businesses. A follow up meeting may be required. We reserve the right to charge for consultations involving review of existing cases, divorces or litigation.