Living with debt is not easy. Many people will operate paycheck to paycheck and that might not be enough to keep food on the table, pay the bills, or save money for retirement. Debt is debilitating. It can lead to serious health issues because of high levels of stress and often is a factor in many divorces. Learn more about the benefits of a New Jersey bankruptcy from Cherry Hill bankruptcy attorney Robert H. Johnson.
Creditors Cannot Contact You Temporarily
One of the biggest benefits of filing for bankruptcy in New Jersey is that creditors are temporarily paused from contacting you and attempting to collect on your debts. This is a temporary stay, it does not last forever, and it does not get rid of your debt. The stay goes into effect immediately upon filing a bankruptcy petition with the court.
The temporary stay prevents the following from happening:
- Foreclosure on your home
- Lawsuits related to the debt you hold
- Repossession of your property
- Garnishment of your wages
- Letters or calls from debt collectors
A temporary stay does not stop the following from moving forward:
- Tax audits conducted by the government
- Criminal proceedings
- Co-signers or co-debtors
- Establishing paternity
- Establishing, modifying, or collecting alimony or child support
Discharge of Debt in a New Jersey Bankruptcy
Filing a New Jersey bankruptcy brings the benefit of having some or all of your debts discharged. A dischargeable debt is one that can be canceled by filing for bankruptcy with a New Jersey bankruptcy court. The debts most often canceled via bankruptcy include medical bills, credit cards, utility bills, and car loans.
Possibility to Retain Ownership of Your Property
Many people who struggle with debt often find themselves selling their property in order to repay their creditors. This includes selling their home, vacation home, cars, boats, jewelry, and any other piece of property that has value.
Filing a New Jersey bankruptcy makes it more likely that you will retain ownership of your property once the bankruptcy process is completed. Keeping property is done using exemptions. If you are able to obtain an exemption on a piece of property, most often jewelry or a vehicle, you won’t have to forfeit these assets when repaying creditors.
Improved Credit Score
Oftentimes, people delay filing for a New Jersey bankruptcy because they believe that their credit score will take a hit. This might be true for some, while others will experience an improvement in their credit score when they file for bankruptcy.
A bankruptcy filing typically remains on a credit report for seven to 10 years, but a person’s credit score can improve with the removal of debt from the report. Begin to live a debt-free life with an improved credit score after having your debts discharged.
New Jersey Bankruptcy: Call Robert H. Johnson Today
Dealing with debt is stressful. Not knowing if you will be able to pay the bills each month can take its toll on anyone. Get your debt under control by filing a New Jersey bankruptcy petition with your local bankruptcy court. Call the office of Robert H. Johnson in Cherry Hill at (856) 298-9328 to schedule a consultation today.