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Student loan debt represents a significant percentage of total household debt, accounting for about 9.2% of total household debt in the US. Most of this debt is held through federal loans, with just 7.5% of this debt held through private loans. While private loans can sometimes be discharged through bankruptcy, federal student loans have historically not been included in bankruptcy discharge. However, this standard is no longer as set in stone as it used to be. There are many avenues to student loan debt relief. Veitengruber Law is an experienced bankruptcy lawyer in Monmouth County. If you are considering including your student loans in your bankruptcy case, here are some things you should know. 1. There are different kinds of student loans. As discussed above, there are two main types of student loans: federal student loans and private student loans. Generally, neither is eligible for discharge through Chapter 7 or 13 bankruptcy. That being said, there are some kinds of private student loans that can be discharged through bankruptcy. 2. What loans can be discharged? Some private loans can be automatically discharged through bankruptcy. These include private loans that fall under any of the following provisions: Loans to attend schools ineligible for federal aid (like foreign schools or non-Title IV schools) Loans for attending school less than half-time Loans made in excess of the cost to attend the school Loans to cover fees and other living expenses incurred while the student was in preparation for a professional exam (like the bar exam or medical board exams) Loans that covered living expenses and moving costs for medical residencies Any loan made for non-qualified higher educational expenses 3. There is a risk of legal action after discharge. While the above circumstances make it perfectly legal to discharge your private student loan debt through Chapter 7 or 13 bankruptcy, private student loan lenders frequently try to sue borrowers for the debt after a discharge has been granted. If a lender contacts you about paying a discharged debt, you can reach out to an experienced NJ bankruptcy attorney who can guide you through your rights and how to respond to a lawsuit of this nature. 4. The "Undue Hardship Standard" is a difficult but not impossible option. In extreme cases, the court may grant you a Chapter 7 bankruptcy discharge for your student loans under the Undue Hardship standard. This is a very expensive, very difficult option that requires a lawsuit called an adversary proceeding to be filed in bankruptcy court. To prove undue hardship, you must prove that you: Cannot support a minimal standard of living based on your income and expenses Additional circumstances exist that will limit your ability to repay your loans (like a chronic medical diagnosis or permanent disability) You have made a good-faith effort to repay your loans If you decide to pursue discharge under the undue hardship standard, it is highly advisable to work with an experienced attorney. 5. Bankruptcy is not the only option. Besides the vast array of forgiveness programs, repayment plans, deferment options, and forbearance programs for federal student loans, you have other options if you are struggling with student loan debt. Filing for bankruptcy to eliminate other debts from credit cards, private loans, mortgage arrears, and more can open up more income to dedicate to your student loans. Even if you are unable to include your student loans in a bankruptcy discharge, getting rid of your other debt can make your student loan payments more manageable. Veitengruber Law is an experienced bankruptcy law firm. We can help you devise a plan to get out of debt. Call us today for a free consultation.

Foreclosure can be a stressful process resulting in financial devastation. The extent of the damage to your credit can depend on a number of factors. Regardless of how far your credit score drops after foreclosure, rebuilding your credit from the first day after foreclosure is possible. If you're looking for help with NJ credit repair after foreclosure, Veitengruber Law can help. As an experienced NJ foreclosure defense and credit repair attorney, we have worked with hundreds of clients to reduce the damage throughout the foreclosure process and help them rebuild their credit scores afterward. Working with an experienced credit repair professional can help you rebuild your credit quickly and efficiently, eliminating stress and giving you a clear plan for your future. Here, we will explore what foreclosure does to your credit score and simple, proven ways you can improve your credit after foreclosure. What will foreclosure do to my credit score? A foreclosure entry remains on your credit report for seven years from the date of the first missed payment that led your mortgage to enter default. At the end of these seven years, the entry is deleted from your credit report. Depending on your credit score before foreclosure, you can expect your score to drop between 100 and 160 points, on average. The higher your score before your foreclosure, the more you can expect it to fall after. Your score will be impacted as long as you have a foreclosure entry on your credit report. This impact will be most pronounced in the first few years and then slowly decrease until the end of the seven years. Lenders consider foreclosure a major red flag when considering your application for more credit or a loan. Many lenders will refuse to work with you in the first few years after your foreclosure. However, as time goes on and your credit improves, more lenders will be willing to work with you, even with a foreclosure entry on your report. Ultimately, you can begin improving your credit score on day one after a foreclosure entry is added to your credit report. The more proactive you are in the immediate aftermath of foreclosure, the sooner you will be able to improve your score and seek new financial opportunities. How can I limit damage to my credit score? There are some things you can do to limit the damage to your credit score while you are going through the foreclosure process. If you know you cannot save your home, focus your financial energy on paying your other bills on time and in full. Keep your credit utilization low, aiming to keep your utilization below 30% at least, but ideally 10% if you are facing foreclosure. You could also work with an attorney to look into alternatives to foreclosure, like a loan modification or a short sale. While these options will have some effect on your credit, it will not be as severe as with a foreclosure entry. How do I improve my credit score after foreclosure? Rebuilding your credit score is very possible, but it takes time, patience, and discipline. Veitengruber Law works with our clients to find achievable goals and actionable solutions that do not involve a ton of financial know-how. Often, the best path forward is utilizing basic good credit habits. Here are some of our tips: 1. Keep All Accounts Current Pay your bills on time, in full, every time. Payment history is the most critical factor in determining your credit score. Every single on-time payment adds positive data to your report and improves your score. The best way to ensure you can pay all your bills on time is to develop a realistic budget and stick to it. Determine your essential expenses and ensure you can pay for those before you pay for extras like entertainment. Sign up for automatic billing so you cannot forget to make a payment. Making on-time payments throughout the seven years after a foreclosure is the best way to ensure your score will rise quickly. 2. Lower Credit Utilization Keep your credit card balance as low as possible. While using credit cards and making payments on time each month can also help you rebuild your credit, there is no benefit to carrying card balances month to month. By paying off your credit card balance every month can keep your credit utilization low, which is another major aspect of improving your credit score. Low credit utilization typically means an improved credit score. This shows lenders that you understand how to use your credit and can manage your finances. You will also save money on interest charges. 3. Consider a Secured Credit Card Using a secured credit card can be very useful for rebuilding credit. With a secured card, a user puts a security deposit down that will serve as your credit limit. Deposit amounts typically start at just $200. To start, we usually suggest that our client use this card monthly for one expense, like groceries or gas. At the end of the month, pay off the balance. Every on-time payment will boost your score a little bit. Secured cards are a great way to build or repair credit without risking getting in over your head with credit card debt. 4. Monitor Your Credit Report This is a practice everyone should do periodically, but it is especially critical in the aftermath of foreclosure when you are trying to rebuild your credit. There are many free credit report services. Your bank or current credit card lenders may already provide these services to you. You can check these reports quarterly for any errors. If you find any errors on your credit report, you can file a dispute. This will prevent any inaccurate entries from dragging your credit score down unnecessarily.  5. Be Patient and Smart You will not rebuild your credit score overnight. It will take a bunch of time, dedication, and patience. Stay consistent, stick to your budget, and avoid any impulsive financial decisions. For example, applying for a new line of credit may be tempting when you see your score improve. But you need to keep in mind that credit inquiries can impact your score, too. Stay patient and work with an experienced credit repair attorney or financial expert to make a plan. This guidance can help you improve your score as quickly as possible. Within a few years, you may be able to apply for a vehicle loan, a credit card, or even a mortgage. George Veitengruber is an experienced NJ foreclosure defense and credit repair attorney. Our firm has worked with many NJ homeowners to save their homes from foreclosure, get out from under unmanageable debt, and find solutions to repair a low credit score. Every individual will benefit from different strategies based on their unique situation. Our credit repair solutions are fully customized to meet your needs and help you achieve your goals. If you are going through foreclosure or struggling in the aftermath, reach out to us for a consultation today.

Can you save my Monmouth County home? We get this question all the time at Veitengruber Law. As an experienced NJ foreclosure defense attorney, we have worked with thousands of residents to fight foreclosure and stay in their homes. We are familiar with the foreclosure process and can help you utilize different legal and financial tools to save your home. Once you are more than 120 days past due on your mortgage, your lender can begin the foreclosure process. To start this process, your lender must first notify you through a breach letter that your loan is in default. This letter will explain that you are facing foreclosure and will include information about how to resolve the issue to avoid foreclosure, including your options for loan modification. Submitting a request to modify your mortgage will include a financial hardship letter. This letter is your first step towards getting approved for a loan modification. How you present yourself and your case in your hardship letter can make or break your chances for loan modification approval. Working with an experienced attorney like Veitengruber Law is the best way to give yourself the best chances of approval. Here are some tips on how to write an effective mortgage loan modification hardship letter: Part One: Explanation of Financial Hardship Financial hardship letters help explain why you are struggling to make your mortgage payments to your mortgage lender. This is your opportunity to be honest with your lender so they can better understand your financial situation. Before you detail your proposed plan for a loan modification, you need to show your lender why the modification is necessary. This should include an explanation for why you have fallen behind on your mortgage. You may struggle to keep up with your monthly mortgage payments for many different reasons. Common problems include: Illness or disability Medical debt Divorce Death of a spouse Job or income loss for you or someone else in the household Loss of transportation Property damage Your explanation does not have to be detailed. You do not have to write down personal details or private information. You simply need to give your lender a general idea of your financial circumstances. For example, you could say: "I fell behind on my mortgage after losing my job in 2023." An experienced attorney can help you find the best way to explain why you could not make payments in the past. Part Two: Your New Circumstances This part of your letter is your opportunity to explain how your circumstances have changed since the event that triggered your financial struggles. The lender needs to know that you actually have the ability to pay back your mortgage if they grant the modification. You will need to demonstrate how you have made an effort to resolve your problems and change your financial situation for the better. Again, you do not need to include super personal details or provide a long, drawn-out explanation. For example: "After searching for a job for two years, I secured full-time employment in April 2025." Part Three: Loan Modification Request The final part of your hardship letter should include your request for a loan modification. You can request a modification in two ways: one, by asking the lender to come up with a loan modification plan for you, or two, by proposing a loan modification plan that will work with your new financial circumstances. When you propose your own mortgage modification plan, you should include details on what terms you want modified and also what monthly payment you believe you can afford. The following are common mortgage modifications: Interest Rate Cut: Lowering your interest rate can lower your monthly payments and lead to money savings in the long run. Extended Repayment Period: Extending the life of your loan will also help you lower your monthly payments. Principal Reduction: Some lenders may consider forgiving some of your loan balance to lower monthly payments. Be aware that any forgiven debt will be treated as income by the IRS and must be reported on your tax return. Switch to a Fixed-Rate or Adjustable-Rate Mortgage: Changing your interest rate to fixed or adjustable, depending on your circumstances, can help lower your interest rate or make your monthly payments more predictable. Loan Modification Program: Individual lenders may offer specific loan modification programs based on the kind of loan you have. You should contact them about your options and your eligibility. If you believe you are eligible for these programs, you can reference them in your letter. Which of the above changes to the terms of your loan will help you the best depends on your specific circumstances. A skilled foreclosure defense attorney can assist you in determining the best plan for your financial situation and how best to word this in your letter. Remember that while you do not need to apologize for your financial circumstances, this is the time to express thanks to your mortgage provider for the help you hope they can provide. This is not the chance to discuss your discontent with high interest rates or frustration with your lender. Keep your letter professional and respectful. Part Four: Include Documentation With your letter, it is critical to provide evidence of your financial situation. You can provide bank statements to prove a reduction in income or medical bills to show your undue financial burden due to disability. Whatever your situation, an attorney can help you determine which documents are required to prove your hardship to your lender. Part Five: Contact Your Lender Once you have drafted, reviewed, and finalized your hardship letter with the expert advice of an attorney, you or your attorney can contact your lender. You will likely be dealing with your servicer's loss mitigation department. Most lenders have a specific person or team that manages loan modifications. Keep a diligent record of the representatives you correspond with and ensure that every agreement or communication is done in writing. If your request for modification is denied for any reason, this record may help ask for a second review. An experienced foreclosure attorney can help you throughout the negotiation process as you seek a mortgage loan modification. When you work with an attorney, you have a much higher chance of receiving approval for your loan modification request. They can communicate with your servicer, negotiate on your behalf, and protect your rights. Their invaluable expertise can be particularly helpful in understanding what mortgage lenders seek in a loan modification request. They can ensure you are submitting your most promising request. Loan modification is a great way to avoid foreclosure proceedings and save your home. You must submit your hardship letter and application 45 days before the scheduled foreclosure of your home, so it is crucial to act quickly for this process. If you have received notice that your mortgage is in default, reach out to Veitengruber Law today. We can help you create a hardship letter and make the case to save your home from foreclosure.

When you are facing foreclosure, it is common to feel hopeless and overwhelmed. The stress and anxiety of dealing with foreclosure proceedings can put homeowners in a state of freeze. We hate hearing stories of homeowners who felt powerless to protect their interests, only to find out after losing their homes that they had other options. The long foreclosure timeline provides ample opportunity for homeowners to save their homes or find a better alternative to foreclosure. An experienced foreclosure defense lawyer can explain all of your options at every stage of the foreclosure timeline. Just because you have been served with a notice of foreclosure does not mean you will imminently lose your home. If you are looking for a foreclosure defense lawyer in Monmouth County, Veitengruber Law has helped hundreds of NJ residents save their homes. Here is an overview of your options at every step of the foreclosure timeline: 1. Missed Payment After missing a few monthly mortgage payments, your lender will notify you of default. This does not mean that foreclosure proceedings have begun. It does mean that you should think seriously about how to get ahead of this financial problem. If you are struggling to make your mortgage payments, you can try to work directly with your lender. Work with an attorney to create a hardship letter and ask your lender for a mortgage modification. Your attorney may suggest other options like bankruptcy or debt negotiation, depending on your financial situation. The important thing at this stage is to be proactive and not wait to act until after foreclosure proceedings have been initiated. 2. Formal Notice of Intent After you have been in default on your loan for 120 days, your mortgage servicer will send a Notice of Intent to Foreclose. This document will detail your lender's intentions to file for foreclosure on your property if the default is not cured within a specified timeframe. In NJ, lenders cannot file a foreclosure complaint until 30 days after the Notice of Intent has been sent. This letter must be sent by regular and certified mail. Many lenders will include options for curing the debt, like mortgage modification or different forbearance programs. Once you receive the Notice of Intent, you must act quickly to avoid foreclosure proceedings. Depending on your circumstances and ability to pay back the debt, you can work directly with your lender to determine a repayment plan or work with an attorney to file for bankruptcy, which will prevent any new court proceedings from being brought against you. 3. Filing of the Complaint If the debt is not cured or an agreement with your lender cannot be reached within 30 days after the Notice of Intent, your lender can file a foreclosure complaint with the court. This is when the official foreclosure proceedings begin. Once served with a notice of the complaint, the homeowner will have 35 days to respond. At this point, you can still attempt to work with your lender to find a solution that allows you to stay in your home. You can cure the debt, apply for a loan modification, or file for bankruptcy to determine the best way to restructure your debts. If your goal is not to stay in your home, you could also consider a short sale. A short sale cannot save your home but will allow you to get something out of your investment. Your lender may agree to settle your debt with the proceeds of a short sale, which would mean you can walk away from your home with less debt. 4. Final Judgement If you cannot find a solution to avoid foreclosure within 35 days after the complaint has been filed, or if the court rules in favor of the lender, your case will enter final judgment. This means a judge has ruled that the foreclosure can proceed, and your home will be scheduled for a sheriff's sale. At the sheriff's sale, your home will be sold to the highest bidder as your lender attempts to recover their losses. But even if your home is sold at a sheriff's sale, you still have the 10-day right of redemption period to overturn the sale and save your home.  During the right of redemption period, you have one final chance to pay off the amount owed on the foreclosure judgment. The amount required to redeem your home and save it from foreclosure will often include the principal amount of your mortgage debt, interest, and any fees, taxes, assessments, or other costs incurred by your lender during the foreclosure process. The end of the right to redemption period is when it is officially too late to save your home. However, the foreclosure timeline is purposely lengthy, allowing homeowners plenty of time to find a better solution. Veitengruber Law can work with you at any stage of the foreclosure timeline to help you save your home or find another solution that allows you to protect some of your investment. Reach out to us today for a consultation!

At the start of their estate planning journey, most people are often surprised to discover that they need more than just a will. While a will is important, it just scratches the surface of all the legal protections you can put in place to safeguard your future. An estate plan isn't just about what happens after you die. It is also about how you intend to spend your final days or years. An estate planning attorney is likely to urge you to discuss a power of attorney or a living will. Veitengruber Law is an experienced estate planning attorney in Monmouth County. We have over a decade of experience crafting personalized estate plans designed to protect our clients and offer peace of mind. The future is uncertain, but the multitude of options available to you as you devise an estate plan can help you prepare for the future no matter what it has in store. However, all these options can be confusing to those unfamiliar with estate law. What is a power of attorney? What is a living will? Do I need one, or both, or neither? Here, we take a deep dive into examining these two critical tools, exploring how they function and which option is best suited for your circumstances. What is a Power of Attorney (POA)? A POA is a legal document that appoints a trusted person to make decisions on your behalf if you are unable to do so yourself. There are two primary types of POAs in estate planning, serving distinct functions: medical and financial. A medical POA gives someone the authority to make healthcare decisions on your behalf. A financial POA grants someone the ability to manage your financial accounts, pay your bills, and make financial decisions if you are incapacitated. You can also have a durable POA or a regular, non-durable POA. A durable POA remains in place even after you are incapacitated. A POA can be as specific as you want it to be, and you can have a joint or dual POA in which two or more people are allowed to act together to manage your affairs. What is a Living Will? A living will is also sometimes referred to as an advanced directive. This legal document will outline your healthcare preferences if you cannot make these decisions at some point in the future. You can indicate your wishes for different medical treatments like life support, resuscitation, tube feeding, palliative care, and organ donation, among other things. By documenting your preferences regarding these treatments, your medical team can ensure that they follow your wishes, even if you are unable to voice them. Key Differences These essential estate planning tools complement each other in providing comprehensive coverage for anything life throws at you. However, there are a few important differences that you should be aware of when creating an effective estate plan. 1. Purpose and Scope A living will does not empower anyone to make choices on your behalf. Instead, it empowers you to have your choices heard even if you are unable to communicate or are in mental decline. A living will only covers your preferences related to medical treatments and healthcare. On the other hand, a POA legally empowers someone you trust to make broad decisions about your finances, healthcare, or both. You are granting this person, or "agent," permission to have the final call on how things should be handled if you can no longer make those decisions yourself. A POA has a much broader scope than a living will. 2. Activation Criteria A living will goes into effect only if you are incapacitated and cannot communicate. Medical professionals will follow the directives in your living will to provide treatment through the end of your life or until you are no longer incapacitated. A POA will be activated or deactivated depending on the criteria listed in the POA. For example, if you have a durable financial POA, it will go into effect if you are no longer able to make your own decisions financially (from mental deterioration or medical incapacitation). A POA is much more specific in the instances in which it can be activated. What are the benefits and drawbacks of a living will? A living will ensures your wishes are followed even if you are not mentally or physically able to make a choice. Advanced directives, such as living wills, can ensure a more consistent healthcare experience and stricter adherence to a patient's end-of-life preferences. Without a living will, someone else will make decisions on your behalf. A living will can also reduce the burden on your family and loved ones. Without a clear directive in place, those closest to you may have to make difficult and emotional choices about your end-of-life care. This can lead to conflict and heartbreak if loved ones cannot agree on a path forward for your treatment. A living will can give loved ones the peace of mind that they are following your wishes. However, there are some limitations to living wills. Living wills that lack specificity can lead to misinterpretations by medical professionals. For example, "no heroic measures" can mean different things to different people. A living will must also be updated with an individual's most recent health conditions. If your condition or treatment preferences change, it is essential to revise your living will as soon as possible to ensure that your treatment aligns with your current wishes. What are the benefits and drawbacks of a POA? POAs are flexible, versatile legal tools that cover a wide scope of issues with one document. A Power of Attorney (POA) can authorize someone to make all of your legal, financial, and medical decisions. This enables you to plan for various scenarios and allows your agent to adapt to diverse needs. This can ensure comprehensive management of all your personal affairs. You also get to choose your agent, ensuring it is someone you trust and who will have your best interests at heart. Choosing this person yourself is often preferable to someone you do not trust making these decisions on your behalf. The biggest word of caution with POAs is choosing an agent that you can trust with your legal, financial, and medical affairs. Because POAs are so flexible, in the hands of someone with ulterior motives, they can lead to overreach. It is critical to vet your potential agents to ensure they are responsible, genuine, and capable. Do you need a Power of Attorney (POA) or a Living Will? The answer is likely: Both!  These documents work together to create a comprehensive estate plan that covers all possible scenarios. Veitengruber Law can help you create an estate plan tailored to your specific needs and goals. We work with clients to establish explicit and detailed documentation that clearly communicates their wishes. Comprehensive estate plans that include a living will and a POA provide peace of mind for you and your loved ones.