Why NJ Bankruptcy is so Often Misunderstood.
Just the thought of filing for bankruptcy is enough to send some people directly into a panic attack. The embarrassment, the feelings of failure, and the fear of losing everything keep many people from exploring what bankruptcy is all about. If you’re facing some financial hurdles and have considered filing for NJ bankruptcy, let’s talk about why it’s so misunderstood and why it’s truly not as bad as its reputation.
Big banks and financial institutions have kept the pressure on borrowers for so many years that the stigma of bankruptcy has grown into a looming dark cloud. Many debtors are misinformed about bankruptcy, preventing them from utilizing it as the tool it is meant to be.
Some of the more common bankruptcy falsehoods include:
- Fear of losing everything
- Permanently ruining your credit score
- Potentially dragging your spouse’s credit score down
- Losing your home or other important assets
- Everyone knowing your private financial business
- Gaining a reputation as a reckless spender
- Never being able to buy a house in the future
- Being blacklisted by banks for future loans
- Friends and family thinking less of you
- Incorrectly assuming that filing for bankruptcy is too complicated
Most of the above fears are simply not founded in reality, and while some of them may hold a kernel of truth, the reality is that the positives of bankruptcy greatly outweigh any fears that may be preventing you from moving forward.
When you work with Veitengruber Law, a bankruptcy law firm in New Jersey, you’ll understand that changing your perspective can very likely mean the difference between clearing your financial hurdles or hitting every single one as you continue to struggle along through life.
First, and foremost, filing for a New Jersey bankruptcy puts an immediate stop to creditor calls and letters. As soon as your creditors learn that you have filed for bankruptcy, they are no longer permitted to bother you. If they continue to call or send mail, they’ll be in violation of the law. This is typically a huge relief to our clients, as it takes a huge amount of pressure off and gives them some breathing room.
With the pressure cooker turned down to low, you can work with our bankruptcy team to decide which type of bankruptcy is best for your unique situation. We know New Jersey bankruptcy well, and with us by your side, you can rest assured that your decisions will all be the right ones.
We’ll help you sort through all of your financials – from how much you owe creditors, to late fees, interest rates, and more. If your house is in danger of foreclosure, we can help with that, too. In fact, filing for bankruptcy in New Jersey puts foreclosure into “Automatic Stay” status, and your lender cannot move forward on foreclosing while your bankruptcy case is active.
This gives us ample time to work toward righting your financial situation, deciding what, if any, of your assets you want to liquidate, and determining the best decision regarding keeping your home. Sometimes downsizing might be the right answer, but many of our clients can continue living in their homes after a loan modification. Just knowing that you have options is enough to ease most everyone’s fears.
Filing for bankruptcy will impact your credit score, but only temporarily. Our credit repair specialist will help you work toward bringing your score back up as quickly as possible. You will be able to apply for and be approved for a loan again in your (dare we say near) future! If you don’t own a home currently, home ownership is definitely still in the cards for you after a bankruptcy.
Is bankruptcy such a bad thing? No! Here at Veitengruber Law, we love bankruptcy and we work hard to educate our clients about the possibilities that filing for bankruptcy can bring. It’s not a magic pill, and you will have to make some sacrifices, but it is an extremely useful tool when used in conjunction with the right NJ bankruptcy team, credit repair strategies (we will help you implement these as we move through the process), and looking beyond your bankruptcy discharge toward a new approach to finances.
We want you to view bankruptcy as a launch pad that not only isn’t shameful, but that is the leg up you maybe didn’t even know you needed. When incorporated with a big picture plan, your future can look bright again, and your money stressors will decrease while your credit score goes up, up, UP!