There are a lot of people in New Jersey who are struggling with credit card debt that they can no longer afford to make payments on. While many people think that consolidating all of their credit card debt in order to pay it off quickly is a better solution than filing for Chapter 7 bankruptcy, this alternative can actually end up costing a lot more money in the long term.
Many people in New Jersey with debt problems are dealing with student loans taken out from private lenders that they cannot afford to pay back. Although there is a popular belief that these types of obligations cannot be discharged in bankruptcy, this is not entirely accurate. In fact, it may only take a person about 90 days to have many types of private student loans discharged in a Chapter 7 bankruptcy.
A New Jersey homeowner who is facing difficulties in managing finances might evaluate the possibility of bankruptcy for curbing problems related to debt collection. Although this could provide a new start in one's finances, there may be an interest in keeping a home. A second mortgage creates a lien against the title, and there may be questions as to whether a second mortgage be discharged during the bankruptcy.
Discharge is an important factor in a New Jersey bankruptcy because this action releases a debtor from the personal liability to various types of debts. Upon discharge, a debtor is no longer bound to repay the debts in question. This action also puts an end to collections activities by creditors.