New Jersey consumers who are considering or are in the process of filing for bankruptcy may want to take some cues from a North Carolina couple on what not to do. A district court ruled on Sept. 29 that because the debtors acted in bad faith during the filing process, the bankruptcy trustee can sell the husband's $240,000 individual retirement account.
Once seen as a shameful move, filing for bankruptcy has become an accepted way to help New Jersey debtors organize or get out from massive debts. Chapter 7 bankruptcy allows an individual to have his or her non-exempt assets liquidated to pay off creditors. Most remaining unsecured debt is fully discharged within 4 to 6 months after the filing.
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.
New Jersey residents probably know David Cassidy best for his starring role on the hit 1970s television show "The Partridge Family." The 64-year-old entertainer has been popular for decades, but financial difficulties prompted him to file for Chapter 11 bankruptcy on Feb. 11 in Florida. The filing was announced by Cassidy's publicist via an email statement.
Consumer debt has reached its highest rate ever recently. Many consumers are finding their overall debt to be overwhelming. It's important that they avoid being taken in by ads that promise a quick and easy fix for the problem. According to the Federal Trade Commission, it is crucial that debtors be careful when responding to such ads.
Who files bankruptcy? Though some people in Lawrenceville who apply for bankruptcy can't work and, thus, have no money, many more are gainfully employed or have recently lost their jobs. Just because someone has a job doesn't mean that he or she can't be in serious need of debt solutions.