 With the struggling economy, many people are finding themselves deep in credit card debt. Therefore, consumers are forced to turn to debt consolidation in order to get control of their finances. However, before a person decides to consolidate their credit card debt, they need to be aware of the credit... |
|
Living with debt is by no means easy. There’s the constant concern of living paycheck to paycheck and the never ending issue of covering monthly bills and living expenses. While most of us pride ourselves on being self-sufficient, it’s hard to ignore that we all sometimes live well beyond our means.... |
A more complete debt settlement calculator
|
|
| New Jersey |
|
The new bankruptcy laws have left few overwhelmed debtors across the nation unscathed, and New Jersey is no different. Due to the personal bankruptcy changes in 2005, more consumers are being forced to pay higher attorney fees & court costs and even more importantly, many are being forced into Chapter 13 payment plans, instead of the straight bankruptcy, or Chapter 7. For consumers with credit card debt, deficiency balances from repossessions, medical bills, and most collections debt, Chapter 7 is the preferred route due to the fact that in a lot of cases the debt can be wiped out without paying more than court and attorney fees. Chapter 13, on the other hand, involves taking the consumer’s disposable monthly income until all the debt is paid in full or formally discharged. When you factor in the long-term credit effects of doing this, Chapter 13 rarely makes sense for most types of unsecured debt. So who exactly is being forced to file Chapter 13? For the most part, it is consumers who earn more than the median income in their state. If these higher income debtors fail to pass the means test, which is a set of questions about your income and expenses that is used to figure out whether someone can actually pay back a reasonable portion of their debt, then they will be required to declare Chapter 13 instead of 7. The following is median income information for New Jersey as of 2006: 2-person families: 63,026 3-person families: 80,999 4-person families: 94,441 5-person families: 92,225 6-person families: 94,004 7-or-more-person families 79,817 Not set on bankruptcy? You’re not alone! Submit a form and let PayingPaul.Com match you with an industry leading debt management company for a free consultation! NJ Bankruptcy Statistics 2004: 40,596 2005: 48,832 2006: 13,548 The number of bankruptcy filings in New Jersey dropped dramatically in 2006 against the backdrop of the overhauls to the bankruptcy rules. In 2005, Congress and President Bush signed into law new legislation that made filing for Chapter 7 “straight” bankruptcy a much more difficult task. As a result, fewer people could qualify for this chapter bankruptcy and due to the more complicated nature of the act, bankruptcy attorneys started charging more to file a case. This being the case, bankruptcy filings dropped by more than 72.2% and more consumers began seeking out other alternatives like debt settlement and debt counseling. Or for more information about some other debt issues pertaining to New Jersey, check out these articles: New Jersey Consumer Credit Counseling Services New Jersey Bankruptcy Laws New Jersey Debt Collection |
Featured Articles
|
Credit is a useful tool and when handled responsibly allows us to obtain credit cards, loans for homes, cars and other big ticket items. The better we handle our credit, the better the terms that are offered to us from lenders including higher credit lines and lower interest rates.
If, however, a... |
The dismal economy is having an adverse effect on people around the globe with millions facing tremendous amounts of debt. For many, escaping their debt seems like a far off dream but it doesn't have to be! By applying a few simple guidelines to your spending habits, you can begin to reduce credit card... |