Bankruptcy can be a complicated and paper intensive process. What some people may not realize is that the paperwork requirements begin before the petition is even filed. Every filer -- regardless of whether filing Chapter 7 or Chapter 13 -- must complete a credit counseling course within 180 days of the filing of the petition. The U.S. Bankruptcy Court must approve all credit counseling services, and a list of approved services for New Jersey residents is maintained by the court.
It is most likely a safe bet that no New Jersey consumer is fond of debt collectors. The practices used by debt collection agencies and other creditors bend -- if not break -- the limits placed on them under the Fair Debt and Collection Practices Act (FDCPA). One woman from the Midwest managed to find a way to stop harassing phone calls from creditors attempting to collect a debt from her that she did not even owe.
Here in New Jersey, foreclosure proceedings can take nearly three years to complete on average. This means that homeowners may be kept in limbo for several years -- from the day the lender's notice of intention is filed through the completion of the sheriff's sale. Legislators have decided to attempt to stop foreclosure actions from taking so long to complete.
The Fair Debt Collection Practices Act requires creditors to adhere to certain guidelines when it comes to collecting consumer debts. Unfortunately, as many New Jersey residents have experienced, not all companies follow these guidelines when dealing with consumers. When it is discovered that debt collectors are using unscrupulous tactics to collect debts, certain agencies within the federal government often step in to stop harassing phone calls from creditors.
Not since July 2011 have consumers spent more money on non-revolving debt than they did in February of this year. Even as revolving debt around the country -- including here in New Jersey -- is dropping, the number of loans for items such as automobiles and student loans is on the rise. This new pattern of spending could lead to more people filing for bankruptcy.
The crash of the housing market back in 2008 is still affecting millions of homeowners across the country. Many New Jersey residents who hoped their homes would increase in value when they bought them before the housing crisis are still struggling with declining home values. For some of them, bankruptcy could be the only way to stop foreclosure.
When a New Jersey resident encounters financial difficulties, it can feel overwhelming. Creditors who are calling you constantly, threatening to foreclose on your home and garnish your wages often compound the concern. Fortunately, filing for bankruptcy can provide a way to get out from under most -- if not all -- of your debt.
New Jersey residents have experienced numerous economic setbacks in recent years from which many people are still attempting to recover. Bankruptcy is an effective option that helps families and individuals who are unable to pay their debts. In fact, a recent study indicates that people who do file bankruptcy and receive a discharge fare better than those who continue to struggle to pay their bills.
As is the case around the country, up to one-half of the married couples in New Jersey will divorce. Ending a marriage can take a financial toll on both parties even if their financial situation was good prior to the divorce. In some cases, money problems are what lead to the parties going their separate ways. Bankruptcy could be a way to alleviate financial problems.
Any number of reasons can cause a New Jersey resident to get behind on his or her financial obligations. When that happens, debt collection actions begin. Under the Fair Debt Collection Practices Act (FDCPA), it is possible to stop harassing phone calls from creditors and debt collectors. In fact, some of the practices used by debt collectors are illegal under the Act, and consumers need to know what some of those illegal practices encompass.