Even if the repo man has snatched your car, the filing of a bankruptcy can help  you to save your car.  However, your bankruptcy must be filed before the car is sold at the auction. The past payments you have missed will be consolidated into your Chapter 13 plan. After you file, you will no longer pay the bank or the finance company, instead  you will make your monthly payments to the bankruptcy trustee. The bankruptcy trustee will then pay the finance company your missed payments over a three to five year period.
4. Reduce or Even Wipe Out High Medical Bills.
Sometimes an unfortunate accident or a major illness can totally emotionally destroy a family. Moreover, their financial health can also be wrecked as well. Many families have to make difficult choices on what bills to pay. Many New Jersey-ites rack up tens of thousands of dollars of medical bills if they become sick, or if their kids get sick. If you file for a chapter 7 then this legal process can wipe out your outrageous medical bills that simply won’t go away.
5. Recent Loss of a Job.
In my experience the loss of a job is one of the most common reason why New Jersey-ites are forced to file for bankruptcy. In most New Jersey families it is essential that both spouses work to just survive and make ends meat. If both spouses work, then the family can live a normal and reasonable middle class lifestyle. The family can take on a reasonable amount of consumer debt, join recreational clubs, and pay their normal everyday bills. However, if one spouse loses his or her job, then all of a sudden a family’s income is reduced from two salaries to one. The loss of employment is also intertwined with a family also incurring high medical bills. The loss of a job is closely tied to high medical bills. The loss of employment often means this family may be left without the protection of health insurance that was once provided by their employer based health plan. Often these two factors if combined create a perfect storm for a financial disaster for a typical New Jersey family.
Continue Reading