WHY FILE FOR BANKRUPTCY IN NEW JERSEY?

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1 WHY FILE FOR BANKRUPTCY IN NEW JERSEY? TRAVIS J. RICHARDS SOUTH NEW JERSEY BANKRUPTCY ATTORNEY

2 Deciding to file for bankruptcy is not an easy decision. Most people struggle with the decision to file for bankruptcy because of the negative stigma that is often associated with filing bankruptcy as well as the misconceptions and bankruptcy myths that many people believe to be true. Unfortunately, concerns about how filing a bankruptcy will affect your credit rating, what will happen if your friends and family find out you filed bankruptcy and the fear of losing property keep people from filing bankruptcy. However, the fact is that filing a bankruptcy may be the best financial decision that a person can make to resolve debt problems. REASONS WHY YOU SHOULD FILE FOR BANKRUPTCY There are several excellent reasons why you may need to file for bankruptcy.

3 Save Your Home and Other Property Filing for bankruptcy can save your home from foreclosure and protect your property from creditors. The bankruptcy myth that ALL debtors lose their property when they file bankruptcy is simply not true. In 99% of the Chapter 7 bankruptcy cases filed in New Jersey, debtors discharge most or all of their debts without losing any property. Therefore, you are actually protecting your property by filing a bankruptcy case because unsecured creditors are prohibited from attaching or seizing property to pay for debts that are discharged through the bankruptcy case. In most cases, retirement accounts are completely exempt in a bankruptcy action. Rather than using your retirement funds to pay down debt leaving you unable to pay your living expenses when you retire, you may be able to file bankruptcy to discharge your debts while protecting your retirement funds. If you have property that you may lose in a Chapter 7 case, a Chapter 13 bankruptcy case can protect that property from the trustee and creditors while

4 allowing you to find relief from your debt problems. A Chapter 13 bankruptcy can also save your home by allowing you to pay the past due mortgage payments over a 36 or 60-month bankruptcy plan. Stop Garnishments, Judgments and Levies Filing bankruptcy will stop creditors from garnishing your income, seizing assets by levy or pursing a judgment collection. The bankruptcy stay that goes into effect immediately upon the filing of a bankruptcy case prohibits creditors from taking any actions to collect debts including garnishments, levies and judgments. If the debt is dischargeable through your bankruptcy filing, the creditor will be forever barred from collecting that debt so you do not need to worry about

5 garnishments, judgments or levies. Your legal liability is discharged and you are no longer responsible for the repayment of that debt. Stop Creditor Harassment If your creditors are harassing you by constant telephone calls, letters, visits and threats of lawsuits or other collection actions, you can stop creditor harassment by filing for bankruptcy. While there are laws against creditor harassment, it can be expensive and time consuming to file a complaint to stop creditor harassment. In some cases, filing a complaint does not stop the creditor harassment permanent. However, filing a bankruptcy will immediately stop creditor harassment. The bankruptcy stay prohibits creditors from contacting the debtor to collect a debt after a bankruptcy case is filed. Once the bankruptcy case is closed, creditors whose debts have been discharged are barred from attempting to collect those debts in the future. Filing bankruptcy stops creditor harassment and gives you the relief you need from aggressive debt collectors.

6 Obtain a Fresh Start This may be one of the most important reasons to file for bankruptcy. While some people may believe individuals who file bankruptcy do so because they could not manage money wisely or they abused credit, that is simply not the case. Some individuals who file for bankruptcy may have made mistakes with money management; however, the vast majority of individuals who file for bankruptcy do so because of a financial crisis. Reasons people file for bankruptcy include job loss, a sudden decrease in income, the loss of a spouse, business failure and medical emergencies. Regardless of why you file for bankruptcy, the fact is that bankruptcy laws were written to help individuals just like you receive a fresh start so that you can recover from a financial crisis. In the U. S. Supreme Court case of Local Loan Co. v. Hunt (1934), the court ruled that bankruptcy gives to the honest but unfortunate debtor a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt. When you are struggling with overwhelming debt, it is almost impossible to see a future where you are financial sound again and able to provide for yourself and

7 your family. Filing bankruptcy gives you the fresh start that you need, free from debt, to begin to rebuild your finances for a stronger future. Contact an Experienced Mount Holly Bankruptcy Attorney Personal Approach, Professional Service, Affordable Payment Plans The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey. If you are experiencing financial problems due to debt, contact our office at to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.

8 About the Author Travis J. Richards Travis Richards is not your typical attorney. He understands the random curve balls life throws at honest, hard-working people. Growing up on farm in Southampton, New Jersey, money didn t always come easy for many of his family, friends and neighbors. He saw that bad things often happen to good people. This background shaped his approach to the practice of law. Mr. Richards considers it a privilege to help clients from all walks of life recover from financial hardship. In doing so, he aims to provide every client with the same service he would provide a member of his own family. His mission is to get to know each client individually and provide the best legal advice possible for them to regain control of their lives. Over the past decade I have impacted the lives of hundreds of individuals and families in an extremely positive way, he says. Through bankruptcy I am able to show my clients a freedom that they thought impossible to achieve My goal is not only wipe out the debt they have accumulated, but also help make sure they will never be in a situation to need my services again. Mr Richards has helped hundreds of individuals eliminate debt, keep their property and return to financial stability. Bankruptcy gives deserving individuals a second chance. Mr.Richards graduated with honors from Rutgers University, in New Brunswick, NJ where he majored in History. In 1999 he graduated, again with honors, from Rutgers School of Law, Camden, NJ. He was admitted to the New Jersey and Pennsylvania Bar in 1999, where he is licensed to practice law before the United States District Courts. Mr. Richards practices bankruptcy, mortgage loan modification work, debtor rights and credit card negotiations. He maintains memberships in the National Associate of Consumer Bankruptcy Attorneys, the Burlington County Bar Association, the New Jersey State Bar, the Pennsylvania State Bar, and the American Bankruptcy Institute The Law Office of Travis J. Richards 141 High Street Mount Holly NJ Phone: Fax: Website: njbankruptcyinformation.com