For some people in New Jersey, making the decision to file for bankruptcy is a stressful event. In many cases, folks in our state have spent months or even years working to repay the debts that they have accumulated. However, sometimes the best choice for an individual is to file for a personal bankruptcy.
Over the past few years, many people in New Jersey and elsewhere have found that they have suffered severe financial stress. The pressures include lost jobs, falling real estate values and high mortgage rates. In some cases, the combination of these issues has resulted in people having more debt than they can ever hope to repay with their current incomes.
Before deciding to complete a filing for personal bankruptcy, it can help some people to try to repay debts. By attempting renegotiations and balance adjustments, some are able to reduce high credit balances. In addition, some people find that they can sell personal items or supplement their income by taking on a second job or working odd jobs.
However, these efforts often fall short of their goal. When that happens, a personal bankruptcy can offer financial relief to overwhelmed individuals. In fact, at the end of a successful personal bankruptcy, many people find that their unsecured debts have been discharged. There are chapters of the bankruptcy code that can offer financial relief to people regardless of whether they are employed or not at the time of filing. This allows such people to begin a fresh start free from the pressures that exist when a person cannot repay the debts that they owe.
Source: foxbusiness.com, "Three Tips to Preventing Personal Bankruptcy," Donna Fuscaldo, Feb. 21, 2013