Velasco Law Office understands that the thought of bankruptcy can be overwhelming for many who are in dire financial situations. It is obvious that bankruptcy has some negative aspects to it, including impacting your credit score, but it is important to note that bankruptcy comes with some benefits. If you need an effective bankruptcy attorney to ease your stress while zealously representing your needs through the process, contact Velasco Law Office for a consultation.

The Benefits

Bankruptcy is not a punishment. It is designed to help those in a serious financial situation get the relief they need. Chapter 7 and Chapter 13 comes with many benefits that can help you and your family through tough times.

Save your home: You can stop foreclosure on your home through Chapter 7 or Chapter 13. Once you file, the automatic stay goes into effect, prohibiting creditors from pursuing debt collection, including taking action against your home. Chapter 7 may offer you time to negotiate a modification with the lender. Through Chapter 13, you can include your late payments and stretch the term up to 5 years.

Chapter 7 and discharging debts: Chapter 7 is supposed to be a fresh start. Through the process, you can discharge many debts, including credit card debts and medical bills. In addition, you are protected from being liable for these debts in the future. Once you have received a discharge for a debt, the lender may not pursue payment of said debt.

Faster loan modifications: Through the Loss Mitigation Program and Procedures, you may be able to stop foreclosure on your home and quickly obtain a loan modification. After filing a request for loss mitigation, the court will supervise negotiations between you and your lender, aiming to complete the process within 90 days and hold the lender accountable for an answer.

Strip a second mortgage: Through Chapter 13, if your house is worth less than your first mortgage, you may be able to discharge your second mortgage.

You can lower your car payment: Through bankruptcy, you may be able to reduce your loan to the value of your car if you have owned your vehicle for a certain amount of time.

Catch up on payments: You may be able to keep your home, car, and other secured assets by catching up on late payments through Chapter 13.

Bankruptcy and tax debt: Through the process of chapter 13 bankruptcy, you are allowed up to 5 years to repay taxes owed to the state or the Internal Revenue Service. Through either Chapter 7 or Chapter 13, certain debt older than 3 years may be dischargeable.

Rebuild your credit over time: It is not news that bankruptcy will affect your credit score. Bankruptcy will stay on your record for 10 years. It is important to note that if you cannot pay your debts, your credit may already be impacted. After you successfully file for bankruptcy, you can start rebuilding credit by paying your remaining and future bills on time. Many individuals who file for bankruptcy are able to secure credit soon after the filing.

To learn more about the bankruptcy process, simply read Attorney Velasco’s Complete Guide to NJ Bankruptcy.

Contact a Middlesex County Law Firm with Bankruptcy Experience

Do not let bankruptcy scare you. It may be your best option to handle the issues your face in the most effective way possible. If you need an attorney to ease your stress through the process of bankruptcy, contact Juan C. Velasco, Esq. The firm will guide you through your legal options and represent your needs through the bankruptcy process, protecting your rights. If you need a knowledgeable attorney for your bankruptcy needs, contact Velasco Law Office for a consultation.