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Fight Collection Abuse

The Fair Debt Collection Practices Act helps protect consumers and fight collection abuse.  New Jersey bankruptcy firm Todd Murphy Law can help protect you from questionable or harassing debt collection practices.

The Fair Debt Collection Practices Act (FDCPA) prohibits the debt collector from contacting a third party (someone who has information about you) if they know that you are represented by a lawyer.  If you do not have a bankruptcy lawyer, the debt collector can only contact third parties to locate you.  Your New Jersey bankruptcy lawyer will inform your debt collectors that he/she is representing you.

A debt collector must inform you in every communication they have with you that the communication is from a debt collector.  The debt collector is required to send you a dispute/verification invitation within five days of their first contact with you.  If you submit a dispute within 30 days, the debt collector must stop trying to collect until the debt is verified.

Telephone calls from a debt collector to you must only occur between 8:00am and 9:00pm.  They cannot call you at work if there is an employer policy against such types of calls.

A debt collector must not harass, oppress, or abuse a consumer.  This is not well defined in the law, however, and is left to the courts to decide.  If there is abuse, try to record abusive collection language when you hear it, and keep a record of the calls in writing what took place and how it made you feel.  The more proof of the abuse you have the better, as it can be difficult to convince a judge or jury that abuse took place.

Debt collectors are not permitted to use false or misleading information to collect a debt, and may not collect more than what is owed.

If a debt collector violates any part of the FDCPA, you may be able to recover actual damages, $1000 in statutory penalties, and attorney fees.

We’re here to help protect against collection abuse practices. If you’re abused by a collector, contact an attorney immediately.

Call Todd Murphy Law today for a free consultation.

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Can Bankruptcy Stop A Foreclosure?

Yes – in many cases.

Bankruptcy is a very smart choice for most individuals who are having trouble with too much debt. It is a government sanctioned program designed to help you while giving you every protection available under the law.

One benefit of filing for Chapter 13 bankruptcy is that it can stop foreclosure.  Chapter 13 bankruptcy can even stop a foreclosure on the night before it is scheduled to happen.

Each foreclosure situation is different, so speaking to a New Jersey bankruptcy lawyer is the best way to determine if filing for bankruptcy is the best way for you to prevent foreclosure of your home.  Chapter 13 bankruptcy is designed to help you reorganize your finances, and in the process can help stop a scheduled foreclosure.

 

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Top 5 Reasons People File Bankruptcy

There many reasons people file bankruptcy.  Here are the Top 5 reasons people file bankruptcy.

1. Medical Expenses.

One of the biggest reasons people file bankruptcy is for medical expenses. A study done a few years ago at Harvard University indicates that this is the biggest cause of bankruptcy, representing 62% of all personal bankruptcies. It is interesting to note the study shows that 78% of filers had some form of health insurance.

Rare or serious diseases or injuries can easily result in hundreds of thousands of dollars in medical bills – bills that can quickly wipe out savings and retirement accounts, college education funds and home equity. Once these have been exhausted, bankruptcy may be the only shelter left, regardless of whether the patient or his or her family was able to apply health coverage to a portion of the bill or not.

2. Job Loss.

Another very significant reason people file bankruptcy is due to job loss.  Whether due to layoff, termination or resignation, the loss of income from a job can be devastating. Some are lucky enough to receive severance packages, but many find pink slips on their desks or lockers with little or no prior notice. Not having an emergency fund to draw from only worsens this situation, and using credit cards to pay bills can be disastrous. This isn’t just something for the low-wage worker.  A middle class family with a $3000 p/mn mortgage, two car payments of $300 each along with all of the regular day-to-day expenses won’t last long without a steady income – even with some savings.  Bankruptcy can put debts on ice giving you time to find a job and keep your family from having to live on the street.

The loss of insurance coverage and the cost of COBRA insurance also drain the job seeker’s already limited resources. Those who are unable to find similar gainful employment for an extended period of time may not be able to recover from the lack of income in time to keep the creditors at bay.

3. Mismanagement of Credit.

A third reason people file bankruptcy is due to mismanagement of credit.  Some people simply can’t control their spending. But credit card companies make it worse by giving easy credit and increasing limits when they see heavy use.  Credit card bills, installment debt, car and other loan payments can eventually spiral out of control, until finally the borrower is unable to make even the minimum payment on each type of debt. And, even if the borrower made the minimum payments, at the high interest rates credit card companies charge, once the balance gets high, the minimum payments don’t even cover the monthly interest digging the borrower deep into a hole. If the borrower cannot access funds from friends or family or otherwise obtain a debt-consolidation loan, then bankruptcy is usually the inevitable alternative.

Debt-consolidation and home equity loans make it worse.

Statistics indicate that most debt-consolidation plans fail for various reasons, and usually only delay filing for most participants. Home-equity loans make things worse by turning unsecured debt into secure debt putting your home at risk of foreclosure on their homes if they are unable to make this payment as well.

Borrowing from 401k and pensions is wrong.

Some people, in an effort to “do the right thing” and pay debts, resort to raiding thee own retirement accounts.  DO NOT. Many people are unaware that funds in retirement savings are protected in bankruptcy allowing you to get rid of the bad debts but keep your hard-earned retirement savings that you will not be able to replace.

4. Divorce or Separation.

Another reason people file bankruptcy is after divorce or separation. Marital dissolutions create tremendous financial strain on both partners in several ways. First come the legal fees, which can be astronomical in some cases, followed by a division of marital assets, decree of child support and/or alimony, and finally the ongoing cost of keeping up two separate households after the split. The legal costs alone are enough to force some to file, while wage garnishments to cover back child support or alimony can strip others of the ability to pay the rest of their bills. Spouses who fail to pay the support dictated in the agreement often leave the other completely destitute.

5. Unexpected Expenses.

Loss of property due to theft or casualty, such as earthquakes, floods or tornadoes for which the owner is not insured can force some into bankruptcy. Many homeowners are likely unaware that they must take out separate coverage for certain events such as earthquakes. Those who do not have coverage for this type of peril can face the loss of not only their homes but most or all of their possessions as well. Not only must they then pay to replace these items, but they must also find immediate food and shelter in the meantime. Furthermore, those who lose their wardrobes in such a catastrophe may not be able to dress appropriately for their work, which could cost them their jobs.

If you have debts that are out of control, don’t do anything until you understand all there is to know about bankruptcy.  It is a federal law that is designed to help you.  It is not wrong to file bankruptcy.

 

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How Much Does It Cost To File Bankruptcy?

How much does it cost to file bankruptcy? That’s an important question I get every day.

 Our Fees Are Very Affordable.

Click Here For Our Current Pricing for Chapter 7 and Chapter 13 Bankruptcy.

 What Do We Charge For Chapter 7 Bankruptcy?

We charge a fixed fee for Chapter 7 Bankruptcy which includes all Court costs and expenses. We include the cost of taking the on-line counseling courses and the costs to run a credit report. The fee has to be paid (or all of your payments must be made) before filing your case.  Click Here For Chapter 7 Bankruptcy Cost.

What Do We Charge For Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy is quite a bit more work which can go on for months or even years.  But, the good news is—you don’t have to pay the fee in advance. Click Here For Chapter 13  Bankruptcy Cost.

Do you Offer Payment Plans?

Yes we do.  That’s the most common question we get when we are talking to someone about filing bankruptcy.  We understand finding the money to file is one of the biggest problems for most people.  We help by offering payment plans starting for as little as $100.

Where Do I Find The Money?

Most people simply don’t have the money when they need it.  Many times people are still making credit card payments or other payments to accounts that are going to be discharged in bankruptcy.  Once you decide you are going to file, any further money you pay a creditor is wasted money.  You are better off paying that amount toward your payment plan for our fees and put yourself in a position to file as soon as possible.  If you are already not making any payments,  a common approach is to borrow from friends and family at least some of the money to file.

 Recent Changes to the Bankruptcy Laws Made it More Expensive.

Since the Bankruptcy laws were amended in 2005, it has become more expensive to file bankruptcy.  The laws were designed (through extensive lobbying by credit card companies) to make it harder for many to discharge their debts through bankruptcy.

What’s the Average Cost To File Bankruptcy Nationwide?

The average cost to file for Chapter 7 bankruptcy protection, the most common form of consumer bankruptcy, is more than $1,500, according to recent research submitted to the National Bureau of Economic Research.

 How Do I Come Up With The Money To Pay For Bankruptcy?

Many people can stop paying their credit cards once they have made the decision to file bankruptcy.  This often frees up enough money to make payments for the attorney fee and Court costs.  Other people have to rely on friends or family to give them the money.  Still others wait until they receive their tax refund as a way to fund the cost.

The research submitted to the National Bureau of Economic Research, conducted by a group of professors from Columbia University, the University of Chicago and Washington University in St. Louis, examined how bankruptcy filings spiked after people received their tax rebates from previous years.They estimate that another 200,000 consumers, who would otherwise not have enough money to file, will use their tax refunds to pay for bankruptcy this year.

 Too Broke To File Bankruptcy?

In an article on CNNMoney, Jialan Wang, co-author of the report said: “For lots of people, bankruptcy has been taken off the table as an option because of the severe fees involved.”

Among those fees is a charge of about $300 just for filing the paperwork with the federal court, while the rest typically goes to bankruptcy lawyers, said Wang.

And there are other expenses on top of that, including fees for mandatory pre-bankruptcy credit counseling and a pre-discharge debtor education course. These average about $85 altogether, according to a recent study sponsored by the American Bankruptcy Institute.

That means many of the Americans who have seen their debt snowball out of control due to events like job loss, foreclosure or a medical emergency during the economic downturn are now left without their last financial lifeline, she said.

Todd Murphy is a bankruptcy lawyer with offices in Bedminster, NJ.  Call now! 862-217-2361

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Bankruptcy Basics Videos

This series of videos entitled Bankruptcy Basics is a great resource.

The US Bankruptcy Court has produced a series of nine videos which are useful in helping you understand bankruptcy and whether or not it is right for you.  They really are great.  Take the time to view all nine videos.  Click on the image below to go directly to the US Bankruptcy Court Website.

Bankruptcy Basics Videos Bankruptcy Basics Videos

Bankruptcy, whether its right for you, which Chapter to file, or whether or not to file are all tough questions.  These videos can help.  After you watch the videos, feel free to call Todd Murphy to discuss your specific situation further.

Call 800-285-1925.

We are here to help.

We are located in Bedminster, NJ.  Easily accessible by car, bus or train.  We serve: Essex County, Hudson County, and Union County. In Essex County: Belleville, Bloomfield, Caldwell, Cedar Grove, Orange, East Orange, Glen Ridge, Irvington, Maplewood, Montclair, Newark, North Caldwell, Nutley, South Orange, Verona, and West Orange.  In Hudson County: Bayonne, Jersey City, Hoboken, Union City, West New York, Guttenberg, Secaucus, Kearny, Harrison, North Bergen, Weehawken.  In Union County: Fanwood, Garwood, Kenilworth, Mountainside, New Providence, Roselle Park, Roselle, Elizabeth, Linden, Plainfield, Rahway, Summit, Westfield, Berkeley Heights, Clark, Cranford, Hillside, Scotch Plains, Springfield, Union.