Dubiln Packard

Financial Healing

Financial Healing

When financial stress becomes overwhelming, it's time to take action. We'll help you explore all your options and find the best thing to do first to alleviate your situation. Our experience covers everything from negotiating with creditors, stopping collections, helping get loan modifications, refinancing, closing on short sales or deeds-in-lieu, debt consolidation, second mortgages, and a host of other financial issues.

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Resources to help after bankruptcy

jumping-for-joyWhat you do after bankruptcy is as, or possibly more, important than the bankruptcy itself.  Bankruptcy may have gotten you out of debt or resolved a foreclosure but there are other things you should do after bankruptcy to get back on your feet like rebuilding your credit and perhaps resolve other issues in your life that may have gotten you into a tough financial situation.  Below are some resource sites you might find helpful.

 

Debt

Money Matters

The Federal Trade Commission’s Money Matters site contains advice and resources for those facing credit card debt.

www.ftc.gov/bcp/edu/microsites/moneymatters/dealing-with-debt.shtml

MyMoney.gov

MyMoney.gov is the U.S. government’s website dedicated to teaching all Americans the basics about financial education. MyMoney.gov provides links and resources regarding a wide range of financial issues, including managing debt and credit.

www.mymoney.gov

Federal Trade Commission

The FTC is the federal agency responsible for administering consumer protection laws. The FTC site offers consumers information about their rights with regard to debt collection and how to avoid scams related to debt and credit.

www.ftc.gov/bcp/menus/consumer/credit.shtm

Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau was founded to improve financial products and services for consumers. Their site provides easy-to-understand information about credit cards, home loans, student loans and banking.

www.consumerfinance.gov

Federal Student Aid on the Web

Federal Student Aid is an office of the U.S. Department of Education. This site provides information about repayment options for federal student loan borrowers, including Income Based Repayment, forbearance and deferment.

studentaid.ed.gov

Internal Revenue Service

If you owe back taxes, it is a good idea to contact the IRS in order to discuss your options. The following links can help you locate your local IRS office or contact a Taxpayer Advocate. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. It helps taxpayers who are experiencing economic hardship; taxpayers who are seeking help in resolving problems with the IRS; and those who believe an IRS system or procedure is not working as it should.

www.irs.gov/localcontacts/index.html

U.S. Department of Housing and Urban Development

This U.S. Department of Housing and Urban Development site provides information about renter/homebuyer rights, housing assistance programs, and assistance with home improvements.

www.hud.gov

Federal Trade Commission Mortgage Publications

The Federal Trade Commission has published two resources that are available for free online with advice to homeowners:

Defaulting on Your Mortgage Has Costly Consequences and Mortgage Servicing:
Making Sure Your Payments Count:
http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea17.pdf
Mortgage Servicing: Making Sure Your Payments Count:
http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea10.pdf

Making Home Affordable

The Making Home Affordable program assists homeowners in financial distress.

www.makinghomeaffordable.gov

Consumer Financial Protection Bureau

If you need to discuss your mortgage payment options, the Consumer Financial Protection Bureau can help you connect with a HUD-certified housing counselor.

www.consumerfinance.gov/mortgagehelp

Federal Trade Commission Money Matters

The Money Matters site contains useful information about the options available to homeowners facing foreclosure.

www.ftc.gov/bcp/edu/microsites/moneymatters/your-home.shtml

Health

Insure Kids Now

InsureKidsNow.gov provides information about Medicaid and CHIP services for families who need health insurance coverage.

www.insurekidsnow.gov

U.S. Department of Health and Human Services

The U.S. Department of Health and Human Services maintains HealthCare.gov, where you can learn about insurance, government health programs, prevention and wellness, and how health care reforms affect you.

www.healthcare.gov

Medicare

Learn more about Medicare, the federal health insurance program for people 65 and over, and people of any age who are permanently disabled and cannot work.

www.medicare.gov

Medicaid

Medicaid is health coverage available to certain people and families who have limited income and resources, such as pregnant women, children under the age of 19, people 65 and over, people who are blind, people who are disabled, and people who need nursing home care.

www.medicaid.gov

Utilities

Energy Star

The Environmental Protection Agency’s Energy Star site provides information about how to save money by making energy-efficient choices.

www.energystar.gov

U.S. Department of Energy

The Energy Saver site provides information about how to cut electricity, gas and water costs at your home.

www.energysavers.gov

Transportation

U.S. Department of Energy

The U.S. Department of Energy’s Fuel Economy site offers advice about how to cut down on gas costs, find a fuel-efficient car, and calculate your MPG.

www.fueleconomy.gov

GasBuddy.com

This website provides up-to-date information about where to find the cheapest gas prices in your neighborhood.

www.gasbuddy.com

Shopping

Federal Trade Commission

The FTC site provides tips and hints about smart shopping and how to avoid fraud and scams.

www.ftc.gov

Consumer Action Handbook

This handbook, published by the Federal Citizen Information Center, can be ordered for free and provides advice about how to make the best purchases when shopping for a car, home accessory, etc. In addition, it provides information about where to file a consumer complaint.

www.consumeraction.gov

Consumer Reports Magazine

Consumers Union, an independent, non-profit organization that tests consumer products and reports on their characteristics to consumers, publishes Consumer Reports Magazine and maintains the consumerreports.org website. This magazine and website provide useful product information to potential buyers, including product prices, usability ratings, safety ratings, and product characteristics. Consumer Reports covers practically all products, from cars to sewing machines.

www.consumerreports.org

USA.gov

This site consolidates useful consumer information from a wide range of federal agencies. Find their tips for saving money here.

http://www.usa.gov/topics/consumer/smart-shopping.shtml

Child Care

Childcare.gov

This site provides useful information for parents about finding child care in your area, choosing the right child care, and dealing with the cost of child care.

www.childcare.gov

U.S. Department of Education

The Department of Education’s site can guide parents to educational and child care resources in their state.

www2.ed.gov/about/contacts/state/index.html

Internal Revenue Service

The following link provides useful information about the Child and Dependent Care Credit, which can help to defray the cost of child care for working parents.

www.irs.gov/newsroom/article/0,,id=106189,00.html

Smoking/Gambling/Drinking

National Institutes of Health

Cutting back on activities like smoking, drinking and gambling can save a great deal of money over time. NIH offers advice and resources regarding alcohol use, nicotine use, and excessive gambling.

http://www.nlm.nih.gov/medlineplus/alcoholism.html

http://www.nlm.nih.gov/medlineplus/smoking.html

http://www.nlm.nih.gov/medlineplus/compulsivegambling.html

12-Step Programs

12-Step Programs like Nicotine Anonymous, Alcoholics Anonymous, and Gamblers Anonymous provide support and guidance for those who wish to control these habits.

www.aa.org

www.nicotine-anonymous.org

www.gamblersanonymous.org

 

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Get My Life Back

Get Your Life BackFinancial trauma be devastating, affecting your quality of life.

Medical emergency is the most common cause of financial trauma
Source: CNBC

Last year, there were 1,107,699 bankruptcy filings in the United States.
Source: uscourts.gov

Job loss is the second most common cause. As of the end of 2013, over 10 Million people were unemployed in the United States.
Source: Bureau of Labor Statistics

Credit scores are widely used for loans, insurance and employment applications.
Source: banking.about.com

Recovering from financial trauma takes time and effort – but it’s possible.

Step one – Communicate with your creditors

As long as it’s possible to continue to make payments, creditors are usually willing to renegotiate loans and maintain a constructive relationship with you.

Step two – Restructure your finances

Through debt consolidation, refinance of real property, loan or mortgage modification, debts can be restructured within a payment plan and paid off at a pace you can afford.

Step three – Stop all payments

What if you’ve lost your income, been unemployed for an extended period or become disabled? What if you’re unable to make payments, unable to qualify for loan modification or other creditor accommodation?

Bankruptcy is a legal means of wiping your debt while possibly keeping your home or other assets. Your debts can be discharged on the completion of bankruptcy.

Bankruptcy is not the end – it’s a new beginning.

Bankruptcy can have the unexpected effect of improving your credit score. Even after financial difficulty, there are many steps you can take to improve it.

Although some kinds of debt such as tax liabilities and student loans can’t be wiped completely in bankruptcy, terms can be modified and accommodations made with creditors in a manner consistent with your new circumstances. Even if you’ve become disabled, financial recovery is possible by obtaining disability assistance and restructuring your finances.

Never give up hope! Get to work on solutions to all of these problems.

Let us help.

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List of Approved Credit Counseling Agencies For New Jersey Bankruptcy

Approved Credit Counseling AgenciesOne of the requirements of filing personal bankruptcy in New Jersey is to complete two counseling or education courses.  These can be taken on-line or over the phone and take about twenty or thirty minutes to complete.  Below is a link to a list of approved credit counseling agencies for New Jersey Bankruptcy.

Click here for the List of Approved Credit Counseling Agencies For New Jersey Bankruptcy.

Why Do You Have To Take Credit Counseling Course For New Jersey Bankruptcy?

This requirement to file Bankruptcy in New Jersey came into effect as the result of a change in the US Bankruptcy Code in 2005.  Formally albeit somewhat misleadingly titled the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the law essentially made it more difficult for individuals to file bankruptcy.

When Do I Take the Credit Counseling Course For New Jersey Bankruptcy?

Two courses are required: one prior to filing and one prior to discharge.  Your New Jersey Bankruptcy Lawyer will advise you when to take the two courses and provide you with a provider from which to take the course.  The link above takes you to a list of Court-approved providers.

How Do I Take the Credit Counseling Course For New Jersey Bankruptcy?

Many of the providers make it easy to take the course on-line or by phone in the comfort of your own home.  If you don’t have your own computer at home, you can take it at work or at the library.

Be Wary of Misleading Mail Solicitations.

Providing these courses is big business for some providers as they seek not just to sell you their course but also many other products such as high-risk car loans, high-fee credit cards, and so-called credit repair services.  Your mail box will fill up quickly immediately after you file with mis-leading letters and offers to these and other services.  You just took a very important step to clear your credit of nagging debts, be extremely careful before you  get yourself into new debts.  Most of these offers are risky at best.

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What Are Median Income and Means Tests?

What are median income and means tests?  These are two different tests used to figure out if you can file for bankruptcy.  Let’s review them one at a time:

The Median Income Test:  This test  is used when your debt is NOT business debt, and is mostly consumer debt.  To find your median income, you add your total monthly income for the past 6 months and divide it by 6.  Then, you compare it to the current median income figures for the same state and family size as yours, published on the U.S. Trustee website (insert link).  If your income is below this number, you can file for bankruptcy.  An attorney can advise you if filing for Chapter 7 or Chapter 13 is best for you.  If your income is more than the published median income for a family size similar to yours in your state, then you must do the Means Test.

The Means Test:  This test is used when your average monthly income is more than the median income for your state published on the U.S. Trustee website.   A lawyer can help you calculate this test.  The Means Test determines if you have money leftover at the end of the month, which affects whether or not you can file for bankruptcy.  With this test you calculate how much money you are bringing in, then subtract your expenses. The problem with this test is that you must use the published IRS numbers for your expenses, like food and transportation.  Sometimes those numbers aren’t the same as what you are actually spending.  Also, you can’t include student loans or retirement account loans when calculating a means test.The means test can show that you have money left over at the end of the month to pay your bills when in reality you don’t.

Speaking with an experienced bankruptcy lawyer can help you figure out where you stand on both types of tests, and help you figure out if you qualify for bankruptcy and if that is the best option for you.

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Medical Debt: I Need Help!

Medical debt can quickly become a nightmare, especially if you don’t have health insurance.  Sometimes filing for bankruptcy can help if your medical debt is so much that you can’t afford to pay it.

Two years ago, Tracy ended up in the emergency room of her local hospital after falling off a ladder when she was painting her kitchen.  She had broken two ribs.  She didn’t have health insurance, but figured the cost wouldn’t be astronomically high – she and her husband would figure out a way to pay it off.  Life happens, right?

She didn’t expect the bills to run over $25,000.00.  She filed for state-funded Medicaid, but was told her husband makes too much money for her to qualify.  She filed for the local hospital’s “Charity Care” program, but was told the same – she didn’t qualify because she and her husband make “too much money.”

Tracy’s husband manages a restaurant.  He makes just under $60,000 per year.  Tracy stays home with their baby daughter.  After their $1,300 per month mortgage payment, 2 car payments, car insurance costs, utility bills, and she and her husband’s maxed-out credit card bills, there’s barely enough money left at the end of the month to buy food.  Tracy couldn’t believe these people were telling her they make “too much money.”

Tracy consulted with a lawyer she knew to try and get the hospital to forgive the debt.  Her lawyer pleaded with the billing company, asking them to consider the fact that they just didn’t have enough money to even make small payments toward the $25,000 medical debt.  The hospital refused to make any accommodations.  Tracy refused to pay a dime toward the debt, because she felt they should understand her situation.  But the bills kept coming, and eventually she started getting calls and letters from collection agencies.  Because the debt had gone to collection, her personal credit score was now trashed.  She had been responsible her entire life, now because of some inflated medical costs she couldn’t afford, everything she had worked for was in question.

Tracy called a NJ bankruptcy lawyer and learned that if she filed for bankruptcy, she could get ALL of the medical debt and her credit card debt forgiven at the end of the bankruptcy program.  Her lawyer worked with her to come up with a plan, based on her household income, so that she can continue to make her car and mortgage payments on time, and still afford to buy food and pay her utilities.  She stopped paying her unsecured debt (medical and credit card debt), and at the end of the bankruptcy plan the $25,000.00  medical costs and her credit card bills were dismissed.

What had been a nightmare was finally resolved.  Tracy could get back to living a normal life.  Filing for bankruptcy isn’t a quick fix and isn’t supposed to be overused, but in Tracy’s case it was a valid solution to her problems.