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Why You Should Not Wait to File for Bankruptcy

Are you affected financially by the coronavirus?

Many people think that because we are facing a horrible pandemic with the coronavirus, that there is nothing to worry about with their creditors.

The governor in New Jersey has put a three-month forbearance on mortgage payments through June, 2020 and certain eviction proceedings are temporarily on halt.

Also, under the CARES act, federally backed mortgage companies are prevented from foreclosure for 60 days from the date of the legislation, which was March 27, 2020. You can apply for forebearance on your mortgage for 180 days and then if the lender approves it, another 180 days.

Debts Are Not Forgiven

However, these debts are not FORGIVEN. Also, courts are still operating remotely, so a creditor can still get a judgment against you. This means that even if a constable may not execute now (which we do not know for sure), a judgment is still good for twenty years.

Also, there is no legislation that prevents repossessions, and in the third circuit, which covers New Jersey, it is very difficult to get back a vehicle after it has been repossessed.

Take Advantage and File Bankruptcy Now

If you have incurred bills or are behind on any payments from medical problems, loss of employment, cut in hours, divorce or any other reason (especially the coronavirus), it would be beneficial to file a bankruptcy petition now since the numbers on the means test have increased, which makes it easier to file a chapter 7 or eliminate unsecured creditors in chapter 13.

Also, there are many benefits from the CARES act, which have added amendments that are beneficial to hardworking people who have suffered financially due to circumstances outside of their control.

Because of this crisis, you should take advantage now and protect your property since these debts are only stalled for a short period of time-NOT FORGIVEN.

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Steven N. Taieb, Esquire has been a South Jersey bankruptcy attorney for 35 years and is board certified in consumer bankruptcy law by the American Board of Certification which is accredited by the American Bar Association.

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