The decision to file for bankruptcy is and should be a decision that is carefully considered. There are very real consequences to bankrupted your debt to your creditors. One of those consequences is the inability for you to get additional credit in the near future. This, sometimes, may actually be a benefit and not a consequence. The other consequence is that you will most likely lose most of the assets you own when you file bankruptcy. A bankruptcy lawyer in Ocean County is the best person to discuss your situation, but in most cases, a Chapter 7 bankruptcy will mean you will most likely end up losing your home as well as your vehicles.
There are strategies to keep these assets after you file bankruptcy, however. If you live in a home that you do not want to lose, you can work with your mortgage company to apply for a loan modification. Yes, you can get a modification after a Chapter 7 bankruptcy. It sounds odd that you can modify a mortgage loan of which you are no longer liable, but mortgage companies will allow you to change the terms of a mortgage and allow you pay on that mortgage without being forced to being liable for that mortgage debt. Discuss this strategy with your bankruptcy lawyer in Ocean County on whether bankrupting your mortgage debt and then trying to keep your home is right for you.
Another strategy a good bankruptcy lawyer in Ocean County will discuss with you is bankrupting your debt to you auto lender so that you are no longer liable for the debt but then continuing to pay the monthly car or truck payments for as long as the vehicle serves your needs. Most lenders will not repossess the vehicle as long as you do not go more than 2 payments late. To be clear, a bank does not want another car on their books that they have to auction. They would rather get your payments every month until the bankrupted debt is paid off. You could offer to settle the debt with them after bankruptcy with a lump sum payment, but they will more than likely decline you because of the losses they have already incurred through the bankruptcy.
Since you no longer are liable for either the mortgage debt or the vehicle debt, you can walk away from both at any time post-bankruptcy without further harm to you financially. For the lender, their only recourse for their loss is the actual asset itself, i.e. the house or the vehicle. But as long as you are either working with them on a modification or paying on an auto payment, they will most likely not take back that asset.
If you are looking for experienced bankruptcy lawyer in Ocean County, NJ. Visit The Law Offices Of Lee D. Gottesman for your relative needs.
