Coping with Property Loss After Bankruptcy in New Jersey
Despite the best efforts of an experienced bankruptcy attorney, it is still very possible to lose certain types of property in connection with discharging debts in bankruptcy. In order to obtain the fresh start that bankruptcy provides, the trustee will liquidate valuable assets in order to satisfy creditors to the extent possible, and secured lenders retain their right to repossess collateral that secures a loan.
If you have lost a home or other assets that you worked a lifetime to accumulate, this can seem devastating. Although coping with property loss after bankruptcy in New Jersey can be difficult, by focusing on the future, it is possible for the debtor to move on to build a strong financial foundation and an experienced bankruptcy attorney could help.
Re-evaluating Debt After Bankruptcy
After losing property through bankruptcy in New Jersey, it is important to focus on re-building a sustainable financial future. For those who have managed to retain their homes, this means evaluating whether the mortgage payments will be manageable going forward, especially considering that it can be difficult to qualify for credit cards after bankruptcy.
Downsizing, even temporarily, can help many individuals re-build their finances. For business owners, lessening the burden of mortgage payments can help free up funds to re-build the business.
Focus on Saving for the Future
After emerging from bankruptcy, it is also important to focus on a savings plan for the future. Most individuals emerge from bankruptcy with their retirement savings intact, but these funds usually cannot be accessed before age 59 1/2 without penalty. Taking small steps to build various types of savings accounts can help the individual focus on future goals, such as maintaining an emergency fund, saving for education or even just a future vacation.
Importantly, in coping with property loss after bankruptcy in New Jersey, the individual should remember that savings will take time to accumulate. Focusing on the fact that bankruptcy provided a much-needed freedom from unmanageable debt can help many in their coping efforts, as can remembering that income can now be directed toward saving for the future, rather than making significant interest payments each month.
Seek Out Guidance and Advice After a New Jersey Bankruptcy
If you are coping with property loss after a bankruptcy in New Jersey, it can be valuable to seek out advice as to how to best proceed with re-building your finances.
New Jersey requires individuals to take a credit counseling class before their bankruptcy case can be discharged, and this class can provide a foundation for making strong financial decisions in the future.
If you lost your business in the bankruptcy, an attorney could also help you evaluate new business structures and opportunities so that you can get back on your feet again.