I AM OVERWHELMED WITH MAKING OUTRAGEOUS CREDIT CARD AND PERSONAL LOAN PAYMENTS EACH MONTH. CAN YOU HELP ME?
Steven Taieb has seen so many clients who spent almost every penny they earn on making minimum payments on credit card debts and personal loans that they have no money left for food or prescriptions. To make things worse large personal loan payment are coming out of their bank account. In addition, the minimum payments they are making on their credit cards are not putting a dent into principal.
Mr. Taieb has helped numerous clients for the past 33 years get out of this nightmare scenario.
There are 2 options to help you get out of this debt trap. If you own no property or are current with mortgage and car payments with minimal equity, you are eligible for a Chapter 7, which helps honest people clean the slate and get a fresh start.
However, you have to make sure that you do not have too much property since the bankruptcy code only allows you to keep so much property under the exemptions. You must be careful since if you file Chapter 7 and exceed the bankruptcy exemptions, the Chapter 7 trustee will sell the non-exempt property or you have to buy the trustee out so he doesn’t sell your property. Mr. Taieb once represented clients that had over $30,000 in whole life insurance, which was above the exemptions. Thus, they had to buy out the trustee or they would have lost the life insurance.
Most of Mr. Taieb’s clients who are making substantial credit card payments each month have excess disposable income, which means without the credit card payments they have a surplus in their budget and would be unable to file Chapter 7 since it would be considered abuse.
Mr. Taieb has helped his clients get these creditors off their back and reduced many clients’ payments substantially. Every case is different, but some clients have reduced their monthly payments from $2,000 to $200 per month for a 3-5 year period.
Another important factor, besides non-exempt equity, is the Means Test. Fortunately New Jersey has one of the highest means tests in the country so a family of 4 can earn $118,000 and still be eligible to file a Chapter 7. However, if you are above the median income, you will be forced to file a Chapter 13 and your payment will be governed by Form 122-C, which involves means testing utilizing your income for the last 6 months, along with IRS guidelines.
However, except in situations where one has substantial income way above the median income, Mr. Taieb has helped a huge majority of his clients reduce their monthly payments substantially.
If you have any questions concerning this or any other matter, feel free to contact me at 856-235-4994.
Steven N. Taieb, Esq. is here to help you and is a South Jersey Bankruptcy Attorney who has helped over 7000 people with their financial problems for the past 33 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.
We are more than happy to discuss all your options and to see if bankruptcy is the best option for you.