Have you ever made a big purchase and thought it was a big investment? Maybe you decided to build equity by owning a home, or you saw an advantage to owning a second home. Perhaps you thought owning a car would give you convenience and independence for years down the road.
But then, the bills started to pile up and now you’re overwhelmed with debt. You need to get out of debt but might not know your options. If you’re in New Jersey, the following are five debt relief options.
1) Strip off your second mortgage. If your first mortgage balance is higher than the value of your real estate, you may be able to “strip off” any mortgage that you can classify as wholly unsecured debt. Learn more here.
2) Cramdown your car loan. If you’ve owned your car fewer than two-and-a-half years and its worth is less than the amount you owe, you can reduce the debt to the value of your car.
3) Loan discharge with Chapter 7 bankruptcy. Learn more here.
4) Modify your loans, possibly with a loan extension. This depends on your mortgage company’s voluntary participation in the federal government’s loan modification program. Learn more here.
5) Seek a short sale. Your lender or mortgage company might agree to accept less money than the outstanding mortgage to satisfy a debt. Learn more here.
This article should not be taken as legal advice. If you’re considering bankruptcy or another legal debt relief option, you need to consult an attorney for guidance. If you’re in New Jersey and seeking legal assistance, we can help you.
Brenner Spiller & Archer is a New Jersey law firm that is dedicated to helping families find relief from the burden of debt and other financial woes. For more than 35 years, our bankruptcy lawyers have provided effective guidance on all debt relief matters to clients throughout Central and South Jersey.
