New Jersey Bankruptcy, Real Estate and Business Law Blog

Bankruptcy and Your Credit Rating

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Many people are afraid of what could happen to their credit scores if they file for bankruptcy. The three credit bureaus have financial information that scoring agencies take into account when creating your credit scores. Lenders use these credit scores (there are many types) to make decisions on whether to offer lines of credit to borrowers. There are many misconceptions about bankruptcy. There is a common misconception that bankruptcy permanently ruins your ability to access credit. This is not the case. If you are considering filing for bankruptcy, then worrying about credit scores should not be at the top of your priorities list. Protecting your assets and improving your immediate financial situation should be a greater priority. Are your properties at risk of being seized by creditors? Are your wages being garnished? If so, then you should know that waiting to file for bankruptcy could cause more damage to your…
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Why Are More Senior Citizens Applying for Bankruptcy?


Bankruptcy occurs when the “legal status of a person or other entity cannot repay debts to creditors.” In the U.S., filing for bankruptcy is usually a last resort for people after they have failed to pay off their debts. However, a recent study by the Social Science Research Network highlights a trend of bankruptcy increasing among older Americans. According to the study, the bankruptcy rate for senior citizens increased by 200 percent from 1991 to 2016. Why Are Senior Citizens Filing for Bankruptcy? Lower incomes, unaffordable health care costs and a national drop in pension fees contributed to this new trend. Although Medicare provides great coverage for senior health care, it is unable to cover everything. Medicare may not cover dental care, hearing aids, eye exams and other procedures. Medicare often requires copays, coinsurance, and other deductibles that can prove to be difficult to afford. Forty-one percent of the average…
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3 Common Workplace Problems and How to Resolve Them

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Businesses of all sizes often struggle to maintain a stress-free work environment. With so many different personalities and skills coming together to work on projects and assignments, there are bound to be disagreements. There are three main workplace problems that almost any company will come across. Read below to learn how you can resolve these common business problems. What Common Business Partnership Issues I Could Face? Priorities. One of the biggest sources of conflict in a workplace between business partners and coworkers is different priorities. Fifty-seven percent of employees believe there’s not a proper alignment on certain strategic objectives. In order to resolve this issue and reduce frustration in the workplace, employers should increase transparency on what is most important to the company. In other words, get everybody on the same page for ‘WHY’ they are working on a particular project. This way everyone can know what the top priority…
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Important Considerations When Drafting an Employee Contract

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While owning a business, contracts are a very important part of ensuring that your business runs smoothly. In order to avoid complicated lawsuits and other legal troubles, drafting an employee contract is crucial when you find someone perfect to work for you. Before making a new employee contract, you should consider a few things to include. Why Should I Draft an Employee Contract? First, it’s important to understand the many advantages of writing an employment contract, and it can benefit both the employer and employee. Employee contracts will help keep the employee at the company. Most contracts will specify a minimum length of time the employee has to commit to working, which can also give the employer enough time to find an appropriate replacement. Contracts also help to protect the confidential information of a new employee. They can also set performance standards and provide security for the employee. What Should…
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Understanding the Brunner Test for Student Loan Bankruptcies

Picture of bankruptcy (the dictionary project, macro shots, shallow D.O.F.)

According to Federal Reserve data, student loan debt has reached more than $1.5 trillion in the United States, with more than 44 million loan borrowers. Among those with student loan debt, 19 percent are behind on payments, up 5 percent since 2014. Now, student loan debt is the second highest consumer debt category behind mortgage debt. Even so, student loan debt continues to be one of the most difficult debts to get discharged in bankruptcy. Under the United States Bankruptcy Code, student loans are an exception to discharge. This means student loans are usually not exempt from personal liability when undergoing bankruptcy. However, if the debtor can prove that the loan repayment will cause “undue hardship” on the debtor and/or the debtor’s dependents, the student loans could be discharged without legal obligation to repay them. Because “undue hardship” is a subjective term and is undefined within the law, many courts…
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