Bankruptcy Individual Debt

Written and Verified by Ralph A. Ferro, Jr., Esq.

Bankruptcy Individual Debt is tied to bankruptcy. It is clear that individual debt is rising and is almost out of control.

There is a tremendous debt outstanding by individuals in the U.S. For example, as of September 2020, there was 21.0 trillion debt by the public.

As of Sept. 30, 2020, the federal debt was $26.9 trillion—up to $4.2 trillion from last year, due largely to the government’s COVID-19 response as audited by the GOA (https://www.gao.gov/products/GAO-21-124#:~:text=30%2C%202020%2C%20the%20federal%20debt,the%20money%20for%20federal%20operations.)

With COVID-19, unemployment, and the ending of loan forgiveness, individuals are facing increased pressure to get further into debt. Although the number of bankruptcy filings in NJ is decreasing, debt is rising. Below are just a few reasons many are holding off filing for bankruptcy:

Evictions are on hold.
Loan forgiveness
Cares act payments
NJ Foreclosures are on hold: https://nj.gov/governor/news/news/562020/approved/20201024a.shtml#:~:text=do%20exactly%20that.%E2%80%9D-,Executive%20Order%20No.,by%20the%20COVID%2D19%20outbreak
Extended unemployment payments

When the COVID-19 crisis comes close to herd immunity, many will find themselves deeper in debt.

Timing of getting rid of your individual debt is key in evaluating when to file NJ Bankruptcy.

If you are currently earning less, you can benefit from filing bankruptcy for your individual debts. Most individual’s income is lower at this time. That factor is key in bankruptcy law. In bankruptcy, the last 6 months of your income are considered. That may be the lowest income and will help you qualify for Bankruptcy.

Individual debt is rising and, as a bankruptcy lawyer, I urge you to evaluate whether now is the best time for you to file Chapter 7, Chapter 11, or Chapter 13 bankruptcy.