Legal Representation for Northern New Jersey

The Law Office of Philip B. Vinick will take the time to understand your legal issues, your values and your goals. We can offer a variety of legal options to protect your interests while promoting your success. Learn More...

Get Help When Debt Spirals Out of Control

If your debt is spiraling out of control, you have choices that need to be made. You may believe your situation is temporary, and before you know it, you'll be back on your financial feet and the problems will go away. If the reason for your financial woes, however, is the downturn of the economy, the loss of a job, or additional medical expenses, these problems may not go away rapidly, and you'll need to come up with a plan.

The first thing is not to put off the inevitable. The longer you wait to address your financial problems, the worse your position will be. You need to take a long, hard look at your income, your bills, and your spending, and develop a plan of attack.

If your income is less than your monthly bills, filing bankruptcy may be the solution that is right for you. If you have lost your job, are not making enough to keep up with the rising cost of living, or if you are having trouble making your mortgage payment, bankruptcy may be a better option than trying to hang on week-to-week and month-to-month.

Whether bankruptcy is right for you depends upon the type of debt you owe. Some debt is not discharged through bankruptcy proceedings. This includes student loans, debt owed to the government, and tax debts. Thus, if the only reason you can't make ends meet is because your student loan payment is too high, bankruptcy might not be the solution.

There are alternatives to bankruptcy that can help you get out of debt. If your problem is high-interest credit card debt, finding a lower-interest card and doing a balance transfer may help to solve it, as long as you do not charge the cards back up after you transfer them.

Getting Help

Regardless of the reasons that you are having financial trouble and how you ultimately resolve it, it's important to come up with a plan sooner rather than later, as the further behind you get, the harder it will be to solve. Speaking with an attorney can be an important step in assessing your financial situation and determining which path is right for you.