Can a NJ Bankruptcy Forgive Gender Reassignment Surgery Debts?

NJ Bankruptcy

Bankruptcy is one of the more maligned aspects of the law. Unfortunately, some people feel like bankruptcy means they are a financial failure. But the truth is that bankruptcy can be a true lifeline when all other options have been exhausted. People on the brink or already in financial ruin can be given a clean slate and a chance to start over.

One specific group of the population for whom mounting debt is a real problem are those undergoing gender reassignment surgery. In some cases in NJ, gender reassignment surgery can be covered by health insurance when deemed medically necessary. However, even if a patient’s plan does cover the surgery, the costs can still be overwhelming. The process can span over a few years, and includes ongoing treatment including hormone therapy. Many gender reassignments require multiple procedures and/or surgeries as well.

Many aspects of a person’s transformation are considered “cosmetic” by health insurance companies and are therefore not covered. Some of these include voice alteration, jaw reduction, chin implants, hair removal, lip reduction, pectoral implants, and more. The costs can quickly spiral out of control. Medical bills can easily cripple your finances and declaring bankruptcy may be the only viable solution.

 

What Chapter Is Right for You?

It’s important to have a lawyer on your side who can help you navigate the confusing differences in the various bankruptcy filings. Veitengruber Law can guide you through the process of determining which chapter will be right for you and your future financial health.

Individuals can file for New Jersey bankruptcy in one of two ways: Chapter 7 or Chapter 13. There are important differentiations between these two types of bankruptcy and it’s important to choose the right one for your unique situation. If the medical bills from gender reassignment surgery are your chief debt, you can find relief through debt discharge in both of these filings.

 

The First Step

Before any individual may file for either Chapter 7 or Chapter 13 bankruptcy, they must receive credit counseling from an approved non-profit counseling agency within 180 days.  Veitengruber Law can assist you in this process. We can help you choose an agency that qualifies, that will work with you on the fees if necessary, and that will be the most beneficial for your financial education. The main objectives to the credit counseling are to instruct you on how to remedy your current poor finances and how to achieve and maintain financial health.

It is entirely possible after credit counseling to discover that filing for bankruptcy isn’t actually necessary for your situation. You may be able to work out payment plan(s) or pay negotiated sums to pay off your medical debts. In addition to your medical debts, you can naturally include other non-medical debts within the same bankruptcy. Some creditors will be more willing to accept reduced balances if they are aware that you are beginning bankruptcy procedures. To them, a portion of repayment is better than discharged debt, which will mean they end up with no payment at all. If, however, you are unable to come to a solution after attempted negotiations, bankruptcy may in fact be the best course of action.

 

Chapter 7

If you don’t own property or many assets, this may be the course for you. In Chapter 7 cases, the debtor’s assets are given to a trustee who sells them off to pay your creditors. Certain personal property is considered exempt, however it is important to know the rules specific to your state. There is a list of federal property exemptions and NJ state exemptions. You can choose which list you are going to use, but you cannot use both. That is why consulting with a local bankruptcy attorney can be the difference in saving thousands of dollars of lost property. If you have no personal property to liquidate, it can still be possible for you to file for Chapter 7 with the help of an experience New Jersey bankruptcy attorney.

After your assets are liquidated and creditors paid based on priority, the remainder of your debts will be discharged – with certain exceptions – like student loan debt.

 

Chapter 13

Chapter 13 bankruptcy is that it gives the debtor a chance to reorganize. The petitioner must file a plan of repayment to creditors that will usually take place over a period of three to five years. After the repayment period ends, the debtor will receive a discharge of the remaining debts. The key difference between Chapter 7 and Chapter 13 bankruptcy is that in Chapter 13, the debtor remains in possession of their assets. If you own a home or other property, you will want to consider Chapter 13. This is another situation in which a knowledgeable bankruptcy attorney like George Veitengruber is invaluable, because he can guide you to the type of bankruptcy that will be most beneficial for your situation.

 

Post-petition Debts

From the date that you file your claim, any additional debts you incur will not be included in your bankruptcy case. This can be a major consideration in your decision to file if you are trying to clear debts from gender reassignment surgery. Medical bills can be extremely slow to process. Each doctor’s office must bill medical insurance, wait for the claim to process, receive the claim, and then bill the patient. It can be weeks or months from the date of a procedure to when you receive the bill. If you are accumulating debt from multiple procedures, you may want to wait until after you have been billed for all of your procedures and appointments before filing. When you file your bankruptcy claim you will be required to provide a detailed list of all the creditors and amounts due. Any debts that are incurred after the date your petition is filed, will not be discharged and you will be responsible for paying them back.

Undergoing a major transformation like gender reassignment is a life-changing experience. If you need to go through bankruptcy proceedings, don’t be intimidated.  George Veitengruber is an experienced attorney who can guide you through the process every step of the way: seeking credit counseling, negotiating credit balances, choosing the right chapter, maximizing your property exemptions, minimizing your post-petition debts, and making sure much of your debts are discharged, including medical debt from gender reassignment surgery.

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Filing for Bankruptcy in NJ = Finding Financial Freedom!

filing for bankruptcy in NJ

If you find yourself facing unmanageable debt from credit card bills, loans, medical expenses or a variety of other potential issues, bankruptcy can provide a path towards a brighter financial future. Filing for bankruptcy in NJ can be an excellent way to take control over your finances and make the process of repaying your debts much more affordable. Unfortunately, despite the many benefits of filing for bankruptcy, many people are hesitant to file when they should. Some debtors feel a sense of failure or shame in filing for bankruptcy and wait years to file, while their financial situation becomes more unmanageable in the process. This delayed filing can be disastrous for your financial future.

A recent study by the Consumer Bankruptcy Project (CBR) found that nearly two-thirds of those who eventually file for bankruptcy report struggling under the weight of their debt for two or more years before filing. The study found that most people are filing for bankruptcy only after years of significant financial hardship. This period of time is commonly referred to as “the sweatbox.” While in the sweatbox, debtors are constantly bombarded by debt collectors, face the threat of losing their homes, and many even experience wage garnishment. Debtors in the sweatbox can find themselves in lawsuits over unpaid debt and may even be unable to pay for basic needs like food and electricity. Often times, these financial situations could have been avoided by filing for bankruptcy earlier.

When we meet with clients in the sweatbox, they almost always wish they had talked to us sooner. Often, those who wait to file for NJ bankruptcy do so with fewer assets and a much higher debt-to-income ratio than those who file earlier. Essentially, the longer you wait to file, the worse your financial situation is likely to be. On top of this, the stress and uncertainty of struggling through years of unmanageable debt will take a very real emotional and mental toll on anyone. And yet, many of our clients who finally file for bankruptcy long after the pros greatly outweigh the cons still express feelings of failure and shame.

At Veitengruber Law, our goal is to help people see bankruptcy as an opportunity for positive financial change—not as the end of the line. We work with our clients to dispel some of the prevailing myths about bankruptcy. We know that many of our clients face bankruptcy due to a number of circumstances outside of their control. Loss of employment or underemployment, divorce, medical expenses, and student loan debt are some of the most common obstacles to financial security that our clients face. We understand that no two clients are the same, which is why our debt relief solutions are created to fit your particular needs and goals. Bankruptcy is just one of the many tools we can help clients use to restore financial health.

Struggling through years living under the enormous weight of crushing debt is not a measure of personal integrity, nor is it financially advisable. Waiting too long to file for bankruptcy can put your financial security at greater risk. Don’t spend years struggling in the sweatbox. Veitengruber Law’s holistic approach to debt management and bankruptcy strategies will ensure that you receive personalized service for your specific needs. Filing for bankruptcy can be an intimidating process, but you do not have to do it alone, and working with us will not put you further in debt. Don’t wait until it’s too late.

When you call us for your free consultation, we will answer any questions you have and help you decide if bankruptcy is the right choice for your circumstances. If bankruptcy is not the right option for you, we will offer you alternative solutions that are viable in your specific situation. No risk – no obligation. We’re here to help!

Image: “FREEDOM!” by Gonzalo Baeza – licensed under CC by 4.0

5 Mistakes to Avoid After NJ Bankruptcy

NJ bankruptcy

After your NJ bankruptcy, a common concern is how to re-establish your credit score. The real challenge is creating new financial habits so you don’t find yourself back in the same hole all over again. At Veitengruber Law, our holistic approach to financial health means our job doesn’t end after the bankruptcy is closed. We work with you to repair your credit and create healthier financial habits.

 

Top Mistakes to Avoid After a Bankruptcy Discharge:

 

1 – Ignoring your credit report

When rebuilding your credit subsequent to a bankruptcy discharge or reorganization, you will want to be very attentive to your credit report. Your creditors are supposed to report any discharged debts included in the bankruptcy to the credit bureaus. These reports should show a zero balance and include a note indicating the debt has been discharged. It is crucial to follow-up on this and ensure that all creditors are reporting to credit bureaus correctly. If discharged debt is being wrongly reported—as either a charge-off or an open account—late or missed payments can continue to show up on your credit. This can further damage your score and make it more difficult for you to get new credit.

2 – Applying for multiple new credit lines

It can be tempting after bankruptcy to rush out and apply for a gaggle of credit cards or loans in an attempt to quickly repair credit. However, it is important to give your credit score time to rebound before applying for new credit. The impact of a bankruptcy is strongest in the first year after filing, although it can stay on (and affect) your credit report for up to ten years. Instead of rushing into opening several credit lines at once, be patient and take the time to research your best options.

3 – Failing to read the fine print

When you do start applying for credit cards, it is important to remember that not all credit cards are created equally. Some credit cards will be more helpful to those rebuilding post-bankruptcy. A secured card, for instance, allows you to deposit cash as collateral up front to create a line of credit. That way, you are not able to charge more than your initial deposit. With any card you choose, it is important to read the fine print of your terms to make sure the card will work in your favor.

4 – Falling for credit repair scams

Many unethical “credit repair companies” make big promises about performing miracles to improve credit scores, but they rarely ever deliver the results promised. These companies rely on misinformation to scam those that don’t know much about how credit works. Some of their tactics may even be illegal. Keep in mind that if something seems too good to be true, it probably is.

5 – Making things too complicated

Ultimately, when it comes to rebuilding your credit after bankruptcy, you need to go back to the basics. What bad habits caused you to file for bankruptcy in the first place? An unflinching assessment of your spending habits will help you determine which factors led to the bankruptcy and determine where you need to make changes. Figure out what your credit-bingeing triggers are and work toward setting spending limits for yourself. Simple things like making on time payments, keeping debt to a minimum, and sticking to a healthy budget are excellent foundations of any financial strategy and will get you on the road to financial health quickly.

You’ve been through the hard-fought financial battle of bankruptcy and come out victorious on the other side. Now is the time to think positively about your financial future. Rebuilding your credit after bankruptcy takes time and patience, but you can use the knowledge and financial savvy you’ve learned along the way to move forward to a brighter future. Veitengruber Law is here to help. We are skilled in advising clients and creating easy-to-follow strategies to rebuild credit. Call for your free consultation today.

Seeking Legal Counsel When You’re Out of Money and Out of Time

nj bankruptcy attorney

 

You have reached that critical point; you can no longer keep up with your bills. You might have a mountain of credit card debt, a house going into foreclosure, a looming sheriff sale on your property, shut off notices for services, a garnishment or repossession on a vehicle, or all of the above! Perhaps you are considering bankruptcy. The point is that you need the help of a legal professional. You need it done well, you need it now, AND you need to find a way to pay for it.

 

How Can You Afford It? (How Can You Not??)

You’re going to have to spend money to save money.  HOWEVER, you’re going to save your peace of mind and hopefully some assets too.

 

  1. Take advantage of a free consultation. A qualified attorney can give you your options. Is bankruptcy right for you? Is your situation ripe for credit consolidation or negotiation? How far along are you in the foreclosure process? Is it possible to stop a pending sheriff sale? Be honest and you’ll receive realistic expectations for your individual circumstances.

 

  1. Use Your Tax Refund. Uncle Sam has been holding on to your money, but now it’s the perfect nugget of cash infusion to save you bigger money in the long run.

 

  1. Ask family and friends. It’s difficult to swallow your pride, but you never know what your support net is until you ask. If it’s a gift, then that’s great. If it’s a loan you can let your loved one know that he or she will be listed as a creditor if you file bankruptcy. For other situations; set up a plan of when and how much you can realistically repay. It’s much easier to keep your job if you have stable housing and a solid financial plan under your belt.

 

  1. Stop Paying Your Unsecured Debt. If, after your consultation, bankruptcy is in your future, stop making payments on credit cards or other unsecured debt. The total owed will be dealt with as part of the bankruptcy, so those monthly minimums can now finance your legal fund.

 

  1. Reduce your expenses and minimize outgoing expenses. Fancy coffee every morning, premium cable channels, gym membership, daily lunches “out” – all gone. It adds up fast!

 

  1. Try to earn some extra money aside from your primary occupation. Sell old electronics or find a temporary part time job. Go through your attic or basement and have a yard sale, or hit eBay. Lighten your load while filling your wallet.

 

  1. Request a payment plan. Your bankruptcy attorney may allow you to list them as a creditor in a Chapter 13 filing, thus allowing you to pay them over a period of months. Chapter 7 fees can be paid over time as well, although without the federal court supervising. (Keep in mind that you must be paid in full before your attorney will file the case.)

 

  1. Withdraw from your retirement account. Only do this as a last resort. Those funds are otherwise protected, but you could be facing a large tax consequence if you withdraw early. That being said, in some circumstances it may be the best option. Also, consider options where you essentially “borrow” the funds from yourself and replace them with a payroll reduction each pay period going forward.
    IMPORTANT NOTE: Always discuss this option with your credit repair attorney BEFORE taking any money from your retirement fund(s).

nj bankruptcy attorney

How to Find the Right Attorney

You want someone with a proven record of results who can and will act in a timely manner. You could call your local bar association or attorney referral number. You could get a referral from a friend. Or, you could count one problem solved and realize that you already know a top legal representative for all types of financial duress – Veitengruber Law.

 

Don’t represent yourself.

This isn’t small claims court, or a traffic ticket. This is your entire financial future. Your chance of successfully completing a Chapter 13 bankruptcy without legal counsel is less than 1%; the chances of completing a solo Chapter 7 is less than 50%. Besides, you might end up losing more money trying to navigate your financial issues alone than you would have spent on legal counsel in the first place.

 

You wouldn’t ask a podiatrist to work on your car, or the babysitter to fix your plumbing. You need the right person for the job – you need an expert! When you’re looking for a NJ lawyer with experience who you can trust, you need Veitengruber Law.

Can I File Chapter 13 Bankruptcy Without an Attorney?

NJ bankruptcy attorney

Though filing bankruptcy without an attorney may seem like something you can handle, it’s not necessarily the recommended option. This is not to say that filing for bankruptcy is impossible without an attorney, but it requires serious dedication, time, and self-education. Even with the most extensive research and attention to detail, it’s easy to make a mistake or miss a crucial step in the process. If you’re thinking about filing for Chapter 13 bankruptcy without an attorney, be aware of the common mistakes that pro se individuals most often make. Ultimately, whether or not you decide to hire an attorney is up to you, but as always, Veitengruber Law is more than happy to provide you with stellar bankruptcy representation.

Chapter 13 bankruptcy provides the opportunity to construct a repayment plan that will help you pay back your debt. In order for your Chapter 13 application to be approved, you need to be able to prove that you have a steady job that provides enough income for you to realistically be able to pay off your creditors within three to five years.

If you’re considering bankruptcy as a solution to your financial struggles, we want you to know that it may not be your best option. Certain forms of debt, known as nondischargeable debt, cannot be relieved by filing for bankruptcy. Related to Chapter 7 bankruptcy, your assets may be at risk if you are unable to exempt them. Knowing these small but significant details will assist you when making the decision to file.

For most people, deciding whether to file for bankruptcy and which type to file depends on: the type of debt they want to eliminate, whether or not they own nonexempt property, if they are able to pay back debt outside of the bankruptcy case, and other details that are unique to their case.

One of the biggest disadvantages of not having an attorney to guide you through the process is that you may not be aware of some of the steps that are imperative to a successful bankruptcy outcome. Just one of these key steps is the credit counseling/debtor education requisites. For any type of bankruptcy filing, it’s necessary to work through credit counseling. If you skip this step, the New Jersey Bankruptcy Court will dismiss your case. To initiate this process, you’ll need to find an agency that can provide an approved credit counseling program. Once you submit your case to the court, you will need to provide the court with proof of counseling completion. Following the submission of your bankruptcy case, you will need to conclude with a debtor education course, also known as personal financial management. If you fail to complete this, you will not receive a discharge from the court.

As with most financial processes, there is a plethora of arduous paperwork to file in a Chapter 13 bankruptcy case. These include your petition, schedule, statement of affairs, creditor matrix and many other necessary forms. Obviously, if you don’t have an attorney, you may not know which documents need to be completed (along with their deadlines). By choosing not to work with a NJ bankruptcy attorney, you take this responsibility into your own hands.

Believe it or not, bankruptcy court laws are not universal; every state and county court will have their own set of local bankruptcy procedures and regulations that you will be required to follow. Because you have to submit local tax returns and other forms to your bankruptcy trustee, it’s possible that the trustee will have additional, specific forms for you to complete as well. When you fail to follow any of these rules or meet your deadlines, expect to have a delay in or a dismissal of your case.

A huge part of filing for Chapter 13 bankruptcy in New Jersey means creating a repayment plan that assures creditors that you have the ability to pay back the debt. If you’re foregoing an attorney’s help, it’s your job to design your repayment plan. Once you submit the initial plan, the court must approve it before finalization. The creditors will reject the plan if it doesn’t meet bankruptcy code. While this task is not impossible to do on your own, writing up a repayment plan simply isn’t in the average person’s skill set. This is a step wherein working with an experienced NJ bankruptcy attorney is extremely beneficial.

The complexity of filing for bankruptcy shouldn’t scare you away, but because of its nature, it is our advice that you work with a bankruptcy team that has experience with Chapter 13 cases like yours. If you’re set on skipping an attorney, be sure to do ample research online and ask questions of your local bankruptcy court if you are unsure of something. In the end, we would recommend finding a trustworthy legal team near you to walk with you through all of the steps of filing for Chapter 13 bankruptcy