Many New Jersey residents wait to learn about bankruptcy or other debt relief options because they are embarrassed or believe that serious financial problems are limited to a certain segment of society. This misperception could be very costly. The fact is that bankruptcies frequently involve circumstances out of the filer’s control, such as a medical condition or unexpected job loss. If you’re struggling with debt, it’s time to overcome the stigma and understand that bankruptcy protection was created specifically for people like you, and that even some of the wealthiest people in the world ended up needing to file at some point. 

Financial downturns affect people in every income bracket. Even some one-time billionaires have been forced to file for bankruptcy in order to stop waves of creditors from coming after them. Though you might have never lived in mansion or driven a Ferrari, debt problems of the ultra-rich show that all of us are susceptible to harmful habits such as:

• Losing track of expenses — You might stop paying close attention to expenses when you are confident that there is enough money in your account to pay each bill. However, circumstances could shift and you might end up wondering where all of the money is going.
• Taking unnecessary risks — When someone has extra cash around, they are more prone to invest in dream projects rather than ventures that have a higher likelihood of success.
• Engaging in excessive generosity — One the most satisfying things about amassing serious wealth is the ability to help those closest to you. Most people relish the idea of sharing good fortune with parents, siblings and friends who help them along the way. However, this generosity can go too far, and if cash flow slows down, it can be difficult cutting off loved ones who have lived off your support.
• Keeping up appearances — Even when facing a severe financial threat, it might be hard to downsize one’s home or trade in a showpiece vehicle. Expenses that you might have considered luxuries a few years ago could seem like necessities once you’ve gotten used to them. 

No matter where you started or what led to your current financial problems, the best way to tackle this challenge is to act promptly and speak with a knowledgeable debt relief lawyer. Together, you can devise a comprehensive strategy to end creditor harassment through a bankruptcy filing or some other method.

The Law Offices of James C. Zimmerman represents New Jersey clients in bankruptcy actions and other types of debt relief matters. To make an appointment for a free initial consultation, please call 973-764-1633 or contact us online. We have offices in Vernon, Wayne, Pompton Lakes, Hackensack and Nutley.