Tag Archives: debt consolidation

Exploring New Jersey Debt Adjusters as an Alternative to Bankruptcy

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In New Jersey, individuals or companies that offer debt adjustment services must be licensed as Debt Adjusters by the New Jersey Department of Banking and Insurance (DOBI). Debt adjustment services typically involve negotiating with creditors on behalf of a debtor to create a debt management plan or arrange for the repayment of debt.

If you’re considering working with a debt adjuster in New Jersey, it’s essential to ensure they are properly licensed and regulated. Here’s how to verify their licensing status:

  1. Check the New Jersey Department of Banking and Insurance: You can visit the official website of the New Jersey Department of Banking and Insurance and find licensed debt adjusters. Scroll down past the mortgage-oriented ones to find the organizations that help with non-mortgage debt.
  2. Ask for the License Number: If you are in doubt as to whether a debt consolidation or debt adjuster company is licensed, ask for their New Jersey Debt Adjuster license number. This number can be used to verify their status with the DOBI.
  3. Verify Their Credentials: Contact the New Jersey Department of Banking and Insurance directly to confirm the status of the debt adjuster’s license. You can do this through the contact information provided on the department’s official website.

It’s important to work with a licensed debt adjuster in New Jersey to ensure that you are protected and that the individual or company is operating within the bounds of the law. Be cautious of any debt adjustment services that operate without the required license or that make promises that sound too good to be true. Always research and consider all your options carefully before entering into any agreement related to debt management or adjustment.

If debt adjusters tell you that you cannot afford to settle your debts, you might consider bankruptcy. Schedule a free bankruptcy consultation with Jennifer Weil, a New Jersey bankruptcy attorney, to discuss your options.

Debt settlement isn’t usually the best option

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Looking at debt settlement to help rid yourself of credit card debt?

Credit cards are a huge problem in the U.S. A May 21st New York Times article reported that the Standard & Poor’s/Experian Consumer Credit Default Indices shows that the default rate on credit card loans recently climbed to its highest point, 9.14 percent, since the index first began in 2004.

So more people are no longer paying their credit card bills. What are those people who’ve stopped paying on their credit cards doing about their credit card debt?

Hopefully, they’re not paying a debt settlement company to try and “get out of debt.” There are a few cases where using a debt settlement company may be appropriate, but not many. Many debt settlement companies take large fees and tell you to stop paying on your credit card bills. They take monthly payments from you for a long time. Then they make offers to your credit card companies to settle your debts.

Sound like something you can do by yourself without paying the high fees? Yeah, there’s a reason for that – it is.

But many people who are taking the debt settlement route should consider bankruptcy instead. If you’re thinking about pursuing the debt settlement route, ask yourself, “why did I decide that bankruptcy wasn’t for me?” Was it fear? A belief that bankruptcy is too difficult?

You owe it to yourself – and your financial health – to first take the time to do some research. Look around online. The bankruptcy courts have their own websites with plenty of information for potential filers. It can’t hurt you to take the time to educate yourself. You need to know what the potential benefits of bankruptcy are before you commit to the high fees charged by a debt settlement company.

Photo by Alan Cleaver.