New Jersey Bankruptcy Law Blog

New Jersey residents looking for new credit might still have a hard time finding it. Even though the markets have started to recover, banks are still wary of opening themselves up to too much liability.

According to a recent survey by the Federal Reserve, only a small percentage of loan officers have loosened their requirements for new credit card customers. Most have maintained their lending standards, and some have even imposed stricter requirements.

We all remember that famous "Jerry Maguire" line, "Show me the money!" However, did New Jersey residents know that the 1996 blockbuster was based on a real person? Leigh Steinberg, a high-profile agent whose former client list includes celebrated athletes like Troy Aikman, has recently filed for Chapter 7 bankruptcy. Steinberg opted for liquidation after the Orange County Superior Court commissioner approved a warrant. The agent had formerly missed an appearance regarding his $1.4 million debt.

According to reports, Steinberg allegedly stopped paying rent on his Newport Beach office back in 2009. He claims that financial trouble has been a product of his 2008 divorce. Furthermore, the agent notes that he lost track of his finances while he was in rehab. As a result, a source reports that he has confronted many lawsuits over several bills.

The Great Recession has left far too many New Jersey residents suffering under the weight of job losses, unmanageable mortgage payments and oppressive credit card and medical debt.

Individuals in economic distress often try in vain to handle their financial problems on their own before finally turning to a New Jersey bankruptcy attorney for help. Usually, this delay happens because they don't know what to expect out of bankruptcy.

While it's true that filing for bankruptcy can be a stressful process, it's almost never as difficult or as damaging as most people imagine it will be.

Credit card debt can quickly spiral out of control. Make a couple late payments - or, even worse, miss them entirely - and your interest rate will skyrocket. Monthly payments that were once manageable can rapidly become overwhelming.

Don't expect this trend to change any time soon - new data shows that credit card interest rates hit a record high in December. The average interest rate is now 15.22 percent. Debtors with spotty payment histories have rates that are much higher.

These high interest rates don't seem to be stopping Americans from taking on credit card debt, though. In 2011, consumers collectively added $64 billion in new credit card debt to the nation's rolls, a significant increase over both 2010 and 2009 numbers.