Consumer Fraud Pleading Requirements

A complaint in Consumer Fraud must set forth claims upon which relief can be granted. Specific requirements include: (1) an assertion of intent to defraud, (2) there were misrepresentations made to the buyer which resulted in financial gain to the seller, and (3) the allegations of fraud must be made with particularity. Failure to meet the requirements will result in a dismissal of the Complaint. In a recent case, homeowners sued a contractor under the New Jersey Consumer Fraud Act (NJCFA) for damages in the amount of $250,000 for monies paid plus the cost of removing the substandard work and were awarded treble damages in the amount of $1,228,603.70. The contractor then filed for bankruptcy and the homeowners filed a complaint in the United States Bankruptcy Court seeking a judgment of nondischargability under Section 523(a)(2)(A) of the United States Bankruptcy Code. The homeowner's Complaint was dismissed for lack of proper pleadings and the contractor was able to obtain discharge of the $1,228,603.70 Judgment. If you are attempting to avoid a debt or someone is attempting to avoid a debt they owe you or you are considering filing a Complaint for Consumer Fraud or facing a Consumer Fraud Complaint, you should consult an experienced attorney immediately in order to protect your rights. For more information on consumer fraud, foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.

Failure to Pay According to Plan Does Not Relieve Debtor From Responsibility in NJ

In a New Jersey Bankruptcy, the Debtors reorganized under a plan but failed to pay fees approved as part of the plan. Following the effective date of the approved plan, creditors discovered some cash budgeted for fees under the plan had not been paid. The district Court held that the fees are an administrative expense and necessary condition of the confirmation of the plan. The reorganized debtors could not be excused from payment of the obligation simply because the discharge had occurred. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter. If you are a debtor or creditor in a bankruptcy matter, you should consult an experienced bankruptcy attorney immediately in order to protect your rights. For more information on foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com.