Protecting Your Home in Bankruptcy

If you are a homeowner and thinking about filing for bankruptcy, there are many factors which you must take into consideration in order to protect your home. When you file for bankruptcy, you must inform the bankruptcy Trustee of all the assets you own, including your home. Assets which are not exempt will be used by the Trustee to pay off your creditors. Under New Jersey law, there is no homestead exemption; only a non-debtor spouse’s survivorship interest in the home is spared. However, under Federal law an individual is allowed to exempt $21,625, of equity in their home, $43,250 for a married couple filing jointly. If you have more equity in your home than what is allowed to be exempt, a Trustee could force the sale of your home to pay your creditors. If that is the case, you should look to remove second and third mortgages on your home or even look into trying to file a Chapter 13 bankruptcy. If you are considering filing for bankruptcy you will be addressing many issues concerning your home, and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding how to protect your home during a bankruptcy, foreclosure, consumer debt or other bankruptcy law matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.

Effect of Bankruptcy On Your Credit Score

Filing for bankruptcy will be reported on a person’s credit report and will have an impact on their credit rating. However, it may not be nearly as bad as they think and could even improve their score. Once someone’s bankruptcy is processed and reported on their credit score, it will unfortunately be listed for 7 years if it was a Chapter 13 bankruptcy and up to 10 years if it was a Chapter 7 or 11. This will negatively impact their score if prior to the bankruptcy they had a stellar credit score to begin with. However, the fact is many people who file bankruptcy do so because they are unable to make on time payments to their creditors in the first place and already have taken many negative hits on their credit report. As such, their credit score has already been negatively affected and filing for bankruptcy will not actually lower it significantly . In fact, depending on the amount of bad debt the person has, filing for bankruptcy could even make their credit score better as bankruptcy wipes clean all of the person’s dischargeable debts, leaving a better credit score despite having a bankruptcy listed on their credit report. If you are considering filing for bankruptcy you will be addressing many issues concerning your credit score and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding your credit score, bankruptcy, foreclosure or consumer debt matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.

Discharge All Your Debt to Protect Your Future Credit by Disclosing All Debts in Bankruptcy Filing

One of the most obvious benefits of filing for bankruptcy is having your debts discharged and one of the most common concerns is the effect of bankruptcy on your credit score. When your debts are discharged, you no longer have to repay the debt and your creditors lose the right to seek repayment. In order to successfully discharge your debts, however, you must be extremely cautious when preparing your petition as you will need to satisfy the scrutiny of both the court appointed trustee and judge who are assigned to your case. It is required that you provide information about each creditor and details regarding each debt. Failure to disclose essential information could lead to painful consequences such as the debt not being discharged. For example, a U.S. Bankruptcy judge in Newark recently refused to discharge a person’s $40 million debt when he failed to keep records required by the Bankruptcy code and grossly impaired the ability of the assigned trustee to perform his duties. Filing for bankruptcy certainly hurts your credit score in the short term, but at least it will allow you to start fresh by eliminating your debts. Not filing properly could lead to a bankruptcy filing which leaves you with serious debts a damaged credit report, so it is imperative to disclose accurate information when filing. If you are considering filing for bankruptcy you will be addressing many issues concerning discharging your debts and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding discharging your debts, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, foreclosure, consumer debt, credit card debt or debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.

Chapter 13 vs. Chapter 11 Bankruptcy

The differences between filing a Chapter 13 or Chapter 11 bankruptcy are very important to understand as the law has specific requirements for each. Although the underlying purpose of both Chapters is to reorganize and eliminate debts, one is usually better suited than the other for each case. For instance, it is important to understand before filing that only individuals and sole proprietorships can file Chapter 13 bankruptcy whereas types of business excluded from Chapter 13, such as corporations and partnerships, and individuals can file Chapter 11. In addition, it is important to note that individuals who file for Chapter 13 must not have more than $360,475 in unsecured debt and $1,081,400 in unsecured debt, whereas Chapter 11 has none of these requirements. Because there is no cap on the amount of debt the debtor has in a Chapter 11 filing, it is usually a more complicated process as debtors filing under Chapter 11 have more debts and creditors that need to be considered by the Bankruptcy Court. If you are considering filing for bankruptcy you will be addressing many issues what type of bankruptcy you should file and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding the type of bankruptcy you should file or other bankruptcy, foreclosure or consumer debt law matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.

Bankruptcy and Foreclosure

If your bank has threatened you with foreclosure or has already begun the process of foreclosing on your home, bankruptcy could provide you with an opportunity to save your home. Upon filing your petition for bankruptcy, you will receive what the courts call an “automatic stay”. This means that creditors will not be able to contact you, attempt to collect any debt you owe them and will stop foreclosure efforts against your home. However, banks usually file a motion to lift the automatic stay and seek to proceed with the foreclosure, but it will take some time before a judge grants their motion. If you have multiple mortgages and are seeking to save your home, you should consider filing for Chapter 13 bankruptcy which could allow you to remove your second and third mortgages. This will occur if the value of your home is worth less than what you owe on your first mortgage. You will still be liable to the bank holding your first mortgage, but by stripping off your second and third mortgage, you could substantially reduce your monthly payments, leaving you with the extra cash necessary to save your home. If you are considering filing for bankruptcy you will be addressing many issues concerning foreclosure and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding consumer debt, bankruptcy and foreclosure or other bankruptcy law matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.

What Not to Do Before Filing Bankruptcy

What Not to Do Before Filing Bankruptcy Before filing for bankruptcy, you should beware of how you manage your finances as you may make some mistakes which will hold up your case, prevent debts from being discharged or even get yourself fined. Filer Beware You must keep in mind that when you file Chapter 7 or 13 bankruptcy, the court appoints a “trustee” who will scrutinize the petition and documents you submit to make sure you are not abusing the system. If the trustee approves of your filings, he will recommend it to a judge to be finalized. However, if the trustee does not approve it, he will inquire into your finances and you will have some explaining to do. What to Avoid A trustee may not recommend a petition for bankruptcy for a number of reasons; here are a few of them. If you make a big purchase like buying a 60” flat screen television or go on a lengthy vacation to Italy three months prior to filing for bankruptcy, the trustee may view this as your attempt to defraud your creditors of any remaining money you have and will not discharge your debts. Similarly, taking a cash advance on a credit card and then trying to discharge your bill in court will be seen as fraud and will prevent the card from being discharged and could lead to fines. Also, be weary of making “preferential payments” to creditors such as family and friends. Preferential payments are payments that give more money to creditors than they would have otherwise received through bankruptcy. The court will question why you gave them excess money yet are leaving other creditors with less or nothing. Again, the court views this as fraudulent and will lead to problems for your bankruptcy. If you are considering filing for bankruptcy you will be addressing many issues concerning what to avoid doing before filing for bankruptcy and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding what to avoid when filing for bankruptcy or other bankruptcy law matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.

Celebrity Bankruptcies

Some would hesitate to file bankruptcy, believing it would be a shameful or immoral thing to do. It is certainly ideal to be independent and able to work ones own way out of financial trouble without the need of having to file bankruptcy. However, life throws many unexpected obstacles in our way. Sometimes the only way to recover from them is to make the decision to go ahead and file for bankruptcy. Even the rich and famous among us have had to declare bankruptcy in order to move forward to stardom or simply to get their life back on track. Walt Disney Walt Disney, prior to making some of the best known movies of all-time, owned an animation company called Laugh-O-Gram Studios. Laugh-O-Gram Studios had to declare bankruptcy due to its financial backer having gone out of business. After moving to California he ultimately created the Walt Disney Company and lead it to be one of the biggest entertainment companies in the world. Elton John Although at one time he was worth over $260 million, superstar musician Elton John declared bankruptcy. John's bankruptcy was necessitated by his having spent an estimated $2 million a month to support his extravagant lifestyle. In fact, BBC reported that his credit card bills alone averaged an estimated $400,000 a month! Larry King Talk-show host Larry King fell into debt over $350,000 after having been arrested for grand larceny and losing his job. Shortly after declaring bankruptcy, King began his late-night talk show which ultimately lead to his televised show on CNN. As the examples show, bankruptcy is not the end of the world. In reality, bankruptcy provides a fresh start and the ability to get ones life back on track and, if you play your cards right, you may just end up with your own famous success story. If you are considering filing for bankruptcy you will be addressing many issues concerning your decision to file bankruptcy and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding your decision to file for bankruptcy or other bankruptcy law matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. Our law firm is a debt relief agency and helps people file for bankruptcy relief.

Relief for Real Estate Investors

If you are an investor who fell victim to the real estate market crash, you can reduce your investment property mortgage and interest. If your property is “under water” or “upside down”, you may be able to limit the amount you must repay to the amount the property is appraised at presently, rather than the inflated price you paid when the market was artificially inflated. Not only will investors benefit from the reduced principal but will also benefit from paying a reduced interest rate, typically the prime rate plus 1-3%. Unlike the continued liability for any deficiency in a short-sale, there is no continued liability for the principal reduction when using this cram down method, even if the property is later foreclosed on. This opportunity exists through Chapter 13 bankruptcy. For more information on Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, foreclosure or consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.