Bankruptcy and Foreclosure Litigation

For many Americans owning their own home is the fulfillment of the American dream and facing foreclosure litigation may represent one of life's worse nightmares. In a situation where a debtor is facing foreclosure and does not have any money or other means to pay back their debts, bankruptcy may offer a way out. Most people may avoid filing for bankruptcy at all costs because they do not want to experience the negativity associated with filing or the unwanted impact on their credit, but in truth bankruptcy may provide them with the financial relief that they are so desperately seeking. Once one files for bankruptcy they get the immediate benefit of the statutory automatic stay and may assist in avoiding foreclosure litigation for at least a duration of time that will allow the debtor to explore various options to keep their property. The automatic stay immediately prevents all creditors from pursuing lawsuits against a debtor and from persistently attempting to get the debtor to repay their debts. This includes foreclosure litigation and the immediate threat of losing access to one's home. In this situation, Chapter 7 bankruptcy may only offer limited assistance. The creditor seeking foreclosure on a debtor's home may continue the lawsuit once the bankruptcy is over, but filing Chapter 7 may, at the very least, provide the debtor with additional time to explore financial option to begin paying back the debt. Chapter 13 bankruptcy can provide a debtor with total relief from the threat of foreclosure. If a debtor is generating a certain income in the face of a financial crisis the bankruptcy court will establish a repayment plan where the debtor makes affordable monthly payments for up to five years and is able to maintain possession of all of their assets and property. The best part of this option is that the debtor will not be faced with the threat of creditor lawsuits or foreclosure throughout the entire process. If you are having trouble dealing with your consumer debt issues and fear that you may become involved with foreclosure proceedings that may result in the loss of your home it is critical that you seek the advice of experienced legal counsel to advise you on these issues. For more information regarding foreclosure litigation, Chapter 13 bankruptcy, Chapter 7 bankruptcy, or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

How Long Is The Bankruptcy Process If I File Chapter 13?

Arriving at the decision to file for bankruptcy is not an easy one and most people angst over questions such as should I file for bankruptcy or how long will a Chapter 13 bankruptcy take? Many people with secure jobs and steady incomes find that they become overwhelmed by rising living expenses and mounting financial debts. These people may not even initially consider filing for bankruptcy because they may assume that because they are employed and earning an income, even a substantial income, they will not qualify for bankruptcy. Meanwhile, as they struggle to maintain payments on their bills they inch closer and closer to a home foreclosure or the repossession of necessary assets such as a vehicle. Filing for bankruptcy under Chapter 13 may provide a person in this very situation with the financial relief that they are seeking for themselves or their families. When a debtor decides to file for Chapter 13 bankruptcy, both they and their attorney will work with Trustee appointed by the Bankruptcy Court to create a manageable re-payment plan that will include allowances for living expenses and other mortgages and loans. The debtor will then be required to pay the remainder of funds to the bankruptcy trustee each month who will allocate a portion to the debtor's various creditors. The benefit of a Chapter 13 payment plan is that the debtor will not be required to make payments that exceed their monthly income and the creditors will be prohibited from making harassing phone calls or sending constant letters in an attempt to get the debtor to pay back their debt. Further, all creditors will be prevented from filing any lawsuits, making any repossessions, or garnishing any wags during the bankruptcy repayment. Once the debtor makes all of the payments for the repayment period, any remaining unsecure debts are discharged. The length of a Chapter 13 payment plans will be contingent upon a debtor's monthly income and how high the bankruptcy payments are set at. Generally, most Chapter 13 payment plans last for approximately five (5) years. Although plans may be structured for shorter periods of time. If you are having trouble dealing with your consumer debt issues and are deciding if you should file for bankruptcy or have questions about the length or complexity of the process it is imperative that you seek the advice of experienced legal counsel to advise you on the issues concerning bankruptcy. For more information regarding whether you should file for bankruptcy, Chapter 7 bankruptcy, , foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

Credit Card Debt Greater Than Savings For Americans

The results of a recently conducted survey revealed that for many Americans their credit card debt is greater than the money that they have saved in their bank accounts. According to the survey, only 51% of survey responders had enough money saved in their bank accounts to pay off the remainder of their credit card debt. Over 30% of all Americans reported that their credit card debt was greater than the money that remained in their bank accounts. Throughout the United States, the personal savings rate is continuing to decrease. The U.S. Department of Commerce indicates that the savings rate for Americans dropped to 4.2% as of November 2013. The dropping savings rate and the high percentage of Americans reporting that their credit card debt outweighs their savings is most likely the result of extended periods of unemployment, high living expenses, declining incomes, or underemployment. Studies also reflect that consumer debt increased at a rate of 3.3% leading up to the end of the 2013 holiday season while the amount of disposable income per household did not increase which means that more and more people were making purchases using credit cards who will not have the ability to pay off their debts. More troubling is that currently 44% of American households report that they have less than three months savings in their accounts and mounting credit card debt could cause these families to have to endure a complete financial disaster. Oppressive debt issues can have a profoundly negative effect on the lives of families both financially and emotionally. Although a difficult decision for most families, filing for bankruptcy could provide the financial relief and peace of mind that overwhelming credit card debt causes. If you are having trouble dealing with your consumer debt issues and you need help negotiating with creditors or want to know how you may be able to discharge your overwhelming credit card debt through bankruptcy proceedings it is critical that you seek the advice of experienced legal counsel to advise you on these issues. For more information regarding credit card debt, the impact of bankruptcy on your credit, Chapter 13 bankruptcy, Chapter 7 bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

How Can I Discharge Tax Debt?

When an individual is contemplating filing for bankruptcy he or she will most likely wonder how their bankruptcy and tax issues may overlap and what can be done to discharge certain tax debt. In New Jersey, typically, there are two methods for minimizing or discharging income tax debt. One way is through an Offer in Compromise and the other method is by filing for bankruptcy with the appropriate court. An Offer in Compromise is a very complex and arduous process through which a debtor may lower their tax debts. In order to obtain an Offer in Compromise a debtor must complete an application and submit an exhaustive list of documents and other information that reflects the debtor's present assets, expenses, and income to a tax agent to determine the debtor's ability to pay. As part of the process, the debt is required to present an offer suggesting a resolution to the tax debt problem and select a repayment option. Ultimately, the end result is completely subject to the discretion of the tax agent that is assigned to the debtor's case and therefore it is impossible to predict the end result before the process begins. Bankruptcy is a process that is bound by federal bankruptcy laws and will result in a determination of which tax debts can be discharge and which cannot. This determination will be based purely on the existing laws found in the U.S. Bankruptcy Code. Generally, these laws will dispose of a debtor's tax debt based up on their tax filings by year. For instance, a debtor may be able to discharge their tax debt liabilities for 2008 but not for 2013. In contrast to the Offer in Compromise, the bankruptcy process does not allow for the debtor to negotiate for any specific discharges because, as was previously stated, the proceedings are completely guided by federal bankruptcy codes. A debtor who chooses bankruptcy as the method to reduce or eliminate tax debts will generally know before the process begins which, if any, of his tax debt is dischargeable through the process by consulting with an experienced tax attorney who is familiar with the Bankruptcy Code. If you are having trouble dealing with your consumer debt issues, you need to know how your bankruptcy and tax issues affect each other or what your options are with regard to discharging tax debt, it is critical that you seek the advice of experienced legal counsel to advise you on these issues. For more information regarding bankruptcy and tax issues, Chapter 13 bankruptcy, Chapter 7 bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

My Ex-Spouse Has Filed For Bankruptcy, Can I Still Enforce My Divorce Judgment?

As if a divorce and a bankruptcy are not complex and anxiety-producing enough on their own, what happens when a bankruptcy and divorce have overlapping issues? For instance, what happens when an ex-spouse files for bankruptcy when he or she is bound by a divorce judgment? The U.S. Bankruptcy Code under 11 U.S.C. 523(a)(15) specifically provides that non-support related obligations and debts that are related to contemporaneous or prior divorce proceedings are not dischargeable in Chapter 7 bankruptcy cases, if such a discharge would harm the spouse/ex-spouse of the debtor. The primary issue for a court to consider in a divorce case involving bankruptcy is whether a particular debt is classified as a support obligation or a property settlement claim. The language of the U.S. Bankruptcy Code is such that it intends to provide financial relief for the debtor while simultaneously remaining sensitive to the needs of a non-debtor spouse or ex-spouse and the minor children of the parties. With regard to equitable distribution and debts in a Chapter 13 bankruptcy, the debtor must make all of his or her payments pursuant to a repayment plan to obtain a discharge of debts. In these cases, the bankruptcy court will have to decide whether a divorce debt is a non-dischargeable support obligation or a marital debt which may be discharged. To do this, the court may undertake a two-part analysis that was established in In re Gianakas, 917 F. 2d 759, 762 (3rd Cir. 1990). First, the court must review the language of any applicable property settlement agreement or Final Judgment of Divorce to provide evidence on the nature of a debt. If this analysis does not yield relevant information, the court must review any relevant secondary evidence that may elucidate the nature of a debt as a means to determine whether or not it is a support debt. In addition, the court must consider a set of factors when making its determination such as: the parties' financial circumstances at the time of their divorce, the function served by the debt/obligation at the time of the divorce, and whether or not the debt/obligation functions to maintain the necessities of the non-debtor party such as shelter, food, and transportation. If you are having trouble dealing with your consumer debt issues and you want to explore how filing for bankruptcy and divorce will affect each respective process, it is imperative that you seek the advice of experienced legal counsel to advise you on these issues. For more information on bankruptcy and divorce, chapter 7 bankruptcy, chapter 13 bankruptcy or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

Should Both Spouses Join in Bankruptcy Filing?

There are many times throughout a lifetime when debts may become overwhelming and individuals may ask themselves should I file bankruptcy? If the answer to that question is a "yes," a very common follow up question, for couples who are married, is: Do married couples have to file bankruptcy together? The short answer to the aforementioned question is simply, no. Married couples do not have to file for bankruptcy together. Debtors will have the option to file for bankruptcy either singly or jointly with their spouse. The filing fee for filing singly or jointly is exactly the same. Any individual who is contemplating filing a bankruptcy petition and is deliberating about whether to file as a single person or a married couple should consult an attorney for advice on how that decision will impact the lives of the parties involved. For instance, if a debtor decides to file jointly with his or her spouse there will be joint meetings and hearings. Perhaps the most important factor when filing jointly is that all of the spouses' marital property will be subject to the bankruptcy proceedings. This may have two very different affects on the process. First, if the couple is filing under Chapter 7, there is a risk that anything that is part of the marital property is at risk of liquidation. Conversely, with a larger corpus of property at stake, there is less of a chance that particular variables will be seized to satisfy debts because the bankruptcy trustee has more property to choose from. In addition, if a couple files jointly, all of the marital debt may be discharged - meaning each spouse's debt and any joint debts will be forgiven. In this situation, both spouse's credit will be negatively impacted, but both will also enjoy the benefit of getting a new start. On the other hand, if the debtor decides to file as a single person, maybe because only she is battling personal debt issues, her spouse's property and credit will be protected from the proceedings and will not be at risk of liquidation or seizure. Further, all of the property that the spouse had acquired before the marriage will be shielded from the entire bankruptcy process. In this case, only the spouse who has filed for bankruptcy will suffer the negative credit impact that results from filing for bankruptcy. It should be noted, that even if a spouse files singly, her spouse will still be liable for any joint debt that was accumulated during the marriage. This means that the trustee can still seek repayment for debts from the non-filing spouse. In sum, if you are facing severe financial hardship and feel that bankruptcy may provide you with the relief from your consumer debt issues that you so desperately need, it is imperative that you seek out the advice of experienced legal counsel to advise you on these issues. For more information on if you should file for bankruptcy, the impact that bankruptcy has on your credit, credit card debt, or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

Bankruptcy and Child Support Enforcement

You may become concerned about your child support payments if you learn that your ex-spouse is filing for Chapter 7 or Chapter 13 bankruptcy after your divorce, especially if you are the custodial parent. If this is the case, there is no reason to worry as the law protects a child's right to his or her child support payments which are not dischargeable in a bankruptcy proceeding. With regard to the vast majority of debts, filing for bankruptcy will provide a debtor with instant relief in the form of the automatic stay. The automatic stay prevents creditors from continuing to contact a debtor regarding outstanding debts as soon as the bankruptcy petition is filed with the appropriate court. Although, there are exceptions to the automatic stay to prevent ex-spouses from avoiding their obligations under their divorce judgment. The automatic stay does not relieve a debtor from their legal obligations to pay child support or alimony. According to the Bankruptcy Code, 11 U.S.C. Section 507, child support and alimony payments are given a higher priority compared to other debts and therefore, a non-custodial parent is not allowed to get out of paying his or her child support simply by filing for bankruptcy. In addition, an ex-spouse filing for bankruptcy may actually be beneficial to the custodial parent. As part of the bankruptcy proceedings, a debtor must disclosure all of his or her financial information such as debts, income, and assets to the court. Therefore, he or she will be unable to conceal any income or assets that they may be receiving which can factor into potential modifications of alimony or child support amounts. If you are having trouble dealing with your consumer debt issues and you need information regarding how filing for bankruptcy may affect your other legal obligations such as spousal support or child support it is imperative that you seek the advice of experienced legal counsel to advise you on these issues. For more information on Chapter 13 bankruptcy, Chapter 7 bankruptcy, how bankruptcy will affect your credit, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

Rebuilding Your Credit After Bankruptcy

If you have recently filed for bankruptcy or are considering filing for bankruptcy you may be concerned about the impact of bankruptcy on your credit and how you can immediately begin to rebuild your credit once your file for bankruptcy. After filing for bankruptcy, an individual's initial instinct will most likely be that he or she will never use a credit card again. Especially, if it was credit card debt that got them in the precarious financial situation that lead to the bankruptcy. Although, with the status of the U.S. economy as it is people may quickly realize that buying items on credit is a near necessity. People in this country assume that having a high credit score is the primary indicator of financial stability, but this is an incorrect assumption. An individual could boast a high credit score but harbor a huge sum of debts and may be in a constant struggle to keep up with payments. This could be a financial disaster waiting to happen. Once a bankruptcy debtor has been discharged of his or her debt at the conclusion of the proceedings they must get a credit report from all three of the most common credit bureaus - Equifax, TransUnion, and Esperion. These reports must indicate that all of the debtor's debt has been successfully discharged. For some, this could take a few weeks or months to occur. If over time, all three reports do not reflect the discharge, the debtor must take steps to ensure that the bureaus amend their reports to reflect the full discharge. After all of the reports reflect the complete discharge of debt, the best way a debtor can begin to rebuild credit is to seek to obtain a secured credit card from a bank. A secured credit card is a credit card issued by a bank which is connected with a money deposit. The credit limit on the card is the amount of money that remains in the debtor's bank account, therefore the debtor cannot charge more money than he or she maintains in the account. The debtor will improve his credit over time as he continues to make timely payments on charges made from his secured credit card. Over time, once the debtor's credit score reaches a certain number he can apply for additional credit cards upon which he can make timely payments to further strengthen his credit score. If you are having trouble dealing with your consumer debt issues and you need to know how filing for bankruptcy will impact your credit and how, once bankruptcy is filed, you can begin to rebuild your credit it is imperative that you seek the advice of experienced legal counsel to advise you on these issues. For more information regarding the impact of bankruptcy on your credit, Chapter 13 bankruptcy, Chapter 7 bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney

Motion to Invalidate Exemption for Injury Annuity Invalidated by Trustee

The United States Bankruptcy Court for the District of New Jersey in the case of In the Matter of Russo, denied a bankruptcy trustee's motion to invalidate an exemption on a debtor's bankruptcy petition for an annuity that was established after the debtor received a judgment following a serious car accident . Over twenty five years ago, the debtor in this case was involved in a car accident which resulted in him suffering multiple severe and permanent injuries. The defendants in the car accident case established an annuity for the debtor as a means of settling the personal injury litigation. In November of 2011, over two and half decades later, the debtor filed for bankruptcy. In his petition the debtor listed an "accident related annuity, not accessible until 2019" with a value of $140,000 as an asset. The debtor listed this asset as exempt pursuant to 11 U.S.C. 522(d)(11)(E) as an "accident related" annuity. The debtor claimed that the annuity was created to compensate him for lost future wages that resulted from the injuries he suffered in the accident. The bankruptcy trustee requested more documents relating to the annuity and the parties entered into a consent order to extend the deadline for which the trustee had to file an objection. Months went by, the deadline passed, and no subsequent consent orders were signed. On February 25, 2013, the trustee filed a motion to liquidate the annuity and invalidate the exemption because he believed that the exemption was improper. The Bankruptcy Court denied the trustee's motion on the ground that it was not filed in a timely manner. The trustee subsequently filed a motion for reconsideration, asserting that the debtor and his attorneys deceptively feigned cooperation in determining the basis for the annuity for several months. The court denied the trustee's motion for reconsideration because it agreed that he did not file an objection in a timely manner. Bankruptcy is a simple matter but involves substantial technicalities which can leave you with or without the means to support yourself in the future with exempt assets. Due to the technicalities involved, it is critical you have experienced legal counsel to assist you in the preparation and filing of your bankruptcy petition. For more information regarding exemptions, retaining assets, filing for bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

Actor/Singer Aaron Carter Values Dog As $0 On Bankruptcy Petition

Actor and singer Aaron Carter has filed for Chapter 7 bankruptcy and valued his pet bulldog as $0 on the bankruptcy petition. According to a news source, the entertainer has claimed debts in the amount of $2,204,854 and remaining assets totaling $8,232.16. In his petition, Carter lists his assets as a 61 inch flat screen television, two MacBook computers, two Headset microphones, a speaker, a guitar, $60.00 in cash, a Louis Vuitton backpack, a duffle bag, a printer worth $2,500, and a watch worth $3,750. Most interestingly, Carter listed the value of his purebred English Bulldog pet at $0. It was reported that Carter stated that he devalued his beloved pet because he was afraid that the bankruptcy trustee would attempt to sell off the dog to satisfy his creditors. Traditionally, all of a debtor's assets in a bankruptcy proceeding have some worth or value and debtors are under an obligation to accurately and fairly place a value on all of the assets that are listed on the bankruptcy petition. In truth, Carter most likely did not have anything to worry about even if he accurately assessed the value of his pet, which most likely is worth between $1,500 and $2,000, because a bankruptcy trustee will rarely attempt to sell an animal as the time and effort involved in selling an animal usually exceeds the price at sale. Further, the fact that Carter overtly devalued one of his assets could raise a suspicion in the trustee as to what other assets he may have purposely devalued. Bankruptcy petitions are legal documents that are filed with the court, therefore, lying on such documents could result in the dismissal of a debtor's bankruptcy case. If you are having trouble dealing with your consumer debt and are considering filing for bankruptcy or would simply like to know more about the process of filing for bankruptcy it is critical that you seek the advice of experienced legal counsel to advise you on the issues concerning bankruptcy. For more information regarding bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney

Does The Fair Debt Collection Pracctices Act Protect Against Wage Garnishment?

Many people facing bankruptcy wonder if the Fair Debt Collection Practices Act (FDCPA) will protect them from wage garnishment, unfortunately the answer is - no. The FDCPA is a law that places limitations on the methods that debt collection agencies can attempt to compel debtors to pay off their debts. For instance, the FDCPA limits the times that debt collectors can call debtors and it does not allow these agencies to make threats that they cannot legally act upon. If a debtor defaults on a loan, the lender will initially attempt to collect on the debt on their own. If initial attempts to collect on the debt fail, the lender will usually assign that debtor's account to a collections agency. After the debt collector makes numerous attempts to get the debtor to repay his or her debt, it may institute a legal action against the debtor in court. If this happens, the debtor will receive a summons notifying them that they are being sued and they will have 35 days to answer the summons. If the debtor fails to respond to the summons, under New Jersey Court Rule 1:13-7, the court will enter a judgment against the debtor upon the creditor's request. Next, the court may allow the creditor to garnish the debtor's salary as a means to repay the debts that were the subject of the judgments. Under N.J.S.A. 2A:17-50, as long as a debtor makes more than $48.00 a week, a creditor may garnish his wages for repayment on a debt. The creditor who has received the legal judgment against the debtor will get a writ, or document from the court, and send it to the debtor's employer notifying them of the wage garnishment. Under federal law, only 25% of a debtor's disposable income may be garnished to satisfy a debt. A debtor's income calculation, for the purposes of wage garnishment, does not include government entitlements and payouts such as social security payments, disability benefits, or other state benefits. If you are having trouble dealing with your consumer debt and would like to know more about the FDCPA or fear that your wages may be garnished to satisfy your debt obligations it is imperative that you seek the advice of experienced legal counsel to advise you on the issues concerning bankruptcy. For more information regarding the Fair Debt Collection Practices Act (FDCPA), when you should file for bankruptcy, Chapter 7 bankruptcy, Chapter 13 bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

Should You File for Bankruptcy? What You Should Know First

During these difficult economic times many people drowning in debt may begin to ask themselves, should I file for bankruptcy? With bills mounting, debts becoming overwhelming, and options running out - families may begin to panic in the face of daunting financial crisis. To many, "bankruptcy" is a word that conjures feelings of embarrassment or reflects sentiments of weakness. This simply is not true. Instead, for the vast majority of people who engage the process, bankruptcy provides them with a new beginning and a clean slate. Filing for bankruptcy stops creditors from constantly sending harassing letters and making continuous calls and, in the end, it may provide the debtor with a complete discharge of his or her debts. In order to decide if one should file for bankruptcy it helps to know a little more about the process itself. The first step in filing for bankruptcy is the filing of the bankruptcy petition with the United States Bankruptcy Court in the state where the debtor lives. Immediately upon filing creditors are bound by the automatic stay and are prohibited from contacting the debtor regarding the collection of debts. Within the petition, the debtor will list all of the property that they own and other information which will provide the court with all of the information it needs to understand that debtor's entire financial situation. During the automatic stay period, the debtor can attempt to protect certain kinds of property from the bankruptcy proceedings by making use of some of the many exemptions that the Bankruptcy Code provides. The filing of the bankruptcy petition, including the classification of debts and exemptions, can be very complicated. It is strongly advised that debtors seek out the advice of an experienced attorney before doing so. After the petition is filed, the debtor will have to appear before the bankruptcy trustee who will review the petition and ascertain if there are any available funds to satisfy any money owed to creditors. Usually, if the debtor has hired an attorney, the attorney will accompany them to this meeting which, for the debtor, is often one of life's more difficult moments. If the trustee discerns that there are no available funds to repay the debts that are owed to the creditors the debtor will receive a discharge order from the court indicating that he or she is discharged of all outstanding debts and then all creditors will be notified that the debtor is no longer liable for their debts. If you are having trouble dealing with your consumer debt and deciding if you should file for bankruptcy it is imperative that you seek the advice of experienced legal counsel to advise you on the issues concerning bankruptcy. For more information regarding if you should file for Chapter 7 bankruptcy, Chapter 13 bankruptcy, foreclosure or any other consumer debt issues in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney

Chapter 13 May Allow You to Keep Your Home

A substantial number of homeowners in New Jersey have taken out home equity loans to allow them to make their monthly mortgage payments but, for many in these difficult economic times, it has become nearly impossible to make payments on these loans. Filing for Chapter 13 bankruptcy may provide people in this situation with a way to keep their homes. Many homeowners in New Jersey have dreamed of owning their own home for their entire lives. Due to the high cost of homes in New Jersey many people have to take out a home equity loan to allow them to make their mortgage payments each month. A home equity loan is like a second mortgage that provides the consumer with cash and requires that a piece of property, most likely the home, serve as the security on the loan. For homeowners who, for whatever reason, find that they are unable to continue to make the payments on these loans, the bank's repossession of the home is a very real and scary possibility. Fortunately, for individuals who find themselves in this situation there are options that may allow them to retain possession of their home. Unlike a Chapter 7 bankruptcy wherein the debtors assets are sometimes substantially liquidated, Chapter 13 bankruptcy may provide the debtor with the financial relief that they are seeking while allowing them to remain in possession of their home. Filing for bankruptcy under Chapter 13 allows a debtor to reorganize all of their debt and assets into a manageable payment plan that will permit them to more easily continue to make payments on their debts and retain their assets. The entire process is handled through the bankruptcy court. The court will create a payment plan based upon the debtor's amount of debt and income. The repayment plan is typically set for a period of three to five years. During this repayment period, the homeowners are expected to make monthly mortgage and other bill payments to the court according to the plan. The court, not the debtor, will apply such payments to the remainder of the debtor's loan. Ultimately, in such a situation, as long as the debtor continues to maintain their monthly payments as set forth by the court's repayment plan, they will remain in possession of their home as they climb out of their financial crisis. For many debtors who have fallen behind on their bills a a result of illness, layoff or significant events but would now be able to meet regular monthly obligations if substantial interest and penalties for the prior late payments could be managed Chapter 13 bankruptcy is a very real possibility. If you are having trouble making your mortgage payments but would like to remain in your home it is critical that you seek the advice of experienced legal counsel to advise you on the issues concerning bankruptcy. For more information regarding Chapter 13 bankruptcy, Chapter 7 bankruptcy, foreclosure or any other consumer debt issues in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney

Credit Card Debt and Bankruptcy

As the holiday season comes to a close, many people may already be starting to worry about their growing credit card debt issues. Statistics indicate that millions of people are still trying to pay the credit card debt that was incurred during the previous holiday season a year after making their purchases. The high interest rates that are attached to credit card purchases combined with excessive holiday gift buying could result in a financial disaster that many people simply cannot find an easy way out of. To avoid finding themselves in the aforementioned financial crisis, consumers should strive to make credit card payments that are higher than the minimum monthly payments. For some, their debt is so high that they even have difficulty paying the monthly minimum payment amounts. If an individual becomes overwhelmed by their credit debt bankruptcy may be an option to help them find a way out of their consumer debt crisis. Upon filing for bankruptcy, the debtor will receive the benefit of the automatic stay, which prohibits creditors from harassing the debtor to make payments on their debt. Some debtors may even receive a complete discharge of their credit card debt through the bankruptcy process. It is important to find out whether your holiday shopping debt is dischargeable in bankruptcy before filing your petition. During the bankruptcy proceedings, if the bankruptcy court concludes that a debtor purposely incurred the debt with the intention of filing for bankruptcy in the new year, the debtor will remain liable for all of the debt that assumed. If you are having trouble dealing with your credit card debt or other consumer debts and are considering filing for bankruptcy, it is critical that you seek the advice of experienced legal counsel to advise you on the options you have in resolving such matters. For more information about credit card debt, bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.