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.