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Paterson Bankruptcy Law Blog

How to Object to a Creditors' Claim

  • 29
  • September
    2014

For a creditor to be paid in a chapter 7 or chapter 13 bankruptcy case, it is required to file a proof-of-claim form. Just as the name implies, the creditor must provide evidence of the nature and amount it claims it is owed.

Any party in interest can object to the claim and there is not deadline of the objeciton date in the Bankrutpcy Code. The objection must be in writing and noticed served on the claimant with thirty days notice of the hearing to consider the objection. A "party in interest" is anyone that is financially impacted by the claim, which rarely includes the bankruptcy debtor in a chapter 7 case.

Navigating a chapter 11 bankruptcy in New Jersey

  • 27
  • September
    2014

Dealing with any type of financial challenges could be overwhelming, emotional and in some cases, embarrassing. With regards to business debt, our firm understands that business owners in New Jersey might find it difficult to navigate complex financial matters regarding their business. For many, they seek to understand the best way to keep their business operating, but in some matters, business owners should note that some debt relief options might result in the sale or liquidation of their business.

Whether it is a small business or large corporation, dealing with financial challenges can sometimes be debilitating. The steps required and the debt relief options can be very complex, and those considering business bankruptcy should become knowledgeable about the process.

Regaining financial control when dealing with credit card debt

  • 25
  • September
    2014

For some New Jersey residents, when it comes to paying bills, they often dread their due date. When individuals face financial challenges, they might become more and more reliant on putting items on a credit card. While this could provide temporary relief, especially if they are dealing with a personal, family or medical crisis, this action could become more problematic. The individual could have their accounts turned over to debt collectors and their credit card debt is now a constant and growing concern in their life.

Dealing with a large amount of credit card debt can seem overwhelming. Individuals might find it difficult to navigate through it and might not fully understand their debt relief options. There are certain steps that could be taken to reduce or eliminate the impacts of their current financial problems.

FACING AN IRS WAGE GARNISHMENT AND FEELING TRAPPED? A CHAPTER 13 BANKRUPTCY COULD BE AN OPTION

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  • September
    2014

Even though tax debt due to the IRS is non-dischargeable if you are within three years of the due date, chapter 13 bankruptcy can be an option for you to be able to manage your debt. If the IRS is garnishing your wages, the filing of your bankruptcy petition would force them to stop the garnishment. Through a chapter 13 plan, you would be able to cure the debt that you owe to the IRS through monthly plan payments over the course of five years rather than having your wages being garnished.

Contact a Lawyer

If you are considering bankruptcy, contact a lawyer so you can be guided accordingly as to what your options are and what option is best for you. The bankruptcy process can be difficult to navigate, so it is important that you have someone representing you who is familiar with the process to make sure everything goes smoothly.

What property is safe in a chapter 7 bankruptcy?

  • 19
  • September
    2014

When an individual or family decides to take the steps to end their financial challenges, they might face other issues. While filing for bankruptcy is often a real and reliable debt relief option, there are factors that individuals should consider. Residents in New Jersey considering bankruptcy should understand what this means regarding their current property and assets. Are they safe from liquidations or repossession? This is where understanding bankruptcy exemptions could help the debtor through the bankruptcy process.

When people file for bankruptcy, they are not only concerned about their financial future and whether the process will in fact help give them a fresh financial start, but they are also concerned about their home, car and other property. For the most part, federal exemptions will protect some property and prevent them from being sold in a Chapter 7 bankruptcy.

Exploring debt relief options and filing for bankruptcy

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  • September
    2014

When individuals are struggling to get by month-to-month or even week-to-week, they are not always sure where to turn. Our firm understands that residents in New Jersey often encounter financial problems. For some, this is an event that might be temporary and doesn't require immediate action. This is not always the case, and some individuals and families need to make major decisions in order to improve their finances. While it is not an easy choice, for some, filing for bankruptcy is their best option.

Our firm understands that debtors seek to not only get out of debt but also halt abuse from creditors. When bankruptcy is initiated, creditors and collectors will be stopped from harassing the debtor. While filing for bankruptcy is a sure way to obtain a fresh financial start, individuals should consider alternatives to bankruptcy before diving right into the process. This often entails negotiating with creditors, going through debt counseling, getting a second job, downgrading, selling items and other similar strategies.

Understanding the CARD act and credit card debt

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  • September
    2014

Dealing with credit card debt can be a serious and life-altering event. Consumers in New Jersey and across the nation often utilize credit cards on a daily basis. While this practice can cause little to no issues, misuse of them could lead to financial problems. In order to address concerns relating to consumer protection, the CARD Act was passed in 2009.

The CARD Act specifically protects the consumer when it comes to interest charges and the increase of interest rates. With regards to the Annual Percentage Rate or APR, the issuers of a credit card are not allowed to rise the APR on the existing balance on the account within one year of the account being opened.

How does a Debtor's Interest in a Business Affect a Chapter 11 Reorganization?

  • 12
  • September
    2014

The value of the debtor company's interest in the non-debtor entity will be considered in the liquidation analysis of the plan of reorganization. The Plan will need to pay to unsecured creditors no less than an unsecured creditor would get if the company had filed chapter 7.
In other words if we were to auction off everything the debtor company owned, subtracted secured debts, and say 10% for the cost of administration, the remaining amount must be less than the amount we intend to pay to unsecured creditors throughout the Plan. This is assuming a creditor objects and we can't otherwise resolve the objection.
A debtor's interest in a non-debtor entity is more of a concern in a chapter 7 or a liquidation plan. 

FORECLOSURES RISING IN NEW JERSEY

  • 11
  • September
    2014

Foreclosures in the State of New Jersey were up 115% in August 2014 when compared to August 2013. In fact, New Jersey has the fourth-highest foreclosure rate in the United States. If you are going through foreclosure, you may be feeling trapped and searching for answers. One solution for you to be able to keep your home is filing for chapter 13 bankruptcy. Through a chapter 13 bankruptcy, you can cure the arrears on your property and/or apply for a loan modification with the protection of the automatic stay, which will prevent a lender from foreclosing on your home. If you would like to learn more, contact my office for a free consultation.

To read further on the rising New Jersey foreclosure rate, follow this link Rising New Jersey Foreclosure Rate

A brief overview of repayment plans in a Chapter 13 bankruptcy

  • 10
  • September
    2014

When debt becomes a real issue in an individual's life, it is clear that they must take action to reduce or alleviate these financial hardships. Seeking debt relief is not always an easy step to take for New Jersey residents. A debtor should be fully aware of their debt relief options, including bankruptcy.

Filing for a Chapter 13 bankruptcy is an opportunity for debtors to create a repayment plan, keep their property and eventually repay creditors over a period of time. In most cases, this means devising a three or five year repayment plan. If the debtor's current monthly income does not exceed the state's median for the past six months, their repayment plan would last up to three years. If it is above the state's median income, the bankruptcy court could allow the debtor to repay creditors in a five-year plan.

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Scura, Mealey, Wigfield & Heyer, L.L.P. Attorneys at Law

John Scura of Scura, Wigfield, Heyer & Stevens, LLP, serves clients in New Jersey communities including Wayne, Hoboken, Jersey City, Paterson, Elizabeth, Edison, Camden, Clifton, Passaic, East Orange, Newark, Union City, Bayonne, Irvington, North Bergen, West New York, Bloomfield, Paramus, Fair Lawn, Ridgewood, Saddle Brook, River Edge, Emerson, Englewood, Ramsey, Tenafly, Glen Rock, Teaneck, and Hackensack, and in counties including Bergen County, Essex County, Middlesex County, Hudson County, Union County, Passaic County, and Morris County.

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