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Paterson Bankruptcy Law Blog

Filing for bankruptcy versus debt relief settlement

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    2014

Debt is something that New Jersey residents likely do not desire to have. When consumers rely on credit cards to purchase their goods, the amount of debt they have could get out of hand. This could present numerous financial challenges and the individual might need to restructure their spending. When credit card debt gets to be too much to handle, a person might consider debt relief options, although not all of them are beneficial to their personal needs and ability to regain financial freedom.

A recent report focused on the debt relief options available to some borrowers. Some of these options do not paint a full financial picture and could be deceitful to some individuals. Oftentimes, these are the commercials that promise to settle the debt of troubled bowers, but these practices have been labeled fraud by the New York City Department of Consumer Affairs. Despite this, the industry is currently seeking to set up shop in additional states across the nation.

How Does a Chapter 13 Case End?

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    2014

After all payments that are required to be paid in accordance with the confirmed chapter 13 plan, the trustee will send out a letter stating the plan is complete. No more payments should be made thereafter and if the payments are being automatically deducted from an employee's wages, the employer should be provided a copy of the trustee's letter.

After all outstanding checks to creditors have cleared the trustee will file a final report and account with the court. The filing of the final report will prompt the court to initiate the discharge process. The debtor will need to have taken the financial management course and file a certification in support of discharge. If the debtor is entitled to a discharge, the discharge will be sent directly from the Bankruptcy Court usually within 120 days.

Crumbs Bake Shop files for bankruptcy in New Jersey

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    2014

When a company or business plan is established, the focus often remains on the potential capital gain rather than the financial hardships they could endure. Although it is the goal to succeed as a business, these initiatives are not always met. When debt becomes unbearable and the normal business operations cannot be carried out, filing for bankruptcy might be the next rational step for New Jersey businesses to take. Although it is a major step, the process might be their best option to achieve debt relief and move forward.

After recently filing for chapter 11 bankruptcy, Crumbs Bake Shop might be acquired by an investor group. After filing for reorganization, Crumbs agreed to be acquired by Lemonis and Fischer Enterprises, which is the company behind Dippin' Dots ice cream. It is their intention to close the sale in 60 days, but they are still seeking approval from the bankruptcy court.

Are you facing foreclosure and desperate to save your home? A Chapter 13 bankruptcy may be a good option for you

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    2014

Once you file a petition for bankruptcy protection, all creditor actions against you must cease due to the automatic stay that goes into effect. As long as you have a sliver of a property interest in something, then creditor actions must cease because that becomes property of the bankruptcy estate. Therefore, during the foreclosure process, unless a sheriff's sale is complete and the sale of the property is final, once a bankruptcy is filed the sale cannot go forward. Once in a chapter 13 bankruptcy, you can put forward a plan to cure your arrears on the property along with maintaining your mortgage payments. Additionally, you can enter the loss mitigation program which will force the lender to deal in good faith in determining whether to grant you a loan modification through the chapter 13 process.

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.

Have you Personally Guaranteed a Debt and are now faced with Creditor Actions Against You? If so, Bankruptcy May be a Good Option for You.

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    2014

When you personally guarantee a debt, you become liable on that debt in the event that the primary obligor (person for whom you guaranteed the debt) defaults on that debt.  In that case, you may be feeling trapped and unsure of what to do if it is a debt that you cannot afford to pay off.  If you are in this situation, bankruptcy may be an option that you want to consider.  Once you file bankruptcy, the automatic stay will provide you protection from creditor actions and you may be able to pay off a portion your debt over time or discharge your liability altogether.

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.

Financial problems for younger generations

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  • July
    2014

Dealing with economic hardships is not rare for some New Jersey residents. In some cases, it is rather common for the younger generations to encounter some form of financial problems, whether it is credit card debt, medical bills, student debt or employment problems. For some, these issues are short lived, but for others, this is a lengthy battle that could turn out to be catastrophic. During these times, individuals in New Jersey and across the nation seek to discover a form of debt relief.

A recent report focused on how the economy is much worse for young people in America today than it has been statistically for older generations. As the wealth in the nation continues to concentrate at the top, those entering the workforce encounter many more difficulties than the generations before them.

Dealing with credit card debt even while economy recovers

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    2014

Dealing with debt is not an activity that any New Jersey resident would like to do. Many Americans struggle with various types of debt, and this situation could bring about other troubles in their life. Credit card debt can be very difficult to deal with and could be a reason a person is not able to establish a good credit score. This could affect them greatly and in many ways. Determining a debt relief options could significantly help the individual and their situation.

In most cases, credit card debt is a serious liability that could significantly affect the lives of individuals and families. As the economy rises and falls, so does the credit card debt held by many Americans. A recent report indicated that credit card debt in the United States has been declining. Economists relate this shift to the changes in the economy. As the economy recovers, more and more Americans are able to pay down their credit card debt, as well as other debts.

Property Insurance Important in Bankruptcy

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    2014

If you own property and are thinking about a chapter 11 or chapter 13 bankruptcy, it is very important that you have current insurance on your property or properties. Whether a property is insured or not is a key thing that the Chapter 13 Trustee or the US Trustee's Office will be looking for when they evaluate your case. Depending on the circumstances, lacking proper property insurance can cause your bankruptcy plan to not be confirmed.

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.

Not all Bankruptcy Chapters are Created Equal

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    2014

Most people have a basic understanding of the difference between a chapter 7 bankruptcy and a chapter 13. Simply put, in a chapter 7 case, most debtors are not paying anything to creditors. In contrast in a chapter 13 case, there is a repayment plan of at least some of the debt. Generally, the knee-jerk reaction by someone contemplating bankruptcy is to try to avoid a chapter 13. But, there are instances where a chapter 13 has advantages not found in a chapter 7.

Post-Petition Condo Fees Do Not Need to be Repaid

One such advantage is the avoidance of condo or home owners' association fees. An individual debtor filing for chapter 7 relief cannot escape any debt for a fee or assessment that becomes due and payable after the order for relief to a membership association with respect to the debtor's interest in a unit that has condominium ownership, in a share of a cooperative corporation, or a lot in a homeowners association. 11 U.S.C. § 523(a)(16). A chapter 13 discharge is broader than that granted an individual debtor under chapter 7, 11, or 12 and does not exclude post­-petition home owner association dues. The nondischargeability exception under § 523(a)(16) does not apply in Chapter 13 cases except in the rare instances when a debtor who is unable to complete payments under a plan is granted a so-called 'hardship discharge' under § 1328(b) of the Bankruptcy Code.

Importance of Record Keeping Prior to Filing Bankruptcy

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    2014

It is extremely important that you keep thorough and accurate financial records prior to filing bankruptcy.  If the trustee or a creditor wants to investigate your financial condition, enough information must be provided "to enable the creditors to learn what he (the debtor) did with his estate.  In re Boyajian, 486 B.R. 306, 311 (Bankr. D.N.J. 2013).  Records of pay stubs, past tax returns, bank statements, business records and copies of cancelled checks are examples of documents that creditors and the bankruptcy court may be entitled to view to further their investigation.

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.

Scura, Wigfield, Heyer & Stevens, LLP
1599 Hamburg Turnpike , Suite A
Wayne, NJ 07470

Toll Free: 866-930-2075
Fax: 973-696-8571
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Scura, Wigfield, Heyer & Stevens, LLP
The Hoboken Business Center,
50 Harrison Street, Suite 214F,
Hoboken, NJ 07030
Toll Free: 866-930-2075
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Scura, Wigfield, Heyer & Stevens, LLP
Hackensack Office
Court Plaza South - East Wing
21 Main Street, Suite 306
Hackensack, NJ 07601

Toll Free: 866-930-2075
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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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