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Paterson Bankruptcy Law Blog

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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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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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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    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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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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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.

Casino in Atlantic City files for bankruptcy again

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    2014

Financial troubles are very daunting and even life changing for individuals, families and business owners. When a business is no longer able to thrive and is dealing with debt issues, owners seek to alleviate these problems. Depending on the amount of debt a business is dealing with, this could mean complex bankruptcy issues. Filing for business bankruptcy could be the only logical option for the company to achieve debt relief even though the process is very complex and could lead to other issues that need addressing.

After dealing with financial issues and filing for bankruptcy, the Revel Atlantic City Casino is filing for bankruptcy again. It was only two years ago when the $2.4 billion hotel opened it doors and it just recently filed for protection from creditors. Furthermore, the owner of the hotel just put the hotel up for auction.

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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