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Paterson Bankruptcy Law Blog

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

  • 17
  • 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

  • 12
  • 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.

Do you feel like you cannot pick up the phone anymore due to creditor phone calls and are looking for a way out?

  • 09
  • September
    2014

If you are facing this situation, then bankruptcy may be the answer for you. Once you file for bankruptcy, the automatic stay goes into effect. The automatic stay provides a timeout period where creditors cannot act to collect debts owed to them by the debtor. Once a creditor is notified of the bankruptcy, they must cease collection efforts immediately or they will be in violation of the automatic stay. Violating the automatic stay can subject a creditor to sanctions and having to pay attorneys' fees in connection with prosecuting an automatic stay violation.

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.

How Chapter 11 bankruptcy could benefit a New Jersey business

  • 05
  • September
    2014

Changes in the economy could be the cause of financial challenges for some businesses. When a business or company finds it difficult to persevere and continue their operations, they must come to terms with their options. In some cases, their available options are constrained by their financial health. When a New Jersey business struggles to survive in the current economy, our firm understands that they might need to take actions to receive debt relief. This might come in the form of business bankruptcy, and business owners might have numerous questions about how this process could affect them immediately as well as in the future.

While filing for any type of bankruptcy is a major decision and life altering, a Chapter 11 bankruptcy is very different than a Chapter 7 or Chapter 13 bankruptcy. In most cases, filing for a chapter 11 bankruptcy is much more complex and requires more complicated and detailed paperwork and filings. Furthermore, there is a higher risk for penalties, and these penalties could be harsher.

Is Your Business being sued in either New Jersey State Court or Federal Court?

  • 03
  • September
    2014

If you are a business owner who is being sued in either New Jersey State or Federal Court, it is important that you consult with a lawyer. The business will need to be represented by counsel in order to file responsive papers to any legal action (or to initiate any legal action).  Individuals are permitted to represent themselves, but corporations are not allowed these privileges in either New Jersey State Court or Federal Court.  Therefore, it is important that you hire a lawyer, so that you can receive an adequate defense to any actions against your company.

How do you avoid or delay foreclosure by filing for bankruptcy?

  • 03
  • September
    2014

Dealing with financial problems is life changing for any New Jersey resident. When trying to address these issues, some individuals decide to file for personal bankruptcy. Facing a foreclosure is a reality some face when dealing with debt and financial problems, and they seek to understand how to avoid or delay foreclosure during a debt relief process such as bankruptcy.

Individuals and families file for personal bankruptcy for various reasons, but the major reason is to address financial problems and possibly halt or prevent the repossession of property such as a home. If a lender has already initiated the foreclosure process, the borrower could delay the foreclosure process or even stop it by filing for bankruptcy. An automatic stay, which occurs during the bankruptcy process, puts a stop on all the debt collection activities occurring.

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
21 Main Street, Suite 306
Hackensack, NJ 07601

Toll Free: 866-930-2075
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One Gateway Center
Suite 260
Newark, NJ 07102

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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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