Manchel
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Bankruptcy Law

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Robert Manchel

NJ Bankruptcy Lawyer Explains If Someone Can Keep Their Business When Filing

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Typically, everyone that files a personal, individual, bankruptcy in New Jersey, who owns a small business, may keep their business. The bankruptcy laws analyze a business as an asset of the debtor. The debtor can keep any asset in a chapter 7 that does not have a substantial value. If the business is a corporation or limited liability company, the debtor’s interest in the asset (business) is based on his percentage of ownership in the company. Therefore, if the debtor owes 50% of the company and the company has a value of $5,000.00, than the debtor’s interest is $2,500.00.
Most small businesses do not have a substantial sale’s value, as the value is based on the reputation of the owner, who will likely not continue his association with the business after the sale. Larger businesses may require a forensic accountant to determine the sales’ value. The value of a business includes a number of factors, such as the value of the business’ assets, income, expenses, and debt. A corporation that owns a valuable property, with no mortgage may have a substantial value.
Although extremely unusual, a New Jersey bankruptcy trustee has the power to operate a business for a certain period, if the operation will benefit the bankruptcy estate and creditors. In general, a person filing a chapter 7 does not own a thriving and valuable business.
A chapter 13 bankruptcy trustee will never sell a personal, individual, debtor’s business. However, if a business has a substantial value, the debtor may be required to pay more money to the creditors in a chapter 13.
Robert Manchel, is a bankruptcy lawyer in New Jersey, who may be contacted at 866 535 5655.

Options For Eliminating Tax Debt In New Jersey

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There are generally, two mechanisms for reducing income tax debt in New Jersey, one is an Offer in Compromise and the other is bankruptcy.
An Offer in Compromise is a very burdensome and extensive process that may allow someone to reduce their tax debt. The process requires the completion of an application, and the submission of documents and information relating to the person’s payment ability, income, expenses, and assets. The debtor must present an offer to resolve the debt and select a specific payment option. Although there are general guidelines that are applied, it appears that the ultimate result is based on the subjective decision of the assigned tax agent.
The bankruptcy process is a specific determination as to the taxes that must be paid and the amounts that may be eliminated, based on the bankruptcy laws. The laws are designed to dispose of the debtor’s taxes by year. For example, the debtor may eliminate his year 2007 tax liability, but not his year 2012 tax liability. In general, the bankruptcy debtor should know, prior to the bankruptcy filing, the total amount that will be eliminated in his bankruptcy. Typically, there is no negotiating, which may be association with the Offer in Compromise.
Please note that the above is a simplified explanation of an extemely complex issue.
Robert Manchel is a New Jersey lawyer, who may be contacted at 866 503 5655, to discuss your tax issues.

Homeowner Association Fees In New Jersey Bankruptcy Explained

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The law pertaining to Homeowner Association Fees in a New Jersey bankruptcy case may depend on the judge that is assigned to a particular case. Pursuant to the 2005 amended bankruptcy laws (BAPCPA), a chapter 7 bankruptcy debtor who is surrendering their house, may eliminate and discharge pre filing association fees, but not post filing association fees, until the deed is transferred out of their name. This means that the chapter 7 debtor may be sued for the payments that are due, after their bankruptcy filing, through the date that their house is removed from their name. Once their name is removed from the deed, the debtor will no longer owe any funds to the association, whether the funds were due before or after the bankruptcy filing.
The New Jersey bankruptcy judges differ on the application of this law about association fees during bankruptcy, as it pertains to a chapter 13 case. All judges agree that a person who surrenders their house in a chapter 13, and vacates the house, prior to the bankruptcy filing, may eliminate their prefiling association arrears. However, under this scenario, depending on the judge assigned to the case, one may or may not be able to eliminate the payments that come due after the filing, even though the property is vacated.
This means that if the judge who is assigned to handle a case does not permit the discharge of the post filing association fees, the debtor is obligated to make the monthly payments, after the bankruptcy filing, until their name is removed from the deed. The fact that the debtor is no longer residing in the property and not deriving any benefit from the association, would not effect a judges decision, who interprets the bankruptcy code as such.
You may contact Robert Manchel, the bankruptcy lawyer in NJ., who will answer your homeowner association questions, at 1 866 503 5655.

What Is An FHA Informal and Formal Forbearance Plan? Explained By a NJ Bankruptcy Lawyer

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An FHA Informal and Formal Forbearance Plan are types of resolutions of a defaulted loan, in New Jersey. Such types of resolutions are the first type that are evaluated by the mortgage servicer. These are the only resolutions that may be available for homeowners that are behind with their mortgages and cannot confirm a decrease in income or increase in expenses.
Typically, an Informal Forbearance Plan is a verbal agreement that permits the homeowner to cure their mortgage arrears within three months. Informal means that there is no written agreement required. Some type of documentation should confirm the verbal agreement.
Typically, a Formal Forbearance Plan is a written agreement that permits the homeowner to cure the arrears between three and six months. The mortgage servicer must determine that the homeowner is able to cure the arrears in such time, based on using only a certain percentage of their income.
The criteria of the above plans and other resolutions options in New Jersey are continuously changing. This means that the criteria of the above listed plans may change in the future.
Robert Manchel is an attorney in New Jersey that handles loan modification matters. Mr. Manchel may be contacted at 866 503 6566.

New Jersey Bankruptcy Attorney Explains The FHA Loan Modification Options

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There are various types of loan modifications, or loan modification type resolutions that may be available to resolve an FHA loan that is in default. Typically, there is an order of priority as to the loan modification options, that are applicable for each applicant. The general loan modification types in order of priority are as follows: 1. Informal and Formal Forbearance repayment plan; Special Forbearance Repayment Plan; 2. General Loan Modification; and 3. FHA HAMP Loan Modification.
The mortgage companies review the loan modification options above in the order reflected above. This means that if the homeowner meets the criteria of an Informal or Formal Forbearance criteria, the company may offer same, prior to any other resolutions. If the homeowner does not meet the criteria for an Informal and Formal Forbearance agreement, they will then apply the homeowner’s criteria to the next option, in the order stated above.
It appears that the priority order of the loan modification options lists the least advantageous first, to the most advantageous, last. The application process for all options is typically lengthy and laborious. Also, needless to say, the modification options, clearly, do not include all people that are in default with their mortgage payments.
Robert Manchel, New Jersey mortgage resolution attorney, is available to discuss your loan modification options for an FHA mortgage at 866 503-5655.

What Is A Deed In Lieu Of Foreclosure

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An option to surrender a house after a foreclosure action may be a deed in lieu of foreclosure, which is a way to surrender your house, in New Jersey. This is the conveyance of the property to the mortgage company, without the need to complete the foreclosure action and sheriff’s sale. Although this option will likely save the mortgage company money, typically, in my experience, the banks create great difficulty in consummating the deal.
It may be possible for the mortgage company to provide a payment to the New Jersey homeowner, as an incentive to sign over the deed and vacate the property. Another benefit may be to remove your name from the title of the house on an expedited basis. On occasion, the foreclosure process make take years, after the owner has moved on with their life.
A burden of a deed in lieu of foreclosure, may be the time and frustration of completing the deal, which may never be accomplished. Another burden is that a homeowner must vacate the premises after signing over the deed, instead of residing in the property, mortgage free, for the entire foreclosure process.
You may contact Robert Manchel, the foreclosure resolution attorney in New Jersey, at 866-503-5655.

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    Manchel
    New Jersey
    Bankruptcy Law

    This web site is designed to provide general information regarding the bankruptcy laws. The bankruptcy laws are complex and may be applied differently, in each case, depending on the particular facts. There may be numerous exceptions and variations for each law and rule. Do not rely on the information provided in this web site. If you are considering filing for bankruptcy protection, you should consult with an experienced NJ bankruptcy lawyer. We are a debt relief agency. We Help people file for bankruptcy relief under the bankruptcy code.

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