Manchel
New Jersey
Bankruptcy Law

Toll Free: (866) 503-5655

Email:manchellaw@yahoo.com

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Robert Manchel

How Long Can I Live In The Property After The Foreclosure action

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A foreclosure action in New Jersey, at present, takes approximately 8 months from the time the foreclosure action is filed with the court, until the sheriff’s sale. The 8 months time frame assumes that the foreclosure action was recently filed or will be filed in the future, as the previously filed actions may take years.
A homeowner is permitted to reside in the property, without making payments, until the sheriff demands that the residents vacate the property. After the sheriff’s sale, the residents must leave the property soon thereafter.
It is possible that the mortgage company will postpone the sheriff’s sale in the event that the homeowner is in the process of any of the following: loan modification; short sale; deed in lieu of foreclosure; or other similar application process. However, the New Jersey homeowner must not rely on the mortgage company requesting a postponement.
The homeowner may also postpone the sheriff’s sale by filing a bankruptcy case, which automatically stays all sheriff’s sales. A New Jersey chapter 7 will not save a property from the foreclosure action. However, the chapter 7 filing will postpone the sheriff’s sale. A New Jersey chapter 13 will postpone the sale and allow the homeowner to permanently save a house. Furthermore, each homeowner has the right to two separate two week adjournments of the sheriff’s sale.
The NJ. Lawyer, Robert Manchel, is available to discuss foreclosure issues at 866-503-5655.

NJ Bankruptcy Attorney Details What Happens to Marital Debt in Bankruptcy

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The 2005 bankruptcy code amendments resulted in stricter protections for individuals entitled to receive payments for support, alimony, equitable distribution, maintenance, etc. In other words, it is more difficult to eliminate such debt.
A chapter 7 debtor may not eliminate or discharge any debt that is due to a spouse, ex-spouse, or child, for support, alimony or maintenance. Maintenance includes any funds or property that is used for the support or sustenance of an individual.
In addition, a chapter 7 debtor may not eliminate or discharge equitable distribution, under certain situations. Equitable Distribution is typically the acquired assets, such as money and property, or a liability, such as marital debt, incurred during the marriage. Typically, bank accounts, real estate, and autos that were acquired during the marriage, which is distributed at divorce is deemed equitable distribution. Also, joint or personal debt acquired during the marriage, that is ordered to be paid by a spouse, as part of a divorce, is deemed equitable distribution.
A debtor’s Equitable distribution debt may not be discharged or eliminated in a chapter 7, if the debt is due to a spouse, former spouse, or child of the debtor and incurred by the debtor in the course of a divorce or separation, or in connection with a separation agreement, divorce decree, or other order of a court.
Typically, the issue in a chapter 7, is whether the debt is actually support, maintenance, or equitable distribution.
A chapter 13 debtor must pay, and may not eliminate, a spouses obligation to pay any support, alimony, or maintenance. Any support, alimony or maintenance arrears,due at the time of the filing, must be paid through the chapter 13 plan payment, in additional to payment of all future monthly payments for such debt. If the debtor is not current with all such payments, he will not obtain a chapter 13 discharge. At the end of the plan, the debtor must file a document that indicates all post filing payments were paid in full.
If the debtor is unable to pay all arrears through the bankruptcy plan, in addition to all post filing monthly payments, at any time during the case, the debtor will not be able to proceed with the chapter 13 case. This means that if the debtor has insufficient funds to pay all support arrears, through a 60 month bankruptcy plan, in addition to making the monthly support payments, the debtor will not be permitted to proceed with the case, no matter the reason for the filing.
The main difference between a chapter 7 and 13, regarding marital debt, is that a chapter 13 debtor is permitted to eliminate and discharge equitable distribution, no matter when and how the debt was incurred, with very limited exceptions. This means that any debt that is deemed equitable distribution may be eliminated, if the debtor does not have the ability to pay such debt, in a chapter 13.
Robert Manchel is a bankruptcy attorney in NJ., who is available to answer your questions at 866 503-5655

What Happens To Real Estate Taxes In A New Jersey Chapter 7 Bankruptcy?

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A chapter 7 will not allow a debtor to save their house, if they are behind with real estate taxes or mortgage payments. In a New Jersey chapter 7 bankruptcy case, real estate taxes must be paid if the debtor wishes to keep the house.
If real estate taxes are due to a township and/or a tax certificate owner, a chapter 7 will not save their house from a tax foreclosure action. Also, if a debtor is behind with mortgage payments, that includes escrow for real estate taxes, a chapter 7 bankruptcy filing, will not save their house from a mortgage foreclosure action.
However, in a New Jersey chapter 7, typically the debtor will not be personally liable for any real estate taxes, that are due prior to and/or after the filing. However, this does not mean that the debtor does not need to pay and keep the real estate taxes current, if they wish to keep the house. This means that the taxing authority, tax sale certificate holder, or mortgage company will not pursue the debtor for the money that is due, but can take the house through foreclosure, if the taxes are in default.
The bankruptcy laws do not permit the taking of the debtor’s real estate. If the debtor is behind with real estate taxes, the debtor is able to continue to reside in the house, until the mortgage company or tax sale certificate holder takes the house by foreclosure. The explanation of a tax sale and a tax sale certificate holder is set forth in a separate blog.
Robert Manchel, who is a bankruptcy lawyer in NJ., will answer questions regarding real estate taxes and how bankruptcy can help someone who is behind with real estate taxes at (866) 503-5655.

What Happens With Real Estate Taxes In A New Jersey Chapter 13 Bankruptcy?

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The payment of real estate taxes in a chapter 13 New Jersey bankruptcy case depends on whether the debtor (person filing) is keeping or surrendering their house in bankruptcy. If a person is keeping their house, all real estate taxes must be paid. In the alternative, if the debtor is surrendering their house, typically, the real estate taxes need not be paid.
The following is an explanation as to what happens with real estate taxes, if a debtor is keeping their house in a NJ. chapter 13. Any real estate tax arrears that are due prior to the bankruptcy filing, must be paid, through the bankruptcy plan, in addition to payment of the future real estate taxes that come due after the filing. The real estate taxes must be paid in this fashion no matter what creditor the taxes are owed to at the time of the filing. In other words, Real estate taxes may be paid through the mortgage payment or paid directly to the township. Also, real estate taxes may be due to a tax sale certificate holder.
If the real estate taxes are owed to the township directly and not the mortgage company, the debtor must pay the taxes to the township through the bankruptcy plan, while making quarterly payments to the township, after the filing. If the taxes are paid through the mortgage payments and are due to the mortgage company, the debtor must pay the tax arrears due prior to the filing, through the bankruptcy plan, while making future monthly mortgage payments.
If a debtor is surrendering their house in a chapter 13, typically, the debtor is not required to pay any real estate taxes.
Robert Manchel is a New Jersey lawyer that limits his practice to bankruptcy and mortgage foreclosure resolution, Mr. Manchel may be reached at (866) 503-5655.

How Does Filing Bankruptcy in New Jersey Help Me With A Lawsuit?

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A New Jersey bankruptcy will help someone with a lawsuit. The legal process varies based on the type of lawsuit, but typically the process is as follows. A person is served with a summons and complaint. The summons explained that you are sued and your rights, including how you may respond to the lawsuit. The complaint explains why you are being sued and the amount of money that the plaintiff is requesting.
Typically, an answer to the lawsuit must be filed within a certain time period and then a court hearing is scheduled. The defendant must attend the court hearing to contest the lawsuit. The Plaintiff may prevail by either winning in court or by winning by default, in the event of no response. If the plaintiff wins by any means, the judge will enter a judgment for the amount that is due to the plaintiff. After the judgment is entered, typically, the Plaintiff will try to collect the money, or file a lien against someone’s house. The Plaintiff may attempt to collect the money by levying on a bank account or attaching one’s wages.
Immediately upon the filing of a bankruptcy petition, the lawsuit must stop, no matter the status of the lawsuit. If the bankruptcy petition is filed after the lawsuit is filed and prior to the court hearing, than there is no need to attend the court hearing. If a judgment was entered and the bankruptcy case is filed immediately thereafter, than the creditor may not pursue the debtor for the money.
If the debtor files for chapter 7 then typically the debt is eliminated. If the debtor files for chapter 13, the debtor may possibly eliminate the debt as well.
The Law Offices of Robert Manchel limits their practice to bankruptcy and foreclosure resolution. Mr. Manchel can be contacted at (866) 503-5655 to discuss your options for seeking bankruptcy protection.

New Jersey Bankruptcy Attorney Explains How Tax Transcripts Can Assist A Person In Bankruptcy

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A New Jersey bankruptcy debtor may be able to eliminate their tax liability, depending on a number of factors. Also, some types of taxes, such as income taxes, may be eliminated. Other types of taxes, such as sales tax and employer withholding tax, may not be eliminated.
In determining whether certain income tax may be eliminated, the bankruptcy laws focus on each year’s income taxes and the classification of the taxes for each year. In general, one may possibly be able to eliminate certain income tax that meet the following criteria:
1. The bankruptcy case was filed 3 years after the date that the taxes were due and should have been filed;
2. The bankruptcy case was filed 2 years after the returns were actually filed;
3. No lien was filed against the debtor;
4. The bankruptcy case was filed later than 240 days after the taxes were assessed;
5. No fraud was involved.
Please note that even though the debtor meets all of the above referenced criteria, the debtor may not be able to eliminate such tax liability.
Typically, a New Jersey bankruptcy debtor will not know the specific dates on which the IRS has documented certain matters that are important in determining when and if certain taxes may be eliminated. Therefore, in cases that involve income tax arrears, the debtor should obtain a copy of their comprehensive tax transcripts that reflect the detailed records of the Internal Revenue Service entries. The tax transcripts will reveal the dates that are relevant to the 5 criteria explained above, and whether a New Jersey bankruptcy debtor will be able to eliminate the debt.
Robert Manchel, New Jersey Bankruptcy Attorney, will answer your bankruptcy protection tax questions 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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