Robert Manchel

In general, any debt that is incurred after the filing of a chapter 7 or 13 is not included in the bankruptcy case. In other words, if a person obtains a personal loan after the filing of a chapter 7, the lender may pursue the debtor for the debt and the debt is not discharged through the case. Also, if a chapter 13 debtor incurs a personal loan after the filing and during the case, the debt to the lender is not eliminated by the bankruptcy filing. Whether or not the lender may collect on the debt, during the chapter 13, is outside the scope of this blog.
However, if a chapter 13 debtor converts the case to a chapter 7, the debt that was incurred after the chapter 13 filing and prior to the conversion is included in the chapter 7 case. Under such a scenario, the debtor may be able to discharge such debt, assuming the debt is dischargeable.
Another example are medical bills incurred during a chapter 13 case and before the conversion.
Please note that there are certain criteria that must be met and a number of issues that a debtor must consider when converting the case. A chapter 7 case may not provide the necessary benefits that is provided by a chapter 13.
Attorney Robert Manchel will answer your questions at (866) 503-5655.

On April 20, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA)was signed into law. The law was effective on October 17, 2005. This law modified a number of the bankruptcy code provisions.
Chapter 7
Prior to the amendment, a person was permitted to file a subsequent chapter 7 bankruptcy case within 6 years of the filing of a prior case. The law modified the number of years from 6 to 8. Also, the law modified the ability to refile a bankruptcy case. Prior to the October effective date, the news and public information about the law concerned people that were contemplating bankruptcy. The result of this concern caused the bankruptcy filings to sky rocket, during the months prior to the effective date.
The 8 year anniversary of the effective date of the law is October 17, 2013. This means that the people that filed, immediately prior to October 17, 2005, may file a second chapter 7 bankruptcy case, after October 17, 2013.
Chapter 13
Within the last several years numerous people have entered into loan modifications, which result in extinguishing a foreclosure action and removing their loan from default. However, due to the continued stagnant economy and high unemployment rate, a number of people have defaulted on their loan modification mortgage payments.
If a person wishes to save their house from foreclosure by filing a chapter 13 and paying their mortgage arrears through a five year chapter 13 bankruptcy plan, he must have the necessary monthly disposable funds to make the monthly trustee and mortgage payments. The higher the amount of the mortgage arrears, that must be paid through the bankruptcy plan,the larger the trustee payment. Over the prior three years, people were so far behind with their mortgage payments that they were unable to pay the substantial mortgage arrears, over the five year bankruptcy plan.
Prior to entering into the loan modification, an individual was less likely able to cure their mortgage arrears through a chapter 13 bankruptcy plan, due to the substantial arrears’ amount. In other words, the person had insufficient funds to pay all of their substantial mortgage arrears over the 5 year bankruptcy plan.
Typically, a loan modification cures the default and brings the mortgage payments current, as if the person is no longer behind with the payments. If a person defaults on the loan modification, the total amount of the mortgage arrears, includes the total amount due from the time of the loan modification through the present. The arrears does not include the amount that a person was behind prior to the loan modification. Therefore, the total amount of the arrears of a default of a loan modification is reduced to the amount due after the loan modification, only. Since the arrears’ amount is smaller after the loan modification, it is more likely that a chapter 13 debtor could pay such arrears through a chapter 13 bankruptcy.
Attorney Robert Manchel, a NJ bankruptcy lawyer, can be contacted at(866) 503-5655 to discuss your options for filing for bankruptcy protection.

The bankruptcy code indicates that every 3 years, commencing on the First of April, various exemption dollar amounts are adjusted for inflation. On April 1, 2013, the following federal exemptions were adjusted:
The debtor’s exemption in their residence was $21,625., which was adjusted to $22,975.
The debtor’s exemption in one motor vehicle was $3,450., which was adjusted to $3,675.
The debtor’s exemption for the aggregate value, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use was $11,525, which was adjusted to $12,250.
The debtor’s exemption for the aggregate interest in jewelry was $1,450, which was adjusted to $1,550.00.
The debtor’s exemption for the aggregate interest in any property, was $1,150, which was adjusted to $1,225.
The debtor’s exemption for the aggregate interest in any property, is an amount up to $11,500.00 of the unused portion of his residential exemption, that is stated above. This exemption was adjusted from $10,825.00. This means that the debtor can apply up to $11,500.00, of the amount that is not used from their $22,975 residential exemption, in any property.
The debtor’s exemption for tools of the trade, was adjusted from $2,175.00 to $2,300.00.
The above list does not include all of the federal exemptions that were adjusted.
New Jersey Bankruptcy Lawyer Robert Manchel can speak with you regarding your options for bankruptcy protection. Call (866) 503-5655 to schedule your free consultation.

Blacks Law Dictionary provides the following definition of an asset, “Property of all kinds, real and personal, tangible and intangible, including, inter alia, for certain purposes, patents and causes of action, which belong to any person including a corporation and the estate of a decedent. The entire property of a person, association, corporation, or estate that is applicable or subject to the payment of his or her or its debts.”
An asset is not only something that is presently possessed, both intangible and tangible, but a present right of something of value in the future. The present right to sue someone for money or property is a present asset.
For example, a bankruptcy debtor that is injured in an auto accident, who is entitled to money for his injuries creates a present asset. The asset was created on the date of the accident, not the date that money was received for the loss. Therefore, if such auto accident occurred prior to the bankruptcy filing and prior to receipt of the funds, the right to sue for the money is considered an asset of the bankruptcy estate.
Another example is the right to receive an inheritance. If the bankruptcy debtor is a beneficiary of the estate of someone who died prior to the bankruptcy filing, the right to the money and/or property are assets of the debtor’s bankruptcy estate. It doesn’t matter if the debtor did not yet receive the money or property.
You can contact Robert Manchel at (866) 503-5655 if you have questions about debt and what options you have.