Manchel
New Jersey
Bankruptcy Law

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Robert Manchel

NJ Bankruptcy Lawyer Explains How To Pay Chapter 13 Payments

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There are three chapter 13 trustees in the State of New Jersey.
Marie Greenberg is the chapter 13 trustee for the Newark vicinity.
Albert Russo is the chapter trustee for the Trenton vicinity.
Isabel Balboa is the chapter 13 trustee for the Camden vicinity.
All trustees require that all payments be made by certified funds, which means a money order, bank check, etc. The trustee will not accept personal checks. Every payment must indicate the debtor’s name and case number. Also, all payments must be sent to the trustee’s respective PO Box, located in Tennessee.
At the time of this blog, only Albert Russo accepts online payments. Mr. Russo’s website provides an explanation of the process and a link to the registration site. The online payment process will not automatically withdraw the payment from the debtor’s bank account and requires the debtor to personally enter the payment request for each and every payment. Upon entry of the withdraw request, the funds will immediately be removed from the account and deposited into the trustee’s account within 3 business days. The present processing fee for each payment is $1.50. If one payment is rejected for insufficient funds, the debtor will be permanently prohibited from future use of the system.
If you have any questions regarding the chapter 13 bankruptcy process, you may contact the office of Robert Manchel, NJ bankruptcy lawyer, at (866) 503-5655 to discuss your questions.

The Process of Redeeming An Auto In A Chapter 7 Explained By A Bankruptcy Attorney

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A debtor may redeem their auto in a chapter 7 bankruptcy. This means that a debtor may keep their auto by paying to the finance company, either the balance on the loan, or the value of the auto, if the finance payoff exceeds the auto’s value. Unless both parties agree otherwise, the payment must be made in a lump sum.
Obviously, the debtor wishes to keep the auto by paying the least amount to the finance company. Therefore, if the finance payoff balance is more than the value of the auto, the debtor may keep the auto and eliminate the lien and financing, by paying the value of the auto. This means that if the auto has a value of $8,000.00 and the finance payoff is $10,000.00, the debtor may keep the auto, and eliminate the lien and financing, by making a lump sum payment of $8,000.00.
There may be an issue regarding value. If all parties cannot settle on the value amount, the parties may hold a hearing for the judge to determine the value. Each party may present their appraisal and expert to support their figures.
Redemption is unusual. Typically, a debtor will keep their auto by continuing to keep and pay the auto financing, the same as if no bankruptcy case was filed.
There are many questions people have relating to their vehicle and how it’s impacted by bankruptcy. Robert Manchel, a NJ Bankruptcy Lawyer, is available to discuss your questions at (866) 503-5655.

Save Your House After Loan Modification Default in NJ

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What happens if someone defaults on a mortgage after the loan was modified?
A person that defaults on a loan modification may be able to obtain a second loan modification. This blog assumes that the person is unable to obtain a second loan modification after defaulting on the first loan modification.
A person who falls behind with their mortgage after entering into a loan modification, may be able to save their house through bankruptcy. As I explain in my website, a person is able to save their house and stop the foreclosure action by paying the pre-filing mortgage arrears through the bankruptcy plan, in addition to paying the regular monthly mortgage payments directly to mortgage company.
The terms of the mortgage that is relevant at the time of the bankruptcy filing are the loan modification terms and not the terms of the mortgage prior to the loan modification. This means that the amount of the default relates to the amount that you are behind after the loan modification. Also, the monthly payment that is due going forward is based on the loan modification terms. Consequently, the amount that must be paid to the mortgage company through the bankruptcy plan is the amount that a person is behind since the first loan modification payment, which does not include the amount of the arrears prior to the loan modification. Also, the monthly payment that must be paid to the mortgage company, after the bankruptcy filing, is the amount that is required under the loan modification and not the amount that was due prior to the loan modification.
Please note that the first payment of the loan modification does not mean the first payment of the trial period payment.
Robert Manchel can be contacted at (866) 503-5655 if you’re at risk of losing your home.

Requirements For A Mortgage Company Loan Modification In Bankruptcy

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If a mortgage company approves a loan modification, the loan modification agreement must be approved by the bankruptcy court. Typically, the court will enter an order approving the loan modification without resistance. However, generally, in a chapter 13, the trustee will require a debtor to amend their income and expense schedules and their bankruptcy plan.
At the time of the bankruptcy filing, the mortgage company will file a proof of claim reflecting the total amount due and the arrears balance. At some point, the debtor will be required to pay the pre-filing mortgage arrears, through the bankruptcy plan, unless the mortgage company approves a loan modification. Typically, a mortgage loan modification removes the arrears and spreads the arrears over the life of the loan, either with or without a balloon payment at the end of the loan.
After the bankruptcy court enters an order approving the loan modification, the debtor will be required to modify their bankruptcy plan to reflect the loan modification approval. Also, the debtor will be required to amend their income and expense schedules to reflect their new disposable income amount,which includes their new mortgage payment and the elimination of any previous payment towards the mortgage arrears. The new chapter 13 monthly trustee payment, must at least reflect their new monthly disposable income amount.
Robert Manchel may be reached at (866) 503-5655, to discuss your bankruptcy and loan modification questions.

Required Filing Of Tax Returns

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This Blog deals with the requirement of filing state and federal income tax returns, not whether any taxes are dischargeable.
Chapter 13 tax return filing requirements
In a chapter 13, the debtor is required to have filed any and all state and federal tax returns that were required to have been filed for the four years prior to the bankruptcy filing. The deadline to file all of these returns is the day before the first scheduled Meeting of Creditors, which is approximately 30 days after the bankruptcy filing.
Under the bankruptcy case, if the debtor fails to file the returns within the required time period, the trustee may extend such period, no more than an additional 120 days past the Meeting of Creditors.This period is about 150 days after the bankruptcy filing.However, the debtor may ask the judge for an additional time period, if the reason for not filing the returns were due to circumstances beyond the debtor’s control.
As a practical matter, without a judges approval to extend the filing period, the case will be dismissed at a Confirmation Hearing that is held later than 120 days after the Meeting of Creditor’ hearing.
Please note that if the Federal or state government does not require a debtor to file a return, for whatever reason, the returns, for that year need not be filed.
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chapter 7 tax return filing requirements
In general, everyone is required to timely file any and all federal and state tax returns. However, the failure to file a tax return is not grounds for the dismissal of a chapter 7 case.
Please call Attorney Robert Manchel at (866) 503-5655, to discuss your bankruptcy protection questions.

New Jersey Bankruptcy Attorney Explains Who May Avoid the Means Test

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Who may Avoid the Bankruptcy Means Test(Current Monthly Income Test)
The result of the Means Test determines if a person may file for chapter 7 protection and the amount that must be paid to unsecured creditors in a chapter 13. Please note that there are other criteria that determine whether a person may file for a chapter 7, and/or the amount that must be paid to unsecured creditors in a chapter 13.
The following bankruptcy debtors may avoid having to complete the Means Test analysis:
Debtors, whose debt is mostly non-consumer debt. Consumer debt is debt that was incurred by an individual primarily for personal, household or family purpose.Therefore, if most of an individual’s debt is business related, including business credit cards, the debtor need not complete the Means Test. Other non-consumer debt include personal injury and other tort claims and taxes. Thus, if any of these non-consumer claims make up most of your debt, you need not complete the means test.
A debtor that is a disabled veteran is exempt from the means test.
Military reservists and National Guard members that are on active duty or performing homeland defense are exempt. This exemption continues for 540 days after active duty is terminated.
Robert Manchel, New Jersey bankruptcy lawyer, may be contacted at (866) 503-5655 to discuss your options about filing for bankruptcy protection.

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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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