NJ Bankruptcy Forms Explained By An Experienced Bankruptcy Attorney
The bankruptcy forms of every state are generally the same, as the forms are federal. However, there may be some variations, such as the chapter 13 plan. The New Jersey Bankruptcy Plan form is different than the federal plan forms that are typically used by each state.
The New Jersey Bankruptcy Petition includes the following:
Disclosure of Attorney’s Compensation is a statement that reflects the total amount charged by the debtors’ attorney, including the amount that is paid prior to and after the filing.
Notice to Consumer Debtors’ Under 11 U.S.C., 342(b) provides information about the required pre filing credit counseling. The notice briefly explains the differences between a chapter 7, 13, 11 and 12. Furthermore, the notice provides the bankruptcy court fees for all chapters, as well as information regarding bankruptcy crimes.
Chapter 13 Statement of Current Monthly Income and Calculation of Commitment Period and Disposable Income is a form which reflects a detailed and confusing analysis of the debtors’ household income and expenses for the six months prior to the filing. If the household income is less than the average New Jersey household income of the same size, the debtors’ meet the criteria. If the debtors’ household income exceeds the average New Jersey residence’s income of the same size, the balance of the form must be completed. The balance of the form includes the deduction of expenses, some of which are actual and some that are dictated by the IRS, based on the number of household members. If the debtors’ average net monthly income for said 6 month period is less than the monthly expenses, the debtor meets the criteria. However, if the debtors’ income for the same period is more than their monthly expenses, the debtor does not meet the criteria for a chapter 7.
The Voluntary Petition is the first three pages of the bankruptcy petition that reflects the following: debtors’ names, address, type of bankruptcy chapter, estimated number of creditors, estimated assets and liabilities. The third page requires a signature and a declaration under penalty of perjury that the petition contents are accurate.
Exhibit D – Individual Debtor’s Statement of compliance of Credit Counseling Requirement, which indicates that the debtors have received a briefing from an approved credit counseling agency within the required time period.
Summary of Schedules is one page that consists of square blocks that contain specific values for each of the following categories: real property values, personal property values, exempt property; amount of unsecured debt, amount of secured debt, amount of priority debt, list of unexpired leases, codebtors, total income and expenses.
Statistical Summary of Certain Liabilites is a one page consisting of a list of the amount of certain types of liabilities, which include Support Obligations, taxes, Personal Injury claims, student loans, obligations to pensions. The page also includes the following figures: average income and expenses, the amounts reflected from the Current Monthly Income calculations, amount of secured, unsecured and priority debt that is reflected on the schedules.
Schedule A/B reflects a list of all personal property and real estate that the debtors’ own, including the addresses, fair market value, mortgage payoffs and the difference between the value and the payoffs. The list should include: bank accounts; clothing; furs, jewelry; cash surrender insurance policies; money that is payable or due to the debtor. Also, an asset includes the debtors’ ability to sue an entity or person for money, such as a personal injury action.
Schedule C reflects a description of all property that the debtor is claiming an exemption, as well as the value of the property and the amount of exemption taken on each property. Typically, the amount of the exemption that is applied is equal to the equity of each property.
Schedule D is a list of all creditors that are holding secured claims against the debtor, such as mortgage company and auto finance companies. The schedule includes the creditors’ addresses, the value of the property, such as a car or house, amount of the claim and how the property is owned.
Schedule E/F is a list of all unsecured debt and priority debt. Priority debt includes Child and Spousal Support and some types of IRS and State of New Jersey, Div. of Taxation debt. Unsecured debt includes credit cards and money due to creditors, that do not have an interest in any property.
Schedule G is a list of creditors having an executory contract or unexpired lease with the debtor. This means any creditor that entered into a contract with the debtor that has not yet expired. This includes an auto lease, residential lease, or a contract for services.
Schedule H – Co-debtors is a list of people or entities that owe a debt with the debtor, but have not filed with the person who has filed the bankruptcy petition. A co-debtor may be a bankruptcy debtor’s daughter who owes an auto loan with her father, who filed the bankruptcy petition.
Schedule I – Current income of the debtors that is provided monthly income, which also includes pay deductions of the debtors. The monthly income may include the income of any additional household member and/or any additional contributions from any source.
Schedule J – Current Expenditures of the debtors includes the reasonable and necessary monthly expenses. The expenses may include any reasonable payments for dependents.
Declaration Concerning Debtors’ Schedules is a Declaration under penalties of perjury that the schedules contain true and correct information. This page provides a location for a signature.
Statement of Financial Affairs contains 18 questions about various matters concerning the debtors’ financial affairs, including, but not limited to the following: prior years’ income; recent payments to creditors and people; lawsuit information; foreclosure and repossession information; details regarding previously owned property and real estate conveyances; gifts; losses; closed financial investments and bank accounts; business information; property which is held by another, etc.
Matrix is a complete list of creditors and codebtors’ names and addresses.
Verification of Creditor Matrix is a location for the debtors’ signature that verifies the accuracy of the matrix.
Chapter 7 Individual Debtors’ Statement of Intention is used in chapter 7 cases only. The form requires the debtors to include the names of all secured creditors, such as mortgage company and automobile finance companies. In addition, the form must include property that is the subject to a lien, such as the house address and the auto make, model and year. The form requires the debtors’ intention regarding whether he wishes to keep or surrender the property. If the debtor wishes to keep the property, the debtor must indicate whether he intends to keep property by reaffirming debt, redeeming the debt, or by another fashion, such as keeping the property and making current monthly payments. The debtor must also indicate whether the property is fully exempt. Also, the debtor must include the name of all creditors with which they maintain a lease, including all leases. For example, an auto. or residential lease. The page must reflect whether the debtor intends to assume or reject the lease.
Chapter 13 bankruptcy plan is only required in a chapter 13. The plan includes the amount of the monthly trustee payment, the number of months to be paid, and the amount to be paid to each creditor. The above information is based on the bankruptcy code requirements and the debtors’ intentions.
Consulting a New Jersey Bankruptcy Attorney
The bankruptcy laws and the completion of the documentation can be confusing, especially for those that have never gone through the process. It is important that you discuss your financial situation with an experienced and knowledgeable bankruptcy lawyer to ensure that you are following the bankruptcy code and taking advantage of the appropriate exemptions. As a bankruptcy attorney ,Robert Manchel, Esq. has handled thousands of bankruptcy cases for families and individuals like you. Call today at (866) 503-5655 to discuss your options.