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New Jersey Bankruptcy Blog

NJ Bankruptcy Lawyer Explains the Possibility of Getting Back a Repossessed Vehicle

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A New Jersey resident may get their repossessed auto back, by filing a chapter 13 bankruptcy case, if the auto was repossessed due to a loan default. However, there are general conditions for the return of the vehicle. Typically, the auto may be save at any time prior to the sale.
The debtor must file a chapter 13 bankruptcy petition, which provides a feasible plan indicating payment of the loan arrears, in addition to the future loan payments. The petition must reflect an ability to make such payments, by way of a budget. Additionally, the debtor must provide proof of adequate auto insurance that covers the finance company in the event of damage.
In general, the finance company will allow the debtor to obtain possession of the vehicle, without upfront payment for towing and storage fees. Such fees are typically paid through your bankruptcy plan.
The auto is typically released after the bankruptcy petition is filed and the necessary bankruptcy and insurance information is provided to the finance company. However, the debtor must travel to pick up the vehicle at the storage lot. The auto’s are generally stored in New Jersey.
Robert Manchel, is a New Jersey attorney that limits his practice to bankruptcy law. He may be contacted at 866 535 5655.

How Does A Chapter 7 Bankruptcy Affect a Second Mortgage In New Jersey

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A New Jersey chapter 7 bankruptcy case discharges the personal liability of a second mortgage. This means that the second mortgage company can never pursue the homeowner for the money that is due on the loan, not matter how much the debtor falls behind with their mortgage payments. If the homeowner is behind with payments, the mortgage company may foreclose on the property and take the house, only. If the homeowner wishes to keep the house, the payments must be current or the homeowner must work out some other arrangements, such as a loan modification.
Many people believe that a home equity loan in New Jersey is not a mortgage. A home equity loan is always a type of mortgage and typically a second mortgage.
A chapter 7 trustee will only sell property that has a substantial value, in excess of the mortgage balances. The decision of the trustee to sell property is not effected by whether the debtor is current or behind with their payments.
A chapter 7 discharge does not eliminate the second mortgage lien on the property. This means that the second mortgage lien must be paid if the homeowner wishes to sell the property at any time. The lien will continue to exist whether or not the mortgage company forecloses on the property.
You may contact Robert Manchel, the chapter 7 bankruptcy lawyer, to discuss your questions regarding a second mortgage and bankruptcy protection at 866 535 5655.

Mortgage Foreclosure Options In New Jersey

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There are a number of options that may be available to a New Jersey resident who is facing foreclosure. The following is a general list of a mortgage defendants options to foreclosure: actual defense to the complaint; loan modification; short sale; deed in lieu of foreclosure.
There are number of defenses, but not a number of effective defenses. A legitimate defense is that the payments were made and not properly credited to my account. There are other (legal technicality) defenses, which may not be considered by the court, such as the mortgage company does not possess the original note, or the assignment of the mortgage was invalid.
A deed in lieu of foreclosure is a procedure whereby the New Jersey homeowner deeds the property to the mortgage company and the mortgage company either refrains from filing the foreclosure action or stops the foreclosure action. The mortgage company should forgive all or a portion of the deficiency balance that is due on the mortgage. The homeowner must vacate the house at the time of the conveyance. The mortgage company’s participation is optional.
A short sale is a process, whereby the mortgage company permits the homeowner to sell the property for less than the amount that is due on the mortgage. The homeowner should request the release of all or a portion of the balance of the mortgage that is due after the sale. Again, the mortgage company’s participation is optional.
A mortgage loan modification is the modification of the mortgage. The approval of the loan modification is based on a number of criteria. The criteria varies based on the type of loan. Typically, the modification will eliminate the arrears and spread the balance over an extended time period. Also, typically, the interest rate is reduced. There are other similar resolutions that allow the homeowner to cure the arrears over a certain time period.
Robert Manchel is a New Jersey lawyer that handles foreclosure resolution matters. You may contact Mr. Manchel at 1 866-503 5655 to discuss your questions.

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.

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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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