Manchel
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Bankruptcy Law

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New Jersey Bankruptcy Blog

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.

How Long Is The New Jersey Foreclosure Process

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The New Jersey foreclosure process is a very lengthy compared to other states. There are so many foreclosure filings in New Jersey that virtually every one either knows someone whose house is in foreclosure, or is aware of a foreclosure within their neighborhood. Also, I am sure that most people know of a circumstance where a person’s property has been in foreclosure for numerous years.
Prior to the fall out of the economy, the real estate crash, and the rise in the foreclosure filings, a typical foreclosure action took approximately eight months. However, over the last four years a foreclosure action could have taken many years, from the date of the filing of the lawsuit to the sheriff’s sale. The two main reasons for the delay was the inability for the system to handle the high volume of foreclosures and the New Jersey Supreme court’s order to cease all filings for approximately one year. Furthermore, there are only a hand full of law firms that handle the bulk of the foreclosure actions. This resulted in a back log, not only with the courts, but with the law firms, as well.
However, presently, the system is much more efficient, as the back log has thinned out. Also, the court has implemented an electronic filing process that has reduced the time between the filing of the complaint through the sheriff’s sale.
At present, it is estimated that a foreclosure complaint may be filed after approximately three or four months of mortgage arrears. The estimated time between the filing of the foreclosure action through the date of the sheriff’s sale is about eight months.
You can contact Robert Manchel, the NJ. foreclosure resolution attorney, at (866) 503-5655.

What Happens If I Own Valuable Property Jointly With A Non-Filing Chapter 7 Debtor in NJ?

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Typically, someone can keep all of their property in a chapter 7 New Jersey bankruptcy without the trustee selling any property. The loss of any property by way of the sale by a trustee is very unusual. Also, prior to filing a chapter 7 the person filing (debtor) should know, based on the value of his property, that the trustee will sell a particular piece of property. The sale of any property should never be a surprise.
A trustee will only sell property if the particular property is very valuable and may not be fully exempt. However, if a debtor owns any property with a substantial value, the trustee may be permitted to sell such property. The fact that someone else owns the property jointly will not prevent the trustee’s right to sell. However, the non filing joint owner will be paid their ownership interest in the property.
Example:
A trailer is jointly owned by a New Jersey chapter 7 debtor and a person who did not file a bankruptcy case.
Trailer value is $75,000.00;
Loan financing balance is $5,000.00;
Cost of sale is $8,000.00
The amount received by the bankruptcy trustee after the sale is $62,000, which is the balance after paying the costs and the loan balance. The non filing joint owner would be paid $31,000, which is his one half interest in the trailer.
Now, lets assume that the debtor can apply $10,000 of his bankruptcy exemptions towards the trailer in a New Jersey bankruptcy. This means that the trustee must pay the debtor $10,000.00, which is his exemption. The trustee would be paid his commission, with the balance to be paid to the creditors, pursuant to priority, under the bankruptcy code.
Robert Manchel is an experienced lawyer in New Jersey, that limits his practice to bankruptcy and foreclosure resolution. Mr Manchel may be contacted at (866) 503-5655.

NJ Bankruptcy Lawyer Discusses How To Improve Your Credit After Bankruptcy

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Many clients advise me that they only want to use cash and will never use credit cards, again, after bankruptcy. However, in the U.S. economy it will likely be necessary to use credit for various needs. In other words, you may need credit to buy an automobile or other essential items. Therefore, the better your credit worthiness the lower your interest rates and the cost of credit.
Also, please note that a high credit score does not necessarily mean that you are a good credit risk. For example, a person with a high credit score, with tons of debt and a very low paying job, may not be a good credit risk.
After a bankruptcy case is completed and the debtor has been granted a discharge, the debtor must obtain their credit report from all three credit bureaus- Experian, Equifax and TransUnion. The credit report must reflect that all dischargeable debt is marked as discharged. The debtor may need to wait some time after their discharge for their credit report to accurately reflect the bankruptcy discharge. If their credit report is not properly reflecting this information, the bureaus must amend the credit report accordingly. In the event the credit report is not properly reflecting this information after a reasonable time period, one should send a letter requesting the change to all three bureaus with the discharge order enclosed. Also, a copy of the letter should be sent to the creditor.
Also, after the discharge, the debtor should obtain a secured credit card from a bank. My explanation of a secured credit card is in a separate blog. After making timely payments in connection with your secured credit card, the individual should apply for additional credit cards from other banks. All monthly credit card payments should be current and up to date.
You may contact Robert Manchel, NJ bankruptcy attorney, for a free consultation, at (866) 503-5655. We can discuss your individual circumstances and whether bankruptcy protection is an option for you.

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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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