Manchel
New Jersey
Bankruptcy Law

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New Jersey Bankruptcy Blog

How Long Can I wait To File And Still Save My House From Foreclosure

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The foreclosure process in New Jersey is very long compared to other states. Some time ago, the New Jersey supreme court ceased all foreclosure actions for a period of about one year. However, the one year stay was terminated and the court’s, again, permitted foreclosures to commence and continue. The stay and the substantial number of foreclosure filings caused a backlog of the the court system, the sheriff’s sale administration, and a longer foreclosure process. Presently, the backlog has diminished and the time period for the foreclosure process, from initial filing, to the sheriff’s sale, is reduced.
With few exceptions, any bankruptcy filing will stay a sheriff’s sale, if the bankruptcy petition is filed prior to the sale.
However, only a chapter 13 and chapter 11 bankruptcy case allows a person the ability to save their house from foreclosure. Unlike a chapter 7, these chapters permit the debtor to cure the mortgage arrears over a certain time period. Typically, a chapter 13 and chapter 11 debtor must meet specific financial criteria and have the capability to cure their arrears, in addition to making their future monthly mortgage payments. In the alternative, the debtor may apply for a loan modification, within the chapter 13 case.
Although a chapter 7 stops the sheriff’s sale, if the debtor is in default with the mortgage, the court will permit the mortgage company permission to proceed with the sheriff’s sale, pursuant to the mortgage company’s motion requesting same. Under these circumstances, the chapter 7 will extend the time that the debtors can reside in the property.
Robert Manchel can be contacted at (866) 503-5655 if you have bankruptcy related questions.

Federal Exemption Amounts Are Adjusted For Inflation

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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.

NJ Bankruptcy Attorney Explains What Is Considered An Asset

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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.

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.

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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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