General Bankruptcy Information

In certain situations, a debtor may not be able to eliminate any debt. Typically, this is due to the debtor owning assets with a substantial value and/or having substantial household disposable income on a monthly basis.
Assuming an individual has no other reason for filing a chapter 13 case other than dealing with their unsecured debt (ie. credit card, medical bills, personal loans, etc), a person in this situation, may wish to settle the accounts without filing for bankruptcy protection or pursue some type of debt settlement plan. However, a chapter 13 filing may benefit an individual in such a circumstance, as no interest is required to be paid on any of the unsecured debt.
The most a person must pay back to their creditors is the total amount due on their debt. The total amount due does not include interest on any of the unsecured debt. Therefore, it does not matter if the debtor has 50 houses with no mortgages and earns 10 million per year, the debtor will never be required to pay interest on the unsecured debt.
As we know, the interest due on unsecured debt, such as credit cards, is extemely costly. As a result the amount that must be paid back on all credit card debt, without interest, through a chapter 13 case, may be less than the amount paid under a non bankruptcy payment plan.
Robert Manchel, the bankruptcy attorney in NJ. , will discuss your bankruptcy questions at 1(866) 503-5655.

NJ. Bankruptcy Lawyer Explains How Pacer Works

“PACER” is the Public Access to Court Electronic Records, that allows someone to access documents that were filed with the federal courts, which include the bankruptcy courts in NJ.
Anyone can use the system and you need not be attorney to gain access to their website. The registration is free. However, there is a cost of .10 per page for each document that is downloaded and/or viewed. Therefore, if a document is 15 pages long, the total cost to review the document is $1.50. Typically, Pacer will not charge more than $3.00 to view any one document, event though the amount of pages is in excess of 30. Pacer will charge a quarterly fee of $15.00, unless the total amount of one’s quarterly charges are less than $15.00. Consequently, if a person’s charges are more than $15.00 for the quarter, that account will be charged an additional $15.00 for such usage.
Documents filed with the court may not be retrieved from a general internet search. Any person seeking specific bankruptcy documents that have been filed with the court must obtain the documents through PACER. An example of the documents that may be found on PACER are as follows: entire bankruptcy petitions; motions filed with the court; documents filed by the trustee; discharge orders; any other orders entered in the case; and, proofs of claim filed by creditors.
Attorneys that file a large number of cases, are required to maintain a pacer account and a CM/ECF account with the federal courts. The CM/ECF is the Case Management / Electronic Case Files, which is a system that allows attorney’s to electronically file documents with the court. Bankruptcy attorneys that file a substantial number of cases, typically file bankruptcy petitions directly through their bankruptcy software, that automatically accesses the bankruptcy court’s website and files the petition.
The bankruptcy Pacer and CM/ECF systems automatically email any and all documents filed within an attorney’s case directly to the debtor’s attorney’s email, immediately after any document is filed within the case. There is no fee for the attorney to open the emailed document and save it on a computer. However, any time an attorney accesses PACER directly to open a file, he is charged the typical PACER fee. Also, any other attorney that is retained to represent any other entity or individual involved in a case, will be emailed all documents, the same as the debtors’ attorneys. However, the other attorneys must also maintain an account and Enter Their Appearance with the court, if they have not yet filed a document with the court.
Contact bankruptcy lawyer Robert Manchel, at 866 503 5644, to discuss your bankruptcy questions.

How New Jersey EZ Pass Violations For Unpaid Tolls, Fines & Penalties And The Threat Of Registration Suspension and Auto Impoundment Is Handled In Bankruptcy

I have handled bankruptcy cases involving clients that have incurred a surprisingly substantial amount of EZ Pass debt. Peculiarly, most bankruptcy lawyers do not know how to handle EZ Pass Debt in a New Jersey Bankruptcy.
Also, good luck finding a state employee that understands how such debt is administered in bankruptcy.
New Jersey residents may not realize that relatively minor EZ Pass violations may result in an enormous debt after the New Jersey Turnpike Authority adds their collection fees and costs.
I have handled bankruptcy cases, wherein about 92% of the EZ Pass debt represents collection costs and fees. For example, a client’s total debt of $15,500, represents violation fines of $1,240.00 and collection costs of $14,260.00. Unfortunately, the Turnpike Authority does not treat the actual fines differently from the collection fees and costs.
The Turnpike Authority may send unnerving letters advising that if the debt is not paid, they will suspend your registration and impound all of your vehicles. The letters may provide payment options that are financially unfeasible
In general, debt that is owed to NJ E-ZPass is considered and treated as unsecured debt in bankruptcy. Unsecured debt is debt that is owed to a creditor that is not holding a lien on any property, such as credit card or personal loan debt.
This means that a person who is entitled to a chapter 7 discharge, could discharge (eliminate) this debt.
E-ZPass debt is treated as unsecured debt in a chapter 13, which means that any unsecured debt that is not required to be paid under the bankruptcy code, is eliminated and discharged.
Immediately upon the filing of any bankruptcy case, the New Jersey Turnpike Authority must immediately cease any and all collection efforts. This means that if a bankruptcy case is filed, there is an automatic stay that prevents the debtor’s registration suspension and vehicle impoundment.
If the registration was suspended prior to the bankruptcy filing, the turnpike authority must reinstate the registration, after the filing. However, the turnpike authority may charge reasonable fees and costs associated with the reinstatement.
I have never experienced any difficulty in discharging E-ZPass debt. However, debt that is obtained through fraud may not be discharged.
Therefore, theoretically, if E-ZPass successfully contested a discharge as a result of fraud, the debt would not be discharged and would continue to be due and owing at the completion of the case.
In other words, if E-ZPass proves, in court, that the debtor incurred the toll charge with no intention of ever paying the toll, the charge would not be discharged.
Please note that I have never heard of E-ZPass contesting a discharge. Also, the cost of pursuing such an action, would likely deter the action altogether.
If you have questions about your debts, give me a call at (866) 503-5655 and we can discuss privately and for free.

Rare Circumstances with Bankruptcy & NJ EZ Pass

As I said, although unlikely, the State of New Jersey may take the following actions in connection with EZ Pass debt;
The state may commence a lawsuit against the debtor and obtain a judgment lien. The state may also suspend the debtor’s license and/or suspend or restrict the registration of a vehicle.
The following explanation in this and following paragraph, is based on the state not having entered a judgment lien, against the debtor, by way of a lawsuit. In general EZ Pass debt is considered unsecured debt, in a chapter 13 and/or a chapter 7 bankruptcy case. Typically, all unsecured debt is treated the same. The most common type of unsecured debt is credit card debt and a personal loan. If a bankruptcy debtor meets the criteria of a chapter 7 discharge, all of the EZ Pass debt is eliminated and discharged in the chapter 7.
This paragraph deals with EZ Pass debt, in a chapter 13, when no judgment lien was entered. I have written numerous blogs on how unsecured debt is treated in a chapter 13. All types of unsecured debt must be paid equally, if at all, in a chapter 13 bankruptcy case. Depending on the debtor’s financial circumstances, he may not be required to pay any money, whatsoever, towards the EZ Pass debt. However, if the debtor is required to pay any funds toward the EZ Pass debt, he must pay all his other unsecured debt, the same pro rata amount. You may review my other blogs that explain how unsecured debt is paid in a chapter 13.
If the state entered a judgment lien against the debtor, typically, the debt is still discharged in a chapter 7. However, all or a portion of the lien may not be eliminated, depending on the debtor’s circumstances. In other words, the discharge of a debt means that the creditor is not permitted to collect money for the debt. However, if the lien may not be eliminated, the lien must be paid when the debtor’s real estate is sold.
A lien may attach to the debtor’s real estate, under certain circumstances. Also, the lien may, possibly, be eliminated based on the value of the house, the mortgage payoff and any other judgment lien payoffs. In order to eliminate the lien in a chapter 7, an additional document must be filed with the court, requesting same. In a chapter 13, all or a portion of the lien may, possibly, be eliminated based on the debtor’s house value, mortgage payoff and the value of other liens. Any portion of the lien that may not be eliminated in a chapter 13, may be paid through the chapter 13 bankruptcy plan
Based on the debtor’s circumstances, the filing of a chapter 13 and/or chapter 7 case may permit the reinstatement of their driver’s license and the release of the vehicle’s registration suspension/restriction, after payment of the required costs. I would be interested in explaining how bankruptcy may benefit you with your EZ Pass debt.
Contact Robert Manchel at 866 503 5644 to discuss your EZ Pass debt and bankruptcy.

New Jersey Bankruptcy Lawyer Explains About the NJ. bankruptcy courts.

Bankruptcy courts are located in the federal courthouses, as bankruptcy laws are federal. The federal courthouses are also considered united states courthouses. There are three federal courthouses in New Jersey. The following is a list of the  New Jersey bankruptcy court addresses: Clarkson S. Fisher, U.S. Courthouse, 402 East State Street, Trenton, NJ. 08608; Mitchell H. Cohen U.S. Courthouse, 400 Cooper St., Camden, NJ. 08101; and, U.S. Courthouse, 50 Walnut St, Newark, NJ. 07102. Lawyers refer to the city where the courthouse is located as the vicinage. For example, the Mitchell Cohen Courthouse is located in the Camden Vicinage.
Two bankruptcy judges preside over cases that are filed in the Camden vicinage. The judges names are the Honorable Andrew B. Altenburg, Jr. and the Honorable Jerrold N. Poslusny, Jr. The following judges preside over cases that are filed in the Trenton vicinage: Honorable Kathryn C. Ferguson; Honorable Michael B. Kaplan; and, Honorable Christine M. Gravelle. Judge Ferguson is the chief bankruptcy judge of the State of NJ. The following judges preside over cases that are filed in the Newark vicinage: Honorable Rosemary Gambardella; Honorable Vincent F. Papalia; Honorable Stacey L. Meisel; and, Honorable John K. Sherwood.
The New Jersey bankruptcy court vicinage in which a person’s bankruptcy case is filed is based on the address of the debtor. If the debtor resides in the following locations, their case will be filed in the Camden, NJ. bankruptcy courthouse: Atlantic; Camden; Cape May; Cumberland; Gloucester and Salem Counties. Additionally, individuals residing in the following towns of Burlington County would file in the Camden vicinage: Cinnaminson; Delran; Edgewater Park; Evesham; Maple shade; Moorestown; Mount Laurel; Palmyra; Riverside; and, Riverton.
Debtors residing in the following New Jersey counties and townships would file their bankruptcy cases in the Trenton bankruptcy courthouse: Hunterdon; Mercer; Middlesex; Monmouth; Ocean; Somerset; and, Warren. Additionally, the following townships of Burlington County would file their cases in the Trenton vicinage: Bass River; Beverly; Bordentown City; Bordentown Township; Chesterfield; Delanco; Eastampton; fieldsboro; Florence; Hainesport; Lumberton; Mansfield; Medford Lakes; Medford Township; New Hanover; Palmyra; Pemberton Borough; Pemberton Township; Shamong; Southampton; Springfield; Tabernacle; Washington Township; Westampton; Willingboro; Woodland Township; and, Wrightstown.  Debtors residing in the following N.J. counties would file their bankruptcy cases in the Newark bankruptcy courthouse: Bergen; Essex; Hudson; Morris; Sussex; and Union.
After the bankruptcy case is filed, the debtor’s case is arbitrarily assigned to one of the judges that presides in that vicinage. However, if the debtor filed a prior case in the same vicinage, that was assigned to an active judge, the case will be assigned to the same judge.
After the bankruptcy filing, the debtor is arbitrarily assigned a trustee. A trustee administers a bankruptcy case. In general, a chapter 7 trustee reviews the debtor’s documents to confirm and ensure that he does not own any valuable and unexempt property that may be sold. In the event that the debtor owns such property, the trustee would sell the property and disburse the proceeds pursuant to the bankruptcy code. Ultimately, the trustee would file the appropriate documents with the court and submit his recommendation as to whether the debtor should be entitled to a discharge. Typically, the judge will order the discharge pursuant to the trustee’s recommendation.
The following trustees administer cases that are filed with the NJ. Camden courthouse: Joseph D. Marchand; Andrew S. Sklar;  Thomas J. Subranni;  Brian S. Thomas; and, Douglas S. Stanger. The following trustees administer cases that are filed with the NJ. Trenton vicinage: Bunce D. Atkinson; Karen E. Bezner; Andrea Dobin ; John W. Hargrave ; John M. McDonnell, III; Thomas J. Orr ; Barry R. Sharer; Daniel E. Straffi; Catherine E. Youngman; and,  Barry W. Frost. The following trustees administer cases that are filed with the NJ. Newark vicinage: David A. Wolff; Donald V. Biase; Nicholas J. Delzotti ; Barbara A. Edwards; Charles M. Forman; Nancy Isaacson; Steven P. Kartzman ; Jeffrey A. Lester; Jay L. Lubetkin; Eric R. Perkins; Benjamin A. Stanziale, Jr.; Charles A. Stanziale, Jr. ; and, John W. Sywilok.
There are only three chapter 13 standing trustee’s administering cases in the entire State of New Jersey. Trustee, Albert Russo, is assigned to all cases that are filed in the New Jersey Trenton bankruptcy courthouse. The trustee, Isabel Balboa, is assigned to all cases that are filed in the Camden bankruptcy courthouse. Trustee, Marie-Ann Greenberg, is assigned to all cases that are filed in the Newark bankruptcy courthouse.
The following information relates to chapter 7 bankruptcy cases filed in New Jersey. A chapter 7 case typically requires only one hearing, that is called a Meeting of Creditors, or a 341(a) hearing. Judges do not appear at the hearing. Generally, only the debtors and their attorneys appear at the hearing.  Although the name of the hearing includes, “creditors”, creditors generally do not appear at the hearing.
The Meeting of Creditors’ hearings, regarding Trenton cases, are conducted in the Trenton courthouse, but not in a courtroom. The hearing is held in a classroom like setting. Camden and Trenton 341(a) hearings take place in a location other than a courthouse. Newark bankruptcy court Meeting of Creditors’ hearings are held at One Newark Center, Suite 1401, Newark, NJ. 07102.  Most Camden bankruptcy court Meeting of Creditors hearings are held at the Bridgeview Building, 800 Cooper Street, Suite 102, Camden, NJ. 08102. However, if a debtor resides near Northfield, the hearing location is 1423 Tilton Road, Suite 5, Northfield, NJ. 08225.
Typical chapter 7 bankruptcy cases do not require an appearance in court before a judge. However, any unresolved or contested chapter 7 cases may be brought before the judge for his final decision. Also, chapter 7 Reaffirmation Hearings may be brought before the bankruptcy court judge. A trustee is not the judge who has final decision making powers. Therefore, if a trustee pursues a particular action that the debtor’s attorney opposes, the debtor’s counsel may file a motion with the court contesting the trustee’s position. Additionally, a creditor that wishes to pursue a specific course of action, in a chapter 7 case, may present her argument with the court and not the trustee. Of course, the trustee is an interested party to all court matters of his assigned cases.
The bankruptcy code requires two bankruptcy hearings in connection with Chapter 13 bankruptcy cases. The Meeting of Creditors is required, which is the same hearing as the Chapter 7 cases. The addresses for chapter 13, 341(a) hearings are located at the following addresses. Cases filed in the Trenton courthouse are conducted at 1 AAA Drive, Suite 101, Robbinsville, NJ. 08691.  Cases filed in the Camden courthouse are conducted at the Cherry Hill or Northfield addresses, as explained above. Cases filed at the Newark courthouse are held in the same location as the 341(a) hearings for the chapter 7 cases.
The second chapter 13 hearing is called the Confirmation Hearing, which is held at the courthouse, where the case is filed. The Confirmation Hearing establishes the exact amount that the debtor must pay to the trustee each month and the number of months of the plan. The hearing also establishes the amount that each creditor is to be paid through the trustee payments. In most cases, the Confirmation Hearing is postponed to allow the creditors and debtor’s attorneys time to settle various issues. The debtor’s attorneys must also settle matters with the trustee. The judge may be needed to decide certain unsettled matters.
Robert Manchel, Esq. may be contacted at 866 503 5644 to discuss your bankruptcy questions.

New Jersey Attorney Explains How Bankruptcy Can Force A College To Forward Transcripts to Another University

Immediately upon the filing of any bankruptcy case, in New Jersey, the Automatic Stay Provision of the bankruptcy code, 11 U.S.C., § 362(a) is effective. The Automatic Stay prevents a creditor from commencing or pursuing any action against the bankruptcy debtor, as a result of debt owed to the creditor. Typically, this provision prevents a creditor from suing the debtor for a debt that is owed. The Automatic Stay stops the collection action no matter the status. If the bankruptcy case is filed after the creditor has obtained a wage garnishment, the garnishment must be released.
There are circumstances in which a college student owes funds to a university in which he no longer attends. The university may restrict the release of the transcripts to a college that the debtor has applied and to the debtor directly. In general, this tactic is legal and very effective in collecting the funds, as the student will have wasted substantial time and money, unless the debt is paid.
However, the bankruptcy Automatic Stay provision requires the college to release any and all transcripts to the debtor, directly, and/or any colleges that the debtor has applied. Of course, the debtor will not receive any special treatment and will be required to pay any typical administrative fees for the request. Any intentional refusal to comply with the release of the transcripts may subject the institution to sanctions, In other words, if the college fails to comply, the debtor’s attorney may file a request with the bankruptcy court demanding compliance, with a request for punitive damages,  attorney’s fees and costs.
After the discharge of the successful completion of the bankruptcy case, when the debtor is no longer in bankruptcy, the college must continue to comply with the debtor’s request to release the transcripts. The College’s failure to comply with the debtor’s request to release the transcripts after discharge, results in the violation of bankruptcy code section 11 U.S.C., § 524(a). 11 U.S.C., § 524(a) operates as an injunction against such action. If the college intentionally fails to comply after the discharge, the debtor may wish to reinstate the bankruptcy case demanding compliance, with a request for sanctions, as previously explained.
You may contact Robert Manchel, at 866 503 5644,  to discuss how bankruptcy will provide you with debt relief.

Bankruptcy Lawyer Explains How New Jersey EZ Pass Violations And The Threat Of Registration Suspension and Auto Impoundment is Handled in Bankruptcy.

New Jersey residents may not realize that relatively minor EZ Pass violations may result in an enormous debt after the New Jersey Turnpike Authority adds their collection fees and costs. I have handled bankruptcy cases, wherein about 92% of the EZ Pass debt represents collection costs and fees. For example, a client’s total debt of $15,500, represents  violation fines of  $1,240.00 and collection costs of $14,260.00. Unfortunately, the Turnpike Authority does not treat the actual fines differently from the collection fees and costs.
The Turnpike Authority may send unnerving letters advising that if the debt is not paid, they will suspend your registration and impound all of your vehicles. The letters may provide payment options that are financially unfeasible . What can you do, as you need your auto for work and to transport your children, etc? Bankruptcy may be an option.
Immediately upon the filing of any bankruptcy case, the New Jersey Turnpike Authority must immediately cease any and all collection efforts. This means that if a bankruptcy case is filed, there is an automatic stay that prevents the debtor’s registration suspension and vehicle impoundment. If the registration was suspended prior to the bankruptcy filing, the turnpike authority must reinstate the registration, after the filing. However, the turnpike authority may charge reasonable fees and costs associated with the reinstatement.
The EZ Pass debt may be eliminated and is “dischargeable” in a chapter 7 bankruptcy case. Such debt is also “dischargeable” in a chapter 13 case. This means that the debtor need not pay any of the debt, in the event that either the debtor has no ability to pay any portion, and/or has no valuable assets that are not completely exempt.
You may contact Robert Manchel, at 866 503 5644,  to discuss how bankruptcy will effect your  EZ Pass violations.