How Often Can You File for Bankruptcy in New Jersey?

When faced with mounting debt and financial challenges, it’s essential to have accurate information about the frequency of bankruptcy filings. This knowledge allows individuals to make informed decisions about their financial future and explore the best course of action to address their debt burdens.

If you find yourself considering bankruptcy as a solution to your financial difficulties, it is highly recommended to seek the help of a skilled New Jersey bankruptcy attorney. They possess the knowledge of the law and experience necessary to guide you through the intricate bankruptcy process, ensuring that you understand the laws and regulations specific to New Jersey. 

Our qualified New Jersey bankruptcy attorneys at Straffi and Straffi Attorneys At Law can assess your unique situation, help you determine if bankruptcy is the right option for you, and provide guidance on the frequency of bankruptcy filings. Our attorneys can help you navigate the complexities of the legal system on your behalf, maximizing the benefits of bankruptcy while minimizing potential drawbacks. We can also assist you in understanding how bankruptcy can affect ownership of your assets such as how filing for bankruptcy can affect your home equity. Contact us today at (732) 341-3800 to schedule a free consultation with one of our attorneys.

What is Bankruptcy?

Bankruptcy is a legal status that can be declared by individuals or businesses who are unable to repay their debts. It provides a fresh start by eliminating certain debts or establishing a manageable repayment plan. Filing for bankruptcy can help debtors protect themselves from aggressive collection actions, such as wage garnishment, foreclosure, or repossession.

Bankruptcy laws in New Jersey encompass both federal regulations and specific state provisions. It’s essential to understand these laws before filing for bankruptcy:

• Exemptions: New Jersey has its own set of exemptions that determine which assets you can protect from liquidation during bankruptcy. These exemptions include homestead, personal property, motor vehicles, retirement accounts, and more. Consulting with a knowledgeable bankruptcy attorney in New Jersey can help you understand the specific exemptions applicable to your situation.
• Means Test: As mentioned earlier, the means test is a crucial aspect of Chapter 7 bankruptcy eligibility in New Jersey. It compares your average monthly income to the state’s median income to assess whether you have enough disposable income to repay your debts. An experienced bankruptcy attorney can guide you through this process and determine if you qualify for Chapter 7 bankruptcy. In New Jersey, the annual income limit for a one-person household is $83,898 for cases filed after March 15, 2023.
• Automatic Stay: Upon filing for bankruptcy in New Jersey, an automatic stay goes into effect. This stay prohibits creditors from pursuing collection actions against you, such as lawsuits, wage garnishments, or phone calls demanding payment. The automatic stay provides temporary relief and allows debtors to work through the bankruptcy process. However, it is important to note that not all debt can be discharged with a bankruptcy filing and you should carefully consider the type of debt that you have before filing your application.
• Bankruptcy Exemptions: New Jersey allows individuals filing for bankruptcy to choose between federal bankruptcy exemptions and state exemptions. However, it’s important to note that you cannot mix and match exemptions from both systems. An experienced bankruptcy attorney can advise you on the best approach based on your specific circumstances.

If you are considering filing for bankruptcy, consulting with a knowledgeable bankruptcy attorney in New Jersey will ensure that you make informed decisions and comply with the applicable laws and regulations.

Different Types of Bankruptcy in New Jersey

In New Jersey, the two primary types of bankruptcy for individuals are Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” involves the liquidation of non-exempt assets to repay creditors. The bankruptcy court appoints a trustee who evaluates your assets, sells the non-exempt ones, and distributes the proceeds among your creditors. Many assets are protected by exemptions, allowing debtors to retain essential property necessary for a fresh start. However, eligibility criteria for Chapter 7 bankruptcy may be difficult to meet. It is important to consult a skilled attorney to determine the advantages and disadvantages of each set and to choose the one that benefits you the most. 

Eligibility Criteria for Chapter 7 Bankruptcy in New Jersey

To be eligible for Chapter 7 bankruptcy in New Jersey, debtors must meet certain criteria, including:

• Means Test: Debtors must pass the means test, which compares their income to the state’s median income. If your income falls below the median, you automatically qualify. If your income exceeds the median, further calculations are performed to determine eligibility. These calculations are based on the number of earners (people who have income) in a person’s household. For a one-earner household in New Jersey, the median income is $83,898 as of April 1, 2023.
• Credit Counseling: Debtors must complete a credit counseling course from an approved agency within 180 days before filing for Chapter 7 bankruptcy. The certificate of completion must be submitted to the bankruptcy court.
• Prior Bankruptcy Discharge: If you previously received a Chapter 7 discharge, you must wait eight years from the date of the previous filing before you can file for Chapter 7 bankruptcy again and receive another discharge.

Benefits and Drawbacks of Filing Chapter 7 Bankruptcy Multiple Times

While Chapter 7 bankruptcy provides individuals with significant debt relief, filing for Chapter 7 bankruptcy multiple times in New Jersey has both benefits and drawbacks:

Benefits:

• Fresh Start: Filing for Chapter 7 bankruptcy can provide a fresh start by eliminating most of your unsecured debts, such as credit card debt, medical bills, and personal loans.
• Automatic Stay: Upon filing for Chapter 7 bankruptcy, an automatic stay goes into effect, providing immediate relief from creditor actions, such as lawsuits, wage garnishments, and collection calls.

Drawbacks:

• Liquidation: Due to the type of bankruptcy, all assets that are considered non-exempt would be sold off to repay your debt. Which assets become exempt from liquidation is determined by the set of exemptions you choose. Consult a skilled attorney to determine how to best protect your assets when filing for bankruptcy.
• Impact on Credit: Filing for Chapter 7 bankruptcy can have a negative impact on your credit score and remain on your credit report for up to ten years. Multiple filings can further affect your creditworthiness.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, often referred to as “reorganization bankruptcy,” allows debtors to create a repayment plan to gradually repay their debts over a period of three to five years. This type of bankruptcy is suitable for individuals who have a regular income and want to protect their assets from liquidation.

Eligibility Criteria for Chapter 13 Bankruptcy in New Jersey

To be eligible for Chapter 13 bankruptcy in New Jersey, individuals must meet certain criteria, including:

• Regular Income: Debtors must have a regular source of income to demonstrate their ability to make the proposed repayment plan payments.
• Debt Limitations: There are limits on the amount of debt an individual can have to qualify for Chapter 13 bankruptcy. As of June 2022, the combined unsecured and secured debt limit is $2.75 million. It’s important to consult with a bankruptcy attorney to stay updated on the current limits.

Benefits and Drawbacks of Filing Chapter 13 Bankruptcy Multiple Times

Filing for Chapter 13 bankruptcy multiple times in New Jersey has both benefits and drawbacks:

Benefits:

• Debt Repayment: Chapter 13 bankruptcy allows individuals to repay their debts through a structured repayment plan, giving them an opportunity to regain control of their finances and avoid liquidation of assets.
• Asset Protection: Chapter 13 bankruptcy allows individuals to keep their assets while repaying their debts, as long as they adhere to the terms of the court-approved repayment plan.

Drawbacks:

• Time Restrictions: As mentioned earlier, there are time restrictions between Chapter 13 filings, requiring a waiting period of two years from the date of the previous filing before filing again for Chapter 13 bankruptcy in New Jersey.
• Credit Impact: Filing for Chapter 13 bankruptcy can have a negative impact on your credit score, and the bankruptcy filing will remain on your credit report for up to seven years. Multiple filings can further affect your creditworthiness.

The Frequency of Bankruptcy Filings in New Jersey

Filing for bankruptcy is a significant decision that can have long-lasting implications on your financial well-being. Understanding the frequency of bankruptcy filings in New Jersey is crucial to navigate the process effectively and make informed decisions.

How often can you file for bankruptcy in New Jersey?

The frequency with which you can file for bankruptcy in New Jersey depends on the type of bankruptcy previously filed and the specific chapter under which you seek relief.

Chapter 7 to Chapter 7

If you previously filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years from the date of the previous filing before you can file for Chapter 7 bankruptcy again and receive another discharge. However, it’s important to note that even if you are not eligible for a discharge, you may still benefit from filing Chapter 7 bankruptcy to address certain financial issues.

Chapter 7 to Chapter 13

If you have received a Chapter 7 discharge, you can file for a Chapter 13 bankruptcy after four years from the date of the previous filing.

Chapter 13 to Chapter 7

If you filed for Chapter 13 bankruptcy and received a discharge, you can file for Chapter 7 bankruptcy six years after the date of the previous filing.

Chapter 13 to Chapter 13

If you received a Chapter 13 discharge, you must wait two years from the date of the previous filing before you can file for Chapter 13 bankruptcy again. You may also opt to file another Chapter 13 bankruptcy after the repayment plan for your previous filing has been successfully concluded, taking approximately 3-5 years.

Knowing about the limitations of how often you can file for bankruptcy is important as it allows you to avoid any issues with restrictions and avail of the benefits for filing in a timely manner. It is recommended to consult with an experienced bankruptcy attorney who can assess your unique circumstances, guide you through the process, and provide the most appropriate solutions based on the applicable laws and regulations.

Chapter 7 and Chapter 13 Bankruptcy Filing Denial

Both Chapter 7 and Chapter 13 bankruptcy filings may be denied for discharge under certain circumstances. Here’s a brief overview of situations where discharge can be denied in each chapter:

Chapter 7 Bankruptcy:

• Fraudulent Activities: If the debtor engaged in fraudulent activities, such as concealing assets, providing false information, or committing perjury during the bankruptcy process, the court may deny discharge.
• Prior Bankruptcy Discharge: If the debtor previously received a Chapter 7 discharge within the past eight years or a Chapter 13 bankruptcy in the past six years, they are not eligible for another discharge in Chapter 7 bankruptcy.
• Failure to Complete Required Courses: Debtors are required to complete credit counseling and financial management courses as part of the bankruptcy process. Failure to comply with these requirements may result in discharge being denied.

Chapter 13 Bankruptcy:

• Failure to Comply with Repayment Plan: In Chapter 13 bankruptcy, debtors must adhere to the court-approved repayment plan and make timely payments to creditors. If a debtor fails to meet these obligations without valid reasons, the court may deny discharge.
• Failure to Disclose Income or Assets: If the debtor fails to disclose all sources of income or assets in their bankruptcy filings, it can lead to denial of discharge.
• Ineligible Debts: Certain types of debts, such as certain tax debts or debts arising from fraudulent activities, may not be eligible for discharge in Chapter 13 bankruptcy. If a debtor’s filing includes such debts, they may be denied discharge for those specific obligations.

It’s important to note that the specific circumstances surrounding a bankruptcy case can vary, and the court’s decision regarding discharge denial is based on individual factors and the interpretation of bankruptcy laws. Consulting with an experienced bankruptcy attorney is crucial to navigate the bankruptcy process and ensure compliance with the requirements to avoid discharge denial.

The Consequences of Frequent Bankruptcy Filings

Filing for bankruptcy can provide much-needed debt relief but frequent bankruptcy filings in New Jersey can have lasting consequences on various aspects of your financial life. Understanding these consequences is crucial when considering the option of multiple bankruptcy filings.

Impact of Frequent Bankruptcy Filings on Credit Scores

Frequent bankruptcy filings can have a significant impact on your credit scores. Each bankruptcy filing will appear on your credit report, which can lower your credit score. These negative marks can make it challenging to obtain credit in the future and may result in higher interest rates on loans or credit cards.

Availability of Credit After Multiple Bankruptcy Filings

After multiple bankruptcy filings in New Jersey, obtaining credit may become more difficult. Lenders may view frequent bankruptcy filings as a risk factor and may be hesitant to extend credit. If you are approved for credit, it is likely to come with higher interest rates and stricter terms. Rebuilding credit after multiple bankruptcies can be a gradual process that requires patience and responsible financial management.

Long-Term Effects on Financial Reputation and Employment Prospects

Frequent bankruptcy filings can have long-term effects on your financial reputation and employment prospects. Some employers may conduct credit checks as part of the hiring process, and a history of multiple bankruptcies could negatively impact your chances of securing certain job positions, particularly those involving financial responsibilities or sensitive information.

Additionally, landlords and potential lenders may consider your bankruptcy history when evaluating your trustworthiness as a tenant or borrower. It is essential to be aware of these potential consequences and develop a strategy to address them proactively.

Impact of Frequent Bankruptcy Filings	Description
Lowered Credit Scores	Each bankruptcy filing appears on your credit report, lowering your credit score.
Difficulty Obtaining Credit	Lenders may view frequent bankruptcy filings as a risk factor, making it challenging to obtain credit.
Higher Interest Rates and Stricter Terms	If approved for credit, it is likely to come with higher interest rates and stricter terms.
Impaired Financial Reputation	Multiple bankruptcies can negatively impact your financial reputation, potentially affecting employment prospects and trustworthiness evaluations by landlords and lenders.
Limited Job Opportunities	Some employers conduct credit checks during the hiring process, and multiple bankruptcies can decrease your chances of securing job positions, especially those involving financial responsibilities.
Potential Tenant and Borrower Trustworthiness	Landlords and lenders may consider your bankruptcy history when evaluating your trustworthiness as a tenant or borrower.

Strategies for Rebuilding Credit and Regaining Financial Stability

While frequent bankruptcy filings can present challenges, it is possible to rebuild credit and regain financial stability over time. Here are some strategies to consider:

• Develop a Budget: Create a realistic budget to manage your income and expenses effectively. Stick to the budget and prioritize essential expenses to avoid accumulating new debt.
• Establish an Emergency Fund: Build an emergency fund to handle unexpected expenses without resorting to credit. Having a financial cushion can help prevent future financial difficulties.
• Obtain a Secured Credit Card: Consider obtaining a secured credit card that requires a cash deposit as collateral. Responsible use and timely payments can help rebuild your credit history.
• Make Timely Payments: Pay all your bills on time, including credit card bills, loans, and utilities. Consistent, timely payments demonstrate your creditworthiness and improve your credit standing.
• Seek Credit Counseling: Work with a reputable credit counseling agency that can provide guidance on managing debt, budgeting, and rebuilding credit. Their experience can help you develop a personalized plan for financial recovery.
• Monitor Your Credit: Regularly review your credit reports from the major credit bureaus to ensure accuracy and identify any potential errors or discrepancies. Promptly address any issues that may arise.

Rebuilding credit and regaining financial stability after frequent bankruptcy filings in New Jersey is a gradual process that requires discipline and commitment. Adopting responsible financial habits and seeking professional guidance can help you take positive steps toward rebuilding your credit and achieving long-term financial well-being.

Working with a Top-Rated New Jersey Bankruptcy Lawyer

If you are facing overwhelming debt or considering bankruptcy as a solution, it’s important to take proactive steps to address your financial challenges. Start by seeking the help of a skilled New Jersey bankruptcy attorney who can provide personalized guidance tailored to your specific needs. They can help you navigate the bankruptcy process, explore alternative debt solutions, and ensure you understand the laws and regulations specific to New Jersey.

Furthermore, rebuilding credit is an essential aspect of recovering from financial difficulties. Work on developing responsible financial habits, making timely payments, and seeking guidance from credit counseling agencies. By taking these actions, you can rebuild your creditworthiness and regain control over your financial future.

Remember, you don’t have to face your financial challenges alone. Partner with a trusted New Jersey bankruptcy attorney from Straffi & Straffi Attorneys at Law who can offer the support and experience needed to navigate the complexities of bankruptcy or explore alternative debt relief options. By taking the necessary steps, you can regain your financial stability and move toward a brighter future. Don’t wait—seek professional assistance and start your journey toward a fresh financial start today. Contact us today at (732) 341-3800 to schedule a free consultation.

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How Much Equity Can I Have in My Home and Still File for Chapter 7 Bankruptcy in New Jersey?

Understanding the specific laws and exemptions can be crucial in protecting your assets when filing for a Chapter 7 bankruptcy. In New Jersey, one of the most significant concerns for many individuals is retaining ownership of their home during the bankruptcy process. Fortunately, by familiarizing yourself with the Chapter 7 laws in New Jersey and the available exemptions, you can take proactive steps to safeguard your home and ensure a more stable financial future.

To protect your home and navigate the Chapter 7 bankruptcy process effectively, it’s essential to seek professional guidance from an experienced bankruptcy attorney who is well-versed in both New Jersey and federal laws. At Straffi & Straffi Attorneys at Law, our top-rated New Jersey bankruptcy attorneys can provide personalized advice tailored to your circumstances, assist in determining eligibility for exemptions, and guide you through the necessary steps to retain ownership of your home. Remember, time is of the essence in such situations. Take the first step towards securing your future by reaching out to a qualified attorney today. Call us at (732) 341-3800 to schedule a consultation.

Chapter 7 Bankruptcy Basics

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a process that allows individuals to eliminate most of their unsecured debts, such as credit card debt, medical bills, and personal loans. It is generally considered the quickest form of bankruptcy, with cases typically lasting four to six months from the filing date to discharge.

In a Chapter 7 bankruptcy, a trustee is appointed to take control of the debtor’s non-exempt assets, sell them, and use the proceeds to pay off creditors. Some common exemptions include a portion of a debtor’s home equity, retirement accounts, personal belongings, and other property deemed essential for daily living.

Once the trustee has liquidated the non-exempt assets, the remaining unsecured debts are generally discharged, meaning the debtor is no longer legally obligated to repay them. However, some debts are ineligible for discharge, such as certain taxes, student loans, child support, and alimony.

New Jersey’s Bankruptcy Laws and Regulations

New Jersey, like all states, has its own set of bankruptcy laws and regulations, in addition to federal bankruptcy laws. 

In some states, filers may be required to only follow their state’s exemption criteria, making it potentially difficult for those filing to retain ownership of their possessions following a Chapter 7 bankruptcy. Fortunately, New Jersey filers have the option to follow either the state’s or the federal government’s exemption list, which outlines the property and assets that can be protected from liquidation. It is important to remember that while New Jersey filers can opt to follow either the state or federal exemption list, they cannot mix and match the exemptions between the two systems.

New Jersey’s Homestead Exemption Limit

A homestead exemption helps protect your primary residence from creditors during a financial crisis. It is a legal provision that safeguards one’s home equity and prevents the forced sale of the property by creditors. Homestead exemptions differ from state to state in terms of the amount of home equity protected and eligibility criteria. Some states provide a limited exemption while others offer wider protection.

In New Jersey, there isn’t a specific homestead exemption law. However, the state allows its residents to use the federal exemptions provided by U.S. bankruptcy law. This amount doubles for married couples filing for bankruptcy jointly.

New Jersey exemptions include the following:

• $1,000 in household goods and an additional $1,000 in personal property including stock and company interests
• Burial allowance
• Some insurance, life, and health benefits. Disability and death benefits for military and government workers.
• Qualified pension exemptions
• A percentage of wages depending on the percentage of income relative to the federal poverty level.

New Jersey’s Chapter 7 Bankruptcy Exemptions	Description
Homestead Exemption	New Jersey does not have a dedicated state homestead exemption.
Household Goods	Up to $1,000 in value. Includes furniture, appliances, and other household items.
Personal Property	Up to $1,000 in value. Includes stocks, bonds, and other personal assets.
Burial Allowance	Amount designated for burial expenses.
Insurance Benefits	Some insurance, life, and health benefits may be exempt.
Military and Government Benefits	Disability and death benefits for military and government workers may be exempt.
Qualified Pensions	Exemption for certain qualified pension plans.
Wages	A percentage of wages may be exempt based on income relative to the federal poverty level.

Federal Bankruptcy Exemptions

For federal exemptions, state law allows for the following:

Homestead Exemption

Under 11 USC § 522(d)(1), individuals filing for bankruptcy have the opportunity to protect the equity in their primary residence using the homestead exemption. The homestead exemption allows you to safeguard up to $27,900 of equity in your home.

To qualify for the homestead exemption, it is crucial that you are actually residing in the home. The exemption is specifically intended for individuals who consider the property as their primary residence, and it provides a means to shield a certain amount of equity from being subject to seizure by creditors.

It’s important to note that the homestead exemption protects the equity in your residence. Equity is the value of your home minus any outstanding mortgage or liens. For example, if your home is valued at $200,000 and you have a mortgage of $150,000, your equity would be $50,000. In this case, if the equity is $27,900 or less, you may be able to retain your home during the bankruptcy process while safeguarding the protected amount from potential liquidation by creditors.

Additional Exemptions

Filers who opt to use the federal exemptions can also utilize the following:

• Motor Vehicle Exemption: Under federal bankruptcy law, individuals can protect their motor vehicle up to a maximum exemption amount of $4,450, based on the equity in the vehicle.
• Personal Property Exemption: Household goods, furnishings, appliances, clothing, books, animals, crops, and musical instruments can be exempted up to a maximum aggregate value of $14,875, with individual items within this category protected up to $700 in value. Jewelry can be exempted up to $1,875.
• Insurance Policies: Certain financial assets related to life insurance policies, such as the loan value, accrued dividends, or interest, can be protected up to a maximum of $14,875 under federal bankruptcy law.
• Benefits: Domestic Support Obligations (DSOs), including alimony, child support, and spousal maintenance payments, are generally non-dischargeable in bankruptcy, ensuring that individuals receive necessary financial support. Additionally, certain public benefits, such as Social Security, Supplemental Security Income (SSI), and veterans’ benefits, are typically exempt from being included in the bankruptcy estate.
• Personal Injury Recoveries: Federal exemptions allow for the protection of personal injury recoveries. A maximum exemption of $27,900 can be applied, except for pain and suffering or monetary loss. Additional exemptions cover loss of future earnings, recovery for the wrongful death of a support provider, and compensation received as a crime victim.
• Tools of the Trade: Individuals filing for bankruptcy may be able to protect tools of the trade, including implements and books, up to a maximum exemption amount of $2,800. This provision recognizes the importance of safeguarding the essential tools and resources necessary for individuals to continue their profession or trade even during the bankruptcy process. 

These exemptions aim to safeguard essential assets and support systems for individuals going through bankruptcy, providing a level of financial protection and ensuring necessary resources are available during and after the bankruptcy process.

It is essential for debtors to consult with a bankruptcy attorney licensed in New Jersey to ensure they understand the state-specific laws and regulations and navigate the complex bankruptcy process properly. Our team at Straffi and Straffi Attorneys at Law can help you navigate the process and allow you to make informed decisions about your financial situation. Contact us today to schedule a consultation.

Eligibility Criteria for Chapter 7 Bankruptcy

Eligibility for Chapter 7 bankruptcy is determined through a “means test.” The means test examines a debtor’s income and compares it to the median income for a similar-sized household in New Jersey. If the debtor’s income is below the median, they are generally eligible to file for Chapter 7 bankruptcy.

If the debtor’s income is above the median, the means test calculations become more intricate, considering allowable expenses and debt. Ultimately, if the debtor still has sufficient disposable income to repay a portion of their debts through a Chapter 13 repayment plan, they may not qualify for Chapter 7 bankruptcy. Consulting with a bankruptcy attorney can help individuals determine if they are eligible for Chapter 7 or if another bankruptcy option may be more appropriate.

NJ bankruptcy attorney

Equity in Home and Bankruptcy Laws

Home equity is the difference between the market value of a property and the outstanding balance of any loans secured by the property, such as a mortgage or home equity line of credit (HELOC). In simple terms, home equity represents the portion of a homeowner’s interest in their property that is free from any claims by creditors.

Calculating Home Equity

Calculating home equity is a straightforward process. Simply subtract the outstanding mortgage balance from the current market value of the property. For example, if the market value of a home is $300,000 and the outstanding mortgage balance is $200,000, the homeowner’s equity would be $100,000.

Impact of Home Equity on Bankruptcy Filings

In a Chapter 7 bankruptcy, home equity becomes a crucial consideration for both debtors and trustees. If a debtor has significant equity in their home and cannot protect the entire amount through available exemptions, they risk losing their home during the process.

As previously mentioned, New Jersey does not have a homestead exemption under state law. Under federal exemptions, debtors can protect up to $27,900 of home equity. If a debtor’s home equity exceeds this exempt amount, the bankruptcy trustee may sell the property and use the non-exempt portion of the equity to pay off creditors. If this poses a significant risk, a debtor may choose to file for Chapter 13 bankruptcy instead, which allows them to keep their property and repay debts through a court-approved plan. It is also important to remember that, only a debtor’s 

In any case, consulting with a bankruptcy attorney familiar with New Jersey law can help individuals determine the best course of action based on their home equity and other financial considerations.

Preparing to File for Chapter 7 Bankruptcy in New Jersey

Before you file for Chapter 7 bankruptcy, you will need to gather necessary financial documents and information such as: 

• Recent tax returns
• Income documentation (pay stubs, unemployment benefits, etc.) 
• A list of your assets and liabilities 
• Debt statements and collection notices 
• Any legal judgments against you

Bankruptcy Means Test

To qualify for Chapter 7 bankruptcy in New Jersey, you must first pass the means test. The means test calculates your income, expenses, and disposable income, comparing your financial situation to the state’s median income threshold. If your household income is below the state’s median income, you qualify for Chapter 7 bankruptcy. If your income is above the median, you will undergo a further evaluation to determine your eligibility.

Bankruptcy Counseling and Education Requirements

Before filing for bankruptcy, you will need to complete credit counseling from an approved agency. Additionally, after you have filed, you will need to complete a debtor education course. These requirements aim to help debtors better manage their finances and prevent future financial crises.

Preparing to file for Chapter 7 bankruptcy requires careful planning and preparation to maximize your chances of obtaining debt relief and securing a fresh financial start. By taking the necessary steps and seeking professional guidance, you can navigate the process more effectively and increase the likelihood of achieving the debt relief you need.

Working with an Experienced New Jersey Bankruptcy Attorney

If you are considering filing for Chapter 7 bankruptcy and want to retain ownership of your home in New Jersey, don’t navigate the process alone. Consult with a knowledgeable bankruptcy attorney who can guide you through the intricacies of the law, help you understand the exemptions available to you, and provide the necessary support to protect your home. With their support, you can embark on your bankruptcy journey with confidence, knowing that you have taken the necessary steps to increase your chances of obtaining the debt relief you seek. 

At Straffi & Straffi Attorneys at Law, our team of skilled bankruptcy attorneys in New Jersey can conduct a thorough analysis of your financial situation and assist you in exploring your legal options. We can also help you look into alternative measures of retaining ownership of your own depending on your circumstances. To schedule a consultation, contact us today at (732) 341-3800.

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How Long Does It Take To File Bankruptcy in New Jersey?

Bankruptcy is a legal process that allows individuals or businesses to declare and resolve their inability to repay their debts. The bankruptcy process can be complex and is governed by both federal and state laws. In New Jersey, bankruptcy is meant to be an option to provide a fresh start for those who are facing overwhelming financial problems. Whether you’re considering bankruptcy to deal with medical debt or other consumer debts such as home or vehicle payments, consulting with an experienced attorney is important.

Our team of knowledgeable and compassionate New Jersey bankruptcy lawyers understands the importance of safeguarding your financial interests. Straffi & Straffi Attorneys at Law has been concentrating on bankruptcy cases for Central and Southern New Jersey for the past eight years. If you are struggling with debt, we are here to provide you with sound legal advice and representation. We can conduct a comprehensive evaluation of your case and provide you with your available options. Contact us at (732) 341-3800 to schedule a consultation.

Types of Bankruptcies: Chapters 7, 11, and 13

There are three main types of bankruptcies in the United States: Chapter 7, Chapter 11, and Chapter 13. Each type of bankruptcy is designed for different situations and may have distinct rules and procedures.

Chapter 7 Bankruptcy

This is the most common type of personal bankruptcy filing. It’s also called “liquidation” bankruptcy, as certain non-exempt assets may be sold to repay creditors. To qualify for Chapter 7 bankruptcy in New Jersey, you must pass the means test, which compares your income to the state median. If your income is below the median, you can file for Chapter 7; otherwise, you may need to consider Chapter 13. Most unsecured debts, such as credit card debts and medical bills, can be eliminated through Chapter 7 bankruptcy.

Chapter 11 Bankruptcy

This type of bankruptcy is primarily for businesses, but some individuals with significant debt may also qualify. Chapter 11 allows a business to restructure its debts and develop a plan to repay them while continuing operations. The debtor will need the court’s approval for major decisions and will have to follow certain guidelines and limitations.

Chapter 13 Bankruptcy

This is a reorganization bankruptcy for individuals who have a regular income but still struggle to pay off their debt. A court-approved repayment plan is created, typically lasting three to five years. In exchange for following the plan, the debtor can keep their property, and the remaining unsecured debts may be discharged at the end of the repayment period.

Understanding the different types of bankruptcies and their unique features can help individuals and businesses make informed decisions about their financial future. It’s important to seek the advice of a knowledgeable bankruptcy lawyer if you are considering filing for bankruptcy. A lawyer can guide you through the bankruptcy process and help you understand the rules and procedures for each type of bankruptcy.

Reasons to Consider Filing for Bankruptcy

Filing for bankruptcy is not a decision to be taken lightly, as it has long-term financial and legal consequences. It’s essential to weigh the potential benefits and drawbacks before making your decision. Some common reasons individuals and businesses consider filing for bankruptcy in New Jersey are:

• Discharge of debts – In some cases, bankruptcy allows you to eliminate or reduce your debts, providing a fresh start.
• Stop creditor harassment – Once you file for bankruptcy, creditors and debt collectors must halt their collection efforts.
• Protection from foreclosure or repossession – Bankruptcy can help prevent your property from being seized by creditors, allowing you to keep your home or car.
• Opportunity to restructure debt – Bankruptcy can provide you with a more manageable repayment plan that may lower monthly payments or change the terms of loans.
• A chance to rebuild credit – While bankruptcy will hurt your credit initially, it can provide a foundation to rebuild your credit once your debts are resolved.

Before deciding to file for bankruptcy in New Jersey, it is important to seek professional guidance from an experienced bankruptcy attorney who can help you understand the repercussions and equip you with the confidence to make informed decisions.

New Jersey Bankruptcy Laws and Exemptions

Each state has its own unique bankruptcy laws and exemptions, which are legal guidelines that protect your property during bankruptcy. New Jersey bankruptcy filers have access to Federal Bankruptcy exemptions, however, they must opt for either the federal or state bankruptcy exemptions and cannot combine elements from both systems. When you file for bankruptcy in New Jersey, the following exemptions may apply:

• Homestead exemption – Although New Jersey does not provide a homestead exemption, you can still take advantage of the federal homestead exemption wherein you can protect up to $27,900 of home equity when filing for bankruptcy. Married couples can double this exemption.
• Personal property exemption – You may protect certain personal property items, such as clothing and household goods, up to specified value limits.
• Motor vehicle exemption – There is no dedicated motor vehicle exemption available in New Jersey but you can utilize the motor vehicle exemption offered by the federal exemptions, up to $4,450.
• Retirement accounts – Most tax-exempt retirement accounts, including 401(k)s, 403(b)s, and IRAs, are protected in New Jersey bankruptcy cases.
• Wildcard exemption – New Jersey allows a wildcard exemption of up to $1,000, which can be applied to any property you choose, except real estate.

It’s important to consult with an experienced bankruptcy attorney in New Jersey to ensure you understand the specific laws, exemptions, and how they may affect your case. They can also guide you through the filing process and help you make informed decisions to protect your financial future.

Preparing to File for Bankruptcy in New Jersey

Filing for bankruptcy in New Jersey is a complex process, and it is essential to follow the correct steps and procedures to ensure a successful result. This article will discuss the process of preparing to file for bankruptcy in New Jersey, including the steps to take before filing, gathering documentation and financial information, completing the mandatory credit counseling, choosing between Chapter 7 and Chapter 13 bankruptcy, and working with a bankruptcy attorney.

Steps to Take Before Filing

Before filing for bankruptcy in New Jersey, it is crucial to take the time to evaluate your financial situation and ensure that bankruptcy is the best option for you. Consider alternative solutions, such as debt negotiation or consolidation, to evaluate whether bankruptcy is the right path for you.

It is also a good idea to have a clear understanding of your assets, debts, and expenses; this will help you determine which type of bankruptcy to file for and arrange your finances for the best possible outcome in your case. Lastly, research the bankruptcy process, including the types of bankruptcy available, the requirements for each, and the impact it will have on your credit and financial future.

Gathering Documentation and Financial Information

When preparing to file for bankruptcy, it is vital to gather accurate and thorough financial information that accurately represents your financial situation. This documentation will be used to complete official bankruptcy forms and communicate with the court and trustee about your case. Some types of documents you will need to gather and organize include:

• Tax returns for the past two years
• Pay stubs or proof of income for the last six months
• Bank statements for the past six months
• Documentation for any retirement accounts, pension plans, or other investments
• Mortgage loan documents, if applicable
• Any recent appraisals or valuation of your home
• Property tax bills
• Documentation for any vehicles, including loans, leases, and registrations
• A list of your creditors, including balances and account numbers
• Any court judgments, lawsuits, or garnishments

These documents will help you complete the required forms and schedules and provide a clear picture of your financial situation for the court.

Credit Counseling Requirement

Before filing for bankruptcy in New Jersey, you are required to complete a credit counseling course from an approved counselor. This course is designed to help you evaluate whether bankruptcy is the best option for your financial situation and provide you with education and resources for managing your finances in the future. After the course, you will receive a certificate of completion that must be included with your bankruptcy filing.

Choosing Between Chapter 7 and Chapter 13 Bankruptcy

Choosing the right type of bankruptcy for your situation is crucial for a successful outcome. In New Jersey, the two main types of bankruptcy available to individuals are Chapter 7 and Chapter 13.

• Chapter 7 bankruptcy, often called “liquidation” bankruptcy, allows you to discharge many of your unsecured debts, such as credit cards and medical bills. However, this may require the liquidation of some non-exempt assets to satisfy your creditors. To qualify for Chapter 7, you must pass the means test, which evaluates your income and expenses to determine if you have the ability to repay a portion of your debts.
• Chapter 13 bankruptcy, also known as “reorganization” bankruptcy, involves creating a repayment plan to pay back a portion of your debts over a specified period (typically three to five years). Chapter 13 bankruptcy allows you to keep your assets while working to repay your debt.

Consult an experienced New Jersey bankruptcy attorney to determine the right type of bankruptcy in your specific case.

Filing the Bankruptcy Petition

Throughout the filing process, it is essential to understand your rights and obligations, as well as the potential consequences of filing for bankruptcy.

Completing the Bankruptcy Forms

Before filing your bankruptcy petition, you must complete the necessary forms. These forms include schedules and statements that detail your financial situation, such as your debts, assets, income, and monthly expenses. You may obtain the forms directly from the U.S. Courts website or consult with a bankruptcy attorney or bankruptcy petition preparer.

To fill out the forms correctly, you must gather relevant financial information, such as recent pay stubs, bank statements, credit card bills, and mortgage documents. It is essential to provide accurate information in these forms, as incomplete or false information can lead to a case dismissal or even potential criminal charges for bankruptcy fraud. Be prepared to provide a complete list of your creditors, their contact information, and the total amount owed to each one.

In addition to the standard bankruptcy forms, you may also need to complete additional local forms specific to the New Jersey district in which you are filing. These forms may include a statement of social security number, debtor’s certification of completion of post-petition instruction, and others. New Jersey bankruptcy courts are divided into three divisions, based on the debtor’s geographic location.

Filing Fees and Fee Waivers

When you file for bankruptcy, you must pay a filing fee, which varies depending on the type of bankruptcy. For Chapter 7 bankruptcy, the filing fee is $338, and for Chapter 13 bankruptcy, the filing fee is $313. These fees can be paid in cash, money order, or cashier’s check, payable to “Clerk, U.S. Bankruptcy Court.”

In certain circumstances, debtors may qualify for a fee waiver or installment plan. To request a fee waiver, you must complete and submit the “Application to Have the Chapter 7 Filing Fee Waived.” The court will consider your income, assets, expenses, and other financial circumstances to determine whether you are eligible for a fee waiver. 

If you are not eligible for a fee waiver, you can request to pay the filing fee in installments by submitting the “Application for Individuals to Pay the Filing Fee in Installments.”

Submitting the Petition to the New Jersey Bankruptcy Court

Once your bankruptcy forms are completed, and you have paid the filing fee or obtained a waiver, you must file your petition with the appropriate New Jersey bankruptcy court division – Camden, Trenton, or Newark. You can submit the forms in person or by mail. Keep in mind that filing by mail may result in delays.

After submitting your bankruptcy petition, the court will assign a trustee to your case. The trustee’s role is to review your financial situation, represent your creditor’s interests, and oversee your bankruptcy case’s administration, including holding the required 341 meeting of creditors.

Automatic Stay and Creditor Notifications

Upon filing your bankruptcy petition, an automatic stay is put into effect, which provides temporary protection against most creditor actions, such as lawsuits, wage garnishments, and collection calls. This relief allows you to focus on resolving your financial situation, working with the trustee, and participating in credit counseling and debtor education courses.

The bankruptcy court will notify your creditors of your bankruptcy filing, and they must cease collection efforts against you, as long as the automatic stay remains in effect. It is essential to understand that certain debts, such as child support and taxes, may not be discharged in bankruptcy, and collection actions for these debts may continue despite the automatic stay.

The Bankruptcy Process in New Jersey

The process of bankruptcy in New Jersey is divided into two types: Chapter 7 and Chapter 13 bankruptcy. Each type has its own timeline and procedure that must be followed by the debtor seeking relief from debts. 

Chapter 7 Bankruptcy Timeline

Chapter 7 bankruptcy, commonly known as a “liquidation” bankruptcy, allows the debtor to discharge their unsecured debts, such as credit card debts and medical bills. The following is the timeline of events in a Chapter 7 bankruptcy case:

1. 341 Meeting of Creditors: Approximately 30 to 45 days after filing for bankruptcy, the debtor is required to attend a meeting with their bankruptcy trustee and any creditors that choose to attend. The meeting, known as the 341 Meeting of Creditors, allows the trustee and creditors to verify the debtor’s assets and financial situation. The debtor is expected to answer questions under oath regarding their assets and financial affairs.
2. Debtor Education Course: Within 60 days of the 341 Meeting of Creditors, the debtor must complete a mandatory debtor education course. This course provides the debtor with information about responsible financial management, and a certificate of completion must be filed with the court. Failure to complete this course can result in a case dismissal.
3. Trustee’s Liquidation of Assets: In a Chapter 7 bankruptcy, the trustee is responsible for identifying and liquidating the debtor’s non-exempt assets. Non-exempt assets are those not protected by bankruptcy exemptions, such as luxury items and investment properties. The proceeds from the liquidation are then used to pay off creditors according to the priority of their claims.
4. Discharge of Debts and Case Closure: Once the trustee has liquidated the debtor’s non-exempt assets and distributed the proceeds to creditors, the debtor is granted a discharge of their eligible debts. A discharge order is issued by the court, which legally releases the debtor from any further obligation to repay the discharged debts. The case is then closed, typically within four to six months from the date the debtor filed the bankruptcy petition.

A Chapter 7 bankruptcy can provide relief for those struggling with unsecured debts, but it is important to understand the timeline and requirements of the process to increase the chances of a successful outcome.

Chapter 13 Bankruptcy Timeline

Chapter 13 bankruptcy, also known as a “reorganization” bankruptcy, allows the debtor to restructure their debts into a manageable repayment plan lasting three to five years. The following is the timeline of events in a Chapter 13 bankruptcy case:

1. 341 Meeting of Creditors: Similar to the Chapter 7 process, the debtor must attend a 341 Meeting of Creditors within 30 to 45 days after filing their bankruptcy petition. However, in a Chapter 13 case, the primary purpose of this meeting is to resolve any objections by the trustee or creditors to the debtor’s proposed repayment plan.
2. Debtor Education Course: Like Chapter 7, the debtor must complete a mandatory debtor education course and file the certificate of completion with the court within 60 days of the 341 Meeting of Creditors.
3. Confirmation of the Chapter 13 Repayment Plan: Within 45 days of the 341 Meeting of Creditors, a confirmation hearing is held in court to determine whether the debtor’s proposed repayment plan is feasible and meets the requirements of the bankruptcy law. If the plan is confirmed, the debtor begins making payments to the trustee, who then distributes the funds to the various creditors in accordance with the plan.
4. Repayment Period and Discharge of Remaining Debts: Under the confirmed repayment plan, the debtor may take up to five years to repay their debts, depending on their income and other factors. Upon successful completion of the repayment plan, the debtor is granted a discharge of any remaining eligible debts. The case is then closed, and the debtor is released from their previous financial obligations.

In summary, the bankruptcy process in New Jersey involves a series of important steps, including meetings, courses, and court hearings to ensure the debtor understands their obligations and the consequences of bankruptcy. The entire process can last between four months for a Chapter 7 case to several years for a Chapter 13 case, depending on the debtor’s financial situation and compliance with court requirements.

After Filing for Bankruptcy in New Jersey

Filing for bankruptcy in New Jersey can be a challenging and emotional decision. However, it is essential to remember that bankruptcy is designed to give individuals and businesses a fresh start by eliminating or reorganizing debt under the protection of the federal bankruptcy court. In this article, we will discuss life after bankruptcy, including rebuilding credit and overall financial health, understanding and avoiding bankruptcy fraud, and alternatives to bankruptcy in New Jersey.

Life After Bankruptcy: Rebuilding Credit and Financial Health

Rebuilding your credit and financial stability after filing for bankruptcy is a critical step toward rebuilding your life. It is essential to understand that rebuilding your credit will take time, patience, and discipline. However, following these simple steps will help you get back on your feet and move towards a more stable financial future.

1. Obtain a copy of your credit report: Review your credit report and ensure that your discharged debts are accurately reflected. Make sure there are no errors, and if found, dispute them immediately with the credit bureaus.
2. Establish new credit: Start with a secured credit card or a small, manageable loan. Make sure to pay on time every month and do not overextend your credit limit. This will help build positive credit history over time.
3. Build an emergency fund: Saving money for emergencies is crucial after bankruptcy. Having a safety net can help prevent future financial hardships, allowing you to avoid relying on credit or falling into debt.
4. Create a budget and stick to it: Develop a realistic budget that considers your income, expenses, and financial goals. Follow your budget consistently, track your spending, and adjust as needed to stay on track.
5. Develop healthy financial habits: Focus on living within your means, avoiding excessive debt, and making consistent, on-time payments. These habits will help rebuild your credit and demonstrate responsible financial behavior.

It is important to understand that your bankruptcy will remain on your credit report for a period of seven to ten years, depending on the type of bankruptcy filed. However, by following the steps outlined above, you can start rebuilding your credit immediately and progressively improve your credit score over time.

Understanding and Avoiding Bankruptcy Fraud

Bankruptcy fraud is a federal crime that involves intentional deceit or abuse of the bankruptcy system. Fraud can include hiding assets, submitting false information or documents, and any other attempts to defraud the bankruptcy court or creditors. To avoid bankruptcy fraud, it is important to understand the different types of fraudulent activities and how to prevent them.

• Be honest and accurate in all filings and communications with the bankruptcy court and trustee. Ensure that you disclose all assets, debts, and financial information as required.
• Do not transfer, hide, or undervalue assets in an attempt to protect them from being liquidated or seized during bankruptcy proceedings.
• Avoid taking on new debt or making excessive purchases immediately before filing for bankruptcy.
• Consult with an experienced bankruptcy attorney who can guide you through the process and help prevent any potential issues.

By understanding and avoiding bankruptcy fraud, you can protect yourself from potential criminal charges, fines, or other negative consequences in your bankruptcy case.

Alternatives to Bankruptcy in New Jersey

While bankruptcy can provide relief from overwhelming debt, it may not always be the best solution for every individual or business. There are several alternatives to bankruptcy that may help you avoid the long-term consequences of filing while still addressing your financial hardships.

• Debt Management Plan: A debt management plan involves working with a credit counseling agency to consolidate and repay your debts within a specified period. This option allows you to make a single monthly payment to the agency, which will distribute it to your creditors on your behalf.
• Debt Settlement: Debt settlement involves negotiating with creditors to accept a reduced amount to satisfy outstanding debts. This process can help you avoid bankruptcy, but it may have a negative impact on your credit score and could result in tax consequences for the forgiven debt.
• Loan Modification: If your financial struggles primarily involve your mortgage, you may be able to work with your lender to modify your loan terms, such as reducing the interest rate or extending the loan term.
• Financial Counseling: A financial counselor can help you evaluate your financial situation, create a budget, and develop strategies to address your debts and overall financial health.

Before deciding on bankruptcy, it is essential to explore all available options and seek professional advice tailored to your unique situation. By doing so, you can make an informed decision and choose the best path toward financial stability.

Step	Chapter 7 Bankruptcy	Chapter 13 Bankruptcy
Filing the Bankruptcy Petition	Debtor files a Chapter 7 bankruptcy petition	Debtor files a Chapter 13 bankruptcy petition
Automatic Stay	Automatic stay goes into effect, providing immediate protection from creditors’ collection actions	Automatic stay goes into effect, providing immediate protection from creditors’ collection actions
Appointment of a Trustee	A bankruptcy trustee is appointed to oversee the case and liquidate non-exempt assets	A bankruptcy trustee is appointed to oversee the case and manage the repayment plan
Creditors Meeting (341 Meeting)	Debtor attends the 341 Meeting of Creditors where trustee and creditors can ask questions	Debtor attends the 341 Meeting of Creditors where trustee and creditors can ask questions
Liquidation of Non-Exempt Assets	Trustee identifies and liquidates non-exempt assets to repay creditors	Debtor keeps assets but pays creditors through a repayment plan
Discharge of Debts and Case Closure	Eligible debts are discharged, providing relief from personal liability. Bankruptcy case is closed	Remaining eligible debts are discharged, providing relief from personal liability. Bankruptcy case is closed

Working with an Experienced New Jersey Bankruptcy Attorney

Filing for bankruptcy in New Jersey can be a complicated and often overwhelming process, and it is essential to have the guidance and support of an experienced bankruptcy attorney to help you navigate the system. An attorney can help you understand the requirements and procedures, complete and file the necessary forms and schedules, represent you in court proceedings, and advocate for your best interests throughout the process.

Our team of experienced New Jersey bankruptcy attorneys, led by Daniel Straffi Jr., is highly knowledgeable in bankruptcy laws. For over eight years, we have been serving Central and Southern New Jersey as a dedicated bankruptcy law firm. Our primary focus is to assist individuals in achieving financial freedom and a fresh start in life. We understand that being unable to pay your debts can be overwhelming and can cause immense stress not only for you but also for your family. 

If you are facing such a situation, we can offer you the legal advice and representation you need. Our firm, Straffi & Straffi Attorneys at Law, has helped numerous families and businesses in Ocean County, Monmouth County, and other areas in New Jersey start anew. To schedule a consultation, contact us today at (732) 341-3800.

from Straffi & Straffi Attorneys at Law https://www.straffilaw.com/how-long-does-it-take-to-file-bankruptcy-in-new-jersey/

What is an Emergency Bankruptcy Filing in New Jersey?

An emergency bankruptcy filing allows a debtor to quickly file a minimum amount of paperwork with the court to initiate the bankruptcy process. The debtor must then later supplement their filing with additional documentation within a set period, usually 14 days. This process significantly speeds up the time it takes to get a case filed, meaning that the debtor receives the protection of the automatic stay sooner.

Filing for bankruptcy can be a very challenging and stressful experience for anyone, which is why it’s crucial for those considering it to have a knowledgeable legal representative to navigate them through the process. At Straffi & Straffi Attorneys at Law, Daniel Straffi Jr., a bankruptcy lawyer, and his team of seasoned New Jersey emergency bankruptcy attorneys can assist individuals in filing for debt relief under the Bankruptcy Code in New Jersey. If you’re struggling with debt, our legal advice and representation may be able to help. We can also guide you through what filing a bankruptcy can entail, such as whether a bankruptcy can show on background checks. Our team is dedicated to assisting people in achieving financial independence and starting anew. To schedule a consultation, call us today at (732) 341-3800

An emergency bankruptcy filing typically includes a few basic forms, such as: 

• Voluntary Petition for Individuals Filing for Bankruptcy (Form 101) 
• A list of creditors holding the 20 largest unsecured claims and their contact information
• A certificate of credit counseling
• Form 121

Once the paperwork has been filed, the debtor will receive an immediate automatic stay, which prevents creditors from any further collection efforts. The debtor then typically has two weeks to submit the rest of their required documentation to the court.

Reasons for Filing an Emergency Bankruptcy

There are various reasons why a debtor may choose to file for emergency bankruptcy. Some of the most common reasons include:

• Imminent Foreclosure: If a debtor is facing the imminent loss of their home due to foreclosure, they may choose to file an emergency bankruptcy to stop the foreclosure process and possibly save their home.
• Wage Garnishment: Wage garnishments can cause significant financial hardship for a debtor. If a wage garnishment is about to begin or is already in place, filing an emergency bankruptcy can stop the garnishment and provide immediate relief.
• Bank Levy: Similar to wage garnishment, a bank levy can cause serious financial strain on a debtor. Filing an emergency bankruptcy can prevent a bank from seizing funds from a debtor’s account or freezing the account.
• Eviction: An emergency bankruptcy filing may provide a temporary halt to eviction proceedings, allowing the debtor more time to negotiate with their landlord or find alternate housing.
• Lawsuits: If a creditor has filed a lawsuit against a debtor, an emergency bankruptcy filing can stop the lawsuit and provide the debtor with relief.

Most individuals filing for bankruptcy want to utilize the automatic stay filing bankruptcy would give. To make sure that your filing is accurate and would not be dismissed by the court, seeking legal help is essential.

Benefits of an Emergency Bankruptcy Filing

The primary benefit of an emergency bankruptcy filing is the immediate protection it affords the debtor under the automatic stay. By filing an emergency bankruptcy, a debtor can stop foreclosure proceedings, eviction, wage garnishments, and lawsuits in their tracks.

Other benefits of an emergency bankruptcy filing include:

• Time: Emergency bankruptcy filings allow the debtor to begin the bankruptcy process quickly, providing the debtor with the needed protection from their creditors.
• Stress Relief: By stopping collection efforts and providing the debtor with a structured plan to repay their debts, an emergency bankruptcy filing can provide significant stress relief for the debtor.
• Asset Protection: By initiating the bankruptcy process, the debtor can protect their assets from creditors, giving them the opportunity to reorganize and discharge some of their debts.
• Rebuilding Credit: While filing for bankruptcy can have a negative impact on a debtor’s credit score, it can also provide a fresh financial start, allowing the debtor to rebuild their credit over time.

It is important to note that filing for emergency bankruptcy is not always the best option for every debtor. It is crucial to consult with an experienced bankruptcy attorney and carefully consider all options and potential consequences before filing for bankruptcy, whether it is an emergency filing or not.

Procedures for Filing an Emergency Bankruptcy in New Jersey

Filing an emergency bankruptcy in New Jersey gives you immediate relief from creditors and stops them from taking any legal action against you. This form of bankruptcy is considered a “skeleton” filing, as it allows you to submit the minimum amount of paperwork necessary to initiate the bankruptcy process. However, it is important to note that the debtor must later supplement their emergency filing with additional documentation within a set period, usually 14 days.  Following are the procedures you need to follow for filing an emergency bankruptcy in New Jersey:

Preparation of Required Forms and Documentation

Before filing an emergency bankruptcy, it’s vital to understand what forms and documentation will be needed. The main documentation is the Voluntary Petition for Individuals or Businesses, which is also known as Form B101 or B201 depending on the type of bankruptcy you’re filing for. Some other forms that are usually needed include:

1. Summary of Assets and Liabilities (Form B106)
2. Schedules A to J, which details your assets, liabilities, income, expenses, and other financial information
3. Statement of Financial Affairs (Form B107)

It is advised to work with a bankruptcy attorney if possible, as they can help you navigate the process and ensure you provide the right information. Keep in mind that you’ll need to gather relevant documents that support your bankruptcy filing, such as income statements, property documentation, and creditor correspondence.

Submission of Minimum Documents

Since time-sensitive situations necessitate the filing of emergency bankruptcy, you can initially submit the minimum required documents. At the very least, you’ll need to file the Voluntary Petition form, Form 121, and a Mailing Matrix (list of creditors). After submitting these minimum documents, you’ll get an automatic stay, which stops creditors from taking further collection actions against you.

You must file the remaining required documents within 14 days of your emergency filing, or else your bankruptcy case may be dismissed. Not submitting the complete set of documents could result in your case being dismissed without a discharge, making you ineligible for automatic stays in future cases for 180 days.

Filing Fee and Installment Payment Plans

When filing for emergency bankruptcy, you must pay the applicable filing fee. The fee varies depending on the type of bankruptcy (Chapter 7, 11, 12, or 13) but can be as high as $338 for a Chapter 7 bankruptcy.

If you cannot afford the full fee upfront, New Jersey allows you to apply for an installment payment plan by submitting Form B103A. This form outlines your proposed payment plan, which must be reviewed and approved by the bankruptcy court. Keep in mind that failing to make the agreed-upon payments could result in your case being dismissed.

Automatic Stay and its Implications

When you file an emergency bankruptcy in New Jersey, you’re granted an automatic stay – a court mandate that prevents creditors from attempting to collect on your debts. The stay offers relief in several ways, such as:

• Stopping wage garnishments or bank account levies
• Halting foreclosure proceedings temporarily
• Preventing repossession of a vehicle
• Blocking the disconnection of utilities

Remember that automatic stays are temporary, and creditors can request the court to lift the stay in particular cases. Thus, it’s crucial to complete your bankruptcy filing (submitting all required forms and documentation) within 14 days of your emergency filing.

In summary, filing an emergency bankruptcy in New Jersey offers immediate protection from creditors, granting you time to gather essential documentation and complete the bankruptcy process. Be sure to work with an attorney if possible, as they can help you navigate the complex procedures and ensure a smooth process.

Additional Documents and Completion of Filing

The filing of a bankruptcy petition is only the beginning of the process. After your bankruptcy petition has been submitted to the court, you will need to complete several other tasks to ensure a successful bankruptcy outcome. Some essential steps to be taken after filing include submitting remaining documents, attending the creditors’ meeting, and fulfilling credit counseling and debtor education requirements.

It is imperative to adhere to the timelines and requirements set by the court and bankruptcy laws. Debtors should stay organized, communicate with their lawyers, and follow the court’s instructions to ensure a successful and timely resolution to their bankruptcy case.

Submitting Remaining Documents within 14 days

After filing the bankruptcy petition, debtors are required to submit additional supporting documents within 14 days. Some of these documents include:

1. Pay stubs, bank statements, or other proof of income for the 60 days prior to filing, so the court can determine if the debtor qualifies for Chapter 7 or Chapter 13 bankruptcy.
2. A detailed list of the debtor’s assets, including real property, personal property, and other assets. This helps the court and trustee evaluate the debtor’s financial situation.
3. A statement of financial affairs, which includes a summary of income, expenses, and other financial transactions.

Submitting these documents on time allows the court and the bankruptcy trustee to make an informed decision about the debtor’s financial situation and, ultimately, the viability of the bankruptcy case. Failing to submit supplementary documents or meet other deadlines set by the court can lead to severe consequences. If the debtor does not file the required documents within 14 days, the court may dismiss the case, which would eliminate the bankruptcy protection provided under the law.

Attending the Creditors’ Meeting (341 Meeting)

Approximately 21 to 40 days after filing for bankruptcy, a meeting with the bankruptcy trustee and creditors, also known as the 341 meeting or creditors’ meeting, will be scheduled. This meeting enables the trustee to question the debtor about their financial situation and the information disclosed in the bankruptcy petition and documents.

Debtors are required to attend this meeting and answer questions under oath. Creditors may also be present and ask questions about the debtor’s financial affairs. Although the meeting is generally short and formal, it is a critical part of the bankruptcy process.

Debtors should ensure that they are well-prepared for the meeting, bringing along all necessary documents such as identification, tax returns, and other financial records. Moreover, if a debtor does not attend the creditors’ meeting or fails to complete credit counseling and debtor education requirements, their bankruptcy case may also be dismissed, or the discharge of their debts could be denied.

Fulfilling Credit Counseling and Debtor Education Requirements

Before filing for bankruptcy, debtors must complete credit counseling from an approved agency. The counseling should help debtors understand their financial situation and explore alternatives to bankruptcy.

Similarly, after filing for bankruptcy, debtors must complete a debtor education course before they can receive a discharge of their debts. The course aims to help debtors understand the consequences of bankruptcy and learn personal financial management skills.

Both credit counseling and debtor education are crucial components of the bankruptcy process, ensuring that debtors are well-informed and better prepared to manage their finances after bankruptcy.

Types of Bankruptcy and Eligibility for an Emergency Filing

Bankruptcy is a legal process that enables an individual or a business entity to get relief from their existing debts that they cannot pay. During this process, the debtor’s assets and liabilities are evaluated by a bankruptcy court, and it may decide to either discharge some or all of the debts or reorganize them into a manageable repayment plan. When faced with an urgent financial crisis, one may opt for an emergency filing to provide immediate protection from creditors. Here are the types of bankruptcy and eligibility requirements for the emergency filing of Chapter 7 and Chapter 13 bankruptcy cases:

Chapter 7 Bankruptcy and Emergency Filing

Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows a debtor to discharge most of their unsecured debts after selling (or liquidating) their non-exempt assets to repay their creditors. It primarily aims to give the debtor a fresh financial start by providing them with a clean slate.

During an emergency filing, also known as a “skeleton petition,” the debtor can expedite the process by filing only the minimum required documents, which typically include Form 101 (the bankruptcy petition) and Form 121 (the social security number statement). After filing a skeleton petition, the debtor receives the protection of the automatic stay, which temporarily stops all collection efforts by the creditors, giving the debtor some breathing room.

The eligibility requirements for the emergency filing of Chapter 7 bankruptcy include: 

• Passing the means test: The mean test determines the debtor’s financial capability to pay their debts based on their income, expenses, and family size. If a debtor’s income is below the median income in their state, they may qualify for Chapter 7 bankruptcy. 
• Credit counseling: The debtor must undergo credit counseling within 180 days before filing for bankruptcy to understand their financial condition, and alternatives to bankruptcy, and create a budget plan.

Chapter 13 Bankruptcy and Emergency Filing

Chapter 13 bankruptcy, also known as reorganization bankruptcy, involves creating a repayment plan that allows the debtor to repay a part or all of their existing debts over three to five years while keeping their assets. This type of bankruptcy is ideal for individuals with regular income and assets they want to protect, such as a home or a car.

Similar to Chapter 7, an emergency filing for Chapter 13 bankruptcy involves submitting the minimum documents required to initiate the case, which provides immediate protection under the automatic stay.

The eligibility requirements for the emergency filing of Chapter 13 bankruptcy include: 

• Financial capability: The debtor needs to have a regular source of income to prove their ability to meet the repayment plan requirements. 
• Unsecured and secured debt limits: As of 2022, both secured and unsecured debts of the debtor should not exceed $2.75 million. 
• Tax return filings: Debtors must provide proof that they have filed income tax returns for the past four years before filing for bankruptcy.

Determining the correct type of bankruptcy is essential as well as adhering to the eligibility requirements to ensure that your case is admitted by the court and properly evaluated. 

Eligibility Criteria for Each Type of Bankruptcy

Several factors determine the eligibility of a debtor for filing either Chapter 7 or Chapter 13 bankruptcy. These factors include:

• Income level: As mentioned earlier, a debtor’s income level determines whether they qualify for Chapter 7 or Chapter 13 bankruptcy. Due to the existence of the means test for Chapter 7, Chapter 13 may be a more viable option for those with higher income levels.
• Disposable income: The amount of disposable income influences the type of bankruptcy filing. A debtor with low disposable income is more likely to qualify for Chapter 7 bankruptcy.
• Assets: Chapter 7 bankruptcy involves liquidating the debtor’s non-exempt assets to repay creditors, while Chapter 13 bankruptcy allows the debtor to retain their assets and repay debts over time. If a debtor wants to keep their assets, Chapter 13 bankruptcy may be more suitable.

Before pursuing an emergency bankruptcy filing, it is crucial to consult with a qualified attorney who can guide you through the legal process and help you determine which type of bankruptcy is most suitable for your situation.

Possible Complications and Risks of Emergency Bankruptcy Filings

Filing for emergency bankruptcy, also known as a “bare-bones” or “skeletal” bankruptcy petition, can provide immediate relief to individuals experiencing financial difficulties or facing imminent actions from creditors. However, obtaining immediate relief by filing an emergency bankruptcy petition comes with its own set of potential complications and risks. 

Shorter Time to Prepare and Review Documents

One of the primary complications with emergency bankruptcy filings is the challenge of preparing and reviewing all necessary documents within a limited time frame. In typical bankruptcy cases, debtors have sufficient time to carefully prepare and review their financial records, assets, debts, and other essential information before filing with the court. This typically means the debtor and their attorney have time to ensure that all information and documentation is accurate and complete, minimizing the risk of errors or omissions.

In contrast, emergency bankruptcy filings typically involve a frantic situation where the debtor desires immediate relief to stop a specific creditor action, like a foreclosure or wage garnishment. As a result, there may not be enough time to thoroughly review and prepare all the necessary documents, increasing the risk of mistakes or incomplete information being submitted to the court. This rushed process may lead to difficulties during the bankruptcy proceedings, as well as potential disputes or objections from creditors who may question the accuracy or completeness of the information provided.

Incomplete Documentation Could Lead to Case Dismissal

When a debtor files an emergency bankruptcy petition, they are generally only required to submit a minimal set of documents to initiate the bankruptcy case. However, they are then given a limited amount of time, usually 14 days, to submit the full set of required documents to support their case. Failure to submit these additional documents on time or correctly can result in the dismissal of the case, effectively negating the benefits of the emergency bankruptcy filing.

Even if a debtor succeeds in submitting all necessary documents, it is still possible for the bankruptcy court to dismiss the case if the judge determines that the debtor does not qualify for bankruptcy relief, has filed the case in bad faith, or there are other deficiencies in the paperwork or submission. Such outcomes can be devastating for debtors who have filed an emergency bankruptcy to halt specific creditor actions, as their protections against those actions vanish with the dismissal of the case.

Risks Associated with Using the Wrong Forms or Incorrect Information

Filing for emergency bankruptcy increases the likelihood of using the wrong forms, making errors, or submitting incomplete or incorrect information to the court. These mistakes may include providing insufficient detail on assets, debts, and creditors or incorrectly calculating the debtor’s eligibility for bankruptcy relief.

In some cases, these errors can be corrected by amending the bankruptcy petition or submitting additional documentation to the court. However, such amendments may require additional time and resources, and may also be subject to scrutiny from creditors, the bankruptcy trustee, or the court itself. Certain errors may even lead to a judge dismissing the case altogether or imposing fines and penalties on the debtor.

Additional Stress Due to Rushed Filing Process

Finally, perhaps the most overlooked aspect of emergency bankruptcy filings is the stress and mental toll it takes on the debtor. Filing for bankruptcy can be an emotional and anxiety-ridden experience, even under the best of circumstances. However, rushing to file an emergency bankruptcy can exacerbate these feelings, as the debtor scrambles to gather paperwork, make decisions about their financial future, and potentially face the consequences of mistakes made in haste.

The stress and emotional strain associated with filing an emergency bankruptcy may cause the debtor to overlook important aspects of their case, make impulsive decisions that impact their financial future, or simply not be as prepared for the hearings and legal proceedings as they should be. While it may not be a direct legal risk, it is an important consideration for those contemplating an emergency bankruptcy filing.

Alternatives to Emergency Bankruptcy Filing

Filing for bankruptcy should always be considered a last resort, especially in emergency situations. Emergency bankruptcy filings are typically done when a debtor is facing imminent foreclosure or repossession of their property due to debt. Bankruptcy can be an effective method for stopping these actions and giving the debtor some breathing room to figure out a plan for their financial situation. However, bankruptcy comes with long-lasting consequences that can have a severe impact on your credit and ability to obtain future financing. Fortunately, there are alternative solutions to emergency bankruptcy filings that can address debt problems without leaving such a harsh financial stain.

Debt Settlement and Negotiation

One alternative to an emergency bankruptcy filing is debt settlement and negotiation. This process involves negotiating with creditors to reduce the total amount of debt owed, making it more manageable for the debtor to repay. This option can help you avoid bankruptcy while still addressing your financial difficulties. Debt settlement does not require legal intervention, and it often results in lower monthly payments, reduced interest rates, and waived late fees.

It is important to note that debt settlement may negatively affect your credit score, as it may involve paying less than the total amount owed or making late payments. However, this negative impact is usually less severe than the long-lasting consequences of bankruptcy. Professional debt settlement companies can assist in negotiating with creditors to reach an agreement, but be cautious when selecting a company, as there are some that may be fraudulent or charge high upfront fees.

Debt Consolidation and Management Plans

Debt consolidation and management plans are other options for those seeking alternatives to an emergency bankruptcy filing. These plans involve consolidating multiple debts into one manageable monthly payment. A debt management plan (DMP) goes one step further by working with a credit counselor to create a tailored repayment strategy. The counselor will negotiate with creditors to reduce interest rates and waive fees, making it easier for individuals to pay off their debts within an agreed-upon timeframe.

Although both debt consolidation loans and debt management plans can help debtors regain control over their finances, they may not be suitable for everyone. These options often require a stable income and discipline to make consistent payments. Additionally, they may not be as effective if the total debt is too high or if the interest rate on the consolidation loan is not competitive.

Credit Counseling Services

Credit counseling services are a valuable resource for individuals seeking alternatives to emergency bankruptcy filing. The law mandates that anyone who files for bankruptcy must go through credit counseling. These services offer free or low-cost financial education and counseling to help clients understand their financial situation, create a budget, and determine the best course of action to resolve their debt problems. Credit counselors can also help debtors get enrolled in debt management plans, as previously mentioned.

By working with credit counseling services, individuals can get a clear picture of their financial situation and learn about the different options available to them, such as debt settlement or consolidation. Keep in mind that engaging in credit counseling may not directly improve your credit score, but it can provide guidance toward making more informed financial decisions that lead to long-term improvements in your credit and overall financial health.

Choosing the Right Option for Your Situation

There is no one-size-fits-all solution when it comes to addressing debt issues, so it’s important to carefully consider the options available and choose the one that is most appropriate for your unique circumstances. Some key factors to consider when evaluating your options include your total amount of debt, your income, your credit score, and your ability to make consistent payments.

Whether it’s debt settlement, consolidation, management plans, or credit counseling services, carefully evaluating each option and seeking professional advice can help you make the right decision, avoiding the severe consequences of an emergency bankruptcy filing. Remember, each individual’s financial situation is unique, and it’s crucial to take the time to understand your specific circumstances before deciding on an alternative solution.

Get the Help of An Experienced Emergency Bankruptcy Attorney in New Jersey

When considering filing for bankruptcy, it’s crucial for individuals to have the guidance of a legal representative who can lead them through the process and present alternative options tailored to their unique situation. At Straffi & Straffi, we serve our clients with empathy, diligence, and honesty. We recognize that even with careful planning and good intentions, financial difficulties such as bankruptcy can occur unexpectedly. That’s why our team of skilled lawyers, including experienced bankruptcy attorney Daniel Straffi Jr., understands the significance of safeguarding your financial well-being. If you’re struggling with debt, we offer legal advice and representation that may help. Our law firm has been providing legal services in bankruptcy cases for Central and Southern New Jersey for the past eight years. Contact us today at (731) 341-3800 for a free consultation.

from Straffi & Straffi Attorneys at Law https://www.straffilaw.com/what-is-an-emergency-bankruptcy-filing-in-new-jersey/

What Happens After a Chapter 13 Bankruptcy Is Paid Off?

Chapter 13 bankruptcy, also known as a wage earner’s plan, is a type of bankruptcy designed for individuals with regular income who are struggling to meet their financial obligations. Under this plan, filers propose a repayment plan to their creditors, outlining how they will repay some or all of their outstanding debts over three to five years. Chapter 13 bankruptcy can offer a fresh start to individuals who are willing to take responsibility for their debts and work toward financial stability over time.

If you’re considering filing for Chapter 13 bankruptcy and need debt relief, getting the help of an experienced New Jersey bankruptcy attorney is essential. While filing for bankruptcy can help prevent debt collection actions, consolidate your debt, and establish a manageable repayment plan, it can also have a long-standing impact on your financial prospects such as previous bankruptcies appearing on background checks. 

Working with an experienced attorney can help you learn more about your options and get the legal support you need to navigate the bankruptcy process. At Straffi and Straffi Attorneys at Law, our team of skilled New Jersey bankruptcy attorneys can evaluate your financial situation and help you understand your available options. We can also help you make informed decisions and assist you in the process of filing. Contact us today at (732) 341-3800 to schedule a consultation.

Basics of Chapter 13 Bankruptcy

Aside from providing filers a way to reorganize their debt through the creation of a repayment plan, one of the other primary benefits of Chapter 13 bankruptcy includes the ability to prevent foreclosure on a home and car repossession. By filing for Chapter 13 bankruptcy, a filer’s debts are consolidated, and a repayment plan is established that allows the debtor to address past due amounts while also making current payments. Additionally, during the Chapter 13 bankruptcy plan, creditors are legally prohibited from pursuing collection actions against the debtor, providing relief from harassing phone calls and legal actions.

It’s important to note that not all debts can be discharged through Chapter 13 bankruptcy. Some non-dischargeable debts include child support, alimony, student loans, and certain taxes. However, filers may be able to restructure these debts and establish a reasonable repayment schedule under a Chapter 13 plan, making them more manageable in the long run.

Eligibility Criteria for Chapter 13 Bankruptcy

To qualify for Chapter 13 bankruptcy, an individual must meet specific eligibility criteria, including:

• Regular income: Filers must have a consistent source of income, demonstrating their ability to make regular payments on a debt repayment plan. Eligible income sources may include salary, wage, self-employment income, Social Security benefits, and rental or investment income.
• Debt limit restrictions: At the time of filing, an individual’s secured and unsecured debts must be below certain limits. These limits are adjusted periodically to account for inflation. As of 2021, a filer’s secured debts must not exceed $1,257,850, and unsecured debts must not exceed $419,275.
• No recent bankruptcy discharge: An individual cannot file for Chapter 13 bankruptcy if they have received a bankruptcy discharge in a Chapter 7 case within the past four years or in a previous Chapter 13 case within the past two years.
• Completed credit counseling: Filers must complete an approved credit counseling course within 180 days before filing for Chapter 13 bankruptcy.

Comparison with Other Types of Bankruptcies

There are two primary forms of individual bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is a liquidation bankruptcy, in which a court-appointed trustee sells non-exempt assets to pay off creditors. In contrast, Chapter 13 allows the debtor to keep their assets and reorganize their debts into a manageable repayment plan.

Chapter 13 bankruptcy may be a better option than Chapter 7 for individuals who have a steady income and can afford to repay some of their debts over time. It also offers advantages for those who wish to keep their homes or other valuable assets, as well as for those with non-dischargeable debts that can be restructured and repaid over time.

The Process of Filing for Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy involves several steps, including:

1. Credit counseling: Complete a court-approved credit counseling course within 180 days of filing.
2. Prepare the petition: Collect all required financial information and documents, including a list of debts, assets, income sources, and living expenses. A bankruptcy attorney can assist in accurately preparing the required documents.
3. File the petition: Submit the completed petition and any required fees to the bankruptcy court that serves your geographic area.
4. Attend the 341 meeting: Approximately a month after filing, a meeting with the appointed bankruptcy trustee and your creditors, known as the 341 meeting, will be held. The debtor must answer questions about their financial circumstances under oath.
5. Propose a repayment plan: The debtor will develop a proposed repayment plan, outlining how much they will pay to their creditors over the three-to-five-year period. The plan will be reviewed by the bankruptcy trustee and may be modified before being submitted to the court for approval.
6. Confirmation hearing: A judge will review and, if approved, confirm the repayment plan during a confirmation hearing. Once approved, the debtor will begin making monthly payments to the trustee, who will distribute the payments to creditors.
7. Complete a debtor education course: Before receiving a discharge in Chapter 13, the debtor must take a court-approved debtor education course.
8. Discharge of remaining eligible debts: Once the repayment plan is completed, the debtor will receive a discharge of any remaining eligible debts not paid off within the plan.

Overall, Chapter 13 bankruptcy offers an opportunity for those struggling with debt to create a manageable repayment plan, protect valuable assets, and work toward a more stable financial future. It’s essential to consult with an experienced bankruptcy attorney who can guide you through this complex process and help determine if Chapter 13 bankruptcy is the right solution for your unique situation.

Steps in Filing for Chapter 13 Bankruptcy	Course of Action
Credit counseling	Complete a court-approved credit counseling course within 180 days of filing.
Prepare the petition	Collect required financial information and documents for debts, assets, income, expenses.
File the petition	Submit completed petition and fees to the bankruptcy court.
Attend the 341 meeting	Attend a meeting with trustee and creditors to answer financial questions under oath.
Propose a repayment plan	Develop a repayment plan for creditors, reviewed by trustee and submitted for approval.
Confirmation hearing	Review and approval of repayment plan by a judge; monthly payments to trustee commence.
Complete a debtor education course	Take a court-approved debtor education course before discharge.
Discharge of remaining eligible debts	Receive discharge for eligible debts not paid off within the repayment plan.

Chapter 13 Bankruptcy Repayment Plan

A Chapter 13 bankruptcy repayment plan is a legally-binding agreement created between you, your creditors, and a bankruptcy trustee. It outlines how your debts will be restructured, allowing you to repay them within a specified time frame – typically three to five years. Chapter 13 bankruptcy is most suitable for individuals with a stable income who can afford to make regular monthly payments. In this article, we explore the process of creating a repayment plan, the length and terms involved, and the requirements for meeting with creditors and the trustee.

Creating a Chapter 13 Repayment Plan

Creating a Chapter 13 repayment plan is the first step in filing for this type of bankruptcy. It is essential to consult with an experienced bankruptcy attorney to help you create a feasible plan that will be accepted by the court.

The repayment plan outlines all the details regarding your monthly payments, including the amount to be paid, which debts will be prioritized, and how long the plan will last. It aims to ensure that all of your disposable income goes towards repaying your debts.

To create the plan, you must first gather all necessary financial documentation such as income statements, bank account statements, tax returns, expense records, and the balances owed to each creditor. This information will be used to calculate your monthly disposable income, the amount you have left to pay towards your debts after deducting your necessary living expenses.

With the help of your attorney, you will then create a proposed plan demonstrating your ability to make the required payments. The court and your creditors will review your plan and may decide to either approve it or request amendments before accepting it.

Length and Terms of the Repayment Plan

The length of a Chapter 13 repayment plan depends on your income level and the amount of debt you owe. Generally, the plans last either three or five years, determined by the court and dependent on your situation.

The terms of the plan establish the order in which your debts will be repaid. Priority debts, such as child support or taxes, must be paid off first, followed by secured debts like mortgages or automobile loans, and finally unsecured debts, including credit card bills and medical expenses.

While most unsecured debts can be discharged at the end of your repayment plan if your disposable income can’t cover the full payment, secured debts, and priority debts must be paid in full. Your plan may also include provisions for repaying any co-signed debts.

Meeting with Creditors and Trustee

After filing your petition and submitting your repayment plan, a meeting with your creditors and trustee, also known as a 341 meeting or the meeting of creditors, will be scheduled. This meeting allows the trustee and creditors to review and discuss your plan, ask any questions or raise any concerns.

During this meeting, the trustee will verify your identity and may ask you about your financial situation, assets, and liabilities. It is crucial to answer all questions honestly and provide all the necessary documentation to support your repayment plan.

If there are any objections to your plan, you may need to negotiate with your creditors to find a resolution. Your attorney will guide you through this process and help you make any necessary changes to your plan.

Making Payments and Plan Modifications

Once your repayment plan is approved, you must start making the required monthly payments to your bankruptcy trustee, who will then distribute these funds to your creditors. It’s essential to make these payments on time to avoid dismissal of your bankruptcy case.

If you experience significant changes in your financial situation during the repayment plan, such as job loss or increased expenses due to medical issues, you may request a modification to your plan. To do so, you must submit a written motion outlining the proposed modifications and the reasons behind them. The court will review your request, and your creditors will have the opportunity to object.

If the court grants your modification request, you must continue making the adjusted payments as ordered. In contrast, if it’s denied, you must either continue on the original plan or potentially convert your case to another bankruptcy chapter.

Once you have completed all the required payments under your approved Chapter 13 repayment plan, the court will discharge any remaining eligible debts, signifying the end of your bankruptcy case.

Discharge of Debts in Chapter 13 Bankruptcy

Chapter 13 bankruptcy, also known as a wage earner’s plan, allows individuals with regular income to develop a plan to repay all or part of their debts over three to five years. Discharge in Chapter 13 bankruptcy means that the debtor is legally freed from the responsibility of repaying certain types of debts. 

Types of Debts Discharged in Chapter 13 Bankruptcy

In a Chapter 13 bankruptcy, a variety of debts can be discharged, meaning they are no longer legally enforceable against the debtor. Some common types of debts that can be discharged include:

• Unsecured debts, such as credit card balances, personal loans, and medical bills
• Older tax liabilities that meet specific requirements
• Secured debts that are paid through the Chapter 13 plan and the debtor no longer wishes to keep the collateral (such as a car or house)
• Some types of non-dischargeable debts in Chapter 7 – can include marital debts incurred in divorce or separation, as well as some debts for willful and malicious injury
• Debts that were non-dischargeable in a previous bankruptcy case under specific circumstances.

It is important to note that the dischargeable debts may vary depending on individual cases and circumstances.

Conditions to Receive a Discharge

To be eligible for a discharge in a Chapter 13 bankruptcy case, the debtor must meet specific conditions. These include:

• Completion of all payments under the Chapter 13 plan, including both secured and unsecured debts.
• Certification that all domestic support obligations, such as alimony or child support, are up-to-date and paid in full.
• Completion of a personal financial management course approved by the bankruptcy court.
• Submission of a certification that there are no outstanding orders for restitution or similar criminal penalties.
• No prior discharge has been granted in another bankruptcy case within specific time frames: two years for a previous Chapter 13 case and four years for a Chapter 7, 11, or 12 case.

Special Circumstances Leading to Discharge

In some special circumstances, the bankruptcy court may grant a Chapter 13 hardship discharge if a debtor is unable to complete the plan payments due to circumstances beyond their control. These circumstances may include:

• Sudden illness or injury that prevents the debtor from maintaining his or her usual employment
• Unforeseen expenses or decreased income due to no fault of the debtor
• Modification of the Chapter 13 plan would not be feasible or in the best interests of the debtor and creditors

To qualify for a hardship discharge, the debtor must show that the creditors have received at least as much as they would have received in a Chapter 7 bankruptcy case, and modification of the Chapter 13 plan is not possible.

Debts Not Discharged in Chapter 13 Bankruptcy

Some debts are not dischargeable in Chapter 13 bankruptcy and remain the legal responsibility of the debtor. These debts may include:

• Recent taxes and tax liabilities, including federal, state, and local taxes
• Debts incurred through fraud or false pretenses
• Debts resulting from fraud, embezzlement, larceny, or breach of fiduciary duty
• Outstanding student loans, unless undue hardship can be proven
• Debts for willful and malicious injury to another person or property
• Debts arising from death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft while intoxicated
• Debts for restitution or damages awarded in a civil action for willful or malicious actions by the debtor that caused personal injury or death
• Domestic support obligations, including alimony, child support, and certain settlements in divorce or separation agreements
• Certain types of fines, penalties, and forfeitures owed to governmental entities
• Debts not provided for or reaffirmation agreements made during the bankruptcy case.

Understanding which debts can be discharged in a Chapter 13 bankruptcy, as well as the conditions and special circumstances affecting discharge, is essential for individuals considering bankruptcy as a means to resolve their financial issues. It is recommended to consult an experienced bankruptcy attorney to fully understand the implications and ramifications of filing for Chapter 13 bankruptcy.

Completion of Chapter 13 Bankruptcy Repayment Plan

Chapter 13 bankruptcy is a powerful tool that allows individuals to restructure their debts and repay them over a period of 3 to 5 years under the protection of the bankruptcy court. The completion of a Chapter 13 repayment plan is a significant milestone for debtors, as it means they have successfully made all required payments and can now seek discharge from their remaining eligible debts. 

Finalizing Payments and Requesting Discharge

As a debtor nears the end of their repayment plan, it is essential to ensure all required payments have been made and all necessary documents have been filed with the court. This typically involves the following steps:

1. Confirming that all payments have been made according to the repayment plan: The debtor should review their records and consult with their bankruptcy attorney to verify that all required payments have been made on time and in the appropriate amounts.
2. Completing required financial education courses: Most jurisdictions require debtors in a Chapter 13 to complete a financial management course before receiving a bankruptcy discharge. Debtors must submit a certificate of completion to the court to verify they have met this requirement.
3. Filing required certifications: The debtor must file a Certification Regarding Domestic Support Obligations and Certification of Section 522(q) Exemption (if applicable) with the bankruptcy court. These certifications attest that the debtor is current on any domestic support obligations and has not received a previous discharge in another chapter of bankruptcy that would make them ineligible for discharge in the current case.
4. Requesting a discharge: Once all required payments have been made, certifications have been filed, and the financial management course has been completed, the debtor or their counsel will file a motion for entry of discharge with the bankruptcy court. This request should include documentation to prove completion of all requirements.

Entry of Discharge Order by the Bankruptcy Court

Once the debtor has successfully completed their repayment plan, filed all required certifications, and requested a discharge, the bankruptcy court will review the case to ensure all requirements have been met. If the court is satisfied that the debtor has met all necessary criteria, it will enter an order of discharge. The discharge order legally eliminates the debtor’s responsibility to pay any remaining outstanding balances on dischargeable debts.

Upon entry of the discharge order, the court will typically close the debtor’s bankruptcy case, thereby ending the bankruptcy process. Creditors whose debts have been discharged in the bankruptcy will no longer be able to pursue any collection actions against the debtor. Debtors need to keep a copy of their discharge order and case closing documents for future reference and proof of their bankruptcy discharge.

Handling Non-Discharged Debts Post-Discharge

Although a Chapter 13 bankruptcy discharge eliminates the debtor’s responsibility for most of their outstanding debts, there are certain types of debts that are not discharged, and the debtor will remain obligated to pay post-discharge. Debtors should develop a plan to continue paying non-dischargeable debts even after their bankruptcy discharge. Collaborating with an experienced bankruptcy attorney throughout the bankruptcy process and after the completion of the repayment plan is vital to ensure successful financial recovery and future stability.

Impact of Chapter 13 Bankruptcy Discharge on Credit and Finances

Bankruptcy can offer much-needed relief for individuals and families struggling with unmanageable debt. However, the decision to file for bankruptcy should not be taken lightly, as it can have significant long-term effects on a person’s credit and overall financial health, particularly in the case of Chapter 13 bankruptcy. In this article, we will discuss the impact of a Chapter 13 bankruptcy discharge on credit and finances, including the effects on a person’s credit score, the process of rebuilding credit, obtaining new credit and loans after discharge, and maintaining financial stability post-discharge.

Effects of Chapter 13 Bankruptcy on Credit Score

A Chapter 13 bankruptcy discharge can have a significant negative impact on a person’s credit score. The bankruptcy filing and subsequent discharge are public records that will appear on one’s credit report for up to ten years. During this time, the individual may have difficulty obtaining new credit, renting an apartment, or even securing employment, as potential creditors, landlords, or employers may view the bankruptcy as evidence of financial irresponsibility.

Additionally, bankruptcy will impact a person’s payment history, which is the most significant factor in determining credit scores. Missed or late payments leading up to the bankruptcy filing and any payments made during the repayment plan under Chapter 13 will be recorded on the individual’s credit report, further damaging their credit score.

Rebuilding Credit After Chapter 13 Bankruptcy Discharge

Rebuilding credit after a Chapter 13 bankruptcy discharge can be an uphill battle. Still, it is possible to improve one’s credit rating over time by demonstrating responsible financial behavior. Some steps to consider when rebuilding credit after bankruptcy include:

• Reviewing and monitoring credit reports to ensure accuracy and dispute any errors or inaccuracies that may be present.
• Establishing a budget and sticking to it, focusing on cutting unnecessary expenses and building emergency savings.
• Paying bills on time, every time. Consistent on-time payments are crucial in rebuilding credit after bankruptcy.
• Avoiding new debt as much as possible, especially high-interest credit card debt.
• Reestablishing a good payment history by opening a secured credit card or obtaining a small installment loan and making on-time payments.
• Staying vigilant about financial health by regularly reviewing credit reports, staying knowledgeable about credit scores, and monitoring financial progress.

Obtaining New Credit and Loans After Discharge

Obtaining new credit and loans after a Chapter 13 bankruptcy discharge can be challenging, as many lenders will be hesitant to extend credit to someone who has recently completed a bankruptcy. However, some strategies can help improve the likelihood of obtaining new credit, such as:

• Applying for secured credit cards, which require a cash deposit that acts as collateral for available credit.
• Exploring credit-builder loans, which are designed to help individuals build credit by making small, consistent payments toward a loan.
• Shopping around for lenders and discussing the circumstances of the bankruptcy to find a lender willing to work with individuals post-bankruptcy.
• Providing a strong explanation for the bankruptcy, highlighting any extenuating circumstances that led to the financial hardship, and discussing steps taken to avoid future financial crises.
• Building up a savings account and establishing a strong employment history to demonstrate financial stability.

Maintaining Financial Stability Post-Discharge

After a Chapter 13 bankruptcy discharge, the focus should be on maintaining financial stability and avoiding future financial crises. Individuals should focus on:

• Creating and adhering to a realistic budget, emphasizing living within one’s means and limiting unnecessary expenses.
• Building an emergency fund to cover unexpected expenses without resorting to high-interest debt.
• Regularly monitoring credit reports to catch any signs of identity theft or inaccuracies that may harm credit scores.
• Continuing to make timely payments on all financial obligations, as positive payment history is crucial for rebuilding and maintaining credit.
• Seeking professional advice when faced with financial challenges, such as working with a certified financial planner or credit counselor.

By taking these steps and being proactive about rebuilding credit and maintaining financial stability, individuals can successfully move beyond the impact of a Chapter 13 bankruptcy discharge and work toward a brighter financial future.

Working with a Top-Rated New Jersey Bankruptcy Attorney

Filing for Chapter 13 bankruptcy can be a complicated process, and having an experienced attorney by your side can be extremely beneficial. A skilled attorney can guide you through each step of the process, ensuring that you meet all necessary requirements and deadlines. An attorney can also help you prepare and file all required documentation and certifications, including those related to your repayment plan, financial management courses, and discharge request.

An attorney can also provide valuable advice and support throughout the bankruptcy process and after the completion of your repayment plan. They can help you develop a plan to manage non-dischargeable debts and work towards long-term financial stability. Additionally, an experienced attorney can offer guidance on rebuilding your credit score and obtaining new credit and loans after discharge.

Having a knowledgeable and trustworthy attorney can also help ease the stress and anxiety that often comes with the bankruptcy process. They can answer your questions, provide legal advice, and advocate for your best interests in court.

If you are struggling with unmanageable debt, Chapter 13 bankruptcy may be a powerful tool to restructure your debts and find a more manageable way to repay them. However, it is essential to work with an experienced bankruptcy attorney and be aware of the long-term effects on your credit and finances. Filing for bankruptcy is often a last-resort option. Once you are sure that a bankruptcy would help in your situation, working with an experienced attorney is crucial.

At Straffi and Straffi Attorneys at Law, we provide skilled legal assistance to New Jersey residents in need of help in filing for bankruptcy. Our team of qualified legal professionals works diligently to assist filers in navigating the legal processes involved and in helping them get a fresh start on their financial lives. To learn more about how we can help you, contact us today at (732) 341-3800 to schedule a free consultation.

from Straffi & Straffi Attorneys at Law https://www.straffilaw.com/what-happens-after-a-chapter-13-bankruptcy-is-paid-off/

What Is the Statute of Limitations on Debt in NJ?

Even though consumer debt can seem like a private matter, there are specific laws and regulations that govern when and how they can be enforced or disposed of. An example of such laws includes the statute of limitations on debt in New Jersey. The statute of limitations on debt is a period of time in which creditors can file a suit against you for failing to pay your debt. Being aware of this statute of limitations can help you avoid being the subject of a complicated lawsuit and being subject to fines.

New Jersey laws regarding consumer debt can prove to be very complicated to navigate without the help of an experienced New Jersey debt negotiation attorney. At Straffi And Straffi, Attorneys At Law, our team of skilled legal professionals has protected the rights of New Jersey residents from unlawful debt collection practices. We offer quality legal counsel and representation to advocate for our client’s best interests. To learn more about how we can help you, contact us today at (732) 341-3800.

New Jersey’s Statute of Limitations on Debt

There are different statutes of limitations in New Jersey depending on the type of debt you have. For most debts including credit card debt, the limitation is six (6) years. For car loans, the limitation is four (4) years. 

The statute of limitations is the time in which the creditor can file a lawsuit against the debtor to compel them to pay their debt. This period initiates at the last interaction the debtor had with the creditor and will reset each time they make contact again. This contact refers to the last time the debtor made a payment on their debt. The statute applies to all types of contracts in New Jersey, be it oral or written contracts, open-ended accounts, or promissory notes.

The statute of limitations in this context only refers to the time when a creditor can sue the debtor for their debt. This means that after the statute of limitations has expired, the creditor can’t file a suit against the debtor. If a creditor takes a debtor to court after the statute of limitations has expired, it is up to the debtor to face them in court and have the suit dismissed on those grounds. After the statute of limitations has expired, any legal claim the creditor has to the debt is time-barred. However, this does not mean that the creditor can’t continue using other means to pursue the debtor for payment.

When a creditor tries to collect on a debt, they may not voluntarily divulge the information that the debt has been time-barred. Even so, they are legally obligated to inform the debtor of the date when the statute of limitations will expire on the debt under the Fair Debt Collection Practices Act. 

This does not mean that the creditor is going to provide accurate information. Consulting with your own personal records is important. You may also request verification of when the last activity or payment on the debt happened within 30 days of receiving the notice of the debt.

It is important to remember that the statute of limitations can reset when activity is recorded on the debt and this can reopen the debtor to the possibility of being sued for the debt. Even a statement that you intend to pay the debt or acknowledgment that the debt exists can be considered an activity that can reset the clock.

Getting the assistance of an experienced attorney can be beneficial in making sure that your rights are protected. If you have been notified by a debt collector regarding a debt you supposedly owe, consulting a skilled attorney can help you avoid any legal complications and help you navigate the situation. Whether you intend on paying the amount as is or would like to negotiate a repayment plan, our team of experienced New Jersey debt negotiation attorneys at Straffi And Straffi, Attorneys At Law may be able to help. Call us today to learn more about how we can assist you.

Judgment on Debts in New Jersey

One important thing to keep in mind is that creditors are also afforded the same legal means to collect on a debt. Creditors can file a case to obtain a judgment to collect on a debt as long as the statute of limitations has not expired. 

It is crucial that you respond to the lawsuit as not acknowledging it can provide the creditor with a default judgment giving them the legal backing to proceed with the collection. There are a few ways that creditors can use to collect on a debt and the type of collection they use can depend on the circumstances of the case. 

Wage Garnishment

Under wage garnishment, the judgment creditor can take a percentage of the judgment debtor’s wages as repayment until the court-awarded amount the judgment was issued on is paid in full. According to federal law, a judgment creditor can collect the lesser amount between:

• 25% of the judgment debtor’s disposable earnings
• Disposable earnings less than 30 times the federal minimum wage

Disposable earnings in this context refers to wages you earn after the deductions required by law. Also specific to New Jersey law, $48 dollars is exempt from being seized in wage executions and the judgment creditor can only garnish wages not exceeding 10% of the judgment debtor’s income if they earn less than 250% of the federal poverty level for their household size. When this method is used, the judgment debtor’s employer will be required to withhold the wages and pay them to the assigned special civil part officer on the case. 

Any military benefits and wages cannot be claimed in a judgment for wage garnishment.

Bank liens

With a bank lien, a judgment creditor can freeze the judgment debtor’s bank accounts to be able to get payment on the judgment amount through a Motion to Turn Over Funds.

Liens

As with bank accounts, the judgment creditor can also apply a lien on the judgment debtor’s real estate properties or personal properties.

Writs of execution

With the help of law enforcement such as the Sheriff’s Office, creditors can obtain the judgment creditor’s personal assets and property – not including real property – as payment for the judgment award. 

It is unwise to try and hide any funds you have in an attempt to avoid payment as it can be considered fraudulent behavior and carry additional legal consequences. Once a judgment on the debt is issued, a judgment debtor can be left with few options other than paying the award without the help of a skilled attorney. The statute of limitations on a debt judgment in New Jersey is 20 years. 

Consulting an experienced New Jersey debt negotiation attorney is crucial to avoid any potential issues. Our team of legal professionals at Straffi And Straffi, Attorneys At Law can help you understand your rights under the law and fight for your best interests. We understand the toll financial vulnerability can have on a person and work hard to help our clients have a chance at a new start. Contact us today at  (732) 341-3800 to schedule a consultation.

from Straffi & Straffi Attorneys at Law https://www.straffilaw.com/what-is-the-statute-of-limitations-on-debt-in-nj/

David’s Bridal Bankruptcy Help

David’s Bridal filed for Chapter 11 bankruptcy protection on April 17. The company announced its intention to continue exploring the sale of all or part of its assets. Despite the bankruptcy filing, David’s Bridal plans to keep its approximately 300 stores operational during the process, while evaluating its store locations. The company also reassured customers that their orders will be fulfilled, acknowledging the time-sensitive nature of wedding day deadlines for its clientele.

If you are a bride-to-be affected by this situation and in need of legal assistance, don’t hesitate to contact experienced New Jersey bankruptcy attorneys at Straffi & Straffi Attorneys at Law. Our team may be able to provide guidance and support to ensure that you receive compensation. Call us today at (732) 341-3800 to discuss your options and safeguard your special day.

Overview of David’s Bridal

David’s Bridal is a leading retailer of wedding dresses and related services in the United States. Established in 1950, the company has grown to become one of the most prominent names in the wedding industry. David’s Bridal’s offerings include bridal gowns, bridesmaid dresses, flower girl dresses, mother of the bride dresses, and bridal accessories. In addition to this, the company provides alterations, wedding planning services, invitations, and even recommendations for wedding vendors.

One of the key selling points for David’s Bridal is its extensive range of sizes and styles available at affordable prices. This has allowed the retailer to become a one-stop-shop for brides and bridal parties, with almost one-third of brides in the US purchasing their dresses from David’s Bridal.

Cause of Bankruptcy

David’s Bridal is facing severe financial difficulties five years after they first declared bankruptcy. The company’s bankruptcy court documents, filed on April 17, revealed that it has $4.4 million in cash and debts totaling at least $257 million.

The pandemic-related closures significantly affected the bridal industry, including David’s Bridal. While some companies experienced a strong recovery last year, others struggled to keep up. David’s Bridal faced increased competition when wedding events resumed due to changes in consumer behavior during the pandemic. Additionally, consumers spent less during a time of unprecedented inflation.

David’s Bridal also cited declining marriage rates and changing bridal trends as contributing factors. The company stated in court filings that more brides are choosing non-traditional wedding attire, such as thrifted wedding dresses, resulting in a significant decrease in demand for formal wedding dresses, bridesmaid dresses, and related accessories.

According to court documents, the fourth quarter was particularly challenging for the retailer, with a 14% drop in appointments and a 20% decline in unit sales.

Chapter 11 Bankruptcy Process

To help alleviate concerns of David’s Bridal customers regarding outstanding orders amidst Chapter 11 bankruptcy, attorney Daniel Straffi from Straffi & Straffi in New Jersey clarifies the workings of Chapter 11 bankruptcy and its potential impact on clients.

In the case of a sole proprietorship in a Chapter 11 bankruptcy, the debtor and business are not considered separate legal entities, and any bankruptcy case would involve both personal and business assets. In contrast, a partnership is distinct from its partners, but in a partnership bankruptcy case where the partnership is the debtor, partners’ personal assets may be utilized to pay creditors, or partners may need to file for bankruptcy protection themselves.

Section 1107 of the Bankruptcy Code designates the debtor in possession as a fiduciary with the rights and powers of a Chapter 11 trustee. The debtor in possession must carry out all tasks, excluding investigative functions and duties, specified in the Bankruptcy Code and Federal Rules of Bankruptcy Procedure.

The debtor in possession’s powers and duties include managing property accounts, examining and objecting to claims, and filing necessary reports, such as monthly operating reports, as required by the court and the United States trustee. The debtor in possession also has the right to hire professionals, like attorneys, appraisers, or auctioneers, to assist in the bankruptcy case with court approval.

Furthermore, the debtor in possession is responsible for filing tax returns and submitting reports as necessary, such as a final accounting ordered by the court after confirmation. In a small business case, the United States trustee monitors the debtor in possession’s compliance with reporting requirements, and the court may conditionally approve a disclosure statement, subject to final approval after a hearing and solicitation of votes for plan acceptance or rejection, leading to a faster process than a typical Chapter 11 case.

David’s Bridal Bankruptcy	Details
Cause of bankruptcy	Pandemic-related closures significantly affected the bridal industry, including David’s Bridal. The company faced increased competition and declining marriage rates and changing bridal trends.
Financial situation	David’s Bridal has $4.4 million in cash and debts totaling at least $257 million. The fourth quarter saw a 14% drop in appointments and a 20% decline in unit sales.
Chapter 11 Bankruptcy Process	In a Chapter 11 bankruptcy, the debtor in possession is designated as a fiduciary with the powers and duties of a Chapter 11 trustee. The debtor in possession is responsible for filing necessary reports and hiring professionals with court approval.

Operations and Store Closures

David’s Bridal plans to operate its nearly 300 stores and website as it looks for a potential buyer, while ensuring customer orders are fulfilled, and honoring gift cards, returns, and exchanges. However, if a buyer cannot be found, the company may have to close all stores and liquidate assets.

The company currently employs about 10,000 workers on a full and part-time basis, but recently announced the layoff of 9,000 workers. This is the second time the retailer has filed for bankruptcy within five years.

Despite efforts to restructure its business since the last bankruptcy, David’s Bridal still faces significant liquidity challenges.

Bankruptcy Help for New Jersey Brides-to-be

New Jersey brides-to-be might be feeling some stress as David’s Bridal, one of the country’s most popular wedding gown retailers, has filed for bankruptcy. But don’t worry, we’re here to help you navigate this situation and make sure your special day goes off without a hitch.

Monitoring David’s Bridal Updates and Announcements

One of the most important things you can do is stay informed. Keep an eye on news outlets and social media channels to stay current on any updates, statements, or changes to business operations from David’s Bridal. The company has been relatively transparent about their situation, so checking in with official announcements can be helpful. You should also keep an eye on local news sources, as there may be development updates specifically about your nearby David’s Bridal stores.

Aside from company announcements, you can also do some research to see if other brides in your area or David’s Bridal customers in general are experiencing any issues. Check local forums, wedding planning websites, or social media groups to learn about other brides’ experiences and get advice on how to handle potential issues.

Keeping in Touch with the Store

Since the stores remain open, it’s crucial to maintain open communication with your local David’s Bridal store, especially if you have already placed an order. Ask for updates on your dress and any other items you may have ordered, like bridesmaid dresses or accessories. Ensure you have the contact information (email, phone number, etc.) for your store and a specific contact person if possible.

If you haven’t placed an order yet but plan to shop at David’s Bridal, it’s a good idea to ask them about their current financial situation and how it might impact your order. Getting clear answers to your questions is essential, so don’t feel shy about asking.

Lastly, it may be prudent to have a backup plan in place in case you encounter any issues with your dress or other essential items. This doesn’t mean you have to make a secondary purchase, but consider researching other bridal stores, dressmakers, or rental services to ensure you have a backup resource if needed.

Remember, your wedding day should be a joyful, stress-free experience. By staying informed, keeping in touch with your local David’s Bridal store, and having a backup plan, you can navigate the company’s bankruptcy without putting any unnecessary strain on your big day.

Protecting Your Wedding Dress Purchase

Securing a Contract

When purchasing a wedding dress, it is important to protect yourself from unexpected issues or complications. One of the best ways to do this is by securing a contract with the store or boutique where you are purchasing the dress. A contract ensures that both parties are aware of the terms and conditions of the sale, such as payment schedules, alteration costs, cancellations, and delivery dates.

Before signing a contract, it is essential to read and understand all its terms and conditions. If there is anything that you do not understand or agree with, do not hesitate to discuss it with the salesperson or store manager. If any alterations are made to the agreement, ensure they are written and signed by both parties. Keep a copy of the contract for your records.

Purchasing Dress Insurance

Wedding dress insurance is another way to protect your investment. Many brides invest a significant amount of money in their wedding gown, and dress insurance can provide coverage for unexpected events such as damage, theft, or cancellation of the wedding. Most insurers offer different levels of coverage based on the value of the dress and the specific risks you want to protect against. In addition to insurance, some stores also provide damage protection plans that cover minor repairs and alterations after the sale.

A Skilled New Jersey Bankruptcy Lawyer Can Help

As a bride-to-be affected by David’s Bridal bankruptcy, it is crucial to stay informed about the company’s updates and maintain open communication with your local store. By being proactive, you can ensure that your wedding plans remain on track and minimize any potential stress caused by the uncertain situation. If you need legal assistance, don’t hesitate to contact the experienced bankruptcy attorneys at Straffi & Straffi Attorneys at Law in New Jersey. Our team may be able to provide guidance and support to help safeguard your special day. 

Contact us today at (732) 341-3800 to schedule a consultation.

from Straffi & Straffi Attorneys at Law https://www.straffilaw.com/davids-bridal-bankruptcy-help/

Do Bankruptcies Show Up on Background Checks?

The purpose of filing for bankruptcy is to provide individuals with a chance to reconcile with their creditors and begin anew. Nevertheless, the presence of bankruptcy on your credit report could impede your future plans, such as obtaining a mortgage or reaching specific career objectives.

While bankruptcy is often viewed negatively, it can also indicate that you have taken steps to improve your financial situation. If you are worried that a past bankruptcy might affect your job prospects, it’s worth noting that the Fair Credit Reporting Act prohibits bankruptcies that are over 10 years old from being included in an employee background check. 

Your credit report may show a Chapter 7 bankruptcy for a maximum of 10 years, starting from the date of filing. However, a Chapter 13 bankruptcy will be removed from your report after seven years after the filing date. When the designated period of seven or 10 years has elapsed, the bankruptcy will be erased from your credit report automatically.

Additionally, federal law prohibits government employers from discriminating against job applicants solely based on bankruptcy. This rule applies to federal, state, and local levels. However, private employers do not have the same restrictions, so they are not prohibited from taking bankruptcy into account when making hiring decisions. 

If you are planning to file for bankruptcy and are worried about it showing up on your background check, contact a skilled bankruptcy lawyer. Speaking to an experienced New Jersey bankruptcy attorney can also help you understand the different types of bankruptcy in New Jersey and how they may affect your job application. 

Which Reports Do Background?

Various types of background checks exist, which may include an investigation of criminal records, academic achievements, employment history, and credit status. Bankruptcy information can be found on credit reports but not on criminal records. 

The extent of the background check that an employer conducts typically depends on the role being offered. If a position does not entail the management of someone else’s finances or the assumption of fiscal responsibility, a credit check may be unnecessary.

To conduct a credit check as part of the hiring process, an employer must obtain written consent from the applicant. If you anticipate that your past bankruptcy may be revealed through a credit check, it may be wise to inform a potential employer beforehand. By revealing this information yourself, you can provide context about your situation and explain how you have taken steps to resolve your past financial difficulties.

Federal Law Surrounding Background Checks

The Fair Credit Reporting Act (FCRA) safeguards the confidentiality of personal information collected, held, and reported by consumer reporting agencies (CRAs), such as background check providers, to protect consumers. The FCRA is enforced by the Consumer Financial Protection Bureau. 

In accordance with 15 U.S. Code § 1681c, the FCRA limits employers who hire for jobs with annual salaries less than $75,000 from reporting tax liens paid, civil lawsuits, civil judgments, and Chapter 13 bankruptcies that are more than seven years old (Chapter 7 bankruptcies can be reported for up to ten years).

If the bankruptcy continues to appear on your credit report beyond the period they are expected to be removed, you have the option to file a dispute with the credit bureaus (Experian, Equifax, and TransUnion) to request its removal.

Before carrying out a background check, employers must also notify the applicant and obtain their written approval.

Moreover, the FCRA regulates an employer’s actions when they find out about an applicant’s bankruptcy or other negative information during a background check. To deny an application based on prior bankruptcy or other adverse findings, employers must follow the adverse action process before making a final decision.

Under 11 U.S.C. § 525(b), private employers are prohibited from discriminating or terminating employees solely based on their bankruptcy filing.

However, private employers can consider an applicant’s past bankruptcy as one of several factors when considering them for employment if it is related to the duties of the job.

Under 11 U.S.C. § 525(a), government employers cannot discriminate or modify an employee’s employment terms based on a bankruptcy filing. Additionally, government employers cannot deny applicants employment solely based on their prior bankruptcy filing.

Could My Bankruptcy Record Affect My Ability To Rent a Home?

When seeking to rent a home, landlords may consider your bankruptcy history when deciding whether or not to rent to you. Landlords may be more hesitant to rent to individuals with more recent bankruptcy filings. However, if your financial record is sound, the bankruptcy filing occurred more than two years ago, and you don’t have a significant history of evictions, it may not have a significant impact.

It’s a good idea to disclose your bankruptcy history when discussing renting with a landlord and if they mention a background or credit check. If you can demonstrate that you’ll be able to make rent payments and have a stable income, it may outweigh any concerns about your bankruptcy record.

Typically, a responsible landlord will prioritize your income and ability to pay rent over any past bankruptcy. Bankruptcy may even benefit you by freeing you of other financial obligations and making it easier to afford rent payments. If you have a track record of making timely rent payments despite financial difficulties in the past, landlords may be more understanding and willing to rent to you.

Speaking to an Experienced Bankruptcy Attorney in New Jersey

Filing for bankruptcy can give you a new start and allow you to take back control of your finances. You can get help from an experienced bankruptcy attorney to understand which type of bankruptcy is most appropriate for your situation.

A skilled bankruptcy attorney can help guide you throughout the process of filing a bankruptcy. This includes preparing the required paperwork and representing you before the court. You can have your attorney negotiate with creditors in order to stop any harassment you may be facing. A bankruptcy lawyer can also help you create a reasonable payment plan and help you save your home and other assets if your property is being foreclosed. 

At Straffi & Straffi, Attorneys at Law, New Jersey bankruptcy attorney Daniel Straffi and our team of legal professionals has the experience and knowledge needed to help you explore what options are available to you. We may be able to help you protect your assets and the future of your loved ones. You don’t have to wait for it to be too late. Contact us today to schedule a consultation with a top-rated New Jersey bankruptcy attorney. 

from Straffi & Straffi Attorneys at Law https://www.straffilaw.com/do-bankruptcies-show-up-on-background-checks/

Financial vulnerability can have a significant impact on a person’s life. If you are experiencing financial problems, ch…

Financial vulnerability can have a significant impact on a person’s life. If you are experiencing financial problems, chances are you are also experiencing tension in other aspects of your life, maybe from a divorce, a sudden illness, or the lack of a stable source of income. It can be very easy to fall into the trap of honeypot tactics from organizations or businesses promising debt relief or the settlement of your debt. While there are legitimate ways with which you can settle or negotiate a loan or debt, most companies who claim to provide debt relief only seek to take advantage of financially vulnerable people. https://www.straffilaw.com/new-jersey-debt-negotiation-att…/

from Straffi & Straffi Attorneys at Law https://www.facebook.com/straffiandstraffi/posts/pfbid02keGUP3xsw3NDjipv2BRY1RbrPrPpXutXzLW6cJqUu7msNcz3LPadu2F6HLrYSWa3l

15 unique St. Patrick’s Day events in NJ: Gold hunt, murder mystery, cocktail making

These are 15 of some of the most unique and coolest St. Patrick’s Day events happening in New Jersey for 2023.

from Straffi & Straffi Attorneys at Law https://nj1015.com/saint-patricks-day-events-new-jersey-2023/