Posts by design

One of the first steps in the bankruptcy process is to choose which bankruptcy chapter you’ll be filing under. Choose the wrong Chapter, and you can have significant problems down the line.  Each Chapter serves a different purpose and is the right choice for different scenarios. Chapter 7 In Chapter 7, you give up your…

If your home equity, car equity, or both are low enough to be protected by bankruptcy exemptions, then neither of these assets would necessarily be sold off to pay off debts. Instead, you would have an avenue for declaring Chapter 7 and then reaffirming these specific secured debts, so you may remain in your house,…

If you’re overwhelmed with debt, bankruptcy can help you achieve a fresh financial start. Yet here in New Jersey, bankruptcy is often poorly understood.  Here are five of the most common bankruptcy myths. #1) Filing for bankruptcy makes you a failure. People file for bankruptcy for all sorts of reasons, none of which make you…

We’d all love it if someone could file for bankruptcy once, obtain a fresh start, and never have to worry about filing again. Unfortunately, wages haven’t kept up with inflation, and many companies seem more interested in price-gouging consumers than in raising wages. Many New Jersey residents will eventually be forced into bankruptcy a second…

Every bankruptcy case will have a trustee, so it’s important to understand this individual’s role.  A trustee is a court-appointed administrator. They are selected by the DOJ’s U.S. Trustee program. Lawyers and certified accountants are the most likely candidates.  Their job is to oversee the debtor’s estate. They work on behalf of the court. They…

Every bankruptcy case requires you to list all of your debts. If you fail to do so, a creditor could come back to you after the bankruptcy case and demand payment because the discharge didn’t cover them. In some cases, failing to disclose a debt can also lead the courts to conclude you’re attempting to…

Bankruptcy is a complex legal matter. It is very easy to make mistakes.  Here are five of the most common mistakes we see.  Failing to List All Income and Assets It can be difficult to gather all of your income and asset information. Yet, if you don’t, the courts can accuse you of attempting to…

Many sources will scream to the rooftop that your credit score will plummet after bankruptcy. That may even be true for some people—it depends on your credit score before bankruptcy and when you filed it. But for most debtors, the reality of credit score shifts is somewhat different than the prevailing narrative. Their credit score…

Completing your Chapter 13 plan is a wonderful feeling. You’re finally at the end of a long and involved process that has intertwined with your financial life for three or more years. But what happens next? What should you expect? The Final Payment After you make the final payment, the trustee audits your case. Assuming…

Renting an apartment after bankruptcy can seem daunting, but it’s important to remember that you’ve got options. Regardless of whether you filed a Chapter 7 or a Chapter 13, it’s possible to find a rental unit that fits your needs and budget. The housing market may be tougher than ever, but there’s no reason why…

Thinking about filing for Chapter 7 bankruptcy?  It’s not available to everyone. Anyone who wishes to file Chapter 7 must pass the means test. The means test was first established in 2005, under the Bankruptcy Abuse Prevention Consumer Protection Act (BAPCPA).  The means test is a two-part test. The Income Limit Test The first test…

In Bartenwerfer v. Buckley, the nine Justices of the Supreme Court had a rare moment of agreement. They ruled unanimously that a person cannot use the Bankruptcy Code to discharge fraudulent debt incurred by a spouse.  Debts incurred via fraud usually are among the few debts that bankruptcy cannot discharge. The issue was that Kate…

Behind on your mortgage? Few events are more stressful than a potential foreclosure, but here in New Jersey, you do have options. Here are all of the steps you could take to save your home. Option #1: Seek Counseling  On January 24, 2022, the legislature permanently expanded the New Jersey Housing and Mortgage Finance Agency’s…