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Scura, Wigfield, Heyer, Stevens & Cammarota Blog

Guillermo J. Gonzalez

Recent Posts

Why Do I Still Owe Money After A Foreclosure Or Repossession?

Commonly, we receive calls from potential clients asking why they owe money to a creditor after their home was sold at a sheriff’s sale or a lender repossessed their automobile. Generally, the potential client is referring to a deficiency judgment.

If a debtor’s mortgage lender forecloses on a home, or if a car lender repossess a automobile for missed payments, and the lender cannot resell the property to satisfy the originating loan, then the debtor may be required to pay the “deficiency”. This can be terrifying, because many individuals believe that the sheriff’s sale or repossession was the end of any collection efforts.  Luckily, filing for bankruptcy can eliminate your personal liability for a deficiency judgment.

What Type of Creditor Claims are Listed in a Bankruptcy Petition?

In its simplest terms, a creditor is a person or entity who is owed money by a different person or entity. In bankruptcy, creditors are primarily categorized into three separate classes, which depends on whether the creditor maintains an interest in collateral the debtor owns, or receives special treatment in accordance with the United States Bankruptcy Code. The primary classes of creditors are secured creditors, unsecured creditors, and priority creditors. This blog will outline the differences of these three classes of creditors.

The Ultimate New Jersey Bankruptcy Pre-Filing Checklist

Prior to filing for bankruptcy, your attorney will request a series of documents in order to ensure that your bankruptcy petition is accurate. The more information that a potential debtor can provide, the better. Strategically, your attorney wants to be prepared to explain any potential issues to the Court and the Trustee appointed to your particular case. Therefore, prior to filing for bankruptcy, collect the following documents and provide them to your attorney for his or her review.  All documentation provided must be up-to-date before the bankruptcy petition is filed.

How Much Time Do You Have to File a Personal Injury Lawsuit?

Following a personal injury accident, issues related to that accident occur quickly. Whether it’s filing claims with insurance companies, taking time off work while recovering, scheduling appointments with various doctors, physical therapy, coping with the financial strains of lost wages, and possibly surgery. At times the entire process can be overwhelming and it can become difficult to track time. Understandably, it’s natural to prioritize immediate concerns versus matters that can be set aside to a later date, including seeking legal representation. However, it’s important to keep in mind that you have a limited amount of time to file a personal injury lawsuit.

Should I make my Start-Up Company a Limited Liability Company or a Corporation?

As a full service law firm, Scura, Wigfield, Heyer, Stevens & Cammarota LLP provides legal services and advice to both established corporate entities and start-up companies. One of the most common questions that individuals looking to launch a start-up company ask is: What type of business entity should I form? Our firm has extensive experience with Limited Liability Companies, C-Corporations, S-Corporations, Partnerships, and Sole Proprietorships. Notwithstanding, the most common types of business entities are LLCs and Corporate Entitles, C-type and S-type. This blog will focus on the legal issues related to the two most common business entities. Lastly, please speak with a tax professional prior to forming a corporate entity to determine which tax classification is best for your business purposes.

Are Income Taxes Dischargeable in Bankruptcy?

One of the most common misconceptions in bankruptcy is that income taxes are never dischargeable. In fact, you can discharge some back federal and state income taxes in Chapter 7 and Chapter 13 bankruptcy matters. Likewise, the penalties and interest attached to those taxes are dischargeable. However, the dischargeability of income taxes is limited to a specific set of circumstances that was recently clarified by the Third Circuit Court of Appeals.

Will my 529 College Saving Plan Be Protected if I File for Bankruptcy?

A notable issue discussed in today’s news is the increasing costs of higher education in the United States. Congress has sought to help families pay for a child’s education by allowing them to pay into an entity frequently known as a Section 529 College Savings Plan. Parents can generally opt for one of two types of 529 Plans: a prepaid tuition plan that allows you to pay tuition at a particular university, or a tax-exempt savings account for a qualified beneficiary, generally a minor child or a grandchild.

Many parents and grandparents deposit large sums of monies into 529 Plans and understandably they are concerned whether a Chapter 7 Trustee will liquidate the child’s college education savings to pay creditors if they file for bankruptcy. Under Section 541(b)(6) of the Bankruptcy Code, assets in a 529 may or may not be protected from the reach of a Chapter 7 Trustee.

Supreme Court of the United States Upholds Priority Scheme in Structured Dismissals

At Scura, Wigfield, Heyer, Stevens & Cammarota LLP our attorneys take pride in ensuring that they are well-versed in the most recent case law and legal arguments that assist our clients in obtaining their desired results. As Chapter 11 experienced practitioners, our firm pays close attention to new legal arguments that can assist our corporate clientele. One such case was decided on March 22, 2017. In Czyewski et al. v. Jevic Holding Corp. et al., the Supreme Court of the United States held that bankruptcy courts cannot bypass the priority distribution scheme in Chapter 11 bankruptcy matters without the consent of affected creditors. See Czyewski et al. v. Jevic Holding Corp. et al., March 22, 2017.

How Does Bankruptcy Affect A Personal Guarantee?

It’s not uncommon for debtors to sign personal guaranties before their bankruptcy filing. This is particularly common for business owners seeking operating funds or individuals whose family members or friends ask them to guarantee a loan for a car or similar collateral. Before agreeing to any type of personal guarantee, you should consult with an attorney to determine all your available options.

How to Rebuild Your Credit Score After Filing for Bankruptcy

Two of the most common questions I receive from individuals contemplating filing for bankruptcy are:

How long will the bankruptcy filing remain on my credit report; and

What can I do to rebuild my credit after receiving a bankruptcy discharge? 

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