A requirement of The Bankruptcy Abuse Prevention & Consumer Protection Act of 2005 (BAPCPA) requires that a Chapter 13 debtor must file all returns for tax periods ending within the 4 years prior to the filing of the bankruptcy case. The trustee, however, may extend this deadline. Section 1228(a) of BAPCPA provides that in Chapter 7 bankruptcy cases that a debtor is not entitled to a discharge in the case of an individual who is a debtor unless requested tax documents have been provided to the court. Under a Chapter 13 bankruptcy, a plan cannot be confirmed unless all tax returns have been filed. The tax return requirement is a strict one in bankruptcy and the court will not overlook it. Under prior bankruptcy law prior to the changes in 2005 under BAPCPA, tax returns did not have to be filed.
Exploring the Pros and Cons of Filing for Bankruptcy
Bankruptcy was established by the federal government as a safety net for honest debtors who would otherwise be burdened for years or a lifetime by debts they cannot repay. Bankruptcy offers true relief from creditor actions and crushing debts, but it is a big step. You must meet certain criteria, and there are downsides.
The New Jersey bankruptcy attorneys of Scura, Wigfield, Heyer & Stevens, LLP, can help you make this important decision. The vast majority of people we counsel find that the advantages outweigh any disadvantages, or realize that they are out of other options. However, there may be alternatives to bankruptcy for your particular situation. We will give you our analysis in a free, no-obligation consultation so you can make an informed choice.
In a chapter 13, you still generally have to pay off secured loans in full, but you can restructure overdue payments or payments that have fallen in arrears. Unlike a chapter 7, in a chapter 13, you can take the amount you have fallen behind, such as on a house or car, and pay that arrearage amount over the life of a 60 month or five year plan. This enables you to potentially save the car or house. You must, however, generally make the regularly scheduled payments post petition on that loan after you have filed the case.
Bankruptcy Fact and Fiction
Some people shy away from bankruptcy or wait too long to file because of misinformation. Sadly, they needlessly suffer through hardships or forfeit hard-earned assets. At Scura, Wigfield, Heyer, Stevens & Cammarota, LLP, we try to spare people from unnecessary suffering by giving them the facts to make informed decisions.
We realize that you may be embarrassed about your debt problems or intimidated about talking to a lawyer. We are not here to judge you. We are here to answer your questions. We are here to help you protect what you have and make the most of a bad situation.
Dealing with money issues is already a tough situation, but a debtor could go through more financial problems and deal with more complications when they are receiving calls from creditors. Our firm understands that addressing debt problems is difficult, but there are valid and rational options for debtors to eliminate debt for New Jersey residents. No matter what caused the individual's current financial issues, a debtor could initiate their debt relief through the bankruptcy process. By understanding the steps involved, debtors could avoid common pitfalls and better prepare themselves for the process and the possible future outcomes.
While owning a home is considered to be part of the "American dream," it could also lead to major source of financial problems for families and individuals in New Jersey. As it is the case for many homeowners, obtaining a loan through a lender is what made home ownership possible. Although this is common, it is also what leads some into financial crises, causing the fear of foreclosure. Our law firm understands that keeping a home when addressing financial problems is important. Individuals and families have options when it comes to addressing financial problems, helping them to prevent or even stop the foreclosure process.
Coming to terms with debt is not always easy; however, dealing with debt is more than just addressing financial problems. For some debtors in New Jersey, it also means preventing mistreatment by creditors. Debtors considering filing for bankruptcy should fully understand all the issues that could be addressed by the process as well as how the process will impact them personally.
When individuals are struggling to get by month-to-month or even week-to-week, they are not always sure where to turn. Our firm understands that residents in New Jersey often encounter financial problems. For some, this is an event that might be temporary and doesn't require immediate action. This is not always the case, and some individuals and families need to make major decisions in order to improve their finances. While it is not an easy choice, for some, filing for bankruptcy is their best option.
If your finances are coming apart at the seams and your mailbox, inbox and voicemail are filled with collection notices from your creditors, you may be thinking about filing a bankruptcy. But, like most people, you have never filed a bankruptcy, and you are unsure how the process works and what the difference is between a Chapter 7 and a Chapter 13.
Q. What is a Chapter 13 Bankruptcy?
A Chapter 13 Bankruptcy is a reorganization-type bankruptcy that lets debtors save property and potentially pay off a smaller percentage to their creditors over the life of a 36 to 60 month plan. Typically, a Chapter 13 Bankruptcy in New Jersey is used by someone trying to save a house, home or real estate from a foreclosure.