Not all debts go away in a bankruptcy. Certain types of debt are nondischargeable. Potentially nondischargeable debts, those for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by false pretenses, a false representation, or actual fraud are dischargeable until the bankruptcy court determines otherwise. Similarly, a debt resulting from willful and malicious injury by the debtor. These types of debts (which are the most commonly litigated in bankruptcy proceedings) are dischargeable until a bankruptcy court rules that it is not dischargeable pursuant to Bankruptcy Code §523(a), §523(c), and Fed. R. Bankr P. 7001 (6).
You should always investigate and look to see whether bankruptcy is the best option for you. There are various helpful websites that provide information on bankruptcy and can be helpful in making a decision. You should always consult with an attorney before making that final decision, but along with our website's comprehensive bankruptcy information, these sites are helpful in educating yourself on the process.
Changes in Chapter 13 Bankruptcy Law Treatment of Condominium Association Liens
Over the past year, New Jersey bankruptcy law concerning condominium association liens and their treatment under a Chapter 13 plans of reorganization has dramatically changed.
Many fears surround bankruptcy. One common worry is that it is impossible to keep a car after filing bankruptcy. It is true that in some cases it makes more sense for a bankruptcy filer to allow a creditor to repossess a car rather than continue to make payments. If the filer does want to keep his or her car, however, there are ways to do so. What assets a person keeps after bankruptcy depends on individual circumstances and the desires of the bankruptcy filer.
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.