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Scura, Wigfield, Heyer, Stevens & Cammarota Blog

Can Debt Collectors Collect Debt After You File for Bankruptcy?

Dealing with debt problems is never easy for residents in New Jersey, and making the decision to file for bankruptcy is certainly not any easier. However, taking this major step to deal with financial issues could be very beneficial. Nonetheless, there are still several obstacles debtors will face, and they will likely have numerous questions regarding discharged debts and debt collection.

Consulting a Consumer Debt Attorney on Discharging DMV Debts

It is obvious that people file bankruptcy cases with a consumer debt attorney to discharge (wipe out) their debts. There are some exceptions to the debts that can be discharged. 11 U.S.C. §523. For example, recent income tax debt, sales or payroll tax from a business, and property damage or injury caused as a result of driving while intoxicated are all exceptions to discharge. Public policy plays a large role in determining the debts that are and are not dischargeable through a bankruptcy filing.

Should I File Bankruptcy? Issues to Consider

Many people ask themselves, "Should I file bankruptcy?" Everyone's situation is different, which is why you should always consult with a qualified bankruptcy attorney before making that difficult decision. 

This article discusses some factors that may be considered before making the decision to file bankruptcy. This is not intended to be an exhaustive list but rather to provide some factors to consider.

Dealing with A Hoboken Bankruptcy? Your Exemptions May Have Increased

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One thing many Hoboken bankruptcy clients have been surprised to find out is that their exemptions increased. On April 1, 2013, the Federal Bankruptcy asset exemptions were increased by Congress. The exemptions increase every three years and just recently adjusted upwards. Some of the most commonly used exemptions under the Bankruptcy Code are now:

Let us Answer Your Tax Refund and Bankruptcy Questions

When completing the petition for bankruptcy, questions tend to arise regarding tax refunds. First, any asset owned at the commencement of a bankruptcy case is property that needs to be protected. Withholdings from an employee's paycheck to pay future taxes are property. Rarely is a trustee going to seek to recover withholdings, but a trustee will commonly demand turnover of a tax refund if the bankruptcy attorney did not properly disclose and exempt it. If the tax refund is large and cannot be entirely exempted, then a chapter 13 bankruptcy may be a better option than a chapter 7. (Exemptions are provided under state law and the Bankruptcy Code to allow a debtor to exclude the value in certain types of property.)

Ask a Financial Attorney: Bankruptcy and Default Judgments

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When clients first meet with an attorney, bankruptcy procedures may seem intimidating or overwhelming. Earlier this week I met with my first client in our recently opened office in Hackensack, New Jersey. She had a very common question: What can I do about this Default Judgment? Is the creditor going to garnish my wages?

Ask a Bankruptcy Law Center: Are Custodial Accounts Protected?

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Custodial accounts are a frequent issue bankruptcy law centers handle. Custodial accounts are funds in which one person sets up an account, funds it with money or other property, and controls the account for the benefit of another person. Parents often set up custodial accounts for their minor children. While the custodian controls the account, he or she does not have legal ownership to the property. 

The Bankruptcy Code states in section 541(b)(1) that property of the estate does not include any power that the debtor may exercise solely for the benefit of an entity other than the debtor. Thus, it would seem that a custodial account would not be included as an asset in a person's bankruptcy.

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