2010 August Archive

You hear about it on the news and read about it in the papers. Everyday across the country, more and more people are receiving notices of foreclosure in their mailboxes, and more and more people are finding themselves packing up their belongings and surrendering their homes to banks and mortgage companies. According to the New York radio station WNYC, the number of foreclosures was on the rise in July, but is down overall compared to 2009 figures. The online news article points out specifically that the number of foreclosures filed in New Jersey declined nearly 22% in July, while annual figures declined overall by 7%.

Reportedly, the number of homeowners in the U.S. who received some sort of foreclosure filing, either in the form of a default notice, home auction announcement, or bank repossession declaration, rose 4% from the time period of June to July. This translates to a little more than one out of every 400 households across the country. And while these numbers are 10% lower than similar figures recorded the year prior, the number of homes repossessed by banks unfortunately rose to almost record levels.

Homeowners who are in danger of losing their house to foreclosure have options to save their property. Loan modifications are one of the more common options utilized by individuals on the fringe of foreclosure, but this method doesn’t always work out for the best. For others, filing for chapter 13 bankruptcy protection can also save a family home, in addition to offering relief from other financial hardships. Unlike chapter 7 bankruptcy in New Jersey, chapter 13 bankruptcy allows an individual to stop the foreclosure process.

The details and differences surrounding chapter 7 and chapter 13 bankruptcy can be relatively complicated, but generally speaking, individuals who do not qualify for chapter 7 often file for chapter 13 bankruptcy protection. However, only chapter 13 will save a home from foreclosure. For more information about your options in filing for bankruptcy, please contact the New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel. Call us today at 866-503-5655.

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While virtually everyone has heard of bankruptcy, the vast majority of people probably have numerous questions about the process and application. One of the most commonly asked questions is, “How will filing for bankruptcy in New Jersey effect my credit?” The answer, not surprisingly, varies from case to case.

Although filing for bankruptcy commonly has a negative impact on a credit rating and FICO score, a person considering filing for bankruptcy in New Jersey must consider the present credit score condition. That is, the majority of people contemplating bankruptcy are in serious financial debt, which probably means that their financial position has already negatively impacted their credit rating. The lower your credit score at the time of the filing, the less of an impact the bankruptcy will effect the score. Also, on a positive note, the lasting impact of bankruptcy is positive, with the discharge marking the beginning of the road to credit score recovery.

The poor state of the economy, together with the country’s present limited money supply, results in difficulty forecasting the future impact of bankruptcy on an individual’s ability to obtain credit. Recently New Jersey mortgage companies have been requiring a debtor to wait about three years to refinance or obtain a new mortgage, after receiving a chapter 7 bankruptcy discharge. Mortgage companies require twelve months of continuous and timely trustee and mortgage payments, as a condition to obtaining refinancing or a new mortgage, in connection with a New Jersey chapter 13 bankruptcy.

Filing for bankruptcy and New Jersey bankruptcy filing costs has an immediate impact on a consumer’s life. Not only will creditors stop contacting you, but they will no longer be able to file suit or take any other legal action against the bankruptcy debtor. Upon the bankruptcy filing, a creditor may not garnish your wages, levy upon your bank accounts, or continue and/or commence a foreclosure action. Furthermore, your home’s utilities cannot be shut off and repossession attempts on your vehicle will be stopped.

While all of the above sounds wonderful given the stress that debt creates, there may be unforeseen negative consequences associated with filing for bankruptcy due an individual’s particular circumstances. That is why any individual considering bankruptcy must seek counsel with an experienced New Jersey bankruptcy attorney.

The skilled New Jersey bankruptcy lawyers at the Law Offices of Robert Manchel will examine your financial situation and help determine whether or not filing for bankruptcy in New Jersey is right for you. For more information, please call us today at 866-503-5655.

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Federal bankruptcy law is generally the same in all 50 states, and federal law typically has precedent over state laws. However, bankruptcy law may be applied differently in New Jersey, as compared to other states in connection with three separate matters. While these differences may not be apparent to the average lawyer, an experienced New Jersey bankruptcy law attorney will understand these issues and ensure the optimum application of the local laws for the best results for a client.

Firstly, debtors are allowed to claim exemptions under the federal bankruptcy code. However, New Jersey permits debtors to choose between exemptions allowed by federal law, and those allowed by New Jersey. Depending on the circumstances, one of the advantages of New Jersey bankruptcy is that an individual may benefit by choosing the state exemptions, although it should be noted that the majority of filers in New Jersey still choose and benefit by selecting the federal exemptions over state.

Another aspect of federal bankruptcy law and state law that could lead to discrepancies amongst states is the fact that the federal bankruptcy code relies on state laws and courts to define certain terms of the bankruptcy code. New Jersey’s courts may establish a different meaning to certain terms that are in the bankruptcy code, as compared to other states. For example, the term “judgment” may be defined differently in New Jersey than elsewhere. Finally, the bankruptcy code may be interpreted differently by a New Jersey trustee of judge, than in other states. The bankruptcy laws are voluminous, complicated, and open to various interpretations, which are subjective based on the judge or trustee assigned to the matter.

In any event, bankruptcy laws are difficult to understand. Individuals seeking to file for bankruptcy in New Jersey should retain the services of an experienced bankruptcy attorney in New Jersey who can help explain the different options that are available. For more information about filing for bankruptcy in New Jersey, please call the Law Offices of Robert Manchel at 866-503-5655.

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