There is certain property that is not included in the bankruptcy estate, no mater the value. “Employee Retirement Income Security Act” (ERISA) qualified retirement plans, such as an: IRA; SEP; employee pension plan, 401k and 403b, are the type of property that is not included in the bankruptcy estate. This means that no matter the value of the retirement plan, the debtor may continue to hold the funds in the account, which will not be included as the debtor’s property.

In chapter 7 and 13 cases, the court requires the debtor to complete two analysis’ to determine the debtor’s monthly disposable income. One analysis is called the Means Test or Current Monthly Income Test and the second test is a comparison of the debtor’s projected income on schedule I, and their monthly expenses on schedule J. In a chapter 7, the debtor may not have any monthly disposable income. In a chapter 13, the debtor must make monthly payments to the trustee, that are no less than the debtor’s monthly disposable income.

Typically, a chapter 7 debtor may use as a legitimate expense any monthly payments for a required (involuntary) pension contribution and payments regarding a pension loan. However, if the pension contribution is not required, the monthly payment, cannot be deducted and used as an expense. However, a chapter 13 debtor may use as an expense, voluntary or non voluntary contribution payments for a pension and payments for a pension loan. Typically, a New Jersey State or local government employee is required (involuntary) to contribute to his pension and an employee of a private company is not required to contribute to his pension.

Please contact the NJ. consumer bankruptcy attorney, Robert Manchel, at 1 (866) 503-5655, for questions about how bankruptcy deals with retirement plans.

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After the briefing, the agency will provide a certification indicating the agency’s name, the counselor’s name, and the name of the individual(s) who completed the counseling. This certification must be filed with the court, together with the bankruptcy petition. The court allows a very limited excuse for non-compliance, due to exigent circumstances.

At the commencement of the counseling, the counselor must be notified that the purpose of the briefing is for bankruptcy. This should not be confused with debt consolidation counseling, which is an attempt to reduce one’s debt or monthly debt payments.

The Agency should offer the briefing by telephone and internet and permit both spouses to obtain the briefing together, at the same time. The entire session should last about one to two hours.

The counseling consists of the following. The counselor asks for detailed financial information, the individual’s household income, expenses, and liabilities. The representative may complete a budget and explain how an individual could reduce their expenses. Also, the counselor should provide information as to where one can find coupons and businesses, where a consumer may save money.

Please call Robert Manchel, aNJ. bankruptcy practitioner, at 1 (866) 503-5655, to discuss bankruptcy.

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The bankruptcy code states that a bankruptcy filing initially stops an entity from exercising possession or control of the debtor’s property. However, if the entity that is attempting to control the property is acting due to an issue other than money owed, the bankruptcy court will permit the entity to pursue the action. For example, if an individual is violating a local ordinance by housing hazardous materials, the bankruptcy court will allow the town to commence an action against the homeowner for compliance.

The bankruptcy filing stops the ability of a creditor to pursue any action against the debtor immediately upon the filing. Therefore, the creditor must cease all action against the debtor at the time of the filing, no matter what point in the legal process. If a creditor did not file a lawsuit at the time of the filing, the creditor may not file the lawsuit. If the bankruptcy case is filed after the creditor obtained a judgment and is intending to levy on a bank account, the creditor cannot levy on the account.

A bankruptcy filing stops any creditor from:

filing a lawsuit;
contacting the debtor by any means;
foreclosure action;
eviction action;
loss of drivers’ license due to surcharges, only;
utility termination;
bank account levy;
wage garnishment; etc.

Please contact the Bankruptcy Lawyer in NJ., Robert Manchel, at 1 (866) 503-5655, to discuss how bankruptcy can protect you.

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In the last quarter of 2010, 7.24 percent of homeowners were delinquent on their mortgages, but current on their credit cards. Only three percent of Americans chose to fall behind on their credit cards but stayed current on their mortgage payments. The study found that shortly after the 2007 recession, Americans began to switch their priorities to paying their credit cards rather than their mortgages.

A major reason why many homeowners opted to fall behind on their mortgages in favor of credit cards was the collapse of the housing market, which left many homeowners owing more on their homes than they are worth. At the end of 2010, almost a quarter of all homeowners in the U.S. owed more on their homes than they were worth. At the same time, credit is tightening, and consumers are realizing that keeping a line of credit can be a necessity in tough times.

Are you struggling to stay current with your credit cards, as well as your mortgage? Do you feel like you are getting further and further behind each month? If so, you may wish to consider bankruptcy. Contact New Jersey bankruptcy and credit lawyer Robert Manchel at 866-503-5655 to learn more about your debt relief options.

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The poll, which surveyed 120 bankers in the state of New Jersey and surrounding areas, found that just under half of them rated the current economy as “fair” or “poor.” Nevertheless, one-quarter of the bankers surveyed said that they also believe the economy’s health is no longer declining, and that in fact, the nation’s and New Jersey’s economies should begin improving again shortly, with interest rates holding still or even going down in the near future.

Although banks are ready to make loans to qualified customers, most of the bankers surveyed predicted that demand for commercial loans and for refinancing of homes would not increase any time soon. With the unemployment rate in New Jersey stuck at nine percent, most of the bankers surveyed believe that, in the short term, consumers will be filing for bankruptcy more often and also facing more foreclosures.

In a precarious financial situation, loans or refinancing may make your situation worse than it already is. If you’re thinking about filing for bankruptcy in New Jersey or want to know more about how bankruptcy works, please don’t hesitate to contact the experienced New Jersey bankruptcy attorneys at The Law Offices of Robert Manchel. Our experienced lawyers will examine your situation carefully and help you understand your legal rights and options. Call 1-866-503-5655 to learn more.

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U.S. bankruptcies increased about eight percent in 2010 compared to 2009, which is the fifth straight year filings have increased. Combined, personal and business bankruptcies increased to about 1.59 million, compared to about 1.47 million in 2009. However, the rate was the slowest since 2005, when there were about two million bankruptcy filings. In 2005, the bulk of the bankruptcies, were due to filing before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) revisions, were effective.

Personal bankruptcy filings rose about nine percent in 2010, totaling about 1.41 million, while the unemployment rate also remained above nine percent. Chapter 7 bankruptcy filings, which involves the liquidation of assets, increased about eight percent in 2010, totaling approximately 1.13 million, as compared to 2009 when 1.05 Chapter 7 filings were reported. Chapter 13 bankruptcy filings rose eight percent to 438,913 in 2010, compared to 406,962 filings in 2009.

In New Jersey, there were 41,365 total filings for personal bankruptcy, which is a 14.2 percent increase from 2009, when there were 36,233 personal bankruptcy filings.

However, business bankruptcy filings in the U.S. declined approximately 7.5 percent, which the article states may be due to financing becoming easier for businesses to obtain. Chapter 11 filings, which permit the reorganization of business activities, declined to 13,713, compared to 15,189 in 2009.

With tough times facing our nation, including the economy, unemployment, and the foreclosure crisis, many Americans are finding it difficult to manage their finances, and may be facing bankruptcy. Deciding to file for personal bankruptcy is a difficult decision, and one that should be reached after a great deal of consideration. Consulting with a New Jersey bankruptcy lawyer can help you understand the bankruptcy process and can advise you on the best course of action regarding your specific financial situation. Call The Law Offices of Robert Manchel today at 866-503-5655 to learn how Mr. Manchel can help you.

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According to a study conducted by the University of Michigan Law School, people aged 65-years-old and older are the fastest-growing part of the population that are filing for bankruptcy protection. The study also discovered that elderly Americans carry approximately 50 percent more credit card debt than younger Americans.

There are many facets to the problem. Once retired, a person’s expenses, such as medical bills and taxes, continue to rise, while their income declines. If long-term care is needed, it also significantly adds to expenses. Additionally, Social Security has not had an adjustment for cost-of-living inflation in a long time. Many senior citizens also suffered losses in their retirement and pension accounts during the height of the recession. Many more people are retiring while carrying a mortgage than previous generations, which also adds to costs. Often, these circumstances lead the elderly to attempt to live off their credit cards, only making matters worse.

Bankruptcy can be the best option for some retirees and may help stop the depletion on their limited income from creditors. Many elderly Americans mistakenly believe that filing for bankruptcy will drain their retirement accounts and leave them penniless. The reality is that retirement and Social Security accounts (up to roughly $1 million) are exempt from creditors, so retirees will continue to have a steady source of income after filing for bankruptcy. Also, medical bills and credit card debt are categorized as “unsecured debt”, which will likely be eliminated by bankruptcy.

If you have recently retired and find yourself struggling to pay your bills, filing for bankruptcy may be a good option for you. However, every person’s financial circumstances are different, and that is why it is wise to consult with a New Jersey bankruptcy lawyer who can help you determine the best course of action. At The Law Offices of Robert Manchel, our attorneys have helped many people in New Jersey understand and go through the bankruptcy process. Call our law office today at 866-503-5655 to learn how we can help you.

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It can be very tempting to start charging everything to your credit card during this time, but you should avoid the temptation as much as possible.

If you are considering filing for bankruptcy in New Jersey, and use your credit card to survive the holidays, depending on when you file for bankruptcy, creditors may challenge your right to a bankruptcy discharge of your debts. Running up your credit card bill in anticipation of filing for bankruptcy is never a good idea and can pose many problems. If you manage your finances wisely, you could avoid having to file for New Jersey bankruptcy and/or foreclosure.

Try to avoid purchasing extravagant gifts for friends and family. Also, use cash as much as possible when buying presents. If you don’t have the money, don’t spend the money. Talk with your family about doing a gift exchange so you only need to purchase one present this year, instead of many. If you need to buy multiple gifts, make something homemade, which can save you a lot of money.

According to the U.S. Department of Energy, the average home in America uses about six times as much electricity as a home did 20 years ago. Lighting costs account for approximately 10 percent of your electric bill, which is sure to increase during the holiday season, with the addition of outdoor and indoor Christmas lights. Set your lights on a timer to make sure you don’t forget to turn the lights off, when you leave the house or go to bed. You can also purchase LED lights to save on your electrical bill. LED lights only use about 10 percent of the amount of energy of regular lights.

Another money saving tactic during the holidays is to purchase a fake Christmas tree instead of the real thing. Real trees can be exorbitantly priced and last just a few weeks, whereas an artificial tree can last for many years. Or, you can forego purchasing a tree, real or fake, completely. In 2002, about 32 percent of Americans did not have a Christmas tree. This percentage is sure to increase due to our country’s current economy.

You can also start planning ahead for next years’ holiday by setting aside money now. If you set aside just $20 a week, you will have $1,040 to spend during the Christmas season next year. Furthermore, seasonal holiday paraphernalia may be purchased at a deep discount, for next year, after the holiday has passed.

Practicing good management of your money cannot only relieve you of financial stress, it can also potentially help you avoid having to file for bankruptcy in New Jersey. However, every financial situation is different, and in many cases, it could be in a person’s best interest to file for bankruptcy. Talking with a New Jersey bankruptcy attorney can help you determine whether bankruptcy is the best course of action for your particular circumstances. The lawyers at The Law Offices of Robert Manchel have helped guide many people through the bankruptcy process in New Jersey. We can answer your questions and help you during this difficult time. Call us today at 866-503-5655.

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Non-business filings for bankruptcy totaled about 1.53 million, which is up an estimated 14.4 percent from 2009, and is the highest number of non-business bankruptcy filings for a fiscal year since 2005. However, business bankruptcy filings somewhat dropped, the first time there has been a decrease since 2006. There was a total of 58,322 business bankruptcies filed during the 2010 fiscal year, which is down seven percent from 2009.

Overall, for the 2010 fiscal year, bankruptcy filings rose in most chapters. Chapter 7 bankruptcy filings totaled approximately 1.14 million, which is up about 15.9 percent from 2009. Chapter 13 bankruptcy filings rose about 9.2; with over 430,000 filings made.

In New Jersey, there were 40,775 total filings for bankruptcy in the 2010 fiscal year. It was a 19.7 percent increase from 2009, when 34,070 bankruptcy filings were made.

Filing for bankruptcy can be a difficult decision and one that shouldn’t be taken lightly. The New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel have experience in dealing with the bankruptcy process in New Jersey. Our lawyers will examine your particular situation and help you determine whether filing for New Jersey bankruptcy is the right course of action. Call us today at 866-503-5655.

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The article also discussed several other money managing tips. They caution against falling into “the minimum trap,” which is when you only pay the minimum amount on your credit card bill. Paying your bill in this manner will hardly cover the interest charges and will take you months, if not years, to pay off your total balance. In the end, if you only pay the minimum, you will spend much more than the original amount you charged to your credit card.

You should also be aware of where you borrow your money to pay off debt. While it could be convenient to borrow against your 401(k) or your house, doing so can be very risky. You could potentially lose your home in a New Jersey foreclosure.

One of the most important recommendations the article makes is to plan for the unexpected. Start creating a safety net of a few months of living expenses in case of any emergency. Not having a disaster fund can seriously cripple your finances, if you suddenly have an expensive car repair or something of that nature that requires immediate action.

If you have a mortgage, one shouldn’t be so quick to pay down the mortgage instead of paying down the credit card debt, as a mortgage is likely to have a lower interest rate. Also, one is able to deduct the interest paid on the first $1 million of a mortgage loan, which can be very helpful. However, if your mortgage happens to have a high interest rate and you need to lower your monthly payments, you may want to consider refinancing your home.

If you find that you are still struggling with your debts, you should get help as soon as you realize the necessity. There are many debt counseling agencies with a good reputation that could help you consolidate your debts and help you manage your finances better. But be careful—there are also many disreputable debt counseling agencies.

Being smart about your finances can save you from many headaches and improve your quality of life. However, depending on your situation, it may be a good idea to file for bankruptcy in New Jersey. Every bankruptcy case is different, so you might want to consult with a New Jersey bankruptcy attorney to learn about your options. At the Law Offices of Robert Manchel, our lawyers have helped countless individuals navigate through the New Jersey bankruptcy process. If you have questions about filing for bankruptcy in New Jersey, please contact our office to talk with one of our knowledgeable and experienced bankruptcy lawyers. Call us today at 866-503-5655.

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