Chapter 7

A New Jersey chapter 7 bankruptcy case requires only one hearing, which is called the Meeting of Creditors (MOC) or the 341(a) hearing.

The MOC is never held in a courtroom and the judge is never present. If your case is filed In Trenton, your MOC hearing is held in the courthouse, but not in a courtroom. If your case is filed in Newark, the MOC hearing is typically held in an office building in Newark. If your case is filed in Camden, your hearing is either held in an office building in Camden or Northfield.

The hearing is conducted by the trustee that is assigned to administer your case. Typically, the trustee sits at a desk facing all of the debtors. When the trustee calls the debtors’ name, the debtor must approach the desk and sit down facing the trustee. There is a recording device on the table that records all testimony. The debtors must show the trustee a photo drivers’ license and a social security card to provide proof of identity. There are alternative forms of identification that are acceptable. The debtors’ attorney should put the original signed bankruptcy petition on the table.

The hearing lasts about five to ten minutes depending on the complexity. Although the hearing is called a Meeting of Creditors, it is unusual for a creditor to appear and ask questions. The trustee is mainly interested in eliciting testimony regarding the debtors’ assets, income, expenses, and reason for the bankruptcy filing. The trustee must determine if the debtor has assets, with a substantial value that he may sell. Also, the trustee must ensure that the debtors’ household income is less than their monthly expenses. Furthermore, the trustee must ensure that the debtors’ financial hardship is legitimate.

Some of the questions that are asked at the Meeting of Creditors are as follows: Did you review your petition for accuracy prior to signing? Is the information in your petition correct? Do you need to change any information in your petition? Does your petition include all of your assets? When did you buy your house? How much did you pay for your house? How much is your house worth now, if you were to sell your house? Do you own stocks or bonds? Do you have a savings account? Can you sue someone for money, for any reason? What is the reason for filing bankruptcy? Are you working? Has your income changed from the time of the filing?

Please contact the NJ. Chapter 7 Bankruptcy Lawyer, Robert Manchel, at 1 (866) 503-5655, to discuss chapter 7 bankruptcy hearings.

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In a New Jersey chapter 7 bankruptcy case, the trustee may only sell the debtor’s property, if the house has substantial equity, in excess of the mortgage payoff. Therefore, if the debtor’s house has substantial equity, he would avoid this issue by not filing a chapter 7 bankruptcy case.

Upon the filing of a chapter 7, the mortgage company cannot commence or continue a foreclosure action against the debtor’s house. However, by court motion, the mortgage will likely be granted permission from the bankruptcy court to commence or proceed with a mortgage foreclosure action, if the debtor is in default with the mortgage payments.

The mortgage company’s request to the court for permission to proceed with the foreclosure action is called a Motion for Relief from the Automatic stay. Typically, the mortgage company would file such a motion about one to two months after the bankruptcy filing. The motion would be granted about 30 days after the filing of the motion.

The bankruptcy filing has absolutely nothing to do with the mortgage company’s right to commence or pursue a foreclosure action. The mortgage company may only commence or proceed with a foreclosure action, if the mortgage is in default. A foreclosure action is a state court action, not a federal or bankruptcy type action.

In the event that the mortgage company is permitted to proceed with the foreclosure action, the action commences or continues at the point of the procedure where the action ceased at the time of the bankruptcy filing. After the mortgage company is granted permission to proceed, the bankruptcy case has no impact on the mortgage company’s foreclosure proceedings or the debtor’s your rights regarding the mortgage and possession of the house. This means that the debtor may continue to reside in the property until the completion of the foreclosure action. Additionally, the debtor has the right to work out a loan modification, as well.

Please contact the New Jersey Chapter 7 Bankruptcy Lawyer, Robert Manchel, at 1 (866) 503-5655, to discuss the effects of a bankruptcy filing on a mortgage foreclosure.

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A person cannot file a subsequent chapter 7 case, within eight years of the filing of the prior chapter 7 case, that received a discharge. In other words, if a person received a chapter 7 discharge, the debtor cannot receive another chapter 7 discharge unless the subsequent chapter 7 is filed at least eight years from the date of the filing of the prior chapter 7case, that was discharged.

A debtor that received a prior chapter 13 discharge can obtain a subsequent chapter 7 discharge, if the prior chapter 7 case was filed at least six years before the filing of the present chapter 13 bankruptcy case. However, there are exceptions as to when a person may file for a chapter 7, after a chapter 13 discharge. The exceptions are as follows: The debtor paid all unsecured debt through their chapter 13 case: or, paid 70% of the unsecured debt and the plan was proposed in good faith, in addition to applying his best efforts.

A chapter 13 debtor who filed and received a prior chapter 7 discharge, within four years, of the subsequent chapter 13 filing, will not receive a discharge of any debt that is not paid through the present chapter 13 plan. Please note that the debtor can file the chapter 13 case, under this scenario, but the debtor will not receive a discharge for debt that is not paid through the subsequent chapter 13 filing.

A chapter 13 debtor who filed and received a prior chapter 13 discharge in connection with the prior case that was filed within two years of the subsequent chapter 13 filing, will not receive a discharge of any debt that is not paid through the subsequent chapter 13 plan. Please note that the debtor can file the chapter 13, under this scenario, but the debtor will not receive a discharge for any unpaid debt.

A debtor that files a chapter 13 or chapter 7 case after the dismissal of a prior chapter 7 or chapter 13 case, within one year of the subsequent chapter 13 or chapter 7 filing, may need to meet certain criteria to continue the subsequent case.

TheNew Jersey Bankruptcy Practitioner, Robert Manchel, can be reached at 1 (866) 503-5655, to discuss whether you can file a subsequent bankruptcy case.

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Filing for bankruptcy under Chapter 7 of the bankruptcy laws is a good option for some people, if their assets and debts fit the requirements for a Chapter 7 filing. One of the ways the bankruptcy courts determine whether a person is eligible for a Chapter 7 bankruptcy is through means testing. Means testing looks at the filer’s financial situation and determines whether they fit the requirements for Chapter 7.

Means testing usually begins when the filer, often with help from their attorney, files bankruptcy form 22A, titled “Statement of Current Monthly Income and Means Test Calculation.” The form asks for several different items of information, including the filer’s monthly income, the size of the family and its needs, the median income where the filer lives, and various other pieces of tax information. The person filing the form will have some of this information in their own records, but other items must be obtained from the Census Bureau or the Internal Revenue Service (IRS).

Since means testing paperwork helps determine whether an individual can file under Chapter 7 or not, it is important to ensure that all the information on the form is as complete and accurate as possible. Experienced bankruptcy New Jersey attorney Robert Manchel has helped other clients complete these forms and help them navigate through the personal bankruptcy process. To learn more about how Robert Manchel’s skills and experience can help you, call 866-503-5655 today.

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Filing for bankruptcy under Chapter 7 of the federal bankruptcy laws is the right choice for many debtors, especially those with few assets apart from their personal belongings. Since a Chapter 7 bankruptcy seems simpler than filing for a Chapter 13 bankruptcy, many people may be tempted to try carrying out their bankruptcy case on their own. However, the U.S. Bankruptcy Courts in New Jersey strongly recommend that anyone considering a Chapter 7 filing work with an experienced bankruptcy attorney to ensure the process is completed correctly.

An attorney with bankruptcy experience can tell you whether Chapter 7 is in fact the best option for you. If it is, the attorney can also make sure that you meet all the requirements before beginning the bankruptcy process. For instance, debtors filing for Chapter 7 bankruptcy must first go through credit counseling with an approved credit counseling agency, or their cases may be dismissed. If you are eligible to skip credit counseling because you fit one of the specific exceptions in the bankruptcy laws, your attorney can advise you, and explain your situation to the court.

A highly skilled bankruptcy attorney will also make sure that all of the proper forms are filed and that they contain the right information. Forms that are filed too late or with missing information, can have serious consequences.

Experienced New Jersey Chapter 7 bankruptcy attorney Robert Manchel can help you choose the best course of action and avoid costly mistakes in court if you are facing bankruptcy in New Jersey. To learn more, call The Law Offices of Robert Manchel today at 866-503-5655.

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Many people who are contemplating filing for bankruptcy relief, under the New Jersey bankruptcy laws, are concerned about whether they are able to keep their vehicles. Although individual’s situations vary, there are a few common requirements that are necessary for an individual to avoid auto repossession, in connection with a New Jersey Chapter 7 bankruptcy.

First and foremost, when filing for bankruptcy, the debtor must disclose on the petition all financial information, including assets and their values, liabilities, list of creditors, present and past income and expenses. The debtor may not pick and chose which creditors he wishes to include. The petition must reflect the estimated fair market value of the automobile. The New Jersey Bankruptcy Court accepts the NADA Guide auto values. However, an expert auto appraisal may provide an appraisal or testimony regarding an autos value.

Under Chapter 7, if your automobile is financed, the auto value may not be considerably greater than the loan payoff. The debtors’ bankruptcy attorney and the appointed interim trustee will perform an analysis to determine if the auto’s value is in excess of the allowable amount. Also, typically, but not always, the debtor must be current with the finance payments. Also, typically, but not always, the monthly auto finance payments after the filing must not result in an “undue hardship”, as determined by the court. The debtor may return the vehicle and eliminate the debt.

In a chapter 7 bankruptcy in New Jersey, it is easier to keep a leased vehicle as compared to a financed vehicle. The main reason for the difference is that a financed vehicle is owned, while the leased vehicle is not owned. The value of the leased vehicle is irrelevant. Typically, the only criterion is that the debtor is current with the payments. The debtor may return the auto and eliminate the lease debt.

The only criterion determining, whether a debtor may keep their vehicle, with no financing or lien, is based on the excessive value basis that is explained above, in connection with the financed vehicle.

While most debtors in New Jersey are usually able to keep their vehicle, it is worth the time and effort to get in touch with an experienced Salem County New Jersey bankruptcy lawyer. At the Law Offices of Robert Manchel, our legal team will inform you as to how bankruptcy can help you in relation to your personal needs and finances. Please call Robert Manchel today at 866-503-5655 for more information.

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While many Americans may believe that professional athletes and celebrities are immune to financial and personal problems, this is not the case. Just like any other citizen, these individuals may be facing a mortgage foreclosure action or financial difficulties, which may be resolved by a personal bankruptcy.

An article in The Wall Street Journal discusses the details surrounding former National Basketball Association star Antoine Walker’s recent bankruptcy filing. Based on the article, the former NBA player owes casinos $1.27 million and owes creditors $12.7 million, while only possessing $4.3 million in assets. Mr. Walker filed for Chapter 7 protection in Miami at the U.S. Bankruptcy Court in which he will liquidate his assets to repay creditors.

While filing for bankruptcy or facing foreclosure is not something that most people anticipate they will ever experience, it is important to become as familiar as possible with the ins and outs of these processes.

The laws and guidelines surrounding bankruptcy and foreclosure resolution may vary on a statewide level. For instance, in New Jersey, if an individual who qualifies to file for bankruptcy under Chapter 7, may be able to retain all of their assets, while simultaneously eliminating the burden of debt. This may sound simple, but the truth is that this process is complex. Fortunately, New Jersey Chapter 7 bankruptcy lawyers are available to guide and advise those hoping to get a fresh financial start, which includes the elimination of: credit card debt; harassing telephone calls; collection letters; filing of liens; wage garnishments; and, much more.

For additional information regarding whether or not you qualify to file for Chapter 7 bankruptcy in New Jersey, please contact skilled Ocean County bankruptcy attorney Robert Manchel. Mr. Manchel has successfully assisted numerous individuals through the bankruptcy process. Mr. Manchel will help you determine the best course of action, based on your particular financial situation, assets, disposable income etc. Call 866-503-5655 today or visit http://www.bankruptcylawyer-nj.com/ to learn more about your bankruptcy filing options.

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