Consumer Bankruptcy

The person or entity filing a bankruptcy case may file their bankruptcy petition where they reside if they have resided in that location for more than 90 days prior to the filing. For example, if a person moves from California to New Jersey 80 days ago, the person cannot file in New Jersey until they wait at least 11 days. If the debtor does not meet any of the other jurisdictional criteria and must file immediately, they must file in California.
A person or entity may file in the district where his principal assets are located at least more than 90 days prior to the filing. Therefore, if a person resides in an apartment in California and has owned two houses for a period of at least 91 days in New Jersey prior to the filing, they can file in New Jersey.
A person or entity may file in the district where he is domiciled at least more than 90 days prior to the filing. A domicile is the location of a person’s principal home. Therefore, a person living at a college in California may file in New Jersey if his home is and has been in New Jersey at least 91 days prior to the filing.
A person or entity may file in the district where his principal place of business has been located at least more than 90 days prior to the filing. This means that if a person resides in Delaware and owns a business that operates solely in New Jersey, he can file his bankruptcy case in New Jersey.
Generally, a person files their bankruptcy petition where they reside. Although, there may be more than one district where an individual may file his bankruptcy petition.
Robert Manchel, a NJ bankruptcy attorney, provides expert bankruptcy advice at (866) 503-5655. Call today to discuss your bankruptcy protection!

Many clients ask if they can keep certain creditors out of the bankruptcy case, such as debt owed to a friend or relative. The simple answer is no. All creditors must be included in the bankruptcy case.
A personal loan that is due to a friend is unsecured, which is the same classification as credit card debt. The bankruptcy code requires that all unsecured creditor be treated equally. Therefore, if a chapter 13 debtor is paying a monthly trustee payment, which includes $100.00 that is to be paid towards unsecured debt, the monthly amount distributed to unsecured creditors must be distributed pro-rata to all unsecured creditors. Also, this means that the debtor cannot make payments directly to the friend or relative that is not included with the trustee payment.
Along this same theory, if a debtor is only having problems with their credit card debt and not their house, the house must be included as an asset and the mortgage company must be included as a secured creditor. However, the inclusion of the house and mortgage does not mean that the house will be taken by the bankruptcy trustee. Quite the contrary, it is extremely unusual for the court trustee to take someone’s property. However, if the debtor is behind with their mortgage payments and they are unable to cure the arrears, typically the mortgage company will be permitted to pursue their foreclosure action.
The debtors must also include their auto as an asset and the auto finance company as a secured debt. It is very unusual that the court trustee will take the debtors’ auto. If the debtor is in arrears with their finance payments and cannot cure the arrears, typically, the finance company will be permitted to repossess the auto.
If you wish to contact New Jersey Bankruptcy Expert Robert Manchel, please call 1 (866) 503-5655 to discuss how creditors are treated in bankruptcy and how you may be able to file for bankruptcy protection.

Being faced with unsecured consumer debt from accumulated personal spending is enough to make anyone lose sleep, especially when it is your spouse who is in debt and you are not sure what your legal obligations may be – but it doesn’t have to stay that way. Consumer bankruptcy in New Jersey may be the answer.
Consumer bankruptcy is distinguished from a business bankruptcy case, in that the debtor(s) who is filing the petition is an individual with mainly consumer debt, such as credit card debt, instead of business-related debt. There are a number of bankruptcy laws that relate to only consumer debt cases and not business debt matters.
One spouse does not owe the debt of the other spouse solely due to the marriage. The law in New Jersey holds that only the individual who contracted to pay the debt, is liable for the debt. Therefore, if only one spouse contracted with the credit card company / bank for the credit card, only that spouse owes the debt. Under this scenario, the bank may sue only the one spouse that is liable for the debt and not the other. If both spouses contracted with the creditor for a loan or credit card, than the debt is joint and the creditor may sue both spouses. Under this scenario, the debtor may obtain the money from either spouse, but only to the extent of the amount due. In other words, the creditor may obtain 50% from each spouse, or 60% from one and 40% from the other.
A joint bankruptcy case can only be filed by a husband and wife. There are numerous reasons why one spouse would file alone as opposed to filing jointly. If both spouses owe a debt jointly and only one spouse files for bankruptcy protection, the creditor may sue the non-filing spouse. However, if only the filing spouse owes the debt, the entire debt will be eliminated or resolved, as the non-filing spouse is not liable for that particular debt.
Filing for bankruptcy in New Jersey is a process that requires substantial personal and financial information / documentation, time and patience. Prior to filing, each spouse should be counseled on the advantages and disadvantages of filing bankruptcy alone or jointly.
As a Board certified consumer law bankruptcy attorney by the American Board of Certification, Robert Manchel has assisted numerous individuals in filing for bankruptcy in New Jersey. To learn more about how New Jersey bankruptcy lawyer Robert Manchel can help you with your particular situation, please call 866-503-5655 today.