Posted by Kevin on January 29, 2012 under Bankruptcy Blog | 
One on the advantages of Chapter 13 is that you can extend payments on long term debt. Section 1322 (b)(2) allows a debtor to modify the rights of holders of secured claims (collateralized claims) other than claims secured only by a security interest in the debtor’s principal residence. Section 1322 (b) (5) allows the debtor to cure defaults and make periodic payments during plan on debts where the last payment on the debt is due after the last payment under a plan.
Read more of this article »
Posted by Kevin on January 16, 2012 under Bankruptcy Blog |
Now, that my seem like a harsh title. You may have spent an extended period on unemployment because of the prolonged economic downturn. While you were on unemployment, you used up all your savings and went into debt. You sent out hundreds of resumes and spent hours on the net looking for a job- even if it was for less than your prior jobs. Things are now looking up. You are back to work. But, now is the time to be wary.
Read more of this article »
Posted by Kevin on January 15, 2012 under Bankruptcy Blog |
If you file a bankruptcy under Chapter 7 and the case has assets to distribute (not a no asset case) or you file a Chapter 13 case, creditors are required to file a proof of claim to participate in the bankruptcy.
The burden is on the creditor to file before the bar date and provide sufficient backup to justify the claim. In today’s marketplace, however, many claims are sold to hedge funds or other companies for pennies on the dollar. In many cases, these claim purchasers do not have any backup to support their allegation that they have a claim. If challenged, the claim can be expunged and the creditor is SOL.
Read more of this article »
Posted by Kevin on January 9, 2012 under Bankruptcy Blog |
It appears that the economy is getting better. On a national level, bankruptcy filings went from 132,173 in October, 2010 to 106,255 in October 2011. This is a reduction of 19.6%. In New Jersey, bankruptcy filings went from 3,511 to 2,995 over the same period of time. That is a reduction of 14.7%. Not as good as the national numbers, but still pretty good.
Now, does that mean the economy is getting better, or does it mean that people are so bad off that they don’t have enough money to file bankruptcy?
Read more of this article »
Posted by Kevin on January 2, 2012 under Bankruptcy Blog |
Credit card debt is almost always discharged in bankruptcy. That means that you do not have to pay the debt. If a creditor tries to collect a credit card debt while the bankruptcy is pending, that is called a violation of the automatic stay. If it happens after the bankruptcy discharge and close of the case, it is a violation of the bankruptcy injunction against collecting discharged debts.
But there is another way to get a debt “discharged”. That occurs when a credit card company does not sue you before the statute of limitations runs. This is sometimes referred to as “expired debt”. In NJ the statute of limitations is usually 6 years. In the past, if a credit card company did not sue before the statute of limitations ran, they were SOL.
Read more of this article »
