Cherry Hill Bankruptcy Blog

Exceptions to the Bankruptcy Automatic Stay

As a general rule when a bankruptcy is filed the commencement or continuation of lawsuits or collection matters against the debtor are automatically stopped. However, there are exceptions where the matter can continue. For example, a criminal action is not stopped by a bankruptcy. Nor is a suit to establish paternity, establish support or establish visitation. Audits by the IRS or a demand for tax returns are also not stayed. However the government entity is stopped from collecting the debt while the debtor is in bankruptcy. The automatic stay that takes effect when a bankruptcy is filed stops most kinds of legal actions against the debtor, but keep in mind that it does not stop all of them.

Can you bounce back after bankruptcy?

Filing for bankruptcy may seem scary, but it can actually be very helpful for people facing serious financial issues. Filing bankruptcy helps people in many ways, but the aftermath still can sting a bit. You might wonder what will happen after you file. How do you start to rebuild?

Fortunately, there are many tips you can use to get back on your feet after filing bankruptcy.

2019 planned store closing already outnumber 2018

2018 saw Toys R Us, Wet Seal and The Limited close all their retail locations, while Kmart, Walgreens, Best Buy, Foot Locker and more each closed hundreds of stores.

That trend continues in 2019, and at an even faster clip, according to “The New York Times.”

Bankruptcy Exemptions Increase April 1, 2019

When a bankruptcy is filed the individuals filing are allowed to protect a certain amount of equity in their assets and keep those exempt assets. In New Jersey and Pennsylvania debtors filing bankruptcy can protect assets using Federal or state exemptions. Except for certain types of assets, most bankruptcies in New Jersey or Pennsylvina rely on Federal Exemptions. Those Federal Exemptions increased as of April 1, 2019. For example, the amount of equity in your residence increased from $23,675.00 per owner to $25,150.00 per owner. Household goods and furnishing exemptions increased from $12,625 to $13,400.00. Other increases include motor vehicle from $3,775.00 to $4,000.00, jewelry from $1,600.00 to $1700.00 and proceeds from personal injury lawsuit from $23,675.00 to $25,150.00. As a result, even when filing a chapter 7 bankruptcy often the debtor will not lose any assets in the process.

Exceptions to the Bankruptcy Automatic Stay

As a general rule when a bankruptcy is filed the commencement or continuation of a lawsuit or collection matters against the debtor are automatically stopped. However, there are exceptions where the matter can continue. For example, a criminal action is not stopped by a bankruptcy. Nor is a suit to establish paternity, establish support or visitation. An audit by the IRS or a demand for tax returns are also not stayed. However the government entity is stopped from collecting even if the bankruptcy does not eliminate the debt. An action involving domestic violence is also not stayed. The state is not stopped from suspending a drivers license or professional license. As you can see, while the bankruptcy stops most litigations against the debtor, there are some significant exceptions.

Overwhelmed with credit card debt? You’re not alone

Credit card balances in the U.S. have hit more than $420 billion, an increase of 5 percent over 2017, new research shows.

The debt can feel overwhelming: 9 percent of those with credit card debt don’t believe they will ever get out from under, polls show.

CHAPTER 13 BANKRUPTCY CONFIRMATION HEARING

When a chapter 13 bankruptcy is filed the court automatically schedules two hearings. The first is a meeting of creditors. The debtors are required to attend this meeting with the chapter 13 trustee and their attorney. Creditors are invited to come but they rarely do. The other hearing is the confirmation hearing. The debtors' do not have to attend this hearing but their attorney does. In New Jersey the hearing will take place at the Federal courthouse in Camden NJ, Trenton NJ or Newark NJ. The purpose of the hearing is to have the court approve the chapter 13 plan regarding repayment to creditors. Often the confirmation hearing will need to be adjourned to address the claims filed or other issues raised by the trustee. Except in unusual or complicated matters if the Chapter 13 trustee is satisfied with the plan and objections have been addressed the trustee will recommend confirmation and the judge will enter an order approving the chapter 13 plan

Can you recognize the financial warning signs of bankruptcy?

Many Americans struggle with their finances at one point or another. It can be easy to miscalculate a budget or forget about a bill.

However, when financial problems are continually cropping up, it may be a symptom of a larger issue. Here are a few warning signs that may point to a larger problem:

Tips when attending the Bankruptcy meeting with Creditors

Whether an individual files a Chapter 13 bankruptcy or a Chapter 7 bankruptcy, they will be required to attend a meeting with a trustee. Although creditors are also invited they rarely attend. In southern New Jersey the Chapter 13 meetings take place in either Cherry Hill NJ or Robbinsville NJ. For Chapter 7 the meeting will be in either Camden NJ or Trenton NJ. When you attend you should:

1. Arrive early. This will give you a chance to review your case with your lawyer and listen to the trustee ask other people questions that he/she will also ask you.

Gymboree Reported to Soon Be Filing Bankruptcy

The Wall Street journal reports that Gymboree is on the verge of filing a bankruptcy with the likely closure of their stores. Locally there are several stores including at the Cherry Hill Mall in Cherry Hill New Jersey, The Promenade at Sagemore in Marlton NJ and the Deptford Mall in Deptford NJ. In Philadelphia Pennsylvania the store at the Philadelphia Mills Mall would be impacted. The bankruptcy will be just another reminder of the difficulties retail chains face today.

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