Camden NJ Bankruptcy Law Blog

Building Credit After Bankruptcy

You can build your credit after bankruptcy. Sometimes clients will come into my office in Cherry Hill, NJ and express concern that if they file bankruptcy they will not have credit again for 10 years. That is not accurate. In fact many times credit scores of clients are already low from missed payments and filing will actually lead to improvement in credit score. If a Chapter 7 Bankruptcy is filed, approximately three months later the individual receives their discharge. If they own a vehicle with payments and they have reaffirmed the debt, they are already on their way to reestablishing credit since their credit report will show the vehicle payments. After the bankruptcy is completed, often in less than one year an opportunity to obtain a credit card will arise. While avoiding credit cards is a good policy, it may be helpful to get a credit card with a low limit, use  it for a small purchase like gasoline or groceries, and pay it off each month. At that point, your defaulted unsecured debt will have been eliminated and the current status on car payments and a credit card will have you well on your way to reestablishing credit.

Lil Kim filed for Bankruptcy in Newark New Jersey

Lil Kim filed for Bankruptcy in Newark New Jersey and now has the same options that anyone filing would have. According to the bankruptcy filing she stopped a foreclosure sale on her house by filing. Generally the bankruptcy will allow a debtor to resume regular mortgage payments and pay missed payments over time. According to papers filed by Rushmore Loan Management she missed a mortgage payment of approximately $10,000.00 due after she filed. They want to foreclose. Because of her circumstances she is going to attempt to do a loan modification which is another option debtors have. Typically the debtor resumes payments but rather than paying the arrears through a separate payment the debtor attempts to restructure the loan so the arrears are added back into the mortgage. Although Lil Kim's assets and income and expenses are more than the typical person, the rights under the bankruptcy law are the same.

Speak with Bankruptcy Attorney First

Speak with bankruptcy attorney first. Most people are unfamiliar with the bankruptcy process. They know it can help eliminate debts but are not sure of the impact of owning assets. As a result, sometimes before going to see the bankruptcy lawyer the individual will transfer a vehicle into a relatives name or repay the relative with money received from a tax refund before seeing the lawyer. It is a mistake. First, any such transfers or payments must be reflected on the bankruptcy schedules. In addition in most instances the individuals could have filed bankruptcy and used exemptions to protect the assets. However, if they transfer the item or make the payment the trustee can overturn the transfer or payment and use it to pay your creditors. And even if you have exemptions available, since you voluntarily gave away an asset when the asset is brought back you cannot exempt it. So talk with bankruptcy attorney first if you are thinking about filing bankruptcy.

Where to File Bankruptcy in New Jersey

Where you file a bankruptcy in New Jersey depends on where you live. Unlike the state courts, where there is a court house in each county, there are only three (3) Federal Bankruptcy courts: Newark, Trenton and Camden NJ. As a result, some counties are split as to where you file. For example, Burlington County residents file in Trenton, NJ except for the cities in the southern part of the county of Cinnaminson, Delran, Edgewater Park, Marlton, Maple Shade, Moorestown, Mount Laurel, Palmyra, Riverside and Riverton. The other counties that report to Trenton NJ are Hunterdon, Mercer, Middlesex, Monmouth, Ocean, Somerset and Warren. Any further North report to Newark, NJ. The Southern Counties file in Camden, NJ.

Can Bankruptcy Eliminate DMV Surcharges in New Jersey

Bankruptcy can eliminate surcharges in New Jersey. Whether you are filing a Chapter 7 or a Chapter 13, surcharges can be eliminated in most cases as long as you can eliminate your other unsecured debts as well. The law on this issue has changed over time but the current position of the NJ DMV is to no longer pursue the surcharges. If you are currently suspended solely for the nonpayment of the surcharges than the bankruptcy will allow you to apply to reinstate your drivers license. If you are suspended for another reason, the bankruptcy will address the financial obligation, but you will not be able to get your license reinstated until the non financial related suspension has been served.

Asset Sales in Chapter 11 Bankruptcy

 Chapter 11 Bankruptcy is available to businesses that desire to sell their assets but have debts exceeding the value of the assets. While Chapter 7 can be used for a liquidation of assets there are circumstances where it is important to maximize the amount received and selling as a going concern makes more sense. A Chapter 11 liquidating plan can be used for that purpose. However, sometimes it is necessary to have a more immediate sale and waiting until the confirmation hearing is not an option. In that situation the company can seek to sell its assets through a sale pursuant to section 363 of the Bankruptcy Code. The section is usually used to sell specific assets but more and more it is used to sell all of the company's assets. Generally the seller must demonstrate that business may not survive until confirmation and this is the best opportunity for creditors to be paid. The 363 sale is not for all sales but in some cases it may be the best option.

Which Bankruptcy Exemption Applies In New Jersey

Exemptions are used to protect assets in bankruptcy. A trustee will not sell your assets in bankruptcy if they are exempt. Which exemptions apply depend on where you live and how long you have lived there. For example, if you live in Cherry Hill NJ and file a bankruptcy, you would generally have the option of using the Federal exemptions or the New Jersey state exemptions. In most cases the Federal exemptions would provide more protections than the NJ exemptions. In Philadelphia PA you would also have the option of using state or Federal exemptions. Some states opt out of the Federal exemptions and you can only use the state exemptions. Even if you are living in Cherry Hill NJ and file bankruptcy there, you may not be able to use the Federal or NJ exemptions. That is because if you have not lived in your state for the last 730 days, than you must apply the exemptions used by the state where you lived before the last 730 days. It is important that your attorney is made aware of where you have resided for the few years leading up to the bankruptcy.

Philadelphia chapter 11 bankruptcy filed by Zitner Candy Corp.

In Philadelphia Pennsylvania a chapter 11 bankruptcy was filed by Zitner Candy Corp. Zitner Candy, located on 17th street near Temple University in Philadelphia filed for Chapter 11 bankruptcy on April 13, 2018. Court documents reveal the company had significant secured debt at the time of the filing. The chapter 11 bankruptcy is generally used by debtors in an effort to restructure and reorganize its current debt problems

Bankruptcy Mediation in New Jersey

Bankruptcy mediation is a useful tool in New Jersey bankruptcies to reduce costs and limit risks. While bankruptcy stops most litigation against the person filing bankruptcy, there are some types of litigation that can continue or even be filed in the bankruptcy case. For example, certain types of claims, such as fraud claims, are not discharged in bankruptcy so a creditor could file a complaint alleging that the claim should not be eliminated because of fraud. These types of litigations can be expensive and lengthy to litigate. One way to reduce time and cost is through mediation. Experienced bankruptcy attorneys on the approved mediator list, that both sides agree to, serve as mediators. Unlike arbitration, where the arbitrator hears both sides and decides who is correct, a mediator works to get the two sides to agree to a resolution of the dispute. A mediator will help both sides understand the risks, issues and costs of litigation and encourage a resolution that makes sense for both sides. When both sides come in with an open mind, there is a good chance the matter will get resolved.

Former Philadelphia Eagle Mike Vick completes chapter 11 bankruptcy

 It appears that not only were the current Eagles on a roll in 2017 making it all the way to the Super Bowl but it was a good year for former Eagles as well. Former Philadelphia Eagle Mike Vick needed to file for chapter 11 bankruptcy after he was involved in a dog fighting scandal that caused him to lose his NFL job and his endorsement income. According to court papers he was required to repay over 17 million to his creditors. After making a comeback in the NFL and playing for the Philadelphia Eagles, New York Jets and Pittsburgh Steelers he was able to complete his required payments for the chapter 11 bankruptcy at the end of 2017 and the case is now closed

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