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
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.
Thinking of filing a Chapter 13 bankruptcy? Know that all tax returns that you are required to file for the prior 4 years must be filed before the bankruptcy meeting of creditors which occurs approximately 30 days after filing. If you live in New Jersey, this means both federal tax returns and New Jersey state tax returns. Bankruptcy section 1308 states the requirements. If you were not required to file, for example, if you did not have enough income, then the requirement refers to the last years you were required to file. The trustee has limited discretion to extend the time.
Creditors may try to repossess your car, truck or your motor home if you are behind in payments. Filing for bankruptcy will stop asset repossession. If you file bankruptcy, creditors cannot repossess assets such as a car. If you are behind with your payments, you can pay the missed payments over time through a chapter 13 bankruptcy and resume your regular payments. An alternative which may provide you with lower payments would be to pay the entire car balance plus interest through the bankruptcy plan. If the car was purchased more than two and one half years before the bankruptcy was filed, you may be able to save even more money by cramming down the value of the car. In other word, if you owe $20,000.00 on a car worth $14,000.00, you can propose to pay $14,000.00 plus interest through the plan which result in substantial savings.
Throughout the United States, a significant number of people have fallen into the credit card debt and feel that they have no way out. Creditor harassment can pile additional stress onto New Jersey families, only making matters worse. There are several different bankruptcy options for people who are confronting unmanageable financial obligations. Chapter 7 is one option, though it may not be the right option for everyone because it is not as effective at protecting property. Filing for Chapter 13 is another option that potentially allows more flexibility in maintaining certain assets.
New Jersey readers may be familiar with the famous television actress, Nicole Eggert, who once starred in the hit show "Baywatch" and recently filed for Chapter 13 bankruptcy. She has previously filed for Chapter 13 bankruptcy twice before and both times, the cases were dismissed. Only recently, a judge has agreed to accept the application.
The rules that apply to the filing of a personal bankruptcy can be confusing to some in New Jersey. This is because the rules relate to not only what property can be maintained after the process is complete, but also to which chapter of the code may be used by an individual. Commonly though, people decide to either file a Chapter 7 or Chapter 13 bankruptcy when the find that they need help.
One of the first decisions made by people in New Jersey who find that they are unable to repay the debts that they owe is whether they should seek the protections offered by a personal bankruptcy. The second thought is which chapter of the Bankruptcy Code is best for an individual situation. That choice requires a detailed review of the financial situation of the person in economic stress and often leads to a choice between a Chapter 13 or 7.