The increase in exemptions available in New Jersey to protect the equity in your home has made it easier to keep your home in a Chapter 7 Bankruptcy. As of April 1, 2019 the exemption a home owner is allowed under federal exemptions, which are used in New Jersey, increased to $25,150.00 per home owner. For example, if you and your spouse own a home in, say, Cherry Hill, NJ or Voorhees, NJ and the home is worth $200,000.00 and there is a mortgage of $130,000.00 you would be able to file a chapter 7 and keep your home as long as you are able to continue making your mortgage payments and as long as you meet the other chapter 7 eligibility requirements such as those relating to income. That is because there would be no reason for a trustee to sell your home since there would be no benefit to your creditors. If a trustee sold the home in this example, the trustee would have realtor and other fees of about $20,000.00, the mortgage of $130,000.00 and you and your spouse could protect from creditors a total of $50,300.00. Consequently, if you are in need of a bankruptcy but are concerned you will lose your home, you should immediately consult with an experienced bankruptcy attorney
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.
A number of large retailers with stores in New Jersey have filed for bankruptcy in 2016. Bob's Stores with locations in Freehold, Springfield Twp, and Totowa, New Jersey filed in April 2016. Golfsmith with locations in Mount Laurel, New Jersey filed in September 2016. Fairway Markets with locations in Woodland Park, Paramus, and Fort Lee, New Jersey filed in May 2016. Also, filing were Eastern Mountain Sports with a Moorestown NJ location and Aeropostale with a Cherry Hill NJ location, among others. Sometimes the filing is to reorganize by filing Chapter 11 and by closing less profitable locations. Sometimes a Chapter 7 is filed where the stores are liquidated.
"We're sorry to be out of the business, but in a way we're still in the business," said Khoury, who said the catering firm, Cooking With Sofia, will serve individual customers and also hold dining events for the public. "We want to thank everyone for being our customers all those years." Kuzina by Sofia (located on Route 70 in Cherry Hill) sought Chapter 11 bankruptcy protection in February to restructure its finances, however a trustee moved on July 28 to convert the case to Chapter 7, allowing the firm's liquidation.
Divorce, loss of income and illness have caused a number of homeowners in Cherry Hill, NJ, Mount Laurel, NJ and other New jersey towns to fall behind with their mortgage. Filing a Chapter 13 bankruptcy to pay missed mortgage payments over time is not the only option to keep your home. Mortgage modification provides another vehicle. With a mortgage modification, you or your representative negotiate with your bank to reduce the mortgage interest rate and to extend mortgage credit terms. Hiring an attorney to negotiate a mortgage modification can save you money and allow you to keep your home.
Rebuilding credit after filing a Chapter 7 or Chapter 13 personal bankruptcy and receiving a discharge is an important question often asked by individuals filing bankruptcy. Whether the individuals live in Cherry Hill New Jersey, Blackwood New Jersey, Mount Laurel New Jersey or any of the many cities and towns in the area, years ago when those individuals filed for bankruptcy it was much more difficult to build up credit. However, that has changed to a large degree. In fact often people file bankruptcy at a point where their credit score is low from a number of defaults and the mere filing of the bankruptcy itself can be a huge first step towards rebuilding credit. However, there are other important steps to take in reestablishing credit.
It is important to understand that credit reports are often inaccurate. Consequently a few months after receiving a bankruptcy discharge it is highly recommended that you get a credit report and confirm that it properly states your financial circumstances. Debts discharged in bankruptcy should be reflected in the credit report as having been discharged. Sometimes for whatever reason a credit card may reflect as still being open and in default. In that circumstance you would want to contact the credit reporting company and provide them a copy of your bankruptcy schedules showing that the creditor had been included in the bankruptcy and ask that they correct their credit report. Another way to build up credit is to apply for a credit card or retail card. While the individuals should certainly be cautious especially if bankruptcy was caused by credit card debt, having a credit card where it is used and paid off each month will help build up credit. In addition, opening up a bank account is a good way to help demonstrate you are responsible. Also, it is important to make sure all payments, whether it is utilities, rent or your new credit card, are timely paid. Following these simple steps can help to rebuild credit after bankruptcy in no time.