"How much will my Chapter 13 bankruptcy payment be?" is a question I am often asked. While it is a simple question, the answer is not simple since the amount is determined by a number of factors. First, is the Chapter 13 purpose to pay mortgage arrears? If so, the total amount of the arrears would need to be paid over three to five years. Do you owe any priority debt such as taxes. That also must be added to the amount that is to be paid. What if you could afford to pay even more. The court looks at you monthly income and expenses to determine not only if you can afford to pay the mortgage arrears, etc., but also to see if you can pay something to other creditors such as credit cards and medical bills. Another major consideration is the nonexempt equity in your assets. Normally having equity in your home or other assets is a good thing, but in a bankrutpcy it could result in you having to pay something to your creditors. You can protect some equity in assets, but if your equity is more than you can protect, that can also increase your monthly payment. There are a number of factors that your attorney must consider in putting together a confirmable plan.
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
When a business files for bankruptcy, the trustee will sometimes sue creditors to get money back from them if they received a payment within 90 days of the filing of the bankruptcy. This is known as a preference action since the idea behind it is to avoid a debtor that is about to file bankruptcy from preferring certain creditors over others. However, there are defenses that can be used that may allow the creditor to retain the money they received within 90 days. For example, if the payment was made in the ordinary course of business such as within 30 days of invoicing, that may be a valid defense. If, after receiving payment, the creditor extended new credit, to the extent the new credit extended is not repaid, an offset will be allowed. There are other defenses as well. If a demand is received from a debtor or a trustee, it is important to immediately consult with an experienced attorney as there are time limits in responding once the complaint has been filed.
An Involuntary Bankruptcy is filed not by the individual or company that has the debts, but instead by creditors of that individual or company. The involuntary bankruptcy can either be a Chapter 7 or Chapter 11 bankruptcy. Three creditors with combined claims totaling $15,775 or more can force a company into bankruptcy. The claims cannot be contingent or subject to a bona fide dispute. The filing must be in good faith or the case will be dismissed and the creditors could be responsible for fees and costs incurred by the debtor. The requesting parties must show the debtor is not paying its debts as the debts become due. Creditors will file an Involuntary Bankruptcy for various reasons including trying to force liquidation of the assets to pay its claims or to get the trustee appointed to review the books and records to make sure the debtor is not improperly favoring some creditors over other creditors.
As discussed in http://info.legalzoom.com/can-item-added-bankruptcy-discharged-27099.html , Debt incurred after a bankruptcy petition is discharged cannot subsequently be added to the bankruptcy. In no-asset bankruptcies, debts not included in a petition, but incurred prior to discharge are discharged. In bankruptcies where assets were liquidated, a debtor must either re-open a bankruptcy to include a missing creditor or be responsible for the debt in full. An attorney can assist in reopening a case and filing an amendment with the court and a filing fee will need to be paid. If a creditor is not included in a Chapter 13 bankruptcy, the debt is not discharged and must be paid in full.
Since bankrupcy is a federal law, whether filing bankruptcy in Voorhees, New Jersey or Philadelphia, Pennsylvania, the information to be provided is the same. Section 521 of the bankruptcy code, entitled "Debtor's Duties" lists different requirements. The debtor needs to provide 1.) a list of creditors, 2.) a schedule of assets and liabilities, 3.) a schedule of current income and current expenditures, 4.) a statement of the debtor's financial affairs, 5.) a bankruptcy petition signed by the debtor's attorney, 6.) copies of all payment advices received within 60 days before the date of the filing of the petition, 7.) a statement of the amount of monthly income, 8.) a statement disclosing any reasonably anticipated increase in income or expenditures over the 12-month period following the date of the filing of the petition, 8.) a statement of the debtor's intention with respect to the retention or surrender of property, 9.) a copy of the debtor's federal income tax return. In addition, a trustee may ask for additional information such as bank statements, deeds, etc.
The Fair Debt Collection Practices Act can be used to stop or punish creditors and debt collectors from harassing relatives and friends. Financial struggles often make it impossible to keep up with credit cards and other bills. While bankruptcy often would help address the debt, sometimes individuals are not aware of this option or may feel they do not have enough debt to warrant bankruptcy. Typically harassing letters and telephone calls from debt collectors will start. What happens when creditors start calling and harassing your relatives about the debt with the hope that you will pay to stop those calls to your relatives. The Fair Debt Collection Practices Act (FDCPA) can be used to limit those contacts as well as punish the creditors for violations. Under the Act the creditor can contact and speak to the relative ONE time. They cannot leave a message. They can only ask for contact information like address or home phone number. They cannot ask for payment from the relative. If the contact goes beyond what is allowed, the creditor is in violation of the FDCPA.
Any company can be prone to the effects of a declining economy. Many New Jersey businesses have been feeling the economic pressure and are behind on payments to their creditors. Filing for Chapter 11 bankruptcy can allow a struggling business to get back on its feet by reorganizing its debt and discovering more efficient ways to operate.
Children with severe disabilities who did not fit into the public school system were able to turn to Somerset Hills to learn and be treated. The New Jersey center consisted of a school for disabled children and a center for treating related illnesses. The center has now been forced to close and file for Chapter 11 bankruptcy protection in order to attempt to restructure and pay down some of its debt. The school ended up with over $3 million in debt, $1 million of which is to be paid to past and present employees into their pension funds.