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.
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.