Dubiln Packard

Todd Murphy

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Myth One: Its Hard To File Bankruptcy

It Is Not Hard To File Bankruptcy

Myth One in a series of 10 Myths about Bankruptcy:

Not everything you’ve heard about bankruptcy is true. In fact, there are a number of myths about bankruptcy floating around. And if you buy into these myths, you may never take action to get yourself out of a difficult situation – one that seems to be escalating.

Your financial situation is likely taking a toll on you:

You may feel trapped and need to talk to someone you can trust.

You may feel anxious and need to find answers from someone who knows the facts about what you can and can’t do.

You may feel tired and need some hope to keep you going.

Or maybe you just want to ask someone what you should do next?

To help you get clear about your options, let’s take a look at the first MYTH about bankruptcy:

Myth 1: It’s hard to file bankruptcy because of new laws that have been passed.

Truth: Bankruptcy is easy to file when you meet the legal criteria to do so. In fact, more bankruptcies are being filed in America now that at any other time in history.
If bankruptcy is something you’re considering and you’d like to know whether or not you are eligible to file, please pick up the phone and give me a call. The initial client consultation is absolutely free. There is no charge…no obligation…and I can help you make the best decision for you and your family.

You’ll be amazed at the relief you will feel when just this one simple question is answered:

“Am I eligible to file bankruptcy?”

Call to find out.

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The 341 meeting of creditors

One Newark Center
One Newark Center

Approximately 30 days after your bankruptcy petition has been filed, whether it is a Chapter 7 or a Chapter 13 Bankruptcy Petition, you will be required to attend a brief (very brief) meeting with the bankruptcy trustee handling your case. Named after the section of the bankruptcy code that requires it, this meeting is known as a 341 meeting.

What To Expect.

The 341 meeting is very informal and usually lasts no more than 10 minutes.

The trustee will ask you some very basic questions and, in the event any creditors attend the meeting, they will be given the opportunity to object to your petition.

It is extremely rare for any creditors to attend the meeting so don’t worry.

What To Bring With You.

You will need the following documents:

  • Driver’s license
  • Social Security Card
  • Your latest pay stub from your employer

How To Prepare For The Hearing.

DOWNLOAD AND REVIEW THE SAMPLE QUESTIONS

The trustee has a list of questions he or she must ask you – download a list of the sample questions here.

DOWNLOAD AND REVIEW THE BANKRUPTCY INFORMATION STATEMENT BEFORE THE HEARING

One of the questions the trustee will ask is “Have you reviewed the Bankruptcy Information Statement?”  Please download a copy of the Bankruptcy Information Statement here and review it prior to the hearing.

How To Get There (click on the addresses below to be taken the Google Maps).

 

NEWARK CASES

341 Hearings in Newark (Chapter 7 and Chapter 13 cases)

If your case is a Chapter 7 or Chapter 13 case filed in the Bankruptcy Court in Newark, the meeting will take place at the office of the US Trustee located in on the 14th floor at One Newark Center, 1085 Raymond Blvd., Newark, NJ 17102 (corner of Raymond Blvd. and McCarter Highway with parking on Mulberry St.)

TRENTON CASES

341 Hearings in Trenton – Chapter 7 cases

If your case is a Chapter 7 case filed in the Bankruptcy Court in Trenton, the meeting will take place at the Federal Courthouse in Trenton located at Clarkson S. Fisher Building & U.S. Courthouse, 402 East State Street, Trenton, NJ 08608

341 Hearings in Trenton – Chapter 13 cases

If your case is a Chapter 13 case filed in the Bankruptcy Court in Trenton, the meeting will take place at the office of the Chapter 13 Standing Trustee, Albert Russo, located at 1 AAA Drive, Robbinsville, NJ 08691.

CAMDEN CASES

341 Hearings in Camden – Chapter 13 cases

If your case is a Chapter 13 case filed in Bankruptcy Court in Camden, the meeting will take place at the office of the Chapter 13 Standing Trustee, Isabel Balboa, located at Cherry Tree Corporate Center, 535 Route 38 – Suite 150, Cherry Hill, NJ 08002

341 Hearings in Camden – Chapter 7 cases

Coming Soon

Inclement Weather Policy

During the winter months, the possibility exists for Delayed Openings and / or Court Closings. If there is to be a delayed opening or Court closing, public announcements will be made on the following radio stations:

  • WKXW – FM 101.5 (COVERAGE FOR NORTH AND CENTRAL JERSEY)
  • WKXW – FM 97.3 (COVERAGE FOR SOUTH JERSEY/ATLANTIC CITY AREA)
  • FM 104.9 (COVERAGE FOR SOUTH JERSEY/PHILADELPHIA)
  • WKYW – AM 1260 (COVERAGE FOR THE MERCER COUNTY AREA ONLY)

Additionally, notification will be recorded on the voice messaging system in each office, for that particular office only. You can check each office at the following phone numbers:

  • CAMDEN – (856) 757-5023
  • NEWARK – (973) 645-4764
  • TRENTON – (609) 858-9333

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Bankruptcy Required Disclosures

Bankruptcy Required Disclosures.

(a) A debt relief agency providing bankruptcy assistance to an assisted person shall provide—

(1) the written notice required under section 342 (b)(1); and
(2) to the extent not covered in the written notice described in paragraph (1), and not later than 3 business days after the first date on which a debt relief agency first offers to provide any bankruptcy assistance services to an assisted person, a clear and conspicuous written notice advising assisted persons that—
(A) all information that the assisted person is required to provide with a petition and thereafter during a case under this title is required to be complete, accurate, and truthful;
(B) all assets and all liabilities are required to be completely and accurately disclosed in the documents filed to commence the case, and the replacement value of each asset as defined in section 506 must be stated in those documents where requested after reasonable inquiry to establish such value;
(C) current monthly income, the amounts specified in section 707 (b)(2), and, in a case under chapter 13 of this title, disposable income (determined in accordance with section 707 (b)(2)), are required to be stated after reasonable inquiry; and
(D) information that an assisted person provides during their case may be audited pursuant to this title, and that failure to provide such information may result in dismissal of the case under this title or other sanction, including a criminal sanction.
(b) A debt relief agency providing bankruptcy assistance to an assisted person shall provide each assisted person at the same time as the notices required under subsection (a)(1) the following statement, to the extent applicable, or one substantially similar. The statement shall be clear and conspicuous and shall be in a single document separate from other documents or notices provided to the assisted person:
“IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.
“If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see the contract before you hire anyone.
“The following information helps you understand what must be done in a routine bankruptcy case to help you evaluate how much service you need. Although bankruptcy can be complex, many cases are routine.
“Before filing a bankruptcy case, either you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial for you. Be sure you understand the relief you can obtain and its limitations. To file a bankruptcy case, documents called a Petition, Schedules, and Statement of Financial Affairs, and in some cases a Statement of Intention, need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court. Once your case starts, you will have to attend the required first meeting of creditors where you may be questioned by a court official called a ‘trustee’ and by creditors.
“If you choose to file a chapter 7 case, you may be asked by a creditor to reaffirm a debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming your debts.
“If you choose to file a chapter 13 case in which you repay your creditors what you can afford over 3 to 5 years, you may also want help with preparing your chapter 13 plan and with the confirmation hearing on your plan which will be before a bankruptcy judge.
“If you select another type of relief under the Bankruptcy Code other than chapter 7 or chapter 13, you will want to find out what should be done from someone familiar with that type of relief.
“Your bankruptcy case may also involve litigation. You are generally permitted to represent yourself in litigation in bankruptcy court, but only attorneys, not bankruptcy petition preparers, can give you legal advice.”.
(c) Except to the extent the debt relief agency provides the required information itself after reasonably diligent inquiry of the assisted person or others so as to obtain such information reasonably accurately for inclusion on the petition, schedules or statement of financial affairs, a debt relief agency providing bankruptcy assistance to an assisted person, to the extent permitted by nonbankruptcy law, shall provide each assisted person at the time required for the notice required under subsection (a)(1) reasonably sufficient information (which shall be provided in a clear and conspicuous writing) to the assisted person on how to provide all the information the assisted person is required to provide under this title pursuant to section 521, including—
(1) how to value assets at replacement value, determine current monthly income, the amounts specified in section 707 (b)(2) and, in a chapter 13 case, how to determine disposable income in accordance with section 707 (b)(2) and related calculations;
(2) how to complete the list of creditors, including how to determine what amount is owed and what address for the creditor should be shown; and
(3) how to determine what property is exempt and how to value exempt property at replacement value as defined in section 506.
(d) A debt relief agency shall maintain a copy of the notices required under subsection (a) of this section for 2 years after the date on which the notice is given the assisted person.

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Western Sky To Stop Payday Lending

Western Sky On-Line Payday Lender To Stop Making Loans!

I have written about payday loans many times and it always disturbs me to see what sharks these guys are. As a bankruptcy lawyer in New Jersey, I often see people who are in financial distress turn to some pretty unsavory companies.  Payday lenders are the scum of the earth and the damage inflicted because of such loans is nothing short of terrible.

Lately there has been a good deal of press about payday lenders with several states launching investigations and other actions.  Today, one of those companies, Western Sky Financial, says it will stop making loans.  As reported in The Washington Post an other news services that Western Sky will no longer be making their ultra high interest loans after September 3 as a result of governmental enforcement actions.

As being reported in the Wall Street Journal, several states have filed enforcement actions against Western Sky alleging that its loans violate state licensing and lending laws.  Western Sky contended that it was a entitled to tribal immunity because one of its owners is a member of the Cheyenne River Sioux tribe.  To date, every court that has considered this proposition has rejected Western Sky’s claim that it is entitled to tribal immunity.

Unfortunately, even though Western Sky says it will stop making loans, there are a large number of “loans” still outstanding.  If you have a payday loan from an out-of-state lender or an on-line lender, you should consult with a lawyer in your area to see if that loan is also illegal.

Considering bankruptcy?  Todd Murphy, a NJ Bankruptcy Attorney, is the New Jersey Bankruptcy Lawyer people have trusted for over 15 years for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Our office is conveniently located to serve all of Essex County, Bergen County, Passaic County, Hudson County, Union County, Morris County, and Middlesex County.

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What happens to my Chapter 13 Plan If My Income Changes?

I got a raise!
I got a raise!

I got a raise!

It’s wonderful to get a raise or a promotion at work but what happens to my Chapter 13 Plan if my income changes after I file Chapter 13?

The answer to the question of “What Happens If My Income Changes” depends on a couple of things:

The Basic Requirement.

Under the bankruptcy code, you may be required to contribute your projected disposable income toward plan payments for the first 36 months of the plan. I say “may” because the code only requires you to contribute your full disposable income to plan payments if the trustee or a creditor requires it.  However, the trustee always requires it, at least at the start of the plan.

Will A Change In My Salary Require A Change In My Plan Payment?

When Your Income Goes Down: When your income goes down, you are going to want your plan payment to go down otherwise you won’t be able to make the payments.  In that case, call your NJ Bankruptcy Attorney right away to discuss filing an amendment to reduce your plan payment.

When Your Income Increases: When you income increases, the answer to the question depends on a couple of factors: when and how much the salary changes, as well as other changes in your circumstances.

  • When your income changes increases.
    1. Before the plan has been confirmed. After the case has been filed, but before the court has entered an order making it binding on creditors, the Trustee will be looking closely at your disposable income and will require that plan payments be consistent with your disposable income.
    2. After the 36th month of the plan. If your plan is longer than 36 months in length, the code makes no specific requirement that disposable income be contributed to the plan beyond the first 36 months. In Newark New Jersey, the trustee has accepted this limitation and has not asked for increases in plan payments based on increases in income after the 36th month.
    3. After your plan has been confirmed, but within the first 36 months. There is some authority to suggest that the plan is confirmed based upon projected disposable income and that changes in your income do not necessitate changes in your plan payments. Most trustees do not accept that view and will ask that your payments be adjusted if your disposable income changes significantly. If this view were rigidly adopted, the trustee would have to monitor your income closely. The trustee does not do this, and there is authority to suggest that this is beyond the scope of his or her duties. In Newark, the trustee has been requiring that debtors provide her with copies of income tax returns for the first two years of the plan. If she finds a significant increase in income, she asks for an amended budget to determine whether disposable income has increased. If it has, she asks for an increase in plan payments.
  • How much the salary changes, and other changes.
    The plan payments are based on disposable income, not just income. Disposable income is that portion of your income left over after you meet all of your reasonable living expenses – all of your expenses including not just rent/mortgage, utilities, food, clothing, but reasonable allowances for recreation, etc.. If your income goes up, but so do your expenses, there would be no change in disposable income. If your disposable income does go up significantly, the trustee may ask for an increase in your payments. If your payments increase, and if the length of your plan is greater than 36 months, the increase in payments is usually accompanied by a reduction in the length of the plan. In such a case you would simply be paying the plan off sooner.

Chapter 13 Bankruptcy can be tricky – especially in the long-run.  This is just one common example of why it is important to stay in touch with your Chapter 13 Bankruptcy Attorney all throughout the duration of your Chapter 13 Plan.

Considering bankruptcy?  Todd Murphy, a NJ Bankruptcy Attorney, is the New Jersey Bankruptcy Lawyer people have trusted for over 15 years for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Our office is conveniently located to serve all of Essex County, Bergen County, Passaic County, Hudson County, Union County, Morris County, and Middlesex County.