Dubiln Packard

Todd Murphy

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New Jersey Revises Statute of Limitations on Foreclosures

Finally Some Clarity on the Statute of Limitations for New Jersey Foreclosures.

There has been much confusion about the statute of limitations for residential foreclosures in New Jersey.  Finally, now, we have some clarity.  The New Jersey Assembly voted to modify the terms of the Fair Foreclosure statute to limit the filing of foreclosure cases to six years after default in some cases.

This bill reduces the statute of limitations in residential mortgage foreclosure actions from 20 years to six years from the date on which the debtor defaulted, in situations in which the date of default is used as the method to determine when the statute of limitations has expired.

Thus, the bill revises the alternative methods under the “Fair Foreclosure Act” for determining when the statute of limitations for the foreclosure of a residential mortgage has expired by providing that an action shall not be commenced following the earliest of: (1) six years from the date fixed for the making of the last payment; (2) thirty-six years from the date of recording of the mortgage; or (3) six years from the date on which the debtor defaulted.

This is great news for those homeowners that have been trying to resolve a home foreclosure for at least six years before the bank files for foreclosure.  The bill leaves a few unanswered questions which will no doubt come up in cases filed after the date of this bill.

Here is the Text of Assembly Bill No. 5001

ASSEMBLY, No. 5001
STATE OF NEW JERSEY
218th LEGISLATURE

INTRODUCED FEBRUARY 7, 2019

Sponsored by:
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Senator TROY SINGLETON
District 7 (Burlington)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Senator DAWN MARIE ADDIEGO
District 8 (Atlantic, Burlington and Camden)

Co-Sponsored by:
Assemblywoman Murphy, Assemblymen Houghtaling and McKeon

SYNOPSIS
Revises statute of limitations for residential mortgage foreclosures.

CURRENT VERSION OF TEXT
As introduced.

An Act concerning certain mortgage foreclosures and amending P.L.2009, c.105.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.2009, c.105 (C.2A:50-56.1) is amended to read as follows:
1. An action to foreclose a residential mortgage shall not be commenced following the earliest of:
a. Six years from the date fixed for the making of the last payment or the maturity date set forth in the mortgage or the note, bond, or other obligation secured by the mortgage, whether the date is itself set forth or may be calculated from information contained in the mortgage or note, bond, or other obligation, except that if the date fixed for the making of the last payment or the maturity date has been extended by a written instrument, the action to foreclose shall not be commenced after six years from the extended date under the terms of the written instrument;
b. Thirty-six years from the date of recording of the mortgage, or, if the mortgage is not recorded, 36 years from the date of execution, so long as the mortgage itself does not provide for a period of repayment in excess of 30 years; or
c. [Twenty] Six years from the date on which the debtor defaulted, which default has not been cured, as to any of the obligations or covenants contained in the mortgage or in the note, bond, or other obligation secured by the mortgage, except that if the date to perform any of the obligations or covenants has been extended by a written instrument or payment on account has been made, the action to foreclose shall not be commenced after [20] six years from the date on which the default or payment on account thereof occurred under the terms of the written instrument.
(cf: P.L.2009, c.105, s.1)

2. This act shall take effect immediately and apply to residential mortgages executed on or after the effective date.

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How to pay bankruptcy filing fees in installments

Bankruptcy Filing Fees Can Be Paid In Advance.

Not everyone is aware that the chapter 7 and chapter 13 filing fee can be paid for in installments.  At time of filing the bankruptcy petition, an application is made which is almost always granted which allows the filing fee to be paid in 4 equal installments.

Filing Fees (as of the date of this article)

Chapter 7: $335/4 $83.75

Chapter 13: $310/4 $77.50

How to pay the filing fees once your application is approved:

Once your application to pay the filing fee in installments has been approved, you must make your monthly payments on time or the Clerk of the Court will dismiss your case without warning.

  • We forwarded the first of four payments on your behalf to the Clerk at the time of filing your application.
  • Your remaining three (3) payments are due 30 days, 60 days and 90 days after the date of filing your case.
  • Payments are in the amount of $83.75
  • Payments must be in the form of a Money Order
  • Mail payment to the address below where your case was filed.

NOTE: to be safe, mail your payment 10 days prior to the due date to ensure it arrives on time.

Include your case number on the money order along with your name and address.

 

Address to mail your Bankruptcy Filing Fees installment payment:

For Newark Cases

Mailing Address: 

US Bankruptcy Court
District of New Jersey
PO Box 1352
Newark, NJ 07101-1352
Phone (973) 645-4764

 

For Trenton Cases:                                                               

Mailing Address:                                                                   

Clarkson S. Fisher US Courthouse
402 East State Street
Trenton, NJ 08608
Phone (609) 858-9333

 

For Camden Cases:

Mailing Address: 

US Bankruptcy Court
District of New Jersey
PO Box 2067
Camden NJ 08101
Phone (856) 361-2300

 

 

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Payment Options For Chapter 7 Bankruptcy

 

We have the best payment options in the business.  We know payment is an important consideration in choosing bankruptcy as an option and in choosing the best bankruptcy lawyer.  Big banks and credit card companies have had laws passed that makes it difficult or impossible for many people to file bankruptcy and to get out of debt.  We believe having payment options is an important part of helping our clients get out of debt with bankruptcy.

Click the button below to find out of you qualify for one of our convenient payment plans.

 

 

We’re here to help so find out now if you qualify for our payment plan right now.

 

 

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7 Options To Have Your Federal Student Loan Discharged

student loan discharge optionsMany people ask me: is there a way to have my student loan discharged?  In most situations, it’s very difficult if not impossible to have a student loan discharged.  But, below are 7 options for Federal Loan Discharge.

7 OPTIONS TO HAVE YOUR FEDERAL STUDENT LOAN DISCHARGED OR CANCELLED

Read what follows carefully: if you meet any of these conditions, you can apply to have the government cancel the remainder of your federal student loans. If you submit an application to have your student loan discharged, you must keep paying your loan until the right agency approves your application.

Also, note that canceled loans may still count as taxable income. Even though you won’t have to pay back your student loans, you might have to pay taxes on the discharged balance (see my article on income tax on cancelled debt here).

1. YOUR SCHOOL CLOSED

If your school closed while you were enrolled or shortly after you withdraw, you could qualify for student loan discharge.

You must have been enrolled during or within 120 days of the school closing. If you withdraw more than 120 days after it closes, you won’t be eligible for student loan discharge.

If the agency approves your application, it will cancel 100 percent of your Direct Loans, Federal Family Education Loans (FFEL), or Perkins Loans.

2. FILING BANKRUPTCY

Bankruptcy courts rarely discharge student loans through bankruptcy. But in extreme cases of “undue hardship,” filing a bankruptcy will wipe out some or all of your student debt. There’s no hard and fast rule for what constitutes undue hardship, but there are a few general guidelines:

  • You’ve made good faith efforts to pay back the loan.
  • If you had to pay back the loan, you couldn’t sustain a minimal standard of living.
  • Your financial hardship is going to continue for the foreseeable future.

3. YOU ARE TOTALLY AND PERMANENTLY DISABLED

If you’re facing a long-term disability that leaves you unable to work, you may qualify for Total and Permanent Disability Discharge (TPD). There are three ways you can qualify for TPD:

  • You’re a veteran with a service-related disability who can no longer work. You must submit documents from the U.S. Department of Veterans Affairs.
  • You receive Social Security Disability Insurance or Supplemental Security Income benefits. You must submit supporting documentation and have a disability review scheduled within the next five to seven years.
  • Your physician determines that you have a total and permanent disability that has lasted for at least 60 months and will last for at least another 60.

Whatever documentation you provide, it must show you’re unable to engage in gainful employment. As a result, you can’t pay back your student loans.

4. THERE WAS A FALSE CERTIFICATION OR UNAUTHORIZED PAYMENT

This student loan discharge option applies primarily to Direct Loan or FFEL Program loans. It’s offered to victims of identity theft or false certification. There are a few different ways to qualify:

  • Your school falsely certified you as eligible to receive loans even though you didn’t meet the requirements.
  • Your school signed your name on an application or promissory note without you knowing about it.
  • Someone took out a loan in your name (identity theft).
  • You trained for an occupation at school that you can’t engage in due to a physical or mental condition, your age, a criminal record, or another qualifying reason.

5. SCHOLL DID NOT PAY REFUND

If you have Direct Loans and FFEL Program loans and your school didn’t pay a refund it owed to the U.S. Department of Education or a lender, the government may give you a partial discharge in the amount your school didn’t pay.

Qualifying for this refund may require a bit of detective work on your part. Contact your school to learn about its refund policies for federal aid, and ask your loan servicer for additional information.

6. SCHOOL DEFRAUEDED YOU

Some schools, such as the for-profit chain Corinthian Colleges, have used illegal or deceptive tactics to convince students to take out loans and attend.

If you can prove a school defrauded you, you won’t have to pay back your student loans. You must prove the misleading conduct directly related to your loans or education. Documents like transcripts, enrollment agreements, emails with school officials, promotional materials, and course catalogs may all be useful in supporting your claim.

The government may put your loans into forbearance or stop collections while your application is pending when you apply for this student loan discharge option.

7. STUDENT DEATH

If the borrower dies, the family may be eligible to have a Federal student loan discharged. In this event, a family member or representative must send a death certificate or other documentation to the loan servicer. All federal student loans are discharged. Parent PLUS loans are also canceled if the borrower or the student passes away.

POSSIBLE INCOME TAXES ON DISCHARGED OR CANCELLED STUDENT LOANS

If you have your student loan discharged, it could save you thousands of dollars in debt and interest, but you may have to pay income tax on the amount of the student loan discharged or cancelled.

When the government discharges your loans, the canceled balance might be treated as taxable income by the IRS.  There are exceptions to this such as insolvency.  It is best to check with your tax specialist to see if you owe any income tax.

The amount of tax owed may still be significantly less than what you’d pay in student loan debt.

OTHER STUDENT LOAN FORGIVENESS AND ASSISTANCE OPTIONS

As you can see there are a number of options to have your student loan discharged, but, it’s still rare. It is more likely that you can take advantage of a student loan forgiveness and repayment assistance programs.

Look into forgiveness programs such as Public Service Loan Forgiveness and Teacher Loan Forgiveness. In exchange for several years of service, you could get the remainder of your loan balance forgiven.

States and universities also offer loan repayment assistance programs, which are typically based on occupation. They often benefit people who work in critical shortage or high-needs areas. Browse student loan repayment assistance programs by state or occupation to see if any apply to you.

Also, look into income-driven repayment plans if you’re struggling to keep up with student loan payments. These income-based plans extend your repayment plans and lower your monthly payments.  But be careful, adding years to your plan means you’ll pay more interest in the long run. But it could be the solution you need to avoid defaulting on your student loans.

KEEP PAYING YOUR LOANS UNTIL YOU’RE APPROVED

Remember that any application for student loan discharge or cancellation will take some time. You’ll need to track down and provide documentation to support your claim.

You’ll also have to wait for the associated agency to review your application and approve it. In the meantime, keep paying your student loans. If you pause payments and the government denies your application, you’ll have to deal with the fallout of ballooning interest.

Although these discharge programs are useful for some, there’s no guarantee you’ll qualify. Look into all avenues for managing your student loans. That way, you can take control of your debt and find the solution that works for you.

 

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How to do a Cost Benefit Analysis of Going to College

cost benefit of collegeHow to do a Cost Benefits Analysis of Going to College

Most today know that student loans are out of control. Part of the reason is students enrolling in programs with no clear plan to pay for the debt incurred. A key way to prevent being hammered with unmanageable education debt is to perform a cost-benefit analysis.

Facing facts, not all college students enter business programs. Those doing so will likely enjoy this information – others are likely to shudder. Another fact is that few High School graduates know anything about a cost-benefit analysis. This article will simplify the cost analysis so that anyone can know before enrolling what to expect financially upon graduation.

About the Cost-Benefit Analysis of Attending College

Polling data indicates that many people today do not believe that the benefits of going to college outweigh the costs. At the same time, polling data indicates that most parents want their children to attend a college or university, so there is pressure.

However, few parents and teens take the time to weight the costs against the benefits of attending college. Those who do will readily determine whether the intended program of study will be beneficial to the graduate or too costly to be of use.

The simple reason most do not perform a cost-benefit analysis is because they do now know how.

A Simple Way to Do a Cost-Benefit Analysis

Doing a cost-benefit analysis does not have to be a complicated, drawn out process. One simple way is to open a spreadsheet. Treat this much like creating a simple budget. In fact, if planning to work while in school, it helps to incorporate a budget into the analysis.

The simplest way to do this analysis is to create a column for the costs of attending one or more preferred colleges.

Add rows for Tuition for each semester attended. Learn how much tuition increases each year and adjust accordingly. Add rows for the cost of books, student housing if applicable, and any other costs which may arise.

Then add a section which considers the expected costs of loans upon graduation.

Add columns which account for the expected wages upon graduation. An excellent source for accurate information related to jobs is the Bureau of Labor Statistics. Keep in mind, however, that BLJ stats are averages – students will enter the workforce at lower than average wages.

Also, consider the role of wages locally. Do a search for job titles and the average wages in the area in which a student expects to live.

Enter the figures into the spreadsheet and a good rule of thumb is to be conservative when entering expected wages.

Drawing Conclusions from the Cost-Benefit Analysis

Once projected wages and future costs of attending college are in the spreadsheet, simple formulas subtracting costs from wages can provide an understanding needed to draw conclusions.

This is where adding a projected living budget really comes in handy. If all the costs upon graduation exceed the anticipated wages, a student may want to reconsider a few things.

Can a less expensive technical school provide the needed skills?

Can the student plan to live in a more affordable location upon graduation?

Will the wages of the planned career adequately cover the costs of attendance?

Would a different degree program better serve the needs of the graduating student?

These are important questions, but only by planning the costs and expected benefits (wages) can a student know beforehand whether the desired college and/or program will provide well enough to make it worthwhile.

A cost-benefit analysis need not be complicated, but it does need to be done.