Dubiln Packard

Bankruptcy as an Option

Find out if bankruptcy is an option for you.

Thousands of people have been through it.
It's just another form of financial transaction designed to give people a second chance for a fresh start. Don't let financial problems haunt you forever.

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Medical Debt: I Need Help!

Medical debt can quickly become a nightmare, especially if you don’t have health insurance.  Sometimes filing for bankruptcy can help if your medical debt is so much that you can’t afford to pay it.

Two years ago, Tracy ended up in the emergency room of her local hospital after falling off a ladder when she was painting her kitchen.  She had broken two ribs.  She didn’t have health insurance, but figured the cost wouldn’t be astronomically high – she and her husband would figure out a way to pay it off.  Life happens, right?

She didn’t expect the bills to run over $25,000.00.  She filed for state-funded Medicaid, but was told her husband makes too much money for her to qualify.  She filed for the local hospital’s “Charity Care” program, but was told the same – she didn’t qualify because she and her husband make “too much money.”

Tracy’s husband manages a restaurant.  He makes just under $60,000 per year.  Tracy stays home with their baby daughter.  After their $1,300 per month mortgage payment, 2 car payments, car insurance costs, utility bills, and she and her husband’s maxed-out credit card bills, there’s barely enough money left at the end of the month to buy food.  Tracy couldn’t believe these people were telling her they make “too much money.”

Tracy consulted with a lawyer she knew to try and get the hospital to forgive the debt.  Her lawyer pleaded with the billing company, asking them to consider the fact that they just didn’t have enough money to even make small payments toward the $25,000 medical debt.  The hospital refused to make any accommodations.  Tracy refused to pay a dime toward the debt, because she felt they should understand her situation.  But the bills kept coming, and eventually she started getting calls and letters from collection agencies.  Because the debt had gone to collection, her personal credit score was now trashed.  She had been responsible her entire life, now because of some inflated medical costs she couldn’t afford, everything she had worked for was in question.

Tracy called a NJ bankruptcy lawyer and learned that if she filed for bankruptcy, she could get ALL of the medical debt and her credit card debt forgiven at the end of the bankruptcy program.  Her lawyer worked with her to come up with a plan, based on her household income, so that she can continue to make her car and mortgage payments on time, and still afford to buy food and pay her utilities.  She stopped paying her unsecured debt (medical and credit card debt), and at the end of the bankruptcy plan the $25,000.00  medical costs and her credit card bills were dismissed.

What had been a nightmare was finally resolved.  Tracy could get back to living a normal life.  Filing for bankruptcy isn’t a quick fix and isn’t supposed to be overused, but in Tracy’s case it was a valid solution to her problems.

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What to expect from a bankruptcy lawyer

Here is what to expect from your bankruptcy lawyer in New Jersey.

It usually starts with a phone call –

Then a meeting.  At that first meeting, we will explain the process which starts with gathering a large amount of financial information from you.  We give you a questionnaire to take home which asks many important questions.  We will also give you a list of documents we need to complete your bankruptcy case.

Most people take advantage of our payment plans and start making regular payments.

While making payments, you will start submitting documents

Once we have all of your documents and other financial information, we start compiling your bankruptcy petition.

Once complete, we will ask you to review it and sign it.  Then we will submit to court.

In the case of Chapter 13, we will propose a Chapter 13 Plan to the trustee for repayment of your debts over tie.  The trustee will review it and usally make comments which cold require us to amend the plan.

Approx 30 days later, we will go with you to a meeting with the trustee known as the section 341 meeting.  There the trustee will ask you some questions and ask for your identification.  This meeting usually takes no more than 15 minutes and takes place at the Trustee’s office.

Ninety days after submission of your chapter 7 petition, you should be notoied of a discharge.

In the case of a Chapter 13, you will be required to make payments to the trustee right away.

Often at the 341 meeting the trustee will provide some comments that may require an amendement to your plan.  We will submit that amendment.

Confirmation hearing.  No need to attend.  Confirmation.

After confirmation, continue to pay the trustee every month for the duration of the plan.

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Can I Discharge Debt with Chapter 13?

You can discharge debt with Chapter 13 bankruptcy, and keep your assets.

Chapter 13 Bankruptcy is essentially a repayment program.  If you follow the repayment schedule that you and your attorney set up with the court, your unsecured debt is discharged at the end of the program.  That means that credit card debt, medical debt, and other unsecured debt (we’ll talk about secured v. unsecured in a moment) is considered no longer yours if you successfully complete the Chapter 13 plan.

Secured debt is debt that is backed by a physical object such as a home or a car.  These types of debt you must continue to pay on your Chapter 13 schedule.  Unsecured debt is the kind of debt that is NOT backed by a valuable physical object, such as credit cards, medical debt, store cards, furniture, etc.  During your Chapter 13 plan, you do not make payments toward your unsecured debt.

During your Chapter 13 plan, you MUST make 50 payments towards your SECURED debt ON TIME in order for you to complete the plan and get your unsecured debt discharged.  Todd Murphy, NJ Bankruptcy Lawyer, recommends that you set aside some emergency money so that you can ALWAYS make your SECURED debt payments ON TIME and complete your Chapter 13 plan, so that you can get your unsecured debt discharged.

Todd Murphy, NJ Bankruptcy Lawyer, will work with you to asses what is called your “disposable income”.  This is the income you have leftover at the end of the month after you pay your living expenses.  Your disposable income should be enough to pay your SECURED debt payments like your mortgage or car payment.  After you make 50 on-time payments, you will have successfully completed your Chapter 13 plan and you will be free of your unsecured debt!

Contact Todd Murphy to find out if you qualify for a Chapter 13 Bankruptcy plan.

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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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Advice for Making Chapter 13 Bankruptcy Work for You

Looking for advice for making Chapter 13 Bankruptcy work for you?

People file for Chapter 13 bankruptcy for many reasons such as to reorganize debts in a manageable way or to save a home from foreclosure.   Unfortunately, many Chapter 13 Bankruptcy cases fail in the long-run.  Here is some advice for making Chapter 13 Bankruptcy work for you.

It is important to remember that Chapter 13 Bankruptcy is a long process – often five years – and it is important to do everything you can do to make the most of all that Chapter 13 Bankruptcy can do for you.

Its a Long Haul.

First stop should be an experienced New Jersey Bankruptcy Attorney.  At the same time, you should consult a couple of good websites hosted by Bankruptcy Lawyers to educate yourself on the process.  Since you are reading this article, it appears you are already on the right track.

Bankruptcy Is A Game Changer.

The huge benefit of Chapter 13 Bankruptcy is it provides you with the opportunity to manage your debt based on your actual budget.  I’ll say that again – your budget.  It puts you in control of paying your debts according to your budget and schedule not your creditors demands.

Chapter 13 Bankruptcy gives you power over your creditors and protects you from almost all legal action against you.

Do Your Part.

If Your Expect Extraordinary Results You Must Put Forth Extraordinary Effort

Chapter 13 Bankruptcy is a lot of work.  Be sure you stay involved in the process, make your payments on time and work with your Bankruptcy Attorney to develop a budget and plan you can afford in the long term.

Careful Planning Makes It Work.

The Budget. Chapter 13 is a reorganization of your debts.  We start by analyzing your income then preparing a household budget that you can live on.  Whatever money is left of your income after paying all of the expenses in your household budget then is paid to the trustee to fund your “Chapter 13 Plan.”

The Plan. The Chapter 13 Plan is a plan to pay your creditors.  Creditors are first sorted by priority into secured or unsecured creditors.  Secured creditors include your mortgage lender and car loan lender and they get paid first.  If there is any money left over after paying the secured creditors, that money is divided amongst your unsecured creditors such as credit cards.   There are other features of a Chapter 13 Plan that can be beneficial such as eliminating second mortgages or adjusting the terms of loans other than your first mortgage.

Get The Right Bankruptcy Attorney On Your Team.

In choosing an attorney, look for someone who will take the necessary time to work with you to develop a budget and a plan that you can live with for five years.  Too many people can’t make their plan payments which can lead to many different problems the most serious of which is to have your case dismissed.  This means you lose all of the rights you gained from the bankruptcy laws.

Advice For Making Chapter 13 Bankruptcy Work For You.

But what should you do during the bankruptcy process to make it run smoothly?

  • You should remain involved in your case the entire time it is pending.  This means keeping in touch with your New Jersey Bankruptcy Attorney, and informing him/her of any changes in your income or expenses as well as  to your email address, your home address, or phone number.
  • You must make your Chapter 13 Bankruptcy Plan Payments on time every time.  Missing a payment can have very significant consequences.  Don’t make this mistake.
  • Make sure you keep your mortgage and car payments up to date.
  • If you sense that you might fall behind on payments or if you have an emergency, call your bankruptcy lawyer.
  • Remember that your lawyer’s job is to create a payment plan than should work for you. You are the one who makes it work.
  • If you receive something in the mail that you don’t understand, contact your Bankruptcy Attorney right away.

 

Keep Focused On The Goal.

 

Obstacles Are those frightful things you see when you take your eyes off the goal – Henry Ford

 

 

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