Dubiln Packard

Know your rights

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New Jersey Governor Murphy Extends New Jersey Eviction Moratorium for residential tenants and homeowners

Landlord tenant court
Landlord Tenant Court

Many New Jersey residents have lost jobs or had their hours reduced making it hard or impossible to pay their rent. Governor Murphy, saw the need to help these New Jersey residents and enacted a New Jersey Eviction Moratorium protecting tenants from being removed from their homes during this difficult time. The moratorium has been extended each month keeping the protection in place to protect New Jersey tenants.

Moratorium applies to tenants and homeowners

This moratorium applies to tenants subject to eviction by landlords and home owners subject to removal from their homes following a sheriff sale upon foreclosure.

Governor of New Jersey Enacts Eviction Moratorium

In March, when the pandemic hit New Jersey hard, Governor Murphy put into place several Executive Orders starting with Executive Order 103 on March 9, 2020 in which he declared a State of Emergency and Public Health Emergency effective immediately on that day. On March 19, 2020, Governor Murphy signed Executive Order 106 enacting a moratorium on removal of people form their homes due to tenant evictions or foreclosures.

Governor of New Jersey Extends Eviction Moratorium

Every month starting April 1, the governor has extended the State of Emergency and Public Health Emergency. Once again On July 2, 2020, Governor Murphy extended The State of Emergency and Public Health Emergency through Executive Order 162.

Each of these Executive Orders extends the anti-eviction moratorium for “two months following the end of the Public Health Emergency or State of Emergency established by Executive Order No. 103 (2020), whichever ends later….”

With the July 2 Order extending the State of Emergency for 30 days, this extends the moratorium through September 30, 2020.

I expect the Governor to extend the Order at least once again in August but we will wait and see how things go. He is under a lot of pressure from Trump to get things back to normal although, thankfully, the Governor has taken a conservative approach to things.

Don’t let landlords take advantage of you

Some landlords have been trying to evict tenants even though the moratorium is in place. Read more here: Don’t let this happen to you.

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Landlords Evict Tenants During COVID-19 Against New Jersey Eviction Moratorium

Essex County Rent Court

Some New Jersey landlords have been evicting tenants during COVID-19 against the New Jersey Eviction Moratorium put in place by Governor Murphy in March.

Unscrupulous landlords have been getting away with intimidating tenants and evicting them from their homes at a time when they have nowhere to turn.

Many New Jersey residents have lost employment or have had their hours reduced due to the COVID-19 pandemic. New Jersey’s governor, knowing people would be effected by a loss of employment and then may not be able to pay rent, acted to prevent these evictions by putting into place a New Jersey Eviction Moratorium.

Some heartless landlords try to evict a tenant for non-payment anyway taking advantage of the tenent’s lack of knowledge of the moratorium.

Judges Should Step In

A typical landlord tenant hearing has the homeowner on one side and a aggressive lawyer on the other side bullying the tenant into agreeing to move out to avoid having to pay back-rent while judges stand by doing nothing to help the tenant when the judge knows full well there is a moratorium in place.

This should not be allowed to happen during this COVID pandemic with mass unemployment due to no fault of the tenants.

I blame judges for not putting a foot down when they know all too well there is a eviction moratorium in place. I understand Judges refrain from offering legal advice to a litigant, especially one who is not represented by counsel, but to allow an agressive landlord to throw someone out of their home during this very uncertain time just should not be allowed to happen.

Judges should take a stand and dismiss cases while the moratorium is in place.

The NJ State Assembly Should Act

If judges aren’t going to take a stand, the NJ State Assembly should enact legislation preventing landlords from filing eviction with heavy fines for doing so to give it teeth.

Any landlord that files for eviction while the moratorium is in place should be fined the equivalent of one month rent for filing the case and the case should automatically be dismissed by the clerk of court.

Governor Murphy Enacts Anti-Eviction Moratorium

In March, when the pandemic hit New Jersey hard, Governor Murphy put into place several Executive Orders starting with Executive Order 103 on March 9, 2020 in which he declared a State of Emergency and Public Health Emergency effective immediately on that day. On March 19, 2020, Governor Murphy signed Executive Order 106 enacting a moratorium on removal of people form their homes due to tenant evictions or foreclosures.

Murphy Extends to Anti-Eviction Moratorium

Every month starting April 1, the governor has extended the State of Emergency and Public Health Emergency. Once again On July 2, 2020, Governor Murphy extended The State of Emergency and Public Health Emergency through Executive Order 162.

Each of these Executive Orders extends the anti-eviction moratorium for “two months following the end of the Public Health Emergency or State of Emergency established by Executive Order No. 103 (2020), whichever ends later….”

With the July 2 Order extending the State of Emergency for 30 days, this extends the moratorium through September 30, 2020.

I expect the Governor to extend the Order at least once again in August but we will wait and see how things go. He is under a lot of pressure from Trump to get things back to normal although, thankfully, the Governor has taken a conservative approach to things.

Should you find yourself in this situation, you now know to tell the judge there is a moratorium in place and there can be no eviction.

Good luck

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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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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.

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Fight Collection Abuse

The Fair Debt Collection Practices Act helps protect consumers and fight collection abuse.  New Jersey bankruptcy firm Todd Murphy Law can help protect you from questionable or harassing debt collection practices.

The Fair Debt Collection Practices Act (FDCPA) prohibits the debt collector from contacting a third party (someone who has information about you) if they know that you are represented by a lawyer.  If you do not have a bankruptcy lawyer, the debt collector can only contact third parties to locate you.  Your New Jersey bankruptcy lawyer will inform your debt collectors that he/she is representing you.

A debt collector must inform you in every communication they have with you that the communication is from a debt collector.  The debt collector is required to send you a dispute/verification invitation within five days of their first contact with you.  If you submit a dispute within 30 days, the debt collector must stop trying to collect until the debt is verified.

Telephone calls from a debt collector to you must only occur between 8:00am and 9:00pm.  They cannot call you at work if there is an employer policy against such types of calls.

A debt collector must not harass, oppress, or abuse a consumer.  This is not well defined in the law, however, and is left to the courts to decide.  If there is abuse, try to record abusive collection language when you hear it, and keep a record of the calls in writing what took place and how it made you feel.  The more proof of the abuse you have the better, as it can be difficult to convince a judge or jury that abuse took place.

Debt collectors are not permitted to use false or misleading information to collect a debt, and may not collect more than what is owed.

If a debt collector violates any part of the FDCPA, you may be able to recover actual damages, $1000 in statutory penalties, and attorney fees.

We’re here to help protect against collection abuse practices. If you’re abused by a collector, contact an attorney immediately.

Call Todd Murphy Law today for a free consultation.