Dubiln Packard

List of Approved Credit Counseling Agencies For New Jersey Bankruptcy

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List of Approved Credit Counseling Agencies For New Jersey Bankruptcy

Approved Credit Counseling AgenciesOne of the requirements of filing personal bankruptcy in New Jersey is to complete two counseling or education courses.  These can be taken on-line or over the phone and take about twenty or thirty minutes to complete.  Below is a link to a list of approved credit counseling agencies for New Jersey Bankruptcy.

Click here for the List of Approved Credit Counseling Agencies For New Jersey Bankruptcy.

Why Do You Have To Take Credit Counseling Course For New Jersey Bankruptcy?

This requirement to file Bankruptcy in New Jersey came into effect as the result of a change in the US Bankruptcy Code in 2005.  Formally albeit somewhat misleadingly titled the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the law essentially made it more difficult for individuals to file bankruptcy.

When Do I Take the Credit Counseling Course For New Jersey Bankruptcy?

Two courses are required: one prior to filing and one prior to discharge.  Your New Jersey Bankruptcy Lawyer will advise you when to take the two courses and provide you with a provider from which to take the course.  The link above takes you to a list of Court-approved providers.

How Do I Take the Credit Counseling Course For New Jersey Bankruptcy?

Many of the providers make it easy to take the course on-line or by phone in the comfort of your own home.  If you don’t have your own computer at home, you can take it at work or at the library.

Be Wary of Misleading Mail Solicitations.

Providing these courses is big business for some providers as they seek not just to sell you their course but also many other products such as high-risk car loans, high-fee credit cards, and so-called credit repair services.  Your mail box will fill up quickly immediately after you file with mis-leading letters and offers to these and other services.  You just took a very important step to clear your credit of nagging debts, be extremely careful before you  get yourself into new debts.  Most of these offers are risky at best.

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Will Bankruptcy Stop a Sheriff Sale?

Will Bankruptcy Stop A Sheriff SaleBankruptcy will stop a Sheriff sale provided a bankruptcy case filing number is provided to the Sheriff prior to the sale. So, Will Bankruptcy Stop A Sheriff Sale?  Yes.

Sheriff’s sales are the final event in the foreclosure process but sometimes, if an adjournment of the Sheriff sale cannot be obtained, the only way to stop the sale is with a bankruptcy filing.

If the property is placed in bankruptcy through a bankruptcy filing, the Sheriff is not permitted to proceed with the sale until the Sheriff receives further orders from the plaintiff’s attorney. The file is held in abeyance of the Court until the bankruptcy is dismissed or if there is a default on the defendant’s part.

If you have been attempting to get a loan modification and save your home from foreclosure, a chapter 13 bankruptcy may prove to be helpful by stopping the Sheriff’s sale  and obtaining a loan modification. In a Chapter 13 Bankruptcy filing, you will be permitted to catch-up on all of the arrears (missed payments as of the time of filing) over a 60-month period through a Chapter 13 plan and immediately start making your mortgage payments. Provided you have enough income to make those payments, there is no approval required from the bank, rather, your chapter 13 plan is confirmed by the bankruptcy court.  This is often extremely helpful in the case of a self-employed person who has been unable to convince a lender of the ability to pay.

Will Bankruptcy Stop A Sheriff Sale?  Yes.  Contact us to learn more.

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Are Condo Association Dues Dischargeable in Bankruptcy?

Condo fees dischargeable in bankruptcyIn a word Yes.  But read on.

Yes, is not the end of the question.  Past-Due Condo Association Dues Are Dischargeable in Bankruptcy. BUT, you will continue to owe dues and fees that are incurred after the bankruptcy for as long as you remain in title to the house.

Many people are confused by the question: Are Condo Association Dues Dischargeable In Bankruptcy? Condominium association fees pose a special difficulty in Chapter 7 or Chapter 13 bankruptcy, given the deflated values of many condos in this real estate market, the intent of many condo owners to surrender and safely walk away from terribly underwater condominium properties through the tax-free and collection-free bankruptcy process, and the slowness new of mortgage-holding banks in foreclosing on surrender condominium properties in New Jersey.

The “special difficulty” is with regard to the condominium association fees and dues that come along with the ownership of such properties. First: a bankruptcy surrender of real estate does not “quitclaim” the property back to the mortgage-holding banks immediately.  A New Jersey law-based foreclosure is required for the title to transfer from the individual filing the bankruptcy back to the bank after the bankruptcy.  Second: while the bankruptcy discharges the filler’s obligation to pay all past-due fees and dues, it does not have any effect on all post-filing dues and fees that become due and owing and continue to become due and owing each and every month until the filer no longer holds title to the property.

Past-due association dues and fees are discharged by a bankruptcy just like any other unsecured debt. However, condominium associations (and homeowners’ associations in planned subdivision situations) have litigated the issue of continuing association fees aggressively in the bankruptcy courts, and they have largely come out ahead on this question.

What does all of this mean?
Even If Surrendering the Condo, Dues Must Be Paid from Date-of-Filing of the Bankruptcy Petition until the property is transferred to another owner or back to the bank.

A homeowner must continue to pay the association fees so long as they remain the titled owner of the property—even after a surrender of the property in bankruptcy.

It is worth repeating for clarity: Bankruptcy will discharge all association fees incurred prior to the date of the filing of the bankruptcy petition BUT the homeowner will be liable for association fees from the date of filing forward, on through the completion of a full foreclosure process by the note-holding bank. In New Jersey, this can mean several months to a year or more of continuing responsibility for these fees, even after a bankruptcy. This is because, until a full foreclosure process as required under New Jersey state law is completed, the surrendering homeowner remains the titled owner of the property.

A full foreclosure process includes a “redemption period” following the foreclosure Sheriff’s sale of the property, generally. If you are not in foreclosure at the time you file your Chapter 7 or Chapter 13 bankruptcy in New Jersey, you can expect to remain the titled owner of the property and to be required to pay ongoing association dues for at least 12 months from the date of filing of your bankruptcy petition. During that period of time after a bankruptcy, you are not required to make any mortgage payment or pay any property taxes, BUT you MUST make your ongoing association dues payments (and keep the property insured, if that insurance payment is not drawn from the association dues, for your own liability protection).

If you are a New Jersey resident and would like to explore your options for a Chapter 7 or Chapter 13 bankruptcy with an experienced New Jersey bankruptcy attorney, please contact us at or click the button to schedule a free, initial consultation.

 

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What Is The Sheriff Sale Process In New Jersey?

Sheriff Sale ProcessThe Sheriff Sale Process in New Jersey takes place according to the local rules of each County Sheriff Department. Sales take place at each County Sheriff’s office according to each Sheriff’s Office Schedule.  Most of the Counties maintain a list of real estate properties to be sold at auction on a searchable website.  Traditional paper lists are available for review at all Sheriff’s Department offices during normal business hours.

All Sheriff’s sales are sold subject to a first mortgage if any, and any municipal, state, or federal liens, if any. A title search should be run on the property prior to bidding.  The search will reveal all outstanding liens, which you would assume if you are the highest bidder.

Sheriff’s Sales are voice bid auction sales (no sealed bids).  The attorney for the plaintiff will start the bidding at $100.  The bidding will continue until the highest price is reached. The highest bidder will be the purchaser.  The plaintiff’s attorney normally does not allow the bid to go for less than the judgment amount due his client.  The plaintiff’s attorney will bid until he or she has reached the upset price (typically the amount owed on the first mortgage).  The upset price of the total of the judgment due, interest, attorney’s fees, sheriff’s fees, advertising costs and commissions.  The attorney will stop bidding once the price exceeds the upset price.  The highest bidder will be the successful bidder.

The Plaintiff’s attorney may adjourn the sale as many times as is necessary for any reason or time period.  Under NJSA 2A:17-36, the Sheriff has the discretionary right to make only two (2) adjournments of the sale, not exceeding two weeks maximum for each.  The defendant or his attorney requesting the adjournment for a just cause requires a written letter and a fee before granting such adjournment.

If the property is placed in bankruptcy, the Sheriff cannot proceed with the sale until further orders from the Plaintiff’s attorney are received.  The file is held in abeyance by the Court until the bankruptcy is dismissed or if there is a default of the defendant’s part.

The owners of the property may, at any time prior to the sale, try to save their home and/or property in several ways.  They may try to reinstate the delinquent amount owed, pay the judgment in full or obtain another loan, etc.  They may ask try to sell the property in order to pay the judgment and at the same time profit from any proceeds.  The defendants have a ten-day redemption period after the sale during which time they may redeem the property or object to the sale through the Court.  The bidder in this case would receive his 20% deposit back.

A Sheriff’s Sale Deed will be prepared and ready in approximately 30 days after the sale.  The balance due on the sale must be paid no later than 30 days after the sale date in accordance with the conditions of sale.  Lawful interest will be charged on the balance due from the 11th day after the sale until the remaining balance is paid.

It is the sole responsibility of the purchaser to record the deed and pay the fees in the County Clerk’s Office.  It is also the sole responsibility of the purchaser to notify the owner that they have purchased the property and now hold the deed to the property.

If the defendant does not voluntarily leave the property, the purchaser must apply to the Court for a Writ of Possession.  The Sheriff’s Office will serve the Writ upon the defendants which will advise the to vacate the premises within a particular period of time.  If the defendant has not vacated by the stated date, the attorney for the purchaser must set a date to have a moving van sent to the property and have the defendants personal belongings removed and stored in a place of safe keeping.  the costs of the moving and storage are the responsibility of the purchaser.

If you are considering purchasing a property at a Sheriff’s Sale, it is strongly recommended to retain an experienced NJ Foreclosure attorney for assistance.

 

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Can a sheriff’s sale be postponed under NJSA 2A:17-36?

Sheriff Sale AdjournmentNew Jersey Statute NJSA 2A:17-36. Adjournments of sale of real estate.

NJSA 2A:17-36. Adjournments of sale of real estate provides that a sheriff or other officer selling real estate by virtue of an execution may make two adjournments of the sale, and no more, to any time, not exceeding 14 calendar days for each adjournment. However, a court of competent jurisdiction may, for cause, order further adjournments.

In New Jersey, a Sheriff’s sale of a foreclosure property can be adjourned (fancy for postponed) twice by the Sheriff at the request of the homeowner for any reason. Each of these adjournment shall be for not more than 14 days.  The lender may request an adjournment as many times as it wants without reason.  Once the two “free” adjournments have been exhausted, the homeowner may apply to the Court by Motion for further adjournments provided good cause has been shown to the Court.

For assistance in obtaining an adjournment of a sheriff’s sale of a foreclosure home, contact your local Sheriff department or a qualified NJ foreclosure lawyer in New Jersey.

Link To Statute NJSA 2A:17-36.

Link to instructions and a form to adjourn a sheriff sale.