eNewsletter for Morris County Bankruptcy Attorney

Stopping a Foreclosure on Chapter 13

A chapter 13 bankruptcy allows an individual to keep his property and to pay back his debts over a period of three to five years. When someone files for Chapter 13 bankruptcy, he must submit a list of all his debts. In addition, he must supply a list of all his monthly incomes and expenditures. A plan is then generated that allows the debtor to pay installments to each of his creditors, each month, until the debts are paid off. When determining how long an individual will be making payments under Chapter 13 bankruptcy, the debtor’s monthly income is compared with the median income for the state of New Jersey. If the debtor earns less per month than the median income for New Jersey, his Chapter 13 repayment plan will be for three years. A bankruptcy court may then determine that the three-year plan is too short to pay off all debts and require the debtor to be on the Chapter 13 repayment plan for longer than three years. If the debtor’s monthly income is...

Are Chapter 11 Bankruptcy Filings For Individuals?

Filing and confirming a Chapter 11 bankruptcy plan can be expensive and complex. As a result, businesses file the majority of these cases. Individuals, however, are not barred from doing so, and a Morris County bankruptcy lawyer can offer the experience necessary to advise and counsel clients on all issues related to filing for Chapter 11 Bankruptcy.Reasons Why Individuals May File Chapter 11 BankruptcyWhen an individual has large liabilities or is engaged in complex business transactions, Chapter 11 bankruptcy may be the best solution. Frequently, an individual Chapter 11 client is one who belongs in any of the following four categories: An individual who has many highly complex, typically...

Are Income Taxes Dischargeable?

In bankruptcy, discharge refers to debts being forgiven through the bankruptcy process. Once a debt is discharged, the debtor no longer has any personal liability to repay the debt, and the creditor cannot try to collect the debt. Certain income tax debts can be discharged through bankruptcy. If you owe the IRS income taxes, an experienced Morris County bankruptcy attorney can evaluate whether some or all of your tax debt is dischargeable.Taxes That Can Be DischargedIn bankruptcy, income taxes are dischargeable if:The due date for filing the tax return was at least...

New Bankruptcy Laws Tighten the Belts on Petitioners

Changes to bankruptcy laws have made it more difficult to file for bankruptcy. They have changed who can file bankruptcy and they have changed how some Chapter 13 bankruptcy debtors must live on less money than they did previously. Under previous bankruptcy rules, a debtor could openly choose whether he wanted to file for Chapter 7 bankruptcy liquidation or Chapter 13 bankruptcy repayment. It was truly up to the individual filer. Under the new bankruptcy rules, those who earn higher incomes must pay at least some of their debts in a Chapter 13 bankruptcy repayment plan. In addition, those wishing to file for bankruptcy under Chapter 7 must earn a monthly income that is lower than the median average income for a resident of New Jersey. If the debtor’s income is determined to be greater than the New Jersey median income, it must be determined if he has enough disposable income to pay back the debt under a Chapter 13 repayment plan. Those filing for bankruptcy...