eNewsletter for Our Morris County Bankruptcy Law Firm

Understanding the Automatic Stay

Filing for bankruptcy typically triggers what is called an “automatic stay.” In most cases, the moment a bankruptcy petition is filed, an automatic stay goes into effect and remains in effect for the duration of the case. The automatic stay prevents creditors from taking certain collection actions. Creditors cannot: Take any action against the debtor or the debtor’s property to collect any debt Enforce any lien on the debtor’s real or personal property Repossess any property in the debtor’s possession Discontinue any service or benefit currently being provided to the debtor Take any action to evict the debtor from his or her residential dwelling More specifically, the automatic stay prevents a creditor from foreclosing on a debtor’s home, repossessing a debtor’s vehicle and garnishing a debtor’s wages, among other actions. An experienced Morris County bankruptcy lawyer understands the effects and limitations of the automatic stay and can explain your rights…
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Who Gets Paid First in Bankruptcy?

Morris County Bankruptcy Attorney Describes the Process People who file bankruptcy often owe money to different entities as creditors. When many creditors are involved, how do they decide who gets reimbursed first as the debtor begins to pay off his or her debts? This question is at the heart of recent legal entanglements for Sonja Morgan, star of the reality show Real Housewives of New York. Currently, many of her creditors are attempting to take possession of her home as she fights to keep it. One of her creditors, Hannibal Inc., wants to liquidate all her assets, repossess her home and take its share of her debts before her other creditors do. Morgan says that she has her own plan in place to relieve her debts. A judge is currently reviewing her proposal, which argues that funds from selling her French home, and an expected payment from her ex-husband, can…
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An In-Depth Look at How Debt Settlement Works

Debt settlement is a less drastic alternative to bankruptcy. Bankruptcy should be a last resort. It is a decision that there is no way you can pay back your debts, and filing for bankruptcy will impact your credit score and even job prospects for several years. Debt settlement, on the other hand, has less severe consequences but it is still a serious step. If you are considering debt settlement, a Morris County bankruptcy attorney can review your situation with you and help you make the best decision. Important Steps of the Debt Settlement Process Usually a debtor does not deal with his or her creditors directly. Instead, a debtor consults with a debt settlement company. This company is a third party that will negotiate on the debtor’s behalf with his or her creditors. Debtors should do thorough research on the company to avoid falling prey to scams. For debtors dealing…
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Do I File For Chapter 7 or Chapter 13 Bankruptcy?

When filing for personal bankruptcy, it is important that you understand the difference between Chapter 7 and Chapter 13 bankruptcies. It is also crucial that you know the basics of both bankruptcy chapters. A Morris County bankruptcy attorney can help you to make a comfortable decision when choosing between Chapter 7 and Chapter 13. The Differences Between Chapter 7 and Chapter 13 Chapter 7 and Chapter 13 greatly differ as to the functions they represent. A Morris County bankruptcy lawyer may be helpful when searching for what functions each chapter meets. Both have requirements the filers must adhere to including having a court-appointed trustee assigned to their case. A qualified Morris County bankruptcy attorney can assist you in understanding the role of the trustee in your case. The two chapters are broken down by their requirements. A Morris County bankruptcy lawyer has the complete information for eligibility requirements. Chapter 7…
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