Tag Archives: Bankruptcy

Supreme Court: Inherited IRAs No Longer Protected From Bankruptcy

Morris County Bankruptcy Attorney Explains Inherited IRAs An IRA, or Individual Retirement Account, is a retirement plan that provides tax advantages for retirement savings. Every month that you earn a paycheck, you are entitled to deposit a percentage of your pay into a separate account. Once there, however, your funds must stay put until your retirement, unless you want to pay a decent-sized financial penalty. There is more than one type of IRA, so you will need to research them and decide which one is the best for you. The four primary types are the traditional, the Roth, the SEP (short for Self Employed Person) and the SIMPLE (short for Savings Incentive Match Plan for Employees). Each kind has its own rules as to how it works, but they all share one very important trait: they are exempt from being part of the bankruptcy estate. This means IRAs, under normal circumstances, are out of the reach of…
Read More »

Posted in Newsletter | Tagged , , | Comments Off on Supreme Court: Inherited IRAs No Longer Protected From Bankruptcy

What are Alternatives to Reaffirmation?

Despite the public perception that Chapter 7 bankruptcy involves losing everything, the reality is far less negative. Firstly, bankruptcy is a sign of improving one’s financial standing and credit history, not going down the hole. Second, a person filing for bankruptcy does not necessarily have to lose all of their assets—in fact, in most Chapter 7 bankruptcies, this does not happen at all. If you file Chapter 7, you can decide to reaffirm certain assets and their associated debts in order to keep the asset. This is most commonly done with automobiles. Reaffirmation consists of a contract between a debtor and lender permitting the former to assume responsibility for an asset and its associated debt. Usually, debtors reaffirm assets pledged as loan collateral, such as motor vehicles. The decision to reaffirm an asset is made at a reaffirmation hearing. The debtor appears before a judge who must ensure that the…
Read More »

Posted in Newsletter | Tagged , , | Comments Off on What are Alternatives to Reaffirmation?

Revel Casino in New Jersey Files for Bankruptcy

In March, Atlantic City’s Revel casino had to file for Chapter 11 bankruptcy protection, according to NJ.com. With the Atlantic City economy facing tough times, it had been hoped that the $2.4 billion casino would be a catalyst for turning around the town’s fortunes. Instead, less than a year after it opened and after consistently remaining one Atlantic City’s least profitable casinos, Revel fell victim to the same issues plaguing the city it was meant to save. After January 2013 saw Revel post its second-worst month, winning less than $8 million from gamblers, the casino agreed to a prepackaged bankruptcy that wiped away two-thirds of its $1.5 billion in debt by converting over $1 billion of it into equity for lenders. The bankruptcy allowed Revel to stay open with its existing management in place, and it can still pay its vendors and 2,000 employees. What is Chapter 11 Bankruptcy? Chapter…
Read More »

Posted in Newsletter | Tagged , , , | Comments Off on Revel Casino in New Jersey Files for Bankruptcy