FORECLOSURE - BERGEN COUNTY BANKRUPTCY LAWYER

FORECLOSURE

201-646-3333 BERGEN COUNTY BANKRUPTCY LAWYER

Today many New Jersey homeowners living in Bergen, Hudson or Passaic County are faced with the crisis of losing their homes.  More people are asking how foreclosure will affect their credit.  The answer to that question is: it will affect your credit very negatively along with a host of other financial ramifications.  If the foreclosure process begins on your home you will not be able to apply for any type of loan for two full years.  This includes any kind of financing no matter how small.

Many people in northern New Jersey mistakenly believe that all mortgage debt is extinguished once a lender forecloses on the property. In fact, given the depressed real estate market, most lenders must often sell the foreclosed property for less than the mortgage amount or less than market value. This leaves the lender with one remedy: file suit against the debtor for the "deficiency". The deficiency is the amount the debtor still owes the bank because the sale of the house did not cover the mortgage on the house. This debt remains and does not go away as many people mistakenly believe. Fortunately, those New Jersey debtors who have walked away from  a property on purpose or who have been foreclosed because they were unable to modify their mortgage may file bankruptcy to discharge the debt the bank will continue to pursue. In most of these cases the best option is to file a Chapter 7 Bankruptcy since there is no longer any equity about which to be concerned.

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MYTHS ABOUT BANKRUPTCY - HACKENSACK BANKRUPTCY LAWYER

MYTHS ABOUT BANKRUPTCY

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There are many misconceptions regarding bankruptcy that affect a person's decisions on whether they should file for bankruptcy protection or not.  When considering bankruptcy, it is best to obtain advice from a professional New Jersey bankruptcy lawyer like Rafael Gomez who has the legal expertise to answer all your questions.

At the Law Office of Rafael Gomez, we have the knowledge you will need to fully discuss your options when it comes to dealing with your debt and finding out if bankruptcy is right for you.  There are common myths abounding, which we will answer for you briefly. 

All my debts can be eliminated with bankruptcy.

Although you can discharge quite a few types of debt, certain ones such as child support, alimony, taxes and student loans are still owed and cannot be discharged through any type of bankruptcy.

My credit will be ruined for 10 years.

Although a bankruptcy will appear on your credit history for 10 years, your credit rating will begin to improve as time goes by and you re-establish your credit.  Your credit was probably already affected considerably if you had late payments or any wage garnishments or lawsuits.

Bankruptcy is hard to get through and qualify for.

When you have an experienced bankruptcy lawyer like Rafael Gomez working with you, the most difficult part of it will be in making your own personal decision as to whether  to file or not.  Your attorney will help you with determining which filing is right for you and will take care of all the legal paperwork.

I will lose everything  I own.

Most bankruptcies do not affect your being able to keep all of your assets.  Many assets are protected by bankruptcy exemption laws.  In fact, the majority of people who file for bankruptcy give up none of their assets.

I will not be able to get credit again.

Not so.  Although  you will pay higher interest rates for a time, you will begin getting credit offers shortly after your filing. 

My employer will be notified when I file for bankruptcy.

When a person files for bankruptcy, he or she does not need to send a notification to his or her employer. Although bankruptcy cases are public records, it is unlikely that anyone will find out unless you tell them, or unless you are a celebrity or prominent businessperson of some kind (in which case the press may publish information about a bankruptcy case.)

If I file for bankruptcy I will never be able to buy a home or a car.

Most debtors are definitely able to purchase a home or a vehicle even after filing for bankruptcy. It usually takes approximately 2 years until you may purchase a home, and less time for an automobile purchase or for credit card offers.

I will lose my house and my car if I file for bankruptcy.

Although Chapter 7 is associated with a “liquidation” of assets, this does not necessarily mean that you will lose everything, including your house and your car. These are protected to a certain degree in the bankruptcy process, and an attorney can help explain this in more detail as it may apply to your particular case. Chapter 13 bankruptcy provides even more protection to assets, as it is a reorganization of debt.

Don't fall for bankruptcy myths.  Get the truth by contacting New Jersey Bankruptcy lawyer Rafael Gomez. He has helped debtors living in Bergen, Hudson and Passaic Counties in Northern New Jersey for many years.

CREDIT COUNSELING CLASSES - BANKRUPTCY LAWYER IN HACKENSACK NEW JERSEY

Credit Counseling Classes

201-646-3333 - HACKENSACK NJ

Credit counseling is a crucial part of any bankruptcy case. In fact, it is required that you complete a briefing with a certified credit counseling agency that has been approved by the U.S. Trustee’s Office. Since October of 2005 this requirement has been in place, and a failure to complete credit counseling within 180 days prior to filing may result in the rejection or dismissal of your Chapter 7 or Chapter 13 bankruptcy case. After you complete your credit counseling course, you will receive a certificate of completion that must be filed with your bankruptcy petition.

The average cost for a credit counseling course is approximately $50, but the exact cost may vary depending upon what type of session you undergo and where you live. This briefing may be completed in person, over the phone or online. The basic steps of the briefing will usually include an evaluation of your finances, a personal budget plan and the discussion of alternatives to bankruptcy, if any.

Generally speaking, there are very few exceptions to the requirement that a debtor complete a credit counseling course prior to filing for bankruptcy. Bankruptcy court judges have little to no authority to waive this requirement, so it is important that you discuss this with your attorney prior to filing. A dismissed bankruptcy case may result in your being unable to file for a certain period of time.

CHECK OUR YOUTUBE PAGE - HACKENSACK NEW JERSEY BANKRUPTCY ATTORNEY

CHECK OUR YOUTUBE PAGE

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CONSIDERING FILING FOR BANKRUPTCY? - BANKRUPTCY ATTORNEY IN BERGEN COUNTY

BERGEN COUNTY 

CONSIDERING FILING FOR BANKRUPTCY?

201-646-3333 - HACKENSACK NJ

With the economy in its current state, hearing that people are struggling with debt is, sadly, not as uncommon as one would like to hear. Too many people find themselves slipping further and further down the slippery slope, caught between the fast paced world that we live in and the simultaneous culture of plastic money and wanting more. Credit card companies are of no help either, as at the end of the day they are only concerned with making a profit, not helping you get your feet back underneath you to successfully move forward with your life.

If you are currently facing a situation similar to this, it is in your best interest to talk to an experienced  New Jersey bankruptcy lawyer about the possibility of filing for bankruptcy. By talking to someone knowledgeable about this process, you can have your questions answered; questions about bankruptcy warnings signs, if you qualify, what chapter is right for you, the bankruptcy benefits, exemptions, what you will lose and the types of debts that can be eliminated. Bankruptcy can be a terrifying, confusing process to try and take on, but with the proper guidance, you have no reason to fear it. It can merely be a way for you to move forward into the next chapter in your life.

Why Hire a Bankruptcy Lawyer?

At the law firm of Rafael Gomez, we understand the questions and concerns you will have if you are considering filing for bankruptcy. We know that it appears complex and the ideas of Chapter 7, and Chapter 13 may appear foreign and overwhelming. There, are, however many things that you can do to help yourself. By closely working with your case, and giving you the undivided personal attention that you deserve, you can breathe easier knowing that you are dealing with someone devoted to getting you to the optimum outcome. No matter if you are concerned with credit card debt or life after bankruptcy, we will be here to help you.

If you are currently considering filing for bankruptcy, contact Rafael Gomez by calling 201-646-3333.

CLIENT REVIEW

A MESSAGE FROM ONE OF OUR CLIENTS, TALKING ABOUT THE BANKRUPTCY LAWYER MR. RAFAEL GOMEZ

201-646-3333 - HACKENSACK NJ

201-646-3333 

BANKRUPTCY ATTORNEY IN NEW JERSEY 

Hackensack - Bergen County - Paterson - Hudson County - New York - Fairview -

Secaucus and region

The New Jersey Bankruptcy Lawyer law firm of Mr. R. Gomez, Attorney at Law has its main office located in Hackensack, New Jersey 07601.

This Bergen County Bankruptcy Law Firm has helped thousands of clients with debt problems, car repossessions, foreclosed mortgages, motor vehicle commission (DMV) surcharges, lawsuits, wage garnishments and countless other debt problems which are usually resolved by filing a bankruptcy case in the New Jersey Bankruptcy Courts

DECIDING WHETHER TO FILE FOR BANKRUPTCY - NEW JERSEY BANKRUPTCY ATTORNEY

DO I QUALIFY TO FILE?

201-646-3333 - HACKENSACK NJ

Before a bankruptcy case can be filed, the debtor must decide whether bankruptcy is, in fact, the best vehicle for dealing with the problems that the debtor faces. In a typical consumer bankruptcy case, most of the attorney's analysis involves comparing bankruptcy with other possible avenues of handling financial problems.

A necessary prerequisite to such comparison is a knowledge of all the relevant facts. Although it may sometimes be possible to rule out bankruptcy based on knowledge of only a few facts (for example, that a debtor does not wish to lose certain property that cannot be saved in bankruptcy), it is never possible to decide safely to pursue bankruptcy without a thorough knowledge of the facts. Without such knowledge, unknown property (such as the right to a tax refund) may be lost in bankruptcy; major debts may turn out to be unaffected because they cannot be discharged or because there are liens on property; or property might be incorrectly valued and, as a result, lost to creditors.

To assess whether bankruptcy will help, take the following steps:

• Learn the advantages and disadvantages of bankruptcy. It is important to know the benefits and pitfalls of bankruptcy. While the benefits can be great--discharge of most debts and an automatic stay against creditors--there are disadvantages, particularly the possibility of losing property.

• Determine whether bankruptcy will get rid of your debts. Bankruptcy doesn't eliminate all debts. If you have many secured debts or debts that cannot be discharged in bankruptcy, bankruptcy may not be the best option for you. Debts that cannot be discharged include taxes, alimony and child support and student loans.

• Do a budget analysis. Doing a budget analysis can help you determine whether you will be able to pay your bills after a bankruptcy proceeding. You need to calculate ongoing expenses and income to determine whether a bankruptcy proceeding will solve your debt problem or if the problem will continue.

• Consider alternatives to bankruptcy. Bankruptcy is only one way to deal with overwhelming debt. There are other steps you can take to reduce your debt that don't involve filing for bankruptcy.

• Finding a good bankruptcy lawyer. Picking the right bankruptcy lawyer for you can be daunting task. We have some tips to help point you in the right direction.

In deciding whether to file a bankruptcy case, several other factors must be considered. Is the debtor likely to fall further into debt? For some the answer is no; their debts arose before they lost a job because of layoff, disability or retirement. For many, though, there is the prospect of medical bills or other continuing financial problems that will result in greater debt. There is also a slight possibility of a motor vehicle accident or other incident creating a large liability.

Some debtors have only a few debts and have strong defenses against them. For those debtors, the best avenue might be either litigation or settlement outside of bankruptcy court. This decision may also depend on whether resources are available to make the alternative of vigorous litigation a possibility.

In all of these cases, a debtor should bear in mind that the same relief in bankruptcy will probably be available later but that filing a bankruptcy case now will impair the right to file another in years to come. Thus, unless a judgment-proof debtor expects to acquire nonexempt property soon, he or she may wish to wait.

Ultimately, the debtor must make a decision. Do the advantages of bankruptcy outweigh the disadvantages? Will bankruptcy have a positive effect on the debtor's life? For many consumers who face real threats that can be dealt with in bankruptcy, the answer is yes. But even those who are not in danger of sustaining a tangible loss may value the peace of mind that comes from having their burden of debt lifted. Whether debtors hope to someday make it out of a life of poverty or simply seek relief from the constant pressure to pay what is owed, these feelings should not be discounted.

ANALYZING YOUR BUDGET TO DETERMINE IF BANKRUPTCY WILL HELP - BANKRUPTCY LAWYER IN HACKENSACK

ANALYZING YOUR BUDGET TO DETERMINE IF BANKRUPTCY WILL HELP

201-646-3333 - HACKENSACK NJ

A final ingredient in the financial picture of a family or individual is a complete  analysis of ongoing expenses and income. Only with this information in hand can the likely outcome of a bankruptcy be projected, for the family will continue  to have its usual expenses, even if most or all debts are discharged, and will  have to pay them with the anticipated available income.

A family or individual that is considering bankruptcy must therefore put  together a budget of ongoing anticipated expenses and income. Once this is  done, it may become apparent that bankruptcy by itself will do little to solve  the financial problem because, even with the elimination of most or all debts,  ongoing expenses still significantly exceed anticipated income. In such cases,  at least part of the solution will be to pare expenses or to raise income.


Cutting expenses is never easy. Families must look at such major items as  housing expenses. Is cheaper housing available? Other items, such as restaurant  meals, fancy automobiles, vacations, expensive clothes and other luxuries must  sometimes be given up. Smaller savings can be made by conserving energy, cutting out extra phone service options, reducing or eliminating cable  television bills, and cost-conscious shopping at thrift stores, garage sales  and supermarkets.


The alternative, of course, is to increase income. This can sometimes be  achieved by a spouse working outside the home, though these gains may be offset  by expenses for child care and transportation. A lower income family may be  eligible for government benefits such as food stamps, energy assistance  payments or public assistance.


In any case, budget information is important for analyzing whether bankruptcy  makes sense. It is also critical for determining whether a Chapter 13 case is  feasible, and it is required on the schedules filed in every bankruptcy case.  Creditors and the court are permitted to examine this information if they wish,  though usually they do not.

A CLIENT'S COMMENT

SEE BELOW A CLIENT'S COMMENT ABOUT OUR LAWYER

The New Jersey Bankruptcy Lawyer law firm of Mr. R. Gomez, Attorney at Law has its main office located in Hackensack, New Jersey 07601.

This Bergen County Bankruptcy Law Firm has helped thousands of clients with debt problems, car repossessions, foreclosed mortgages, motor vehicle commission (DMV) surcharges, lawsuits, wage garnishments and countless other debt problems which are usually resolved by filing a bankruptcy case in the New Jersey Bankruptcy Courts

EXEMPTIONS ....

(c)Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except—

(1)

a debt of a kind specified in paragraph (1) or (5) of section 523(a) (in which case, notwithstanding any provision of applicable nonbankruptcy law to the contrary, such property shall be liable for a debt of a kind specified in such paragraph);

(2)a debt secured by a lien that is—

(A)

(i)

not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and

(ii)

not void under section 506(d) of this title; or

(B)

a tax lien, notice of which is properly filed;

(3)

a debt of a kind specified in section 523(a)(4) or 523(a)(6) of this title owed by an institution-affiliated party of an insured depository institution to a Federal depository institutions regulatory agency acting in its capacity as conservator, receiver, or liquidating agent for such institution; or

(4)

a debt in connection with fraud in the obtaining or providing of any scholarship, grant, loan, tuition, discount, award, or other financial assistance for purposes of financing an education at an institution of higher education (as that term is defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)).

(d)The following property may be exempted under subsection (b)(2) of this section:

(1)

The debtor’s aggregate interest, not to exceed $15,000 [1] in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor.

(2)

The debtor’s interest, not to exceed $2,400 1 in value, in one motor vehicle.

(3)

The debtor’s interest, not to exceed $400 1 in value in any particular item or $8,000 1 in aggregate value, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.

(4)

The debtor’s aggregate interest, not to exceed $1,000 1 in value, in jewelry held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.

(5)

The debtor’s aggregate interest in any property, not to exceed in value $800 1 plus up to $7,500 1 of any unused amount of the exemption provided under paragraph (1) of this subsection.

(6)

The debtor’s aggregate interest, not to exceed $1,500 1 in value, in any implements, professional books, or tools, of the trade of the debtor or the trade of a dependent of the debtor.

(7)

Any unmatured life insurance contract owned by the debtor, other than a credit life insurance contract.

(8)

The debtor’s aggregate interest, not to exceed in value $8,000 1 less any amount of property of the estate transferred in the manner specified in section 542(d) of this title, in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent.

(9)

Professionally prescribed health aids for the debtor or a dependent of the debtor.

(10)The debtor’s right to receive—

(A)

a social security benefit, unemployment compensation, or a local public assistance benefit;

(B)

a veterans’ benefit;

(C)

a disability, illness, or unemployment benefit;

(D)

alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;

(E)a payment under a stock bonus, pension, profitsharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, unless—

(i)

such plan or contract was established by or under the auspices of an insider that employed the debtor at the time the debtor’s rights under such plan or contract arose;

(ii)

such payment is on account of age or length of service; and

(iii)

such plan or contract does not qualify under section 401(a), 403(a), 403(b), or 408 of the Internal Revenue Code of 1986.

EXEMPTIONS

EXEMPTIONS

11 U.S. Code § 522. Exemptions

NJ BANKRUPTCY LAWYER HELP WITH EXEMPTIONS

(a) In this section— (1)  “dependent” includes spouse, whether or not actually dependent; and

 (2)  “value” means fair market value  as of the date of the filing of the petition or, with respect to  property that becomes property of the estate after such date, as of the  date such property becomes property of the estate.

(b) (1)  Notwithstanding section 541 of this title,  an individual debtor may exempt from property of the estate the  property listed in either paragraph (2) or, in the alternative,  paragraph (3) of this subsection. In joint cases filed under section 302 of this title  and individual cases filed under section 301 or 303 of this title by or  against debtors who are husband and wife, and whose estates are ordered  to be jointly administered under Rule 1015(b) of the Federal Rules of  Bankruptcy Procedure, one debtor may not elect to exempt property listed  in paragraph (2) and the other debtor elect to exempt property listed  in paragraph (3) of this subsection. If the parties cannot agree on the  alternative to be elected, they shall be deemed to elect paragraph (2),  where such election is permitted under the law of the jurisdiction where  the case is filed.

(2)  Property listed in this paragraph is property that  is specified under subsection (d), unless the State law that is  applicable to the debtor under paragraph (3)(A) specifically does not so  authorize.

(3) Property listed in this paragraph is— (A)  subject to subsections (o) and (p),  any property that is exempt under Federal law, other than subsection (d)  of this section, or State or local law that is applicable on the date  of the filing of the petition to the place in which the debtor’s  domicile has been located for the 730 days immediately preceding the  date of the filing of the petition or if the debtor’s domicile has not  been located in a single State for such 730-day period, the place in  which the debtor’s domicile was located for 180 days immediately  preceding the 730-day period or for a longer portion of such 180-day  period than in any other place;

(B)  any interest in property in which the debtor had,  immediately before the commencement of the case, an interest as a tenant  by the entirety or joint tenant to the extent that such interest as a  tenant by the entirety or joint tenant is exempt from process under  applicable nonbankruptcy law; and

(C)  retirement funds to the extent that those funds  are in a fund or account that is exempt from taxation under section 401,  403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986.

  If the effect of the  domiciliary requirement under subparagraph (A) is to render the debtor  ineligible for any exemption, the debtor may elect to exempt property  that is specified under subsection (d).

(4) For purposes of paragraph (3)(C) and subsection (d)(12), the following shall apply: (A)  If the retirement funds are in a retirement fund that has received a favorable determination under section 7805 of the Internal Revenue Code of 1986,  and that determination is in effect as of the date of the filing of the  petition in a case under this title, those funds shall be presumed to  be exempt from the estate.

(B)  If the retirement funds are in a retirement fund that has not received a  favorable determination under such section 7805, those funds are exempt  from the estate if the debtor demonstrates that— (i)  no prior determination to the contrary has been made by a court or the Internal Revenue Service; and

(ii) (I)  the retirement fund is in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986; or

(II)  the retirement fund fails to be in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986 and the debtor is not materially responsible for that failure.

(C)  A direct transfer of retirement funds from 1 fund  or account that is exempt from taxation under section 401, 403, 408,  408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986, under section 401(a)(31) of the Internal Revenue Code of 1986,  or otherwise, shall not cease to qualify for exemption under paragraph  (3)(C) or subsection (d)(12) by reason of such direct transfer.

(D) (i)  Any distribution that qualifies as an eligible rollover distribution within the meaning of section 402(c) of the Internal Revenue Code of 1986  or that is described in clause (ii) shall not cease to qualify for  exemption under paragraph (3)(C) or subsection (d)(12) by reason of such  distribution.

(ii) A distribution described in this clause is an amount that— (I)  has been distributed from a fund or account that  is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or  501(a) of the Internal Revenue Code of 1986; and

(II)  to the extent allowed by law, is deposited in such  a fund or account not later than 60 days after the distribution of such  amount.