The individuals and business who file for bankruptcy have far more debts than money to cover them and don’t see that changing anytime soon. In 2019, bankruptcy filers owed $116 billion and had assets of $83.6 billion, almost 70% of that was real estate holdings, whose real value is debatable. What is surprising is that people – not businesses – are the ones most often seeking help. They have taken on financial obligations like a mortgage, auto loan or student loan – or perhaps all three! – and don’t have the income to pay for it. There were 774,940 bankruptcy cases filed in 2019, and 97% of them (752,160) were filed by individuals. Only 22,780 bankruptcy cases were filed by businesses in 2019. Most of the people filing bankruptcy were not particularly wealthy. The median income for the 488,506 individuals who filed Chapter 7, was just $31,284. Chapter 13 filers were slightly better off with a median income of $41,532. Part of understanding bankruptcy is knowing that, while bankruptcy is a chance to start over, it definitely affects your credit and future ability to use money. It may prevent or delay foreclosure on a home and repossession of a car, and it can also stop wage garnishment and other legal action creditorsuse to collect debts, but in the end, there is a price to pay.
I am Nicola Quadratto and I met the great lawyer who gave me a lot of satisfaction and he solved a case at the court that I did not imagine and I recommend him to all people.
Do not make these mistakes. They can cause your case to be delayed and even cause the judge to deny your discharge.
1. Don’t Pay Back Loans To Relatives Or Business Associates Before Filing Bankruptcy.
People who are thinking of filing for bankruptcy often feel the desire to pay back loans to friends and family before filing the petition. This is understandable, but it is a big mistake. Under bankruptcylaw all creditors who are in the same position must be treated equally. Bankruptcylaw views your debt to Uncle Bob as just like your debt to Capital One Visa. You can’t pay Uncle Bob first. If certain creditors are paid ahead of others this is called a “preference.” If a preference occurs the bankruptcy trustee can get a court order forcing Uncle Bob to return the money. This is not good for family harmony.
Even worse than a “preference” is a “fraudulent transfer.” If the court finds that money was paid to a relative in a deliberate attempt to hide assets, this can be found to be a fraudulent transfer. This can result in the complete denial of your discharge, and possibly even criminal charges. This is a very serious matter. If you try and hide things from the court you could end up going to jail.
2. Don’t Transfer Property Out Of Your Name.
Do not transfer ownership of valuable items to family members or others just before filing bankruptcy. If this is discovered the bankruptcy trustee will seek to reclaim this property and sell it for the benefit of creditors. Such transfers of title are frequently unnecessary anyway, because bankruptcylaw often provides protection for your home, car, and other valuable items. As with everything in bankruptcy, the key is to be fully honest, disclose everything, and put your cards on the table.
3. Don’t Drain Your 401k To Try And “Catch Up” On Your Debts.
Most retirement funds are protected in bankruptcy. You will ordinarily be able to wipe out all your debts and still keep your retirement accounts. It is not a good strategy to withdraw money from those accounts and use it to try and catch up on bills that you can’t pay. Most of the time bankruptcy is still required anyway even after you spend the money from the 401k, and then you will have the same bankruptcy but your retirement account will be gone. Don’t make this common mistake.
People often struggle for years under an impossible debt load until they are forced to take action due to a foreclosure or repossession. But this is a wasteful and painful road to travel when your debts are too heavy to carry. If bankruptcy is going to be necessary, it is almost always better to file it sooner rather than later. There is no benefit to be had by spending thousands of dollars and suffering tremendous stress and anxiety chasing after debts that can never be paid. Under U.S. law you have a right to a second chance and fresh start through bankruptcy. Your family will thank you if you get the information you need as soon as possible. Don’t wait until you are faced with an emergency.
5. On The Other Hand, Don’t Rush Into Bankruptcy When It Is Better To Wait.
Although it is usually better to file bankruptcy at the earliest time, in some situations it can be just as important not to file too soon. For example, if you are pregnant or you can see that certain medical bills are likely to arise in the near future, then it is probably best to hold off on filing. It makes no sense to discharge your credit carddebts in bankruptcy and then immediately face crushing and unaffordable long term medical bills.
Remember, you can only file chapter 7 once every eight years.
Another reason to wait before you file is if you are expecting an inheritance or large tax refund. Under bankruptcylaw a tax refund is treated like cash and depending on your state exemptions you may not be able to keep it. If you are expecting to receive cash of this nature it might be better to hold off on filing until after you receive the money. You can then use this money to pay down non-dischargeable debts like student loans and child support arrears. That way when the bankruptcy process is complete you will be left with a lighter burden as you move forward.
The point here is that sometimes in bankruptcy, timing is everything. There is nothing improper about using the time factor to your advantage within the boundaries of what is legal under the Bankruptcy Code. People do this all the time in relation to tax matters and no one considers it to be improper. You should check with your bankruptcy attorney to get advice on timing under the particular circumstances of your case.
6. Don’t Use Credit Cards Or Take Cash Advances Right Before Filing.
Once you have seriously considered bankruptcy as an option you should immediately stop the use of all credit cards. Bankruptcylaw does not allow you to run up credit card charges that you know you will not be able to repay. Credit card use in the months before filing bankruptcy can result in a denial of discharge for some or all of your debts. It can even result in criminal charges.
Sometimes people assume that if they’re planning to file bankruptcy, they don’t have to respond to or appear in court for pending lawsuits. This is not true. If lawsuits are allowed to continue before the bankruptcy is filed, this can result in liens against your property. After the petition is filed you will be protected by the “automatic stay,” but until that time be sure not to ignore legal actions take against you.
8. Don’t Keep A Large Amount Of Money In Your Bank Account On The Day You File For Bankruptcy.
If you have more than a minimal amount of money in your bank accounts on the day you file for bankruptcy, the trustee may take it and distribute it to creditors. You should time your bankruptcy filing so that the lowest amount possible is in your bank account the day (and hour) that you file. Keep in mind that you cannot simply withdraw the cash to reduce your account. Rather, you must empty your account, as much as possible, by using it up paying normal living expenses and non-dischargeable debts.
As a related matter, it is a good idea to move your bank account if you have your account with the same bank that issued your loans or credit cards. Once you file bankruptcy that bank has the right to “setoff.” This means that the bank can take the money in your account to cover your loans on the day you file. Therefore, if the bank is your creditor you should move your money to a different bank before filing.
In most cases, you must attend just one bankruptcy hearing in a chapter 7, and two in a chapter 13. If you don’t attend these hearings, the court could dismiss your bankruptcy. This would mean that you would lose any legal protection you had from the bankruptcy and you would go back to the same position you were in before filing.
No one likes to reveal the details of their finances, especially when dealing with a bankruptcy. But it is very important to understand that honesty and full disclosure are absolutely essential. The law is actually on your side in bankruptcy. If you follow the rules, bankruptcy is a powerful tool that can give you a second chance and a fresh start. But in exchange for that fresh start, bankruptcy law requires that you put all your cards on the table. Your bankruptcy lawyer must be aware of all the facts in order to protect your interests. Lack of information creates serious risks.
It is also important to remember that you will sign your petition under oath, expressly stating that you have fully disclosed all relevant facts. If you hide facts you can lose assets, have your bankruptcy case dismissed, and even face criminal charges. Your lawyer also may withdraw from your case if you are not completely honest.
Remember, withholding information from your lawyer is never the right choice. You will never obtain a better result by hiding information, and you will risk the possibility of serious negative consequences.
My name is Alex. I recommend Mr Rafael Gomez, he did a wonderful job, he came highly recommended and it proved to be true and if you're ever ever need a great attorney he's the right person for the job and he'll stay with you due to the end and hopefully things will work out. Thank you.
My name is Stephanie, me and my family have been using Mr Gomez as our attorney for a
really long time now. And we 100% recommend that you call him right now.
Many individuals in the northern New Jersey area are facing serious problems regarding the ownership of a home purchased during the sub-prime mortgage boom. No one really understood how terrible the result of this type of mortgage could be. Sadly, many families in the Bergen, Hudson and Passaic County area have already lost their homes as they did not take immediate action and contact a New JerseyBankruptcylawyer to assist them in resolving the issue. Many debtors believe that participating in a short sale or signing over a deed in lieu of foreclosure will forever wipe out any mortgagedebt. However, we have seen in many cases that lenders are coming after these debtors for the "deficiency" and many times are suing debtors to collect the deficiency.
A short sale is essentially the opportunity to sell your home for an amount that is less than the mortgaged amount. This can be a viable option for some individuals, but in other cases, it is too far past the point where a short sale can be achieved before foreclosure. In these cases, it may be necessary to file a bankruptcy filing to halt the proceedings on the foreclosure in order to have time to resolve the issue and not end up out on the street. Each case is unique, and it is critical that you get knowledgeable legal advice and are steered in the right direction, depending on your circumstances.
Good morning. My name is Asunta Colombo. I'm from Salerno, Italy. And I went to Mr. Gomez to take my case and he won and I'm very very happy.
What is a deed in lieu?
A deed in lieu is another option that is available to some individuals. This is when the property is signed over to the bank and the individual no longer has to deal with the main mortgage securing the property. However, many debtors have mortgaged their property with two mortgages. It is typical for many northern New Jersey homeowners to have financed their homes with and 80/20 type of mortgage situation. This is where one mortgage secures 80% of the home and another mortgage secures the other 20% percent of the home. These debtors usually purchased the home with no down payment and 100% financing. Signing over a deed in lieu of foreclosure may in some cases resolve the problems with the larger mortgage; however, the smaller mortgage is still owed to the lender (usually a different lender). These matters are emotional and extremely upsetting, and the northern New Jerseybankruptcylaw firm of Rafael Gomez understands that you need help, and you need it now. Your questions will be answered confidentially and you will understand your actual options, and can avoid scam artists that are preying on those who are suffering financial stress.
My name is Stephanie, me and my family have been using Mr Gomez as our attorney for a
really long time now. And we 100% recommend that you call him right now.
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 Jerseybankruptcylawyer 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.
My name is Paulino I am a client of Rafael Gomez, he's really intelligent, stays on top of his duties. I strongly recommend him as your lawyer, come through.
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 carddebt or life after bankruptcy, we will be here to help you.
Hello friends, my name is Ingrid, I'm a client of Rafael Gomez he did a a little case to me and everything went fine and I will recommend to all of you.
If you are currently considering filing for bankruptcy, contactRafael Gomez by calling (201) 646-3333.
(1) identify himself, state that he is confirming or correct
ing location information concerning the consumer, and, only if expressly requested, identify his employer;
(a) COMMUNICATION WITH THE CONSUMER GENERALLY. Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt—
Hello my name is Damien Aguilar I've known Mr Rafael Gomez for about two years, he's very knowledgeable, he's very professional and very courteous, he has a nice way about him and I recommend him as an attorney.
(1) at any unusual time or place or a time or place known or which should be known to be inconvenient to the
consumer. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8 o’clock antimeridian and before 9 o’clock postmeridian, local time at the consumer’s location;
(c) CEASING COMMUNICATION. If a consumer notifies a
debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except— that creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or collector or creditor intends to invoke a specified remedy. tion shall be complete upon receipt.
§ 806. Harassment or abuse
A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.
(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.
(3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3)
If such notice from the consumer is made by mail, notifica
(d) For the purpose of this section, the term "consumer" includes the consumer’s spouse, parent (if the consumer is a minor), guardian, executor, or administrator.
§ 805. Communication in connection with debt collection
Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall—
Creditors cannot harass you when attempting to collect a debt.
My name is Patricia Pallets, I was recommended for mr. Rafael Gomez from my sister-in-law
Wendy Fellows and he's been dealing with her for over 20 years ago and he's an excellent lawyer
and I definitely would recommend it to anyone. Thank you.
Hi Rafael Gomez, I just coming to my house I got already my divorce that's why I wanted
to send you this message I appreciate what you do and with for me and I want to recommend all my friends. Thank you.
collection agencies are calling you at home and/or at work
your payments are more than 30 days behind on more than one bill
you have had property repossessed (such as a vehicle)
your mortgage lender has threatened or started foreclosure proceedings against your home
People who have had their wages garnished can especially benefit from a bankruptcy because the bankruptcy will stop the garnishment and could potentially help you get some of the garnished money back.
Hi guys my name is Vanessa Reynoso I hired mr. Gomez as one of my lawyer for me, to help me out and I could have been more happier with his help so I recommend you guys if you guys need any help to hire him, because he'll get you out of a bad situation.
