Can I Keep My Cash in a Chapter 7 Bankruptcy?

Can I Keep My Cash in a Chapter 7 Bankruptcy?

What happens to my cash in bankruptcy? Maybe you have a retirement account or a savings account for your child’s college tuition. Maybe you have an emergency fund. Whatever the goal, you don’t want to see your savings disappear when you file for bankruptcy. You file to repair your finances, not to destroy your savings…. Read more »

Bankruptcy Alternatives in NJ: Can You Avoid Chapter 7?

Bankruptcy Alternatives in NJ: Can You Avoid Chapter 7?

What are the top alternatives to filing for bankruptcy? Filing for bankruptcy is a serious decision – one that stays on your credit report for the next seven to ten years. It will affect your ability to take out loans, rent an apartment, and make any large purchases. Bankruptcy can also provide tremendous relief to… Read more »

Small Business Bankruptcy: Ownership Structure Matters

Small Business Bankruptcy: Ownership Structure Matters

The Structure of Your Small Business Matters When you’re setting up a business, keep a close eye on the structure. You may think you can go into business with your best friend without worrying about it. Unfortunately, the best intentions may not lead to financial success. Set up your business separately from your personal interests…. Read more »

Chapter 13 Bankruptcy and a Second Home

Chapter 13 Bankruptcy and a Second Home

Keeping Investment Property in Chapter 13 Bankruptcy In re Amos – NJ: In re Amos, 452 B.R.  886 (D.N.J. 2011), a bankruptcy case out of New Jersey, teaches us some important lessons. When you file for chapter 13 bankruptcy, keep in mind that your second home is not considered a reasonable expense. A New Jersey Family… Read more »

What are the tax consequences of forgiven debt? What is a 1099C?

If some of my debt is forgiven, will there be tax consequences? What if you could reduce your mortgage balance by $100,000? What if your credit card debt simply disappeared? While you probably won’t see results quite so dramatic, it is possible to have your debts partly forgiven by your lenders through short sales, settlements,… Read more »

How Are Unemployment Benefits Treated in Bankruptcy?

Unemployment Benefits and Bankruptcy Bankruptcy law treats social welfare benefits differently from other types of income. Some are considered a statutory right, and bankruptcy can’t touch them. Social Security benefits, for example, are mostly exempt from bankruptcy proceedings. What about unemployment benefits? A fairly recent case out of New Jersey, In re McWilliams, 384 B.R. 728… Read more »

Creditors Must Respect Your Bankruptcy Case

A creditor who disposes of your property after receiving notice that you have filed for bankruptcy has violated the automatic stay and you are entitled to damages The automatic stay is a core precept of bankruptcy. It prevents creditors from pursuing action against the debtor while bankruptcy is in process. The Bankruptcy Court stands between… Read more »

Debtor Files Multiple Bankruptcy Cases to Stave Off Foreclosure

In re Johnson, 2013 W.L. 172455 (Bankr. D.S.C. 2013) You must file bankruptcy in good faith, not as an attempt to game the system The court will dismiss, with prejudice, serial filings intended to stall foreclosure with no intention or ability to reorganize and may grant in rem relief to creditors. Bankruptcy is for reorganization…. Read more »

The Automatic Stay in Bankruptcy Applies to Repossessed Property

Weber v. SEFCU (In re Weber), 477 B.R. 308 (Bankr. N.D.N.Y. 2012) The Automatic Stay in Bankruptcy When a debtor files for bankruptcy, the automatic stay goes into effect. The automatic stay prevents creditors from pursuing action against the debtor in an attempt to collect. Creditors may not contact the debtor, foreclose on property, or… Read more »