ELIMINATE YOUR DEBT!

GET RID OF THE PRESSURE!

GET HELP FROM AN EXPERIENCED NEW JERSEY BANKRUPTCY LAWYER!

WE OFFER YOU PEACE OF MIND

In our combined thirty five years of practicing law, we have observed first hand how money problems affect people. It is not uncommon for clients who come to our office for the initial consultation to feel panicky and distressed. They often show up with shopping bags full of bills and feel so relieved when they leave them with us. Other clients take the “head in the sand” approach. They cannot bear to open up the envelopes or even answer the phone. They are in true denial, not recognizing that the problem is not going to disappear unless they face it head on.

You may be faced with a similar predicament. You may be a victim of the current economy and have lost your job. You may have gone through a traumatic divorce or illness. It doesn’t take much to be jettisoned into a downward spiral. Especially in this day and age, just because you have financial problems does not mean that you are not a responsible person.

The main reason that we love practicing law is that we love to help people. If you feel overwhelmed and confused, you have come to the right place. We invite you to CALL NOW and schedule a FREE initial consultation with us.

BANKRUPTCY: THE MYTHS/THE REALITIES

Many people have preconceived notions about what it means to file bankruptcy. They think they must give up all their possessions and properties. Many of our clients have told us that if they had known how their lives would have been improved (yes, I said IMPROVED) by filing bankruptcy, they would not have put off this tough decision. Also, many believe that the changes in the laws that happened in 2005 changed the Bankruptcy world, making it almost impossible to obtain relief under the Bankruptcy Code. As experienced New Jersey Bankruptcy Attorneys, we are happy to say that the new laws have not changed the protections that bankruptcy affords most people.
So, why are you putting this off?

PEACE OF MIND – THIS WEEK

WHY WAIT?

Are you tired of having creditors hound you? Calling your house at inconvenient times, embarrassing you in front of your friends and making your family feel edgy and insecure? Once you realize that your life will be back in order soon and you are not going to lose everything, you gain peace of mind. And that means you're well on your way to being able to give your attention and energy to the things that are really important in your life.

MAKE AN APPOINTMENT WITH US FOR A FREE PERSONAL CONSULTATION!!!!! DISCUSS YOUR PROBLEMS WITH A NEW JERSEY BANKRUPTCY LAWYER BEFORE IT IS TOO LATE.

The most valuable piece of advice that we can give is to address your issues sooner rather than later--when you are in serious financial trouble. If you wait, interest, penalties and attorney’s fees grow and grow. If your house is in foreclosure, you may even be facing A SHERIFF’S SALE!!!

Every one of our clients is important to us. We are proud of our caring attorneys and staff. Our mission is to serve you and to help you out of your problems while maintaining
your dignity.

Since your consultation is FREE and you have a personal meeting with one of our New Jersey Bankruptcy Attorneys, you have no excuses. CALL TODAY!!!! In some other bankruptcy firms, you may never meet the attorney who handles your case.

Remember, if Sharp Bratton represents you, you will always meet with an attorney who will be the person formulating your plan. We stand by the expertise that we have developed to help you and your family. Most of our clients come to us through referral from other attorneys or accountants or financial planners. Our professional colleagues rely on us, and so can you.

What you don't know about bankruptcy may hurt you. Let's work together so that you can reclaim your life. The following is a description of how the process works.

There are two major types of consumer bankruptcy – Chapter 7 and Chapter 13. We will work with you to decide which best fits your needs. A chapter 7 bankruptcy is a liquidation proceeding that is sometimes referred to as a straight bankruptcy. The debtor will receive a discharge of all debts that are allowed to be discharged under the Bankruptcy Code. This usually happens within about four months. All non-exempt property is turned over to the Chapter 7 bankruptcy trustee who has the responsibility of converting the assets into cash and distributing the proceeds to the creditors. We find that in most cases, our clients do not own any nonexempt assets and therefore have nothing to turn over to the trustee. So, they are entitled to a “fresh start”, their debts are wiped out and they do not lose any assets. By contrast, a Chapter 13 bankruptcy is normally filed by individuals who own property that is not exempt that they wish to keep. Under a Chapter 13 bankruptcy, the debtor has a three to five year period to pay off their debts (or a percentage of them). To qualify for Chapter 13 (which is also called a reorganization), you must have steady income that is sufficient to satisfy your reasonable living expenses and to pay off a portion of debts over time.

Chapter 7 - The Basics

Chapter 7 is an ideal way to get rid of your unsecured debts. (An unsecured debt is a debt that is not tied to any item of property. In other words, there is no collateral and a creditor does not have the right to repossess any property if you default on the loan.) From the time we are retained, the Chapter 7 process takes about 4 months. When the Chapter 7 case is completed, the Bankruptcy Court issues you a discharge which means that your debts are legally wiped out, and your financial fresh start begins.

A Chapter 7 discharge will generally produce the following results:

1. GET RID OF MOST DEBTS

A. CREDIT CARD DEBT – Bill collectors and collection agencies are strictly prohibited from calling or having any other contact with you once a Chapter 7 is filed. The credit card debt will be completely wiped out once a discharge order is entered. Many consumers do not even know how much interest they are paying on their credit card balance. In our role as New Jersey Bankruptcy Attorneys, we have seen cases where people were paying interest rates of anywhere up to 29% to 33%. Our clients breathe a lot easier when they are relieved of the obligation of paying those exorbitant rates.

B. MEDICAL BILLS -- Getting sick and not being able to work is how many of our clients got into financial trouble. It’s easy to rack up huge medical bills in this day and age especially if you did not have insurance. Through a Chapter 7, your medical bills including money owed to dentists, doctors and hospitals will be erased.

C. UTILITY BILLS – You can wipe out debts owed to the gas, electric, telephone and cable companies. By law, a public utility must continue to provide you with service even after you have discharged prior debts through bankruptcy. Cell phone bills are a little trickier. While they can be wiped out, the companies are not legally bound to keep you as a customer.

D. MONEY OWED TO THE IRS -- If you are liable for income taxes owed to the IRS or New Jersey’s Department of Taxation that are more than 3 years old and the tax return was filed more than 3 years ago, it is possible that you will be relieved of responsibility for payment. Each situation must be reviewed carefully by a Bankruptcy attorney to determine whether discharge is available.

E. UNSECURED LOANS – Debts owed to financial companies such as American General, Beneficial, Household Finance and CitiFinancial can normally be discharged through a Chapter 7 proceeding. However, if you have put up collateral for the loan, Chapter 7 relief may not be available.

F. ATTORNEY FEES – Legal fees may also be discharged through a Chapter 7.

2. PENALTIES AND RESTRICTIONS LIFTED

A. DRIVER’S LICENSE SURCHARGES – Many of our clients have been driving without a valid driver’s license because they owe surcharges to the New Jersey Department of Motor Vehicles. In most cases, the surcharges can be discharged through a Chapter 7. The state will then restore your driving privileges (unless they were suspended for another reason) and issue a new license.

B. WAGE EXECUTIONS ON SALARY STOPPED – Most wage executions are forbidden once Chapter 7 has been filed. It is even possible that we will be able to retrieve money garnished from your salary if it is more than $600 and was taken over the previous 90 days before the filing.

C. FROZEN ASSETS – If your bank account has been frozen, filing your bankruptcy case with the court will force the bank to release the funds to you. You must remember that if the funds have already been taken out of your bank account then filing for bankruptcy will not get the money back for you, but will re-open the account. You will be able to resume direct deposit of your salary into the account without fear that the funds will disappear. We will of course examine the matter to make sure that the creditor followed appropriate legal procedures with respect to the freezing of the account.

D. PROPERTY BEING SOLD AT SHERIFF’S SALE – If a Sheriff’s Sale of some of your assets (such as a car, household items or other personal property) has been scheduled, we can stop the sale by filing Chapter 7.

Get a Fresh Start, Get Debt Relief and Stress Relief

Remember that one of the main purposes of Chapter 7 is to help you get a fresh financial start, put the past behind you, and wipe out your bills so that you are free of burdensome debt. Chapter 7 stops creditors from calling you constantly and putting the lives of you and your family into turmoil.

In the United States, approximately 1.5 million individuals or families file for Bankruptcy each year. They do it because they are under such serious financial pressure that there is nowhere else to turn. (By the way, if we feel that Bankruptcy is not right for you, we will encourage you to explore other options.) Many people come into our office feeling ashamed of their financial situation. We find that most who have got to this point got here through no fault of their own. You may have had medical problems, got divorced or lost your job. Even if you made some unwise moves in the past such as co-signing a loan for someone who defaults or simply running up your credit cards, that is no reason to beat yourself up. We encourage you to take a positive step forward to address your debt situation. You will feel relieved after your first appointment with one of our New Jersey Bankruptcy Attorneys.

We are often asked how much debt you need to have to qualify to file for a Chapter Seven Bankruptcy. Everybody’s circumstance is different. For example, it may be appropriate for a senior citizen with fixed income to file with as little as $5,000 in debt. Others who have other income potential may have $30,000 in unsecured debt or much more. We will analyze your situation at our first meeting.

Do not delay. Call Sharp Bratton today to set up a FREE INITIAL CONSULTATION! Imagine what it would feel like to be debt free and to start your financial life all over again!

COSTS

Our legal fee for Chapter 7 is normally $1350. The Bankruptcy Court charges a $299 filing fee. There are also two counseling sessions that you must complete in order to receive your discharge. Each session costs $50. You must do the first counseling session before you file for Bankruptcy, and you must do the second counseling session shortly after you have your Bankruptcy meeting with the Trustee. We arrange the sessions for you and give you complete instructions regarding the process. If you don't complete the second session you won't get a discharge and you are back to square one. The only other cost is the cost of obtaining a credit report which is Thirty-five dollars ($35.00).

The first counseling session can be done by telephone or on the internet. It usually takes between 30 to 60 minutes. The second counseling session is done by phone and generally takes a little over an hour.

The following section sets forth the straightforward steps that are involved in preparing, processing, and completing a successful Chapter 7 case. The object is to get a discharge and wipe out all of your unsecured debts. Let us help you accomplish
your goal.

EXPLANATION OF THE CHAPTER 7 PROCESS

FIRST STEP – FILING PETITION – INSTANT RELIEF
We start the Chapter 7 bankruptcy by filing a legal document called a petition. Either before or during our free initial consultation, we will provide you with a form that will help you know what information that we need to properly complete the petition. We then meet with you to review the petition (which is quite lengthy) to make sure that all of the information is accurate. Sharp Bratton has the capability to file the Chapter 7 petition electronically which makes the case official. This means that the “automatic stay” will come into place immediately.

We can notify any creditors that need to be notified of the filing by calling them and mailing, faxing, or hand delivering a stamped copy of your petition to that creditor. It is likely that some of your creditors have been calling your home incessantly, threatening to file a lawsuit or even to levy on your bank account. We can stop these actions in a manner of minutes after filing the petition. The types of situations that may require immediate notification and action by us are:

(1) If your mortgage is in foreclosure or subject to sheriff sale, we can usually stop those proceedings.

(2) If you are behind in your car payments, we can stop a vehicle repossession in most cases. If your car has already been repossessed, the finance company usually must return it to you once you submit proof of full coverage automobile insurance.

(3) If you are behind on your rent at your apartment or home, Sharp Bratton may be able to stop eviction proceedings.

(4) If you are delinquent in your utility bills, the arrearage can be wiped out in most situations. If you have received a “shut off” notice, we notify the utility company of the bankruptcy proceedings which prevents them from shutting off your utility service. If they have already been shut off, the utility companies will be required to turn your service back on upon receipt of the notice of the bankruptcy filing.

(5) The IRS is prohibited from taking immediate action against you once the bankruptcy petition is filed.

(6) Creditors or anyone else will generally be stopped from attaching your wages. It is critical that you notify us when you retain us if a wage garnishment is already in place. It is likely that we can get the garnishment lifted. Funds garnished from your paycheck after the bankruptcy petition has been filed will normally have to be returned to you. The general rule is that if $600 or more has been garnished from your wages within the 60 day period before your case is filed, the money should be returned to you.

(7) If your bank account has been frozen, we may be able to retrieve funds that were seized before the filing of the bankruptcy.

(8) Some people lose their driver’s license because they don’t have the ability to pay surcharges. Let us know if this applies to you and we will try to help you get your
license back.

(9) Most lawsuit proceedings can be stopped IMMEDIATELY. It is possible, however, that the Bankruptcy Court will allow the person or company with the suit against you to proceed with the claim. We will talk to you about the specifics of your case and keep you posted as to any such court rulings.

A notice to all of your creditors is also sent out by the Clerk’s Office of the Bankruptcy Court sent a few days after we file your case. A copy of these notices will be forwarded to you. If a creditor takes action against you (which includes calling you at home) after being informed that you have started your bankruptcy, that creditor is subject to sanctions by the Bankruptcy Court. Let us know IMMEDIATELY if any creditor contacts you after you receive notice that the petition has been filed. As your personal New Jersey Bankruptcy Attorneys, we are here to help!!!

SECOND STEP - CASE NUMBER AND NOTIFICATION OF CREDITORS

Once we file the case electronically, a case number will be immediately assigned. You will receive the case number in the mail; but if you need it right away particularly if a creditor has requested it, just give us a call.

It is imperative that you open and read any correspondence that you receive from us or the Bankruptcy Court immediately upon receipt. The first mail that you should receive from the Bankruptcy Court is the Notice of Chapter 7 Bankruptcy Case. The court sends it to your creditors as well and it serves as an official notice. There is a lot of essential information in the Notice such as date, time and place of the Meeting of Creditors (which you are required to attend). If you need directions, let us know. By the way, creditors rarely appear at this meeting.

THIRD STEP – HOW TO PREPARE FOR THE CREDITOR’S MEETING

The third step is the Creditor’s Meeting. You will be provided a list of what you need
to bring.

The types of items that you need to bring are copies of your income tax returns for the last two years, your two most recent paycheck stubs as well as a copy of your deed (if you own real estate) as well as a copy of all current mortgage payoffs showing the principal balance on any outstanding mortgages.

You will be required to show the current fair market value of each parcel of real estate that you own. You may need to provide to the trustee an appraisal or comparative market analysis. We will recommend to you what you need to produce and refer you to professionals who can perform a market analysis.

Please be prepared to produce a copy of the payoff statement showing what is owed on your vehicle if you have a vehicle that is financed.

The Trustee will absolutely and without a doubt require that you produce your social security card and a government approved photo identification at the meeting. If you have questions about what qualifies, let us know and we will guide you.

FOURTH STEP – THE CREDITOR’S MEETING – WHAT YOU CAN EXPECT

The trustee will first ask you to be sworn in or to affirm that you will tell the trust. A New Jersey Bankruptcy Attorney from Sharp Bratton will be by your side. DO NOT BE NERVOUS. The meeting is usually informal and takes less than 10 minutes.

Once again, DO NOT FORGET to bring your social security card and a valid government approved photo ID. (By the way, an expired driver’s license doesn’t count.)

It is our firm’s policy to review in detail every line of the bankruptcy petition with you before you sign it. At the creditor’s meeting, the trustee will ask you to confirm your signature on the petition and to verify that you reviewed the petition before you signed it and that all the information is true and correct. If you discover that information disclosed on the petition is inaccurate or additional facts need to be brought to light, please contact Sharp Bratton IMMEDIATELY (before the creditor’s meeting) so that we can make any necessary amendments to the petition. You still have the option to make any changes or additional disclosures when you meet with the Trustee; however, the meeting will be smoother if the amendment has been made prior to that date. The types of amendments that we have made in the past include: change in address or employment or adding a new creditor that you forgot to include in the original petition..

After you have been sworn in (or affirmed your testimony), the following questions will be asked by the Trustee:

A. If you own a house or real estate, you will be asked these questions:

a)When did you purchase the house or real estate?

b) What was the entire purchase price?

c) What is the current fair market value of the property?

d) What is the payoff on any mortgages you owe? Once again, don’t forget to bring off the current payoff statement as well as copies of deeds for each property that you own.

e) You may be asked to produce (1) the current payoff statement for each vehicle that is financed; (2) your two recent paystubs which reflects your average weekly or biweekly income. (If you have had an unusual amount of overtime or didn’t get all of your normal hours, you want to bring other paystubs as well that show what you normally make. We will review them with you before you show them to the trustee; (3) your income tax returns (1040s) for the last two years.

After you have answered the trustee’s questions and given him or her the required documentation, the hearing will normally end and then the next phase begins.

FIFTH STEP – WHAT HAPPENS AFTER THE CREDITOR’S MEETING

Our work is over for now and we simply have to wait for the trustee to submit a report to the bankruptcy court with his or her opinion that you qualify for bankruptcy and that your debts should be discharged. There is a remote possibility that the trustee will recommend that your debts should not be discharged; however, this rarely happens. If so, he or she will inform your New Jersey Bankruptcy attorney (Sharp Bratton) of the issues and we will work with you to attempt to remedy the situation.

You will soon be receiving several documents from the bankruptcy court. Again, you must open them and read them carefully. Approximately three months after the creditor’s meeting, you will receive a Bankruptcy Discharge which is the most important document. Please file this away in a safe place because this is proof that your dischargeable debts have been legally forgiven. If any creditor ever tries to collect in the future and you have listed that creditor on your bankruptcy petition, you simply need to produce the discharge.

If you own real estate, you will most likely be sent a Notice of Proposed Abandonment of Property. This means that you may keep your property since the trustee has decided to abandon any creditor’s claims of creditors against your property. IN THE PAST, SOME OF OUR CLIENTS HAVE FRANTICALLY CALLED US BECAUE THEY INTERPRETED THE DOCUMENT TO MEAN THAT THEY MUST GIVE UP THEIR PROPERTY. This is not the case at all!!!! Please note that creditors are given the opportunity to object and a court date is set so that creditors can appear to object. YOUR APPEARANCE AT COURT ON THAT DATE IS UNNECESSARY UNLESS WE ADVISE YOU TO THE CONTRARY!!! Once that date has come and gone, your debts are discharged you can stop worrying!

SIXTH STEP – YOUR FINANCIAL FUTURE

One of the most popular questions asked by our clients considering a bankruptcy proceeding is how a discharge will affect their credit rating for the future. Simply put, before making the final decision to file a bankruptcy petition, we encourage you to consider other alternatives such as mortgage or loan modifications or other negotiations with your creditors. However, the fact of the matter is that the credit rating of many of those who consult with us has already suffered and will only get worse as time goes on. It is our understanding that while credit may not be easy to obtain in the first few years, if you work and pay your bills on a consistent basis after your bankruptcy discharge, you will be on the road to building back your favorable credit rating. We will be pleased to make referrals if you are interested in obtaining financing for homes and cars in the future. You can also look into a secured credit card.

The most important two little words in the bankruptcy world are “FRESH START”!!! After your bankruptcy discharge, you get to start all over again financially!!!!

Once you obtaining your discharge, your bankruptcy case is officially concluded in most cases. However, if you are expecting to receive a substantial asset in the future, such as an award or settlement on a personal injury case, the bankruptcy court may keep your case open until you are able to disclose the amount of the funds that you will receive. You are under an affirmative obligation to notify the bankruptcy court if you inherit any property within six months of filing your bankruptcy petition.

Our clients report to us that they have a sense of relief after the proceedings are complete. They now have significantly less financial stress and feel less tense.

CHAPTER 7 – FREQUENTLY ASKED QUESTIONS

Question: Am I allowed to keep any assets?

Answer: You are allowed to own a home, vehicles, jewelry and have bank accounts. However, the law restricts the amount of assets that you are permitted to keep if you wish to wipe out all of your unsecured debts. A married couple can have $40,400 equity in their home and still wipe out the unsecured debts while a single person has an equity limit of $20,200. If the equity is higher, we will need to consider a Chapter 13 Bankruptcy under which unsecured creditors will be paid a portion of the debt owed over a period of time.

Question: What effect does my income and expenses have on my Chapter 7 Bankruptcy case?

Answer: The trustee in every case reviews your income and expenses. The amount of income you earn per month compared to the amount of reasonable expenses you have per month can be a factor in determining whether you can wipe out all of your unsecured debt.

Question: What is the Chapter 7 means test?

Answer: The Chapter 7 means test is a formula applied to determine whether or not the consumer should have enough money available to make some minimal payment to creditors in a Chapter 13 plan. The goal is to reserve Chapter 7 bankruptcy for those who really have no means to pay and to push those who have available income into Chapter 13 bankruptcy plans, so that their creditors will receive at least partial payment.

Question: How does the Chapter 7 means test work?

Answer: The Means Test is a Two-Step process.
The First Step is is referred to as “Median Income Comparison” which compares your income to the median income in your state for a family the same size as yours. We will perform that calculation for you as part of our service as your New Jersey Bankruptcy Attorney and determine if you are above or below the median income. If your income is higher than the median income, it doesn't necessarily mean that you can't file for Chapter 7 bankruptcy; it just triggers the second step in the test.

The Second Step involves Calculation of Your Disposable Income and Unsecured Debts. Certain allowable expenses (determined by IRS guidelines) are subtracted from your income to find your "disposable income."

If your projected disposable income over the next five years totals less than $6,000 ($100/month), you likely "pass" and can file under Chapter 7.

If your disposable income is greater than $10,000 over the next five years, a presumption arises that you don't really need to file for Chapter 7 bankruptcy and you may only be allowed to do so if you can demonstrate special circumstances.

In the gray area between $6,000 and $10,000, yet another calculation is often required.

This one compares your disposable income over the next five years to a percentage of your unsecured debt to determine whether any significant repayment to your creditors
is possible.

If your disposable income over five years is greater than 25 percent of your unsecured, non-priority debts, you'll probably find yourself in the same circumstances as if you'd had more than $10,000 in disposable income.

If your disposable income over a five year period is less than 25 percent of your unsecured, non-priority debts, you will likely "pass" the means test.

A Sharp Bratton bankruptcy attorney will crunch the numbers for you and tell you whether or not you qualify for Chapter 7 bankruptcy under the means test. The calculation can be complex, not only because of the numerous steps that may be involved, but because it requires an understanding of the rules concerning how your income is calculated for means test purposes and which debts are classified as unsecured and non-priority.

Most people who want to file for Chapter 7 bankruptcy find that they are still eligible to do so even under the new law. We will help you determine how the means test may affect your options.

We are a debt relief agency. We help people file for bankruptcy relief under the
Bankruptcy Code.

Contact Sharp Bratton for a free consultation with an experienced Chapter 7 Bankruptcy lawyer in New Jersey.

Free consultations • Evening and Weekend appointments available

Chapter 13 Bankruptcy

STOP FORECLOSURE AND SAVE YOUR HOME!!!!

STOP REPOSSESSION!!!!

ELIMINATE OR GREATLY REDUCE CREDIT CARD DEBT AND MEDICAL BILLS!!!!!

A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay a portion of their debts. Your New Jersey Bankruptcy Lawyers will propose a repayment plan to make installment payments to creditors over three to five years.

If the debtor's current monthly income is less than the applicable state median (determined by applying the “means test”, the plan will be for three years unless the court approves a longer period "for cause." If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years. The plan can never last longer than five years. During this time creditors are strictly prohibited by law from starting or continuing collection efforts.

Under Chapter 13, you will be get a fresh start and relieve the stress that you are no doubt under. You will be given the chance to wipe out some bills and to catch up on the others. Your New Jersey Bankruptcy Lawyers will advise you as to which bills can be
legally discharged.

Don’t feel ashamed!!! You are not alone. In the United States, approximately 1.5 million file for relief under the Bankruptcy Code EACH YEAR!!!!! For many people, this fresh start helps them toward a brighter financial future. There is indeed a light at the end of the tunnel. Sharp Bratton will get the collection agencies and other creditors off of your back!!!

FREQUENTLY ASKED QUESTIONS ABOUT CHAPTER 13 BANKRUPTCIES

Question: Is there an advantage to filing Chapter 13 over filing a Chapter 7?

Answer: Filing under Chapter 13 has a number of advantages over filing for a chapter 7 liquidation. The most significant benefit is that individuals have the opportunity to save their home from foreclosure. Foreclosure proceedings may be stopped and the individual may be able to cure mortgage payment arrearages over time. After the filing, all future mortgage payments must be made on time. Other secured debts may also be part of the Chapter 13 schedule and the obligations may be extended over a period of time which in effect allows you to lower the payments. Third parties liable on a particular debt are also afforded special protection under the Bankruptcy Code. A debtor who has sought Chapter 13 protection will make payments pursuant to the plan to a Chapter 13 trustee who in turn distributes the payments to the creditors.

Question: How do I know if I am a good candidate for a Chapter 13 Bankruptcy?

Answer: Your New Jersey Bankruptcy Law Firm, Sharp Bratton will analyze your matter and determine if you are a good candidate. However, in general, the following types of situations illustrate the circumstances under which Chapter 13 will be considered:

You are behind on mortgage payments. While under Chapter 13 protection, you can take up to five years to catch up on your payments. An added bonus is that in most cases, there is no interest or penalties assessed against you.

Your home is in foreclosure. In most circumstances, the foreclosure proceedings can actually be stopped. You may decide that the home is no longer affordable. In that case, it is possible that you will get time to sell your home and hopefully benefit financially from the sale.

Your home is listed for a Sheriff's Sale. In most circumstances, the Sheriff's Sale can be stopped. You may get up to five years to catch up on your back payments. If your home has already been sold at Sheriff’s Sale, contact your New Jersey Bankruptcy Attorney, Sharp Bratton, so that we can determine if it is possible to still save your home.

Your car payments are in arrears. You may be entitled to take up to five years to catch up on your back car payments.

The interest rate on your vehicle loan is exceedingly high. It is possible that you will be able to reduce the interest rate and take up to five years to pay off the balance of the loan

Your car has been repossessed. If the car has not yet been sold at an auction, Sharp Bratton will most likely be able to get your car back for you. You will then be able to pay off the balance of the loan over a three to five year period. We may be able to reduce the principal balance on the loan and to get you a lower interest rate.

You have owned your vehicle for more than 910 days (2 ½ years) and it is worth significantly less than the outstanding balance on the loan. It is possible that your monthly vehicle payments can be reduced. The new monthly payment will be based upon the actual fair market value of your vehicle. Your New Jersey Bankruptcy Attorney will make this determination on your behalf.

Your landlord is taking you to court to try to evict you because you owe back rent. In most cases, an eviction can be stopped if a Chapter 13 petition is filed prior to your court date. If a judgment for possession has already been granted to your landlord, we may still be able to help but the process would likely be very complicated and expensive. Don’t let yourself get to that point!

You owe back taxes. In some cases, the tax liability can be satisfied through your bankruptcy plan over a period of three to five years. If successful, no interest or penalties will be paid by you.

You owe fines imposed by a Court. In general, you will be able to include the fines as part of your plan. Some Municipal Court Judges forbid this method; however, your Sharp Bratton Bankruptcy Lawyer will be able to advise you specifically.

You have unsecured debts such as credit card bills – You may be able to get rid of unsecured debts. (An unsecured debt is a loan that you took out without posting collateral.) In many cases, a Chapter 13 Bankruptcy will allow you to greatly reduce if not completely wipe out your credit card bills, personal unsecured loans, medical bills, utility bills such as gas, electric, and telephone, surcharges on your driver's license. Your New Jersey Bankruptcy Attorney at Sharp Bratton may also be able to lift wage executions, stop freezes on your bank accounts, and get law
suits dismissed.

You are behind in your utility bills and are receiving shut off notices. Under a Chapter 13, you can get rid of your past utility bills. A public utility such as Atlantic City Electric, Verizon, and Public Service Gas is required to continue to give you service in the future. While past due cell phone bills can be wiped out, the cell phone providers are not legally bound to continue to provide future cell phone time for you. Your option at that point is to try to get another provider to extend service to you. You will be able to maintain your same cell phone number.

You have unpaid surcharges and that’s the only thing that is keeping you from getting your driver's license. Often, our clients get back their driver's license right away by filing for Chapter 13 Bankruptcy.

You have income tax liability from more than three years old ago. As long as you filed the return more than three years ago, it is probably that the Bankruptcy Court will give you a complete discharge.

3. Question: Who is eligible for Chapter 13?

Individuals (even if self-employed or operating an unincorporated business) areeligible for Chapter 13 provided that the unsecured debt is less than $336,900 and the secured debts are less than $1,010,650. Partnerships or corporations
are ineligible.

The Bankruptcy Code prohibits an individual from filing for Chapter 13 relief if,during the preceding 180 days, a prior bankruptcy was dismissed as a result of the debtor’s willful failure to appear before the court or comply with court orders or if a petition was dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.

An individual is eligible for a Chapter 13 discharge only after receiving creditcounseling from an approved credit counseling agency within 180 days before filing. If a debt management plan is developed during the course of the counseling, it must be filed with the court.

4. Question: What does the Chapter 13 process entail?

First Step: We first work with you to prepare a petition which must be signed by you. It is a lengthy petition and must be filled out completely. We rely on you to provide us with the necessary information. Before it is filed, our bankruptcy paralegal will meet with you to ensure that all information is accurate and complete. While we are in the process of preparing the petition, we will give you the information that you need to complete your first credit counseling session which can be done by the internet or by telephone and generally takes between half an hour to an hour. We then file the petition electronically and the Court immediately assigns a case number. A repayment plan must be filed within 15 days after the petition is filed. (Unless there is an emergency, we prefer to file the plan along with the petition.) The plan will be submitted for court approval and it must provide for fixed payments to be made to the trustee on a regular basis. It is the trustee’s responsibility to distribute the funds to creditors in accordance with the terms of the plan. There are three types of claims: priority, secured and unsecured. Priority claims are those granted special status under the bankruptcy law. This would include most tax obligations as well as the costs of the bankruptcy proceeding. Secured claims are those for which the creditor has the right to take back certain property (i.e. collateral) if the debtor fails to pay the underlying debt. Unsecured claims are generally those for which the creditor has no special rights to collect against property owned by the debtor. The plan must generally pay priority claims in full. If the debtor wishes to hang on to the collateral (such as home or car) securing a particular claim, the plan must provide that the holder of the security interest be paid at least the value of the collateral and in most cases, the debt must be repaid in full. Your New Jersey bankruptcy attorney will advise you as to the treatment of secured debt. Unsecured claims are not required to be paid in full as long as the plan provides that the debtor will pay all projected “disposable income” over an “applicable commitment period” and as long as unsecured creditors receive at least as much under the plan as they would receive if the debtor’s assets were liquidated under chapter 7. Under chapter 13, “disposable income” is income (other than child support payments received by the debtor) less amounts reasonably necessary for the maintenance and support of the debtor or dependents and less charitable contributions up to 15 % of the debtor’s gross income. If the debtor operates a business, the definition of disposable income excludes those amounts which are necessary for ordinary operational expenses. The length of the “applicable commitment period” depends on the debtor’s current income. The applicable commitment period must be three years if current monthly income is less than the state median for a family of the same size – and five years if the current monthly income is greater than a family of the same size

Second Step: The Bankruptcy Court will notify all of the creditors listed in yourpetition that a Bankruptcy case is pending. (You will receive a copy of the notice and will therefore know when the creditors have been notified. It is critical that you review the document carefully because it gives you information as to when and where you need to appear for the “Creditor’s meeting”. This meeting is usually scheduled to take place about 5 weeks after the filing of the bankruptcy petition.) If there is an emergent circumstance, your New Jersey Bankruptcy Attorney will notify the creditors immediately on your behalf. The following are examples of matters in which we may want to give personal notification: (1) Preventing a shut off notice for your utilities from taking place (or even getting the utilities turned back on); (2) Stopping a Sheriff’s sale or foreclosure proceeding; (3) Stopping a future vehicle repossession or getting back a vehicle that was already repossessed. (We will not be able to get the car back unless you provide us with proof of full coverage automobile insurance.); (4) Stopping an eviction proceeding if you are a renter; (5) Preventing the IRS from withholding your tax refund check; (5) Stopping wage attachments. (Sometimes we can get money returned to you that was taken from your salary within 90 days prior to your bankruptcy filing. (6) Working with you to get your driver’s license restated if it was suspended as the result of unpaid surcharges; (7) Removing the “freeze” from a bank account; (8) Getting your driver’s license back (if it was lost as the result of unpaid surcharges)

IMPORTANT: Within 30 days after filing the bankruptcy petition, the debtor must
begin making plan payments to the trustee – even if the plan has not yet been approved by the court. The debtor must continue making normal monthly payments to secured creditors (such as bank or finance company for a car or home) or to make lease payments as they come due. We recommend that you consider allowing your employer to pay the trustee directly through a deduction from your paycheck. This ensures that the payments will be made on a timely basis. Your bankruptcy lawyer will help you out with this process if you
are interested.

Third Step – You must appear at the Creditor’s meeting which is conducted by the Standing Chapter 13 Trustee. If you live in the Camden vicinage, the trustee is Isabel Balboa. If you live in the Trenton vicinage, Albert Russo serves as the trustee. A Sharp Bratton bankruptcy attorney will attend the meeting with you. It is normally a very simple procedure that takes about 10 minutes. The purpose of the meeting is to ensure that all of the paper work has been completed in a proper manner, to determine if any changes have taken place since the filing of the petition and to make sure that you understand the Chapter 13 process and to emphasize that you must fulfill certain responsibilities such as making all of your trustee payments in a timely fashion. You will be placed under oath and the trustee and creditors (if any appear) will be able to ask you questions. The hearing is usually very smooth so long as there are no problems with the petition or plan – which is another reason to review the petition VERY CAREFULLY to make sure there are no errors or omissions. We will help you prepare for the meeting. The following are the types of questions that you will be required to answer: (1) Where are you employed? If you don’t work, what is your source of income? (2) Have you filed all of your income tax returns? Please note that you are required under law to be completely up to date in the filing of your tax returns or your Chapter 13 petition will be dismissed. (3) Do you owe any back taxes? (4) If you own your home, when was it purchased, how much did it cost, what is the current fair market value and how did you determine this? You should be prepared to bring a copy of your real estate tax assessment. (5) Who lives with you and do they share living expenses? If so, you will be required to provide proof of the other person’s income even though they are not filing for bankruptcy. (6) If you receive child support, you will need to provide documentation proving the amount of child support you receive. (7) If anyone helps you out with your bills, you will need a signed statement from that individual verifying the amount of financial assistance they provide to you on a regular basis. (8) Did you review the bankruptcy petition before it was filed? Did you meet with an attorney before signing the papers? Do you wish to modify the petition due to an error or omission? (There is an additional attorney and filing fee if additional creditors need to be added.) (9) Please provide your most recent pay stub or other proof of income. The pay stub should not include overtime pay unless you normally receive overtime. (10) Be prepared to explain why it was necessary for you to file bankruptcy. (11) Have you inherited or do you expect to inherit any property? (Please note that you are required to report any anticipated inheritance from someone who has already passed away or any inheritance you receive within 6 months of filing the bankruptcy petition.) (12) Do you have any safe deposit boxes? If so, what does it contain? (13) If you previously filed a Chapter 13 petition which was dismissed, you will need to convince the trustee as to why the case will work this time around. In other words, what has changed? (For example, has there been a change in your employment situation or expenses?) The trustee wants to ensure that you are not abusing the system by filing multiple bankruptcies. (14) 14. Are you current on your trustee payments? The trustee will have possession of the records and if you are behind in your obligation under the plan created by your Sharp Bratton Bankruptcy Attorney, you will be advised that your case may be dismissed unless you get up to date in making your payments. Remember, if the case is dismissed, you lose the protection of the Bankruptcy Court and the creditors can come after you once again. (15) If you own a time share, you will be asked about the details of purchase and current financial obligations. (16) When will your current vehicle be paid off? This is relevant because once you have made your last monthly payment on your vehicle, you will have extra money. (17) Business owners are required to complete a detailed business questionnaire statement. Please provide us with detailed financial records including your most current profit and loss statement and proof that you have adequate insurance. It is critical that you let us know if you are running your own business, no matter the size.
IMPORTANT: Please be sure to bring your social security card and a government approved photo id.

FOURTH STEP – AFTER THE MEETING OF CREDITORS

You must continue making your regular monthly payments to the Chapter 13 trustee. Make your regularly scheduled payments to secured creditors if you plan to keep the home or car which acts as collateral. Don’t forget to notify us of any change in your financial circumstance. Also, if you wish to assume additional debt, make a major purchase or sell something of significant value, we must obtain permission from the trustee and the bankruptcy court. Just call us and we will take care of this.

FIFTH STEP – THE CONFIRMATION HEARING.

No later than 45 days after the meeting of creditors, the bankruptcy judge is required to hold a confirmation hearing and decide if the plan is feasible and meets the confirmation standards established in the Bankruptcy Code. Creditors will receive 25 days notice and are entitled to object to confirmation. The most frequent objections are that payments offered under the plan are less than the creditors would receive if the debtor’s assets were liquidated or that the debtor’s plan does not commit all of the debtor’s projected disposable income for the applicable commitment period (i.e. three to five years). We make every effort to construct the plan so that these objections do
not arise.

You will most likely not be required to attend the confirmation hearing. Your New Jersey bankruptcy law firm Sharp Bratton will advise you as to whether you must attend. At the hearing, the trustee reviews the case to determine the following: (a) Whether you are completely up to date in your payments to the trustee. (b) Whether any objections to your plan have been filed by creditors. (c) Whether the claims filed by creditors are consistent with the debt listed in your plan. (d) Whether the trustee believes it is appropriate to require a wage order for your monthly payments to the trustee. (This is likely to occur if you haven’t made your payments on time up to that point.) (e) Whether you have provided all documentation or information (if any) requested at the creditors’ meeting. (f) Whether you are financially able to make the plan payments It is possible that the trustee will recommend a different monthly payment amount than we proposed. We will keep you advised.

If the court confirms the plan (which normally occurs), the chapter 13 trustee will distribute funds received under the plan “as soon as is practical”. If the court declines to confirm the plan, we will prepare a modified plan designed to address any concerns. An alternative is that the case will be converted to a chapter 7. The court could also opt to dismiss the case.

If your circumstances change after the plan is confirmed, please contact us and we can seek a modification on your behalf. We may even be able to obtain a temporary suspension of plan payments. Circumstances that could warrant this are loss of employment, medical conditions or a similar situation. The same holds true if you are unable to make mortgage or car payments outside of the plan.

If you don’t make the payments, the trustee may write you a letter giving you the opportunity to catch up. If you don’t, he or she will most likely file a motion with the court to dismiss your case. If this happens, contact us immediately so that we can try to help you out. If your case is dismissed, you will lose bankruptcy court protection and your creditors will once again begin contacting you.

Once you have completed your payments under the bankruptcy plan (at the end of the three to five year period), you are entitled to a discharge so long as you (1) certify (if applicable) that all domestic support obligations that came due prior to making such certification have been made (2) have not received a discharge in a prior case filed within a certain time frame (two years for prior chapter 13 case, four years for prior chapter 7, 11, and 12 cases); and (3) have completed the required credit counseling. (We will give you more information on this aspect.)

The discharge release you from all debts provided for by the plan or disallowed with limited exceptions. Creditors provided for in full or in part under the chapter 13 plan may no longer initiate or continue any legal or other action against you to collect the discharge obligations. (Certain types of debt are not dischargeable. Your New Jersey Bankruptcy attorneys will inform you if any of your debts are non dischargeable)

Question: How much does it cost to file a Chapter 13?

Answer: The Bankruptcy Court requires a filing fee of $275. There are also two credit counseling sessions that you must do to file for Bankruptcy and be entitled to discharge of your debts. Each session costs $50. We obtain an up to date credit report to ensure that all of your debts are included at a fee of $35. The attorneys fee is $3500 in most cases. We require an up front payment of $750. The rest is paid to us through your bankruptcy plan. The total up front cost to you is $1110.00.

The Sharp Bratton attorneys and staff take great pride in our legal expertise. We know that you are going through a stressful time and we are sensitive to your needs. We are caring and compassionate. Yet, we are tough too when it comes to protecting the rights of our clients. Call us TODAY!!!!! We look forward to being of service to you.

Consumer Bankruptcy