#chapter 7 bankruptcy attorney morris county

[morriscountybankruptcy]

Morris County Bankruptcy Lawyers are experienced professionals who specialize in helping individuals and businesses navigate the complexities of bankruptcy law. They provide comprehensive legal services to those facing financial hardship, such as foreclosure lawyers in New Jersey. With their knowledge and expertise, they can help clients find solutions to their debt problems and work towards a more secure financial future.

Morris County Bankruptcy Lawyers 133 Washington St, Morristown, NJ 07960 (973) 219–6796

My Official Website: https://morriscountybankruptcylawyers.com/ Google Plus Listing: https://www.google.com/maps?cid=4635803748339354736

Our Other Links:

business bankruptcy Near ME: https://morriscountybankruptcylawyers.com/business-bankruptcy-services-nj/ bankruptcy chapter 13 New Jersey: https://morriscountybankruptcylawyers.com/chapter-7-vs-chapter-13/ bankruptcy student loans New Jersey: https://morriscountybankruptcylawyers.com/student-loan-attorney-nj/

Service We Offer:

Bankruptcy Service Lawyers Chapter 7 bankruptcy Chapter 13 bankruptcy Debt Relief Agency Bankruptcy Foreclosure

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[karinalucidlaw]

Some people turn to off-track horse betting, while others may try their hand at scratch-offs or other state lottery products. No, the greater issue is the underlying psychology of addiction as it relates to gambling. If you or a loved one has a gambling addiction, please visit the our office and call us today at 908-795-8412.

[ianetti-legal]

When a Debtor is Living on Credit: Discharging Recent Credit Card Debt!

Dischargeable vs. Non-Dischargeable Debt

When you file a consumer bankruptcy case – Chapter 7 or Chapter 13 - most debts are discharged. You never have to pay a discharged debt. Some debts, however, are not discharged.   These include -

Debts protected by law.

Congress has determined that some debts should not be discharged in bankruptcy or can be discharged only with certain conditions.

For example, spousal support, alimony, and child support cannot be discharged.

In most cases, student loans cannot be discharged. 

Finally, if you have not filed your tax returns, your unpaid income taxes cannot be discharged.  If you have filed, you must wait at least three years to discharge the tax due.

Reaffirmed Debts.

Some debtors exclude debts from discharge.  This is done by reaffirming the debt. If you sign a “reaffirmation agreement” and the court approves it, your “reaffirmed” debt is not discharged. Many debtors reaffirm their secured debts. 

For example, if you own a car and have a car loan, you might choose to keep the car and the debt.  In that case, you reaffirm your auto loan, keep your car, and continue to pay the lender.

Debts Obtained Through Fraud.

If you acquire debt by giving false information on the loan application or giving a false promise to pay, the creditor can object to discharge.

This situation gives rise to a question about the dischargeability of recent credit card purchases.  As you will see, debt incurred to pay for “reasonably necessary” expenses is almost always dischargeable. In contrast, debt incurred for “luxury goods and services” or significant “cash advances” may not be dischargeable.

The Fraud Exception to Discharge.

Federal law states a creditor can object to discharge of a particular debt if it was “obtained by . . . false pretenses, false representation, or actual fraud . . .” See 11 U.S.C. §523(a)(2) of the Bankruptcy Code.

A fundamental principle of bankruptcy law is that debtors are good people who need assistance. Therefore, you cannot cheat a creditor and then ask a court to cancel your debt to that creditor.  You must act in good faith, and you must have intended to repay the debt when you incurred it.  If you did not intend to repay, you might be accused of obtaining credit through fraud.

The Legal Presumption of Fraud?

The legal presumption of fraud makes it easy for a creditor to prove that your debt should not be discharged. If the presumption exists, the court will “presume” you committed fraud and incurred a debt you did not intend to repay.

First, a little theory -

The “presumption of fraud” is a legal concept that relies on the belief that a debtor on the verge of bankruptcy knows he or she cannot repay new debt. If that person borrowers knowing they cannot repay, they probably never intended to repay. Therefore, they must have intended to get money or goods, discharge the debt in bankruptcy, and never have to pay the creditor. That’s a fraud!

There are two circumstances where the presumption of fraud arises:

1.  If, in the 90 days before filing bankruptcy, you buy more than $650 of “luxury goods or services,” the debt is presumed to be non-dischargeable. Using the presumption of fraud, the creditor doe not need to prove your intention. Instead, the court will presume you did not intend to repay the debt.

Did you use a credit card to put a down payment on a luxury Jaguar automobile? 

If you did that within 90 days of filing bankruptcy, the court will presume you did not intend to repay the credit card issuer, and it would not discharge your obligation.

This presumption of fraud only applies to the purchase of “luxury goods or services.” Regrettably, Congress defined “luxury goods or services” broadly, and the phrase includes everything except goods or services “reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor.” See 11 U.S.C. §523(a)(2).  Fortunately, groceries and gas are “reasonably necessary” expenses.  And debts incurred to buy these necessities can be discharged even if the debt is incurred during the 90 days before bankruptcy. 

2.  The “cash advance” presumption of fraud is very similar to the “luxury goods and services” presumption.  It states:  If a consumer incurs a debt of more than $925 through one or more cash advances made in the 70 days before filing the bankruptcy, that debt is presumed to be non-dischargeable. The creditor needs only to establish that you made more than $925 in cash advances during the 70 days before filing for bankruptcy for the presumption to apply. 11 U.S.C. §523(a)(2).

If a Presumption of Fraud Applies, Can You Overcome It?

You can rebut the presumption of fraud by demonstrating to the bankruptcy judge that YOU truly intended to repay the debt. Your direct testimony that you intended to repay debt along with evidence that something unexpected forced you to file bankruptcy after the luxury purchase or cash advance, can rebut the presumption.

How Does a Creditor Assert a Claim of Fraud?

A creditor must formally object to the discharge of any debt it thinks you incurred fraudulently. Without a formal objection by the creditor, the debt will be discharged. The creditor’s objection must be in an adversary proceeding.  An adversary proceeding is a separate lawsuit filed at the bankruptcy court.

The creditor must provide evidence proving your alleged fraud or misrepresentation.  But the presumption of fraud makes it easy. The creditor does not need direct evidence of fraud and can win just by showing you made a luxury purchase or significant cash advance during the presumption period.

Without the presumption of fraud, a creditor would need to present convincing evidence that you did not intend to pay the debt. This evidence involves your state of mind and is hard to prove. Therefore, creditors are not likely to challenge purchases and cash advances made before the 70-day and 90-day presumption periods.

How Can a Debtor Avoid the Presumption of Fraud?

You can avoid giving a creditor the advantage of the presumption of fraud. First, don’t use any credit or make cash advances during the prohibited period. If you have made purchases or cash advances, delay filing bankruptcy until time has passed beyond the 70 and 90-day presumption periods.

When you meet with Ernest G. Ianetti, Esq., we'll discuss your financial situation and how bankruptcy can help you get relief and get out of debt. We'll carefully review your recent expenditures to ensure your debts are dischargeable and that there is no issue concerning fraud. 

At the Law Office of Ernest G. Ianetti, Esq., we take pride in assisting our clients to achieve the best outcomes. 

The Law Firm of Ernest G. Ianetti, Esq. has over 30 years of professional experience.  If you are considering Chapter 7 bankruptcy, we can help you.  We’ll work with you, the trustee, and your creditors to insure your Chapter 7 case succeeds and you keep your property.  To schedule a FREE Consultation, click here.

*The code references are to 11 U.S.C. (Title 11 of the United States Code).

Ready For A Consultation?

This website and its contents are attorney advertising. The information and materials offered on this site are for general informational purposes only, do not constitute and should not be considered legal advice, and are presented without any representation or warranty whatsoever, including as to the accuracy or completeness of the information. No one should, or is entitled to, rely in any manner on any of the information at this site. Parties seeking advice should consult with legal counsel familiar with their particular circumstances. Communication with the law firm through this website does not create an attorney client relationship. The law firm is a debt relief agency. We help people file for bankruptcy under the United States Code.

[morriscountybankruptcy]

Morris County Bankruptcy Lawyers is here to educate you and offer the best possible outcome for your New Jersey foreclosure case. When a home is in the process of being repossessed by a bank or financial institution, it’s best to seek out professional advice on your NJ foreclosure from our attorney. Our foreclosure lawyers in New Jersey can help you so you don’t ruin your life.

Morris County Bankruptcy Lawyers 133 Washington St, Morristown, NJ 07960 (973) 219–6796

My Official Website: https://morriscountybankruptcylawyers.com/ Google Plus Listing: https://www.google.com/maps?cid=4635803748339354736

Our Other Links

foreclosure lawyers in new jersey: https://morriscountybankruptcylawyers.com/foreclosure-defense-attorney-morristown/ business bankruptcy near me: https://morriscountybankruptcylawyers.com/business-bankruptcy-services-nj/ bankruptcy chapter 7 new jersey: https://morriscountybankruptcylawyers.com/chapter-7-vs-chapter-13/ student lawyer nj: https://morriscountybankruptcylawyers.com/student-loan-attorney-nj/

Service We Offer

Bankruptcy Service Lawyers Chapter 7 bankruptcy Chapter 13 bankruptcy Debt Relief Agency Bankruptcy Foreclosure

Follow Us On

Facebook: https://www.facebook.com/Law-Office-of-William-Pegg-PC-107034754269330/ Twitter: https://twitter.com/LawyersMorris Pinterest: https://www.pinterest.com/morriscountybankruptcylawyers/

[karinalucidlaw]

At Lucid Law, we know that having a positive credit report is essential to your financial future, we are committed to helping you make sure your credit report is clear of any misrepresentations by your creditors. For more information contact our lawyers and call us today at 908-795-8412.

[karinalucidlaw]

Since 2007 America Saves Week has been an annual celebration as well as a call to action for everyday Americans to commit to saving successfully. Through the support of thousands of participating organizations, together we encourage our local communities to do a ‘gut-check’ on their finances and saving behaviors…

[karinalucidlaw]

Bankruptcy Law Firm Morristown NJ

Filing for bankruptcy, read this infographic to learn about bankruptcy law in New Jersey and know how our Morristown bankruptcy attorney can help you. For more information contact Karina Lucid Law at 908-795-8412.

[karinalucidlaw]

Personal Bankruptcy Attorney Morristown

If you are considering bankruptcy in New Jersey, read this infographic to learn about bankruptcy law and know how Morristown Bankruptcy Attorney, can assist you in filing bankruptcy and help you get a fresh start through bankruptcy. For more details call us at 908-795-8412.

[karinalucidlaw]

Chapter 7 Bankruptcy Attorney Morris County

If you’re thinking of declaring bankruptcy for debt relief, read this infographic to learn about chapter 7 bankruptcy process. Our Morristown Bankruptcy Attorney can help you choose the debt relief process that is best for your personal and financial circumstances, call now at 908-795-8412.

[ianetti-legal]

Will I Lose My Property If I File for Bankruptcy? Nope! (Copy)

Get Debt Relief and a Fresh Start

Individuals, including married and civil union partners, file Chapter 7 bankruptcies to get out of debt and start fresh. Starting over with nothing would hardly be starting fresh - it would be a disaster.

To solve that problem, the Bankruptcy Code has a provision for exempting real and personal property from the pool of assets available to your creditors. 

What Are Bankruptcy Exemptions?

Bankruptcy exemptions are specific laws, based on the Bankruptcy Code or state law, that prevent the bankruptcy trustee from using certain property you own to pay your creditors. Simply put, if your property is exempt, you keep it, and your creditors can't have it. The exemption statute is 11 U.S.C. §522.

To protect your exempt property, you have to itemize it on Bankruptcy Schedule C. If you claim no exemptions or list your property incorrectly, you may lose the exemption. If potentially exempt property is not claimed, the Chapter 7 bankruptcy trustee can take and liquidate your property. The trustee will use the money gained from selling your property to pay your creditors.  A skilled bankruptcy attorney will assist you in determining what exemptions are allowed for your situation. 

The list below describes the property and dollar amounts for the federal Bankruptcy Code exemptions. The exemption amounts are adjusted periodically to reflect changes in the cost of living. Therefore, bankruptcy filers must confirm they are using the most current bankruptcy exemption schedule before filing. The federal bankruptcy exemptions will adjust on April 1, 2022. 

Homestead

522(d)(1), (5) - Real property, including mobile homes and co-ops, or burial plots up to $25,150. The unused portion of the homestead exemption up to $12,575 can be used for other property. 

Personal Property

522(d)(2) - Motor vehicles up to $4,000.

522(d)(3) - Animals, crops, clothing, appliances and furnishings, books, household goods, and musical instruments up to $625 per item, and up to $13,400 in total.

522(d)(4) - Jewelry up to $1,700.

522(d)(9) - Health aids.

522(d)(11)(B) - Wrongful death settlements or verdicts for a person you depended upon.

522(d)(11)(D) - Personal injury settlements or verdicts up to $25,150 except for pain and suffering or financial loss.

522(d)(11)(E) - Lost earnings payments.

Pensions

522(b)(3)(C) - Tax-exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans).

522(b)(3)(C)(n) - IRAS and Roth IRAs to $1,362,800.

Public Benefits

522(d)(10)(A) - Public assistance, Social Security, Veteran's benefits, Unemployment Compensation.

522(d)(11)(A) - Crime victim's compensation.

Tools of Trade

522(d)(6) - Implements, books, and tools of the trade, up to $2,525.

Alimony and Child Support

522(d)(10)(D) - Alimony and child support needed for support.

Insurance

522(d)(7) - Unmatured life insurance except for credit insurance.

522(d)(8) - Life insurance policy with loan value up to $13,400.

522(d)(10)( C ) - Disability, unemployment, or illness benefits.

522(d)(11)( C ) - Life insurance payments for a person you depended on, which you need for support.

Wildcard

522(d)(5) - $1,325 of any property, and the unused portion of homestead exemption up to $12,575.*

Who Can Claim Bankruptcy Exemptions?

Only individuals can claim exemptions when filing bankruptcy.  The exemptions are not available to businesses that file Chapter 7. 

When married or civil union couples file a joint bankruptcy, each spouse can claim the property they own, and the exemption amounts may be combined for joint property.

What Happens to Non-Exempt Property?

Property not covered by a bankruptcy exemption is non-exempt. That means the trustee can take it to pay your creditors. Your attorney will negotiate with the trustee to settle disputes about the value of your non-exempt property and the amount remitted to an unsecured creditor.

If your property is exempt, but the exemption is less than the value of the property, the trustee will pay you the exemption amount before taking the property. In some cases, the trustee may allow you to "purchase" the non-exempt equity in your property. For example, if your car is worth $5,000 and your exemption amount is $3,500, you can pay $1,500 to buy and retain your vehicle. Your attorney will advise you whether to purchase a non-exempt asset.

What Happens to My Home Mortgage and Car Loan?

Secured creditors with an interest in your property retain their claims.  That means your mortgage lender can still foreclose on your home if you are behind on your mortgage payments.  And, the bank that financed your car can still repossess it if you have not made your monthly payments.  In the short run, however, the bankruptcy automatic stay will prevent any creditors from taking action until they receive permission from the bankruptcy court.

Should I Use the Federal Bankruptcy Exemptions or State Bankruptcy Exemptions?

The federal Bankruptcy Code applies to cases filed nationwide. However, the Bankruptcy Code allows individual states to enact bankruptcy exemptions specific to that state. Some states have elected to create state-specific exemptions, and other states allow debtors to choose between federal exemptions and state bankruptcy exemptions.  In New Jersey, Chapter 7 Bankruptcy filers can choose the federal exemptions or New Jersey's state-specific exemptions. In most cases, the federal exemptions are the best option.

So, Do Debtors Lose Property in a Chapter 7 Bankruptcy Case?

Most Chapter 7 cases are “no-asset” cases. That means there is no property the trustee can take and liquidate. In “no asset” cases, Chapter 7 debtors kept everything they own.

When you meet with Ernest G. Ianetti, Esq., we'll discuss your financial situation and how bankruptcy can help you get relief and get out of debt. We'll carefully review your exemptions to maximize your results.  At the Law Office of Ernest G. Ianetti, Esq., we take pride in assisting our clients to achieve the best outcomes. 

The Law Firm of Ernest G. Ianetti, Esq. has over 30 years of professional experience.  If you are considering Chapter 7 bankruptcy, we can help you.  We’ll work with you, the trustee, and your creditors to ensure your Chapter 7 case succeeds and you keep your property.  To schedule a FREE Consultation, click here.

*The code references are to 11 U.S.C. (Title 11 of the United States Code).

Ready For A Consultation?

This website and its contents are attorney advertising. The information and materials offered on this site are for general informational purposes only, do not constitute and should not be considered legal advice, and are presented without any representation or warranty whatsoever, including as to the accuracy or completeness of the information. No one should, or is entitled to, rely in any manner on any of the information at this site. Parties seeking advice should consult with legal counsel familiar with their particular circumstances. Communication with the law firm through this website does not create an attorney client relationship. The law firm is a debt relief agency. We help people file for bankruptcy under the United States Code.

[morriscountybankruptcy]

If you’re considering filing for Chapter 7 or 13 bankruptcy, you probably have lots of questions. Instead of muddling through generic answers on the internet, turn to The Law Offices Of William Pegg, PC for reliable legal counsel. At Morris County Bankruptcy Lawyers, our debt relief services are sure to help! Whether you are a person or homeowner in need of counsel or in need of business bankruptcy services, trust attorney Pegg. Our New Jersey bankruptcy lawyer and law firm can help you get back on the road to financial freedom!

Morris County Bankruptcy Lawyers 133 Washington St, Morristown, NJ 07960 (973) 219–6796

My Official Website: https://morriscountybankruptcylawyers.com/ Google Plus Listing: https://www.google.com/maps?cid=4635803748339354736

Our Other Links

business bankruptcy near me: https://morriscountybankruptcylawyers.com/business-bankruptcy-services-nj/ bankruptcy chapter 7 new jersey: https://morriscountybankruptcylawyers.com/chapter-7-vs-chapter-13/ foreclosure lawyers in new jersey: https://morriscountybankruptcylawyers.com/foreclosure-defense-attorney-morristown/ student lawyer nj: https://morriscountybankruptcylawyers.com/student-loan-attorney-nj/

Service We Offer

Bankruptcy Service Lawyers Chapter 7 bankruptcy Chapter 13 bankruptcy Debt Relief Agency Bankruptcy Foreclosure

Follow Us On

Facebook: https://www.facebook.com/Law-Office-of-William-Pegg-PC-107034754269330/ Twitter: https://twitter.com/LawyersMorris Pinterest: https://www.pinterest.com/morriscountybankruptcylawyers/