New Jersey Bankruptcy & Foreclosure Law Experts
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Expert New Jersey Bankruptcy, Foreclosure Defense & Mortgage Modification Lawyers Attorneys Gillman & Gillman, LLC have over three decades of Bankruptcy and Foreclosure Defense Experience. They have represented clients in Chapter 7, Chapter 11, Chapter 13 proceeding before the United States Bankruptcy Court and defended clients in foreclosure proceeding before the New Jersey State Court. Their expert knowledge has also enabled them to effectively represent clients in connection with mediation and mortgage modification |
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Bankruptcy May Provide Immediate Protection from New Jersey State Court Proceedings and May Enable You to Eliminate or Effectively Manage Your Debts. - If you are experiencing serious debt problems which have resulted in New Jersey State Court Proceedings such as Foreclosure, Law Suits, Wage Garnishment, Bank Levy and Property Tax Liens, the Bankruptcy Laws may enable you to halt the proceedings against you and to eliminate or effectively manage your debts under a Chapter 11 or Chapter 13 Bankruptcy Plan approved and enforced by the Unity States Bankruptcy Court. |
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Delay Can Result in the Loss of the Protection of the Bankruptcy- Unfortunately, it has been our experience that misinformation and delay often cause those who could have benefited from the protection of the Bankruptcy laws to lose their window of opportunity to prevent New Jersey State Court proceedings which result in the loss of their earnings, savings, personal property and homes. The most common misunderstanding about the Bankruptcy Law is that Debtors who file a Bankruptcy Petition lose everything. This is untrue as are many other beliefs about the Bankruptcy Laws |
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Bankruptcy Myths Your Creditors Want You to Believe |
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Myth - Debtors who file a Bankruptcy Petition Lose Everything. This myth is often used to discourage debtors from filing a Bankruptcy Petition. In fact, the exact opposite is often true. Below are two of the many examples of how filing a bankruptcy petition can be used to protect a debtor's property: |
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Example - Due to the loss of employment or a substantial reduction of income, a debtor residing in New Jersey is unable to pay credit card debt of $40,000.00, and files a Chapter 7 Bankruptcy Petition. The debtor and the debtor’s spouse own a home valued at $300,000.00. The balance on the mortgage on the home is $240,000.00. Assuming the debtor does not own any other real property or personal property of significant value such as stocks, bonds or substantial bank accounts, the debtor will be able to discharge credit card debt and retain ownership of the residence. |
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Example - Due to a prolonged illness, a debtor residing in New Jersey who has no medical insurance has incurred $50,00.00 in medical bills. All of the debtor's saving have been exhausted and the debtor has been unable to make mortgage payments for many months and is now threatened with foreclosure. The debtor has now returned to work and can begin making current mortgage payments, but has no means to pay the medical bill or the mortgage arrears. The debtor files a Chapter 13 Bankruptcy Petition and Plan which provides for repayment of the mortgage arrears over 60 months and payment of ten percent of the medical bills over the same period. |
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Myth - Debtors Who File Bankruptcy Can Never Get Credit Again. This is a difficult myth to debunk because the myth appeals to our common sense. However, it has been our experience that many of those on whose behalf we filed bankruptcy have been able to reestablish their credit, obtain credit cards and purchase vehicles and homes. In fact, filing a bankruptcy may help debtors reestablish their credit. |
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“ ... [Y]our credit report is largely wiped clean when you declare bankruptcy. Your high balances are removed as are any late payments or records of unpaid debts. Instead, the accounts included in the bankruptcy will be marked as "Included in Chapter 7 Bankruptcy" or "Included in Chapter 13 Wage Earner Plan," John Ulzheimer, President of Credit.com Educational Services. |
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Example - Chapter 7 Personal Bankruptcy discharges most debt and gives a debtor a clean slate and fresh start. This will enable timely payment current obligations by the debtor and the creation of a new credit history. |
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Example - A Chapter 13 Bankruptcy Plan allows a homeowner to avoid foreclosure by making the current mortgage payments as they become due and paying the arrears through the Chapter 13 Plan. It has been our experience that timely payment of the mortgage and arrears have provided a basis for the extension to debtors of new credit. |
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CAUTION: It must to be strongly emphasized that bankruptcy is not like vitamins - It is not good for everyone and not a miracle cure even for those who will benefit from the protection of the Bankruptcy Laws. Therefore a decision about whether it is in the interest of a debtor to seek bankruptcy protection and the type of bankruptcy to be filed should be made only after consultation with a bankruptcy lawyer. |
