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Bankruptcy in NJ – How to Stop a Judgment

Written by on February 21, 2012 · Leave a Comment

Here is a scenario that is most likely familiar to many people in the United States. The local sheriff has just served you with papers. You realize the credit card company you have been working with for months to reach a realistic pay down plan has gone ahead and sued you for the balance on your last known credit card statement. It’s now official. Depending on the state or county you’re in, you have 20-30 days to respond with an official letter to avoid a default judgment.

For the next week, your mailbox is inundated with letters from local attorneys offering bankruptcy services, and even so-called credit repair services preying on you when you are most vulnerable and confused. One or more attorneys may have even headed the sheriff off at the pass, and their letter arrives before he does. So by the time he gets to your home, you are already prepared and the court documents are no big surprise.

What do you do?

Your options are to respond, or not to respond to the lawsuit. If you choose to respond, you must do so within the stated time in the letter served to you by the sheriff.

What happens if you do not respond to a credit card lawsuit?

If you do not respond to a credit card lawsuit, the court will issue a default judgment against you, and you will have to pay the full amount of the balance, plus court costs and attorneys’ fees. If you are lucky, the court will have a hand in negotiating a reasonable monthly amount you will have to pay, on time, because that is what the court has ordered. No slacking off on these monthly payments.

What happens if you do respond to a credit card lawsuit?

If you respond to a credit card lawsuit, be sure to send one copy to the court where the summons came from, most likely your county courthouse, and one copy to the attorneys’ office who is filing the lawsuit. It’s a good idea to keep a copy for your own records. It’s also a good idea to deliver your letter of response to the court in person, because they will date stamp the letter, and you will be sure that they have received the letter on time. Also, they will stamp the copy for the attorneys’ office, as well as your own personal copy, if you choose to go in person. Otherwise, send the letter to the courthouse and attorneys’ office using certified mail, with signature confirmation.

You may want to contact an attorney to get advice on how to properly respond to the lawsuit. The attorney will read through the letter, and make you aware of how to properly write your response letter, or he/she will respond on your behalf.

Once you file your response, you have just bought yourself time to figure out what steps to take next.

So what are your options?

At this point, the ball is in the suing attorneys’ court. It is up to them to respond to your letter. While their response is being prepared, you have time to figure out if you will risk a judgment against you, or possibly consider bankruptcy, depending on how much money you owe to how many creditors.

If you decide to file for bankruptcy in NJ before a judgment has been passed, all legal proceedings against you will be stopped immediately. You will have the opportunity to erase most of your existing debts, and get a fresh start. A bankruptcy in NJ will stay on your credit report for seven years.

If a judgment is passed against you, you will not only have to pay the overwhelming amount of the credit card balance, but you will also leave yourself open to other creditors doing the same thing. Once a judgment has been passed against you, you cannot file for bankruptcy and include that debt in your filing. It’s important to know that even if the court dismissed the suit against you, the creditor can go after you again. A judgment against you will stay on your credit report for 20 years.

Once a creditor obtains a judgment, a creditor can attempt to levy your personal assets such as your checking account.  Once a creditor obtains a judgment they can also proceed to garnish your wages.  Filing a Bankruptcy in NJ will stop the Creditor from obtaining a judgment and stop them from taking any further actions if they have already obtained a judgment.

If you are thinking about filing for bankruptcy in NJ, it’s a good idea to contact a NJ Bankruptcy attorney.

Or call 1-866-951-1948 to set up a free consultation.




Bankruptcy in NJ - How to Stop a Judgment
Bankruptcy in NJ - How to Stop a Judgment


Categories: Bankruptcy in NJ, Limits of Bankruptcy

Foreclosure Abuse Settlement Good News for New Jersey Citizens

Written by on February 15, 2012 · Leave a Comment

New Jersey has joined a landmark $25 billion joint state-federal settlement that resolves a national investigation into alleged foreclosure abuses, fraud and unacceptable business practices by the country’s five largest mortgage servicers, according to an announcement by Attorney General Jeffrey S. Chiesa on February 9, 2012.

The proposed settlement provides an estimated $762 million in direct relief to New Jersey homeowners and reforms mortgage loan servicing practices. The five settling mortgage servicers are Ally Financial, Bank of America, Citi, JP Morgan Chase and Wells Fargo.

“This settlement is important because it will bring much-needed relief to New Jersey borrowers, and significant reform to the mortgage servicing industry,” said Attorney General Chiesa. “Through the changes required by this settlement, we are putting a stop to the conduct that has harmed borrowers in the past and contributed to the mortgage problems in our state and across the country.”

Under the terms of the settlement, New Jersey and its citizens will benefit in several important ways:

  • New Jersey borrowers will receive an estimated $660 million in benefits from loan term modifications and other direct relief.
  • New Jersey borrowers who lost their home to foreclosure between January 1, 2008 and December 31, 2011, and suffered servicing abuse, will qualify for $12.5 million in cash payments.
  • The value of refinanced loans to New Jersey borrowers who owe more on their mortgages than their homes are worth will be an estimated $89.5 million.
  • The State will also receive a direct payment of $75.5 million, which will help pay for various State housing programs.

The unprecedented joint, state-federal settlement is the result of a massive civil law enforcement investigation and initiative that includes state attorneys general and state banking regulators across the country, and nearly a dozen federal agencies.

The settlement announced today holds banks accountable for past problems with mortgage servicing and foreclosure practices and provides relief to homeowners. With the backing of a federal court order and the oversight of an independent monitor, the settlement is designed to prevent such conduct in the future.

Under the terms of the settlement, the five servicers have agreed to pay $25 billion under a joint state-federal settlement structure. Nationally:

  • Servicers commit a minimum of $17 billion directly to borrowers through a series of national homeowner relief effort options, including principal reduction. Based upon the structure of the settlement, servicers will actually provide up to an estimated $32 billion in direct homeowner relief.
  • Servicers commit $3 billion to a mortgage refinancing program for borrowers who are current, but owe more than their home is currently worth.
  • Servicers pay $5 billion to the states and federal government ($4.25 billion to the states and $750 million to the federal government). The states’ share includes funding for payments to borrowers harmed by the servicers’ actions.
  • Homeowners receive comprehensive protections from new mortgage loan servicing and foreclosure standards.
  • An independent monitor will ensure mortgage servicer compliance.
  • Government can pursue civil claims outside the scope of the settlement, including securities cases and any criminal case; borrowers and investors can pursue individual, institutional or class action cases regardless of the settlement.

In deciding to join the settlement, Attorney General Chiesa explained that the State factored in the five servicers’ cooperation during the investigation and their readiness to implement significant reforms concerning business practices and mortgage loan servicing standards.

“This settlement addresses breakdowns in the mortgage servicing industry, and allows us to pursue other mortgage-related misconduct,” said Attorney General Chiesa.

The final agreement, implemented through a consent judgment, will be filed in U.S. District Court in Washington, D.C., and will have the authority of a court order.

For more information on the proposed settlement visit: www.NationalMortgageSettlement.com

Borrowers who wish to inquire about the settlement may also contact their mortgage servicer as follows:

  • Ally: 1-800-766-4622
  • Bank of America: 1-877-488-7814
  • Citi: 1-866-272-4749
  • JP Morgan Chase: 1-866-372-6901
  • Wells Fargo: 1-800-288-3212

Brought to you by the New Jersey Bankruptcy Attorneys at Bankruptcy-in-NJ.com

If you are thinking about filing for bankruptcy in NJ, Contact our NJ bankruptcy attorneys or call 1-866-951-1948 to set up a free consultation.




Foreclosure Abuse Settlement Good News for New Jersey Citizens
Foreclosure Abuse Settlement Good News for New Jersey Citizens


Categories: Bankruptcy in NJ, NJ Bankruptcy Lawyer

Filing for Bankruptcy in NJ – Meeting of Creditors

Written by on February 14, 2012 · Leave a Comment

If you scroll down this Bankruptcy in NJ blog, you will see a short government video on the meeting of creditors. While the video provides good information and an accurate representation of the physical environment in which the meeting is held, some clarification is necessary.

While not pictured in the video, your lawyer does appear with you at the meeting of creditors.

Secondly, it is exceedingly rare for a creditor’s attorney to appear at most meetings of creditors. It is highly unlikely that an attorney for one of your creditors, or any of your creditors, is going to appear. I have seen creditors appear in hotly contested business matters, where other investors believe that funds have mysteriously disappeared. A disgruntled spouse in a divorce action, who believes her husband is hiding funds or property from the government, occasionally appears to try to extract a measure of revenge. The vast majority of cases, however, proceed without an appearance by any creditors.

Your documentation will have been supplied to the trustee at least a week prior to the meeting of creditors, to verify the information on your petition. This documentation includes your paystubs, bank statements, mortgage payoff, comparative market analysis on your home and deed.

If you re-financed your home within the large five years and received cash, the trustee will ask what you did with the money that you received. The trustee will also usually ask you what circumstances led you to have to file a bankruptcy.

All the other questions asked of you by the trustee at the meeting, should have been asked by your attorney prior to your filing the petition. That is why when you review your petition, prior to signing it, you should alert your attorney to any errors or omissions.

If you are considering filing for bankruptcy in NJ, Contact our NJ Bankruptcy Attorneys

Or call 1-866-951-1948 to schedule a free consultation with a NJ Bankruptcy attorney




Filing for Bankruptcy in NJ - Meeting of Creditors
Filing for Bankruptcy in NJ - Meeting of Creditors


Categories: Bankruptcy Basics, Bankruptcy Explained, Bankruptcy in NJ, Bankruptcy Videos

Oscar Nominee, Reality Star Files Chapter 7 Bankruptcy

Written by on February 13, 2012 · Leave a Comment

As we’ve previously detailed in this blog, many well-known people have found it necessary to file a Chapter 7 bankruptcy to resolve financial problems.

The latest celebrity to seek bankruptcy relief is former Oscar nominee for “The Buddy Holly Story,” Gary Busey. He recently filed a Chapter 7 bankruptcy petition in Los Angeles.  Busey’s manager released a statement to the media, stating that Busey would “utilize the strategic business tool called bankruptcy” to clear “the litter of past unfortunate choices, associations and circumstances. . .”

http://www.reuters.com/article/2012/02/09/idUS63096192020120209

If you are thinking about filing for bankruptcy in NJ, fill out the contact form on the right side of this page.

Or call 1-866-951-1948 to schedule a free consultation with a New Jersey Bankruptcy attorney.




Oscar Nominee, Reality Star Files Chapter 7 Bankruptcy
Oscar Nominee, Reality Star Files Chapter 7 Bankruptcy


Categories: Bankruptcy in NJ

Taking it to New Jersey Bankruptcy Court

Written by on February 7, 2012 · Leave a Comment

New Jersey bankruptcyThe number of cases that people are filing in New Jersey bankruptcy court is at an all-time high. With the average amount of consumer debt in the typical American household growing every day, there is no end in sight.

People see bankruptcy as a new start for those who lost control of their finances due to one reason or another, but they often have no idea about the process that goes into filing bankruptcy in New Jersey or the long-term repercussions of doing so.

This is where our New Jersey bankruptcy lawyers are helpful. Without the help of experienced New Jersey bankruptcy lawyers, the entire process could be confusing and intimidating for the average person, so hiring help is highly recommended.

The rules and laws of any given bankruptcy court are governed by federal regulations rather than state regulations. While each state has its own laws regarding the process of filing and undergoing bankruptcy procedures, every state must follow the overall guidelines set forth by the federal government.

Once a person has hired an experienced NJ bankruptcy lawyer and filed a petition with the courts to have all debts discharged through a bankruptcy, all creditors listed on the petition must cease any efforts to collect debts. The reason for this is that the bankruptcy court officials then handle the matter. If the proceedings are finalized and the debtors are granted bankruptcy, either their assets are liquidated to pay off creditors or they enter into a repayment plan, depending on which chapter of bankruptcy in NJ they are categorized in.

The best thing for a person to do when deciding to file bankruptcy in NJ is to seek out a New Jersey bankruptcy attorney. There are many different laws and regulations involved in the filing process. Our New Jersey Bankruptcy lawyers are familiar with specifics of the process and help ensure that the court treats the case fairly.

An attorney will also explain your options to you so you can decide which type of bankruptcy you want to file. In addition, they will typically accompany you to the bankruptcy court on your trial date and advise you throughout the entire process. Our New Jersey bankruptcy attorneys may also put you on payment plans for their services for people who have no money saved for such an event due to hardship.

If you are deep in debt and putting off filing in New Jersey bankruptcy court until you are certain that there is no other way out of your financial hole because of pride or because you have simply exhausted all other possibilities, our compassionate and experienced New Jersey bankruptcy lawyers are here to help you.

Contact us Now or call 1-866-951-1948 to set up a free consultation.




Taking it to New Jersey Bankruptcy Court
Taking it to New Jersey Bankruptcy Court


Categories: Bankruptcy in NJ, New Jersey Bankruptcy Court, NJ Bankruptcy Lawyer

Bankruptcy Basics Part 5: Creditors’ Meeting

Written by on January 27, 2012 · Leave a Comment

Every debtor is required to appear at a creditors’ meeting conducted by a trustee who asks the debtor questions about the debtor’s financial condition and gives creditors the opportunity to do the same.

Source: http://www.uscourts.gov/





Creditors' meeting
Creditors' meeting


Categories: Bankruptcy Basics, Bankruptcy Explained, Bankruptcy in NJ, Bankruptcy Videos - Tags: , , ,

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