The New Jersey Bankruptcy Lawyer

Over the years I have seen more than a few people lose their homes to con artists.  Typically the home owner is down on their luck and behind in their mortgage.  The home owner is approached by a person offering to help out the home owner.  The truth is that this helpful person is nothing more than a thief looking for an easy mark. The end result of this "help" is that the home owner losses the house and the con artists makes a windfall.  Don't be fooled by an offer of help from a stranger, and even for that matter from a friend or family member.  The con artist is usually a fast talker and is very smooth.  He or she will make you think that they only have your best interest in mind.  By the way, although the con artist is usually a male it can also be a female. 

There are two main types of mortgage scams.

1. The Equity Strip:  This is most common type of scam.  In this scam the con artist will have you transfer your deed to him or her.  The con artist will tell you to make your mortgage payments to him or her and once you pay back the money owed they will transfer the home back to you. In reality, the scammer will sell the home to someone else and keep the profits.  In the end you are out the money you paid to the scammer and your home is stolen out right from under you.

2.  The Phantom Assistance: In this scam the con artist is not after your home, only your money.  The scammer will tell you not to speak with your lender because he or she will negotiate with the lender.  The scammer will charge you a "fee" for their service and may tell you to direct your mortgage payments to him or her.  In the end the con artist will disappear with your money and provide no services.  By the time you have figured out what has happened you may be too far behind to save your home.

There are variations to the above mentioned scams.  The best way not to fall victim to any scam is to follow the following rules:

1. Never sign a deed, contract or any other documents without the assistance of a trusted attorney of your own independent selection. (I have helped stop several clients from falling into scams regarding their homes)

2. Don't listen to someone that tell you not to talk to your lender because they will do that for you.

3. Watch out for fake look alike websites.  Be sure that you are really using the website for your lender.

4. If you are behind in your mortgage speak with your lender.

5. Be extremely careful who you pay to assist with your mortgage problem.  

If you follow the above 5 rules it will go far towards keeping you from having your home stolen out from under you.

You would think that with this weak economy and unemployed at 9% that bankruptcy filings would be surging, however the opposite is the truth.  Chapter 7 bankruptcy filings in New Jersey are down 1% from September 2010 to September 2011.  Chapter 13 Bankruptcy filings for the same period are down 9%.  To view U.S. Bankruptcy Court official statics click here.

The fact that bankruptcy filings in New Jersey are down sounds like a good thing; however I believe that it actually shows just how bad the economy really is.  Many people don't have money for the luxury of filing bankruptcy and instead are concentrating on spending their money for basics, like food and shelter.

Further, over the past few years credit card companies have drastically reduced and eliminated credit lines.  this lack of credit has resulted in fewer consumers getting into new credit card debt.  Many of the people who did fall into credit card debt have already filed bankruptcy and eliminated those debts.

As we all know many homeowners in New Jersey are living in homes that are under water.  I'm not talking about homes build in flood plains, but homes with negative equity.  Due to the poor economy many homeowners are in arrears on their mortgage payments and are actually in the foreclosure process.  Many of these homeowners are trying to get mortgage modifications.

Although many of these homeowners would benefit from Chapter 7 Bankruptcy and be able to walk away-debt free-from these homes, they are not ready to do so.  That is because the foreclosure and mortgage modification processes are dragging on month after month; which allows these homeowners to continue living in their homes and not pay their mortgages.  Since these homeowners are not being foreclosed on so quickly, they are hoping for a miracle and hold off filing bankruptcy.

Although Chapter 13 allows a home owner that is in arrears on their mortgage to catch up by making a repayment plan, many homeowners can't take advantage of this benefit because they can't afford the repayment plans.  These homeowners are also hoping for a miracle and avoid losing their homes, so they are also not filing bankruptcy.

Eventually, when the economy improves, I expect that the number of bankruptcy filings will actually increase.  Consumers will then have the money to clear up their financial problems by filing bankruptcy and begin rebuilding their credit.

A 64 year old Florida bankruptcy trustee with over 20 years on the job, Marika Tolz was convicted and sentenced to prison for 81 months plus 3 years of probation for committing fraud. The conviction was based upon one count of conspiracy to commit wire fraud in the amount of 16 million dollars.  Ms. Tolz and her co-conspirators conspired to write unauthorized checks from the bankruptcy matters that she was handling as bankruptcy trustee.

As a trustee, Ms. Tolz duties included identifying assets that debtors had and were not allowed to keep when filing bankruptcy, collecting them and then converting them to cash for creditors.  Ms. Tolz was to keep carful records and make detailed reports to the bankruptcy court. In compensation of her work she would be paid a fee based upon the amount of money she obtained for creditors. 

This is an unusual case.  Bankruptcy trustees almost universally take their responsibilities seriously and understand the consequences to committing a serious crime.

The Holiday shopping season is about to begin.  Before reaching for that credit card, stop and think.  If you rack up lots of debt on your credit cards and soon after decide to file bankruptcy, you may have a problem.

Debts incurred within 90 days of filing bankruptcy are deemed fraudulent and are not dischargeable.  This means that you cannot avoid them by filing bankruptcy.  If you make significant use of your credit cards and make no or few payments, your creditors may object to those debts being discharged. The bankruptcy court may even deny you a discharge of your other debts.

Other than not using your credit cards within 90 days of filing your bankruptcy petition, there are no hard and fast rules here.  When you file bankruptcy, your creditors will examine your spending patterns.  Indications that you changed your spending pattern by increasing your debt shortly before filing bankruptcy will get their attention.

If a creditor thinks that you have piled up lots of debt on the eve of filing bankruptcy, the creditor will likely first offer you the opportunity to make payment arrangements.  Typically, that means that you will repay that creditor's debt over a period of time.  If terms are reached, the creditor will not object to your discharge.  If an agreement is not reached, the creditor may file an adversary proceeding in bankruptcy court objecting to your discharge.  The matter would then be heard by the bankruptcy judge, who would decide whether you must repay the debt or you should be denied a discharge in bankruptcy. While all of this may sound kind of scary, it need not be.  This entire problem can be avoided by not abusing your credit cards.  Do not max out your cards and then immediately file bankruptcy while making little or no effort to pay the charges.

If you have already made large purchases or cash advances, then at least make some payments.  By making payments, you will show that you intend to repay those debts and were not trying to defraud your creditors.  If, after paying a sufficient amount, you decide that you need to file bankruptcy, that option will be available.  What is sufficient will depend upon your circumstances.  If the situation is handled correctly, you should not receive any objections from your creditors when you file bankruptcy.

If you are in debt, consult with an experienced bankruptcy lawyer, whose advice can make the difference between a failed attempt at bankruptcy and a fresh financial start.

Hi there!,

Our law firm handles Chapter 7 Bankruptcy and Chapter 13 Bankruptcy matters throughout all of New Jersey.

Bankruptcy can provide you with a fresh financial start in life. If you are deeply in debt, by filing bankruptcy, you can either eliminate all or most of your debt or create an interest free repayment plan. By getting a financial reset through bankruptcy, you will be able to rebuild your credit and sleep better at night. Instead of throwing more money into the bottomless pit of debt, you will be able to start saving for a home, your children's education, and your retirement.

The moment you retain our office, we help take the burden of overwhelming debt off of your shoulders. We will take the calls from your creditors. We will tell you what information you need to provide us to us prepare your bankruptcy petition. Once your petition is filed with the Bankruptcy Court, the court will impose an automatic stay that prohibits your creditors from garnishing your salary, taking money from your bank account or foreclosing on your home. We let you know in advance what questions you will be asked at the bankruptcy hearing. In addition, unlike some law firms who have independent contractors appear at the hearing, we will be sitting at your side for your hearing.

Once you receive your discharge in bankruptcy, you will be able to plan and work towards your future without the burden of worrying about your creditors harassing you. Since 1986 we have successfully helped over 20,000 clients with legal problems, including getting a fresh financial start by filing bankruptcy.

We also speak Spanish, French, Haitian Creole, Hindi, Bengali and Urdu.