Chapter 13 FAQ

When you are in debt, it can be a difficult experience. You are bombarded with calls and letters from creditors and their representatives. It can seem like there is no way to make it all stop. If you do not know your rights, you could become a victim of creditors and their collection practices.

There are solutions when you find yourself in financial difficulty. For many people, personal Bankruptcy can be the answer. Bankruptcy is designed to allow you a fresh start. It can allow you to get your finances in order and put many of your problems behind you. Bankruptcy is governed by federal law. It is your right to take advantage of these laws.

New Jersey Bankruptcy is a legal procedure for dealing with the debts of New Jersey individuals and New Jersey businesses. To begin a New Jersey Bankruptcy, a New Jersey individual or New Jersey business, called the "petitioner," files a New Jersey Bankruptcy Case under the Federal Government's Bankruptcy laws -- one of the Chapters of title 11 of the United States Code (the New Jersey Bankruptcy Code).

A New Jersey Bankruptcy Debtor is a person filing a New Jersey Bankruptcy petition seeing relief under the New Jersey Bankruptcy Code in a New Jersey Bankruptcy Court.

A New Jersey Bankruptcy creditor is an individual or business that is owed money by a New Jersey Bankruptcy Debtor or that the creditor claims owes them money.

Yes Bankruptcy is still available! No, the government never eliminated Bankruptcy! The Bankruptcy Rules changed but bankruptcy is still available to many people who find themselves in financial difficulty. Every year, thousands of people file a New Jersey Bankruptcy Case!

Most New Jersey Bankruptcy Debtors filing a New Jersey Bankruptcy Case are looking for a fresh start by seeking to be relieved from or to receive help in paying their debts. While completing the Chapter 13 New Jersey Bankruptcy Plan, the New Jersey Bankruptcy debtor is usually protected from lawsuits, garnishments and other creditor actions.

The individual New Jersey Bankruptcy Debtor's main goal in a New Jersey Chapter 13 Bankruptcy Case is to keep certain property and to receive a New Jersey Bankruptcy Discharge order of debts - a type of release from debt - that covers as many debts as possible. Many New Jersey Debtors file a New Jersey Bankruptcy Case to get a Discharge of debts. A New Jersey Bankruptcy Discharge order is a Court Order which prohibits all creditors which were listed in the Discharge from collecting the debts. Under the New Jersey Bankruptcy Code, certain debts of New Jersey Bankruptcy Debtors are Dischargeable and if those debts are Discharged by the New Jersey Bankruptcy Court, the New Jersey Bankruptcy Debtor has no liability for the New Jersey Bankruptcy Discharged debts. New Jersey partnerships and New Jersey corporations do not qualify for the New Jersey Bankruptcy Discharge of debts in New Jersey Chapter 13 Bankruptcy Cases. 11 U.S.C. § 727(a)(1). Although an individual New Jersey Chapter 13 Bankruptcy Case usually results in a New Jersey Bankruptcy Discharge order of debts, the right to a New Jersey Bankruptcy Discharge order is not absolute and some debts are not Discharged. Also, a New Jersey Bankruptcy Court Discharge does not extinguish real estate liens.

Filing a Chapter 13 New Jersey Bankruptcy Case immediately results in an "automatic Bankruptcy stay" being applied to the New Jersey Bankruptcy Debtor. This "automatic Bankruptcy stay" automatically stops the following:

• certain types of wage garnishments
• certain types of evictions
• lawsuits
• repossessions
• sheriff's sale
• foreclosure
• wage garnishments
• credit card bill collection activity
• medical bills collection activity
• most types of civil judgment collection activity
• other types of collection activity, such as phone calls from bill collectors demanding payment of overdue bills
• utility disconnections due to nonpayment of bills. It is common for utility companies to stop providing utility services (such as electricity, water or phone services) when customers fail to pay their bills on time.

A Chapter 13 New Jersey Bankruptcy Case may also help to restore a New Jersey Bankruptcy Debtor's suspended driver's license. There are some exceptions to the protection provided by New Jersey Bankruptcy Cases. Speak with a New Jersey attorney to learn more about those exceptions.

A Chapter 13 New Jersey Bankruptcy Case automatic stay provision also protects co-debtors. Unless the New Jersey Bankruptcy Court authorizes otherwise, a creditor may not seek to collect "consumer debts" - debts incurred by an individual main debts are those incurred by an individual primarily for a personal, family, or household mainly for personal, family or household purposes - from any individual liable for the debt along with the New Jersey Bankruptcy debtor.

The New Jersey Bankruptcy Court clerk gives notice of the New Jersey Bankruptcy Case to all creditors whose names and addresses are provided by the New Jersey Bankruptcy Debtor. There are certain exceptions to what types of activities are stopped by the automatic Bankruptcy stay. Also, if a New Jersey Bankruptcy Debtor fails to take certain actions as required by the New Jersey Bankruptcy Code, New Jersey creditors may get relief from the automatic Bankruptcy stay.

Yes! Filing a New Jersey Bankruptcy can stop creditor harassment. It is a violation of federal law for a creditor to continue efforts to collect a debt after receiving written notification of a Debtor's filing Bankruptcy. Once the automatic Bankruptcy stay is in effect, your creditors must contact your attorney (if you are represented by one) and are forbidden by federal law to contact you except under very specific circumstances.

A New Jersey Chapter 13 Bankruptcy is designed for an individual debtor who has a regular source of income. New Jersey Chapter 13 Bankruptcy Cases are often preferable to New Jersey Chapter 7 Bankruptcy Cases because New Jersey Chapter 13 Bankruptcy Cases allow New Jersey Bankruptcy debtors to keep expensive property, like a house and because New Jersey Chapter 13 Bankruptcy Cases allow New Jersey debtors to propose a "Plan" to repay debts to creditors over a period of time of between 3 to 5 years. New Jersey Consumer Debtors can benefit from a New Jersey Chapter 13 Bankruptcy when they don't qualify for a New Jersey Chapter 7 Bankruptcy because they fail to satisfy the New Jersey Chapter 7 Bankruptcy means test. Unlike a Chapter 7 New Jersey Bankruptcy Case, in a Chapter 13 New Jersey Bankruptcy Case, the New Jersey Bankruptcy Court holds a confirmation hearing to decide whether to approve the New Jersey Bankruptcy Debtor's Reorganization Plan depending on whether the New Jersey Bankruptcy Confirmation Plan meets the Bankruptcy Code's confirmation requirements. Unlike a Chapter 7 New Jersey Bankruptcy, which is a "liquidation" type of New Jersey Bankruptcy, New Jersey Chapter 13 Bankruptcy debtors often keep the property of the New Jersey Bankruptcy estate and pays creditors, through the New Jersey Bankruptcy Trustee, based on the New Jersey Bankruptcy debtor's expected income during the Chapter 13 New Jersey Bankruptcy Plan. While completing the Chapter 13 New Jersey Bankruptcy Plan, the New Jersey Bankruptcy debtor is usually protected from lawsuits, garnishments and other creditor actions.

A New Jersey attorney can review your situation and advise you as to your options. The Law Office of Ronald E. Norman, LLC offers one-time, no obligation consultations to New Jersey Debtors. To get your free consultation, call attorney Ronald E. Norman at 856-374-3100 or send him an email at rnorman@rnormanlaw.com.

There are options available other than filing a New Jersey Chapter 13 Bankruptcy Case in New Jersey. Instead of filing a New Jersey Chapter 13 Bankruptcy Case in New Jersey, New Jersey Bankruptcy Debtors that do not have a regular income could qualify to file a Chapter 7 Bankruptcy petition in New Jersey - a "liquidation" type of New Jersey Bankruptcy Case. A reason why many people file a Chapter 13 Bankruptcy petition in New Jersey is to try to save their homes from foreclosure by giving the New Jersey Bankruptcy Debtors an opportunity to pay back overdue payments through a payment Plan. Also, certain New Jersey Bankruptcy Debtors involved in business may want to avoid liquidation and continue their business. For example, New Jersey sole proprietors could qualify to file a Chapter 13 Bankruptcy petition in New Jersey which provides for the Repayment of certain debts.

The following are the requirements for New Jersey Debtors seeking to file a Chapter 13 New Jersey Bankruptcy Case:

• New Jersey individuals with a regular income.
• New Jersey individuals who owes noncontingent, liquidated unsecured debts (such as credit card debt or medical bills) of less than $336,900, and/or noncontingent, liquidated secured debts (such as mortgages or car loans) of less than $1,010,650.

While New Jersey individuals operating sole proprietor type businesses may file a New Jersey Chapter 13 Bankruptcy Case, corporations and partnerships cannot file a Chapter 13 New Jersey Bankruptcy Case.

180 days before filing a New Jersey Chapter 13 Bankruptcy Case, each New Jersey Bankruptcy debtor must complete credit counseling with an approved credit counseling agency. After the New Jersey Bankruptcy debtor completes New Jersey credit counseling, the New Jersey credit counseling agency issues the New Jersey Bankruptcy debtor a credit counseling certificate.

A New Jersey Bankruptcy Debtor is not disqualified from filing a New Jersey Chapter 13 Bankruptcy Case simply because the New Jersey Bankruptcy Debtor's debts reach a certain dollar amount.

There are certain limits to repeat New Jersey Bankruptcy Court Case filings. For example, if a New Jersey Bankruptcy Debtor had another Bankruptcy Case before, they cannot file another New Jersey Bankruptcy Case if, during the previous 180 days, the prior Case was dismissed due to the New Jersey Bankruptcy Debtor's willful failure to appear before the New Jersey Bankruptcy Court or failure to comply with Court orders or if he New Jersey Bankruptcy Debtor voluntarily dismissed the previous Case after creditors sought relief from the New Jersey Bankruptcy Court to recover property on which the creditors held liens.

A New Jersey Bankruptcy Debtor may be able to convert their New Jersey Chapter 13 Bankruptcy Case to a Bankruptcy Case under Chapter 11, 12 or 7 if: (1) the New Jersey Bankruptcy Debtor meets the requirements for filing under the different Chapter that they want to proceed under; and (2) the New Jersey Bankruptcy Case wasn't previously converted to a New Jersey Chapter 13 Bankruptcy from another Bankruptcy Chapter.

At least 180 days before filing a New Jersey Chapter 13 Bankruptcy Case, a New Jersey Bankruptcy Debtor must generally first receive credit counseling from an approved credit counseling agency. New Jersey Bankruptcy Debtors who have a debt management Plan developed for themselves during credit counseling must file the debt management Plan with the New Jersey Bankruptcy Court. There are some exceptions to the New Jersey Bankruptcy credit counseling requirements that you should have a New Jersey attorney explain to you.

Husband and wife may file one New Jersey Bankruptcy petition - a "joint petition" - or separate New Jersey Bankruptcy petitions. If husband and wife file a joint Bankruptcy petition, they have to follow all document filing requirements for individual New Jersey Bankruptcy Debtors.

Married individuals filling a New Jersey Bankruptcy Case get together the information asked for by the New Jersey Bankruptcy Court regardless of whether they file a joint petition, separate petitions or if just one spouse files a New Jersey Bankruptcy petition. When only one spouse files a New Jersey Bankruptcy Case, the non-filing spouse's income and expenses are given to the New Jersey Bankruptcy Trustee to allow that the New Jersey Bankruptcy Court, the New Jersey Bankruptcy Trustee and creditors to determine the New Jersey Bankruptcy Debtor's household's financial position.

There is a United States Bankruptcy Court for each federal judicial district in the United States of America and each state has one or more federal judicial districts. There are 90 United States Bankruptcy Districts across the country. New Jersey has only one United States District Court - the United States District Court, District of New Jersey - and there are 3 different locations in which United States Bankruptcy Court, District of New Jersey judges hear Cases.

The New Jersey Bankruptcy Debtor's Bankruptcy petition must generally be filed as follows:

• If the New Jersey Bankruptcy Debtor is a person, the New Jersey Bankruptcy Court serving the area in which the New Jersey Bankruptcy Debtor lives
• If the New Jersey Bankruptcy Debtor is a business, the New Jersey Bankruptcy Court serving the area in which the New Jersey Bankruptcy Debtor is organized or where its principal place of business or principal assets are located.

In New Jersey, there are 3 different New Jersey Bankruptcy Court locations:

• Camden, New Jersey - the United States Bankruptcy Court For The District of New Jersey, Camden Vicinage. The Camden Vicinage includes Atlantic County, part of Burlington Count (Cinnaminson, Delran, Edgewater Park, Evesham/Marlton, Maple Shade, Moorestown, Mt. Laurel, Palmyra, Riverside and Riverton), Camden County, Cape May County, Cumberland County, Gloucester County and Salem County.
• Trenton, New Jersey - the United States Bankruptcy Court For The District of New Jersey, Trenton Vicinage.
• Newark, New Jersey - the United States Bankruptcy Court For The District of New Jersey, Newark Vicinage. The Newark Vicinage includes Bergen County, Essex County, Hudson County, Morris County, Passaic County, Sussex County and Union County.

The term "vicinage" means "neighborhood". The New Jersey Bankruptcy Court will automatically assign a New Jersey Bankruptcy Case to the correct New Jersey Bankruptcy Court vicinage based on the New Jersey Bankruptcy Debtor's zip code listed on the New Jersey Bankruptcy petition when the Case is first filed.

To file a New Jersey Chapter 13 Bankruptcy Petition, New Jersey Bankruptcy Debtors must normally pay fees to the New Jersey Bankruptcy Court Clerk when the New Jersey Bankruptcy petition is filed, which include the following:

• A Case filing fee
• A miscellaneous administrative fee

The filing fees for a New Jersey Bankruptcy petition is generally only charged per petition. Accordingly, New Jersey joint Bankruptcy petitions do not cost more money to file than single New Jersey Bankruptcy petitions.

The New Jersey Bankruptcy Court may make exceptions for certain New Jersey Bankruptcy Debtors whose income is below the poverty level by waiving the New Jersey Bankruptcy petition filing fee.

New Jersey Bankruptcy Court filing fees change. Before any documents are filed with the New Jersey Bankruptcy Court, it is absolutely necessary to confirm all New Jersey Bankruptcy Court filing fees.

A New Jersey Bankruptcy Debtor's failure to timely pay New Jersey Bankruptcy Court filing fees could result in their Case being dismissed. Often attorneys who do not receive payment of fees in advance of filing the New Jersey Bankruptcy petition shall refuse to file a New Jersey Bankruptcy Debtor's Bankruptcy petition.

In a New Jersey Bankruptcy Case, a secured creditor is an individual or business with a claim against the New Jersey Bankruptcy Debtor secured by a lien on property of the New Jersey Bankruptcy estate. The property that is subject to the lien is the secured creditor's collateral. The creditor offers credit to the New Jersey Bankruptcy Debtor with the understanding that the creditor may decide to seize the collateral on default of the debt. In a New Jersey Bankruptcy Case, secured debt is debt supported by a mortgage, pledge of collateral or other lien -- debt for which the creditor has the right to pursue their interest specific property upon default of the obligation. Common examples of "secured debt" include: (1) house mortgages; (2) real estate tax liens; and (3) vehicle loans

In a New Jersey Bankruptcy Case, an unsecured creditor is an individual or business with a claim against the New Jersey Bankruptcy Debtor that is not secured by a lien on property of the New Jersey Bankruptcy estate. Unsecured creditors hold unsecured debt instead of secured debt. Unsecured debts are debts for which credit was extended based only upon the creditor's determination of the New Jersey Bankruptcy Debtor's ability to pay the debt. Unsecured debt is a New Jersey Bankruptcy Debtor's debt for which a creditor holds no special guarantee of payment, such as a mortgage or lien, because the New Jersey Bankruptcy Debtor received credit from the creditor based solely upon the creditor's determination of the New Jersey Bankruptcy Debtor's future ability to pay back the debt.

A Bankruptcy estate in a New Jersey Bankruptcy Case is all the New Jersey Bankruptcy Debtor's interests in property when they file a New Jersey Bankruptcy Case. While a New Jersey Bankruptcy Case is active, the New Jersey Bankruptcy Estate is the temporary legal owner of all of the New Jersey Bankruptcy Debtor's property. When the New Jersey Bankruptcy Debtor files a Bankruptcy Case, all of the New Jersey Bankruptcy Debtor's property, including property owned or held by another person in which the New Jersey Bankruptcy Debtor has an interest, is part of the New Jersey Bankruptcy estate. Federal or New Jersey laws (or the laws of other states) may allow New Jersey Bankruptcy Debtors filing for Bankruptcy to keep certain "exempt" property free from the claims of unsecured creditors. Exempt property may include interest in the New Jersey Bankruptcy Debtor's primary residence and some or all tools the New Jersey Bankruptcy Debtor uses to make a living. If the New Jersey creditors are entitled to payment, the New Jersey Bankruptcy Debtor's creditors are usually paid from the New Jersey Bankruptcy estate's "nonexempt" property - property able to be "liquidated" or sold to satisfy the New Jersey creditors' claims.

A New Jersey Bankruptcy Debtor begins a New Jersey Chapter 13 Bankruptcy Case by filing papers with the New Jersey Bankruptcy Court called a "petition" and by paying a filing fee to the New Jersey Bankruptcy Court. The New Jersey Bankruptcy petition must generally include the following items:

• A "schedule" or list of the New Jersey Bankruptcy Debtor's assets and liabilities
• A schedule" or list of the New Jersey Bankruptcy Debtor's of current income and expenditures
• A statement of the New Jersey Bankruptcy Debtor's financial affairs
• A schedule" or list of the New Jersey Bankruptcy Debtor's a schedule of executory contracts and unexpired leases.
• A certificate of credit counseling issued to the New Jersey Bankruptcy Debtor
• A copy of any debt Reorganization Plan developed for the New Jersey Bankruptcy Debtor during credit counseling
• Evidence of payments received from the New Jersey Bankruptcy Debtor's employers, if any, received 60 days before filing the New Jersey Bankruptcy petition
• A statement of the New Jersey Bankruptcy Debtor's monthly net income and any anticipated increase in income or expenses after filing the New Jersey Bankruptcy petition
• A record of any interest the New Jersey Bankruptcy Debtor has in federal or state qualified education or tuition accounts.

To complete the New Jersey Bankruptcy Petition, the New Jersey Bankruptcy statement of financial affairs and the New Jersey Bankruptcy schedules, the New Jersey Bankruptcy Debtor must provide the following information:

• A list of all creditors and the amount and nature of their claims
• The source, amount and frequency of the New Jersey Bankruptcy Debtor's income
• A list of all of the New Jersey Bankruptcy Debtor's property
• A specific list of the New Jersey Bankruptcy Debtor's monthly living expenses - food, clothing, shelter/rent, utilities, taxes, transportation, medicine and the like.

Because New Jersey Bankruptcy Rules change along with the required forms or documents to be included with a New Jersey Bankruptcy petition, be sure to consult with a New Jersey attorney before attempting to file a New Jersey Bankruptcy Case.

Either with the filing of the New Jersey Bankruptcy Chapter 13 Case or in a certain number of days after filing a New Jersey Bankruptcy Chapter 13 Case, the New Jersey Debtor must file a New Jersey Bankruptcy Reorganization Plan for the New Jersey Bankruptcy Court's approval or rejection. This New Jersey Bankruptcy Reorganization Plan proposes regular payments of fixed amounts to the New Jersey Bankruptcy Trustee, who gives the money to the New Jersey Bankruptcy debtor's creditors per the New Jersey Bankruptcy Reorganization Plan, which may offer creditors less than full payment on their claims.

Since a New Jersey Chapter 13 Bankruptcy petition requires the New Jersey debtor to make payments to be distributed to the New Jersey debtor's creditors, there are three categories of claims in New Jersey Chapter 13 Bankruptcy Cases:

• Priority claims - claims that, under the Bankruptcy Code, receive "priority" to get paid fully. These claims include the costs of the New Jersey Bankruptcy Case and taxes.
• Secured claims - unless the New Jersey Debtor repays the debt securing the purchase of the collateral, the New Jersey debtor's creditor has the right take back that collateral.
• Unsecured claims - the New Jersey debtor's creditor has no special rights to collect against the New Jersey Debtor's property.

The Plan pays priority claims fully except when a priority creditor agrees to different Repayment schedule for the priority claim. In the Case of domestic support obligations, the New Jersey debtor may offer to pay all the New Jersey Debtor's "disposable income" over a New Jersey Bankruptcy Reorganization Plan spread out over 5 years.

When a New Jersey Bankruptcy debtor wants to keep collateral securing a claim (like a car, boat or equipment), the Plan allows the secured claim creditor to receive an amount equal to the collateral's value. If the debt for the secured claim was used to buy the collateral and the New Jersey Debtor incurred the debt in certain time before the New Jersey Debtor filed the New Jersey Bankruptcy Case, the Plan must pay the debt fully. For some types of secured creditors, like a mortgage lender on a home loan, the Repayment of the debt may be made over the course of the loan's original Repayment schedule and that might be longer than the New Jersey Bankruptcy Plan's Repayment schedule if the New Jersey Bankruptcy debtor repays any arrearages during the New Jersey Bankruptcy Plan.

The New Jersey Bankruptcy debtor's New Jersey Bankruptcy Plan does not have to fully pay unsecured claims if the New Jersey Bankruptcy debtor pays certain income into the Plan over a certain period.

If certain New Jersey Bankruptcy debtor's creditors want to receive money from the New Jersey Bankruptcy estate they must file proof of claims with the New Jersey Bankruptcy Court in a certain time frame or their claims for Repayment may be barred.

30 days after the New Jersey Bankruptcy debtor files the New Jersey Bankruptcy Case, the New Jersey Bankruptcy debtor begins making New Jersey Chapter 13 Bankruptcy Reorganization Plan payments to the New Jersey Bankruptcy Trustee. When secured loan payments or lease payments are due before the New Jersey Bankruptcy Court confirms the New Jersey Bankruptcy debtor's New Jersey Chapter 13 Bankruptcy Reorganization Plan, the New Jersey Bankruptcy debtor makes "protection payments" straight to the secured lender or lessor and subtracts those payments from the money paid to the New Jersey Bankruptcy Trustee. Common examples of such payments are payments made for home mortgages and car payments.

Once a New Jersey Bankruptcy Case is properly filed, the New Jersey Bankruptcy Court appoints a Trustee for the New Jersey Bankruptcy Case - a person who represents the interests of the New Jersey Bankruptcy estate and the creditors. The New Jersey Bankruptcy Trustee does the following:

• Reviews the New Jersey Bankruptcy Debtor's petition and schedules
• Collects payments under the New Jersey Chapter 13 Bankruptcy Reorganization Plan
• Makes distributions to creditors
• Sometimes brings actions against creditors or the New Jersey Bankruptcy Debtor to recover the New Jersey Bankruptcy estate's property

Normally, New Jersey Chapter 13 Bankruptcy Cases do not require New Jersey Debtors to appear in Court and most New Jersey Debtors involved in New Jersey Chapter 13 Bankruptcy Cases never see a New Jersey Bankruptcy judge unless an objection is raised in the New Jersey Bankruptcy Case. Most New Jersey Debtors who file New Jersey Chapter 13 Bankruptcy Cases have only one formal hearing at which the New Jersey Debtor must appear - the meeting of creditors, also called a "341 hearing" or "341 meeting" because section 341 of the United States Bankruptcy Code requires New Jersey Debtors to attend the meeting so that the New Jersey Debtors can be asked questions about their debts and property and income. New Jersey 341 hearings are usually held at a New Jersey Bankruptcy Trustee's office instead of at a New Jersey Bankruptcy Courthouse.

A New Jersey Bankruptcy Debtor begins a New Jersey Chapter 13 Bankruptcy Case by filing papers with the New Jersey Bankruptcy Court called a "petition" and by paying a filing fee to the New Jersey Bankruptcy Court.

About a month after the New Jersey creditor files their New Jersey Bankruptcy petition, the New Jersey Bankruptcy Trustee holds a meeting of creditors, also called a "341 hearing." The New Jersey Bankruptcy 341 hearing is usually held in an office building. Before the New Jersey Bankruptcy 341 hearing, the representative of the New Jersey Bankruptcy Trustee's office conducting the hearing may ask the New Jersey Bankruptcy Debtor or their attorney to give the New Jersey Bankruptcy Trustee copies of documents for the New Jersey Bankruptcy Trustee to examine.

At the New Jersey Bankruptcy 341 hearing, a representative from the New Jersey Bankruptcy Trustee's office (which may be the New Jersey Bankruptcy Trustee themselves), the New Jersey Bankruptcy Debtor, their attorney (if they are represented by an attorney) and any creditors or their attorneys who are interested in the New Jersey Bankruptcy Debtor's Case appear. The representative of the New Jersey Bankruptcy Trustee swears in under oath the New Jersey Bankruptcy Debtor and questions the New Jersey Bankruptcy Debtor under oath about the New Jersey Bankruptcy Debtor's financial situation. After putting the New Jersey Bankruptcy Debtors under oath, the representative of the New Jersey Bankruptcy Trustee's office who handles the hearing ask the New Jersey Bankruptcy Debtor questions to make sure the New Jersey Bankruptcy Debtors understand what might happen when they ask the New Jersey Bankruptcy Court for a New Jersey Bankruptcy Court Discharge, which could include:

• How a Chapter 13 New Jersey Bankruptcy filing might affect the New Jersey Bankruptcy Debtors' credit history.
• The New Jersey Bankruptcy Debtor's option to file a New Jersey Bankruptcy Case under a Chapter other than 7 (such as a Chapter 13 New Jersey Bankruptcy Case).
• What happens if the New Jersey Bankruptcy Debtor receives a New Jersey Bankruptcy Court Discharge
• What happens if the New Jersey Bankruptcy Debtor reaffirm a debt that the if the New Jersey Bankruptcy Debtor owes a creditor.

It is not uncommon for the New Jersey Bankruptcy Trustee's office to give a handout about what happens when a New Jersey Bankruptcy Debtor files for Bankruptcy.

At the New Jersey Bankruptcy 341 hearing, creditors of the New Jersey Bankruptcy Debtors or the creditors' attorneys, if the creditors have an attorney, may ask the New Jersey Bankruptcy Debtors certain questions about debts and property.

After the New Jersey Bankruptcy 341 hearing, the Court holds a hearing to decide whether to confirm the New Jersey debtor's New Jersey Bankruptcy Chapter 13 Reorganization Plan, called a New Jersey Bankruptcy confirmation hearing. Usually, the New Jersey Bankruptcy debtor is not present at the New Jersey Bankruptcy confirmation hearing.

Creditors receive advance notice of the New Jersey Bankruptcy confirmation hearing so that the creditors can exercise their right to make objections to the New Jersey Bankruptcy Court Court's confirming the New Jersey Chapter 13 Bankruptcy Reorganization Plan. Common objections to confirmation of a New Jersey Chapter 13 Bankruptcy Reorganization Plan include:

• Payments proposed under the New Jersey Chapter 13 Bankruptcy Reorganization Plan are less than the creditors could receive if the New Jersey Bankruptcy debtor's assets were liquidated.
• The New Jersey Bankruptcy debtor's New Jersey Chapter 13 Bankruptcy Reorganization Plan does not offer all of the debtor's projected disposable income for the 3 or 5 year payment commitment period.

If the New Jersey Bankruptcy Court confirms the New Jersey Chapter 13 Bankruptcy Reorganization Plan, the New Jersey Bankruptcy Chapter 13 Trustee issues money received under the New Jersey Chapter 13 Bankruptcy Reorganization Plan. If the New Jersey Bankruptcy Court refuses to confirm the New Jersey Chapter 13 Bankruptcy Reorganization Plan, the New Jersey Bankruptcy debtor may try to solve this problem by:

• Filing a modified New Jersey Chapter 13 Bankruptcy Reorganization Plan.
• Convert the New Jersey Bankruptcy Case from a New Jersey Chapter 13 Bankruptcy Case to a New Jersey Chapter 7 Bankruptcy Case - a "liquidation" New Jersey Bankruptcy Case.

If the New Jersey Bankruptcy Court refuses to confirm the New Jersey Chapter 13 Bankruptcy Reorganization Plan or a modified New Jersey Chapter 13 Bankruptcy Reorganization Plan and instead dismisses the Case, the New Jersey Bankruptcy Court may allow the New Jersey Bankruptcy Trustee to keep some money for costs but the rest of the money left that wasn't already due or given to creditors is refunded to the New Jersey Bankruptcy debtor.

Sometimes a New Jersey Chapter 13 Bankruptcy Reorganization Plan must be changed, such as when:

• The New Jersey Bankruptcy debtor's financial situation changes and they have difficulty making the payments proposed under the New Jersey Chapter 13 Bankruptcy Reorganization Plan.
• A creditor may object or threaten to object to a Plan unless the Plan is changed.
• The New Jersey Bankruptcy debtor did not include all creditors on the New Jersey Chapter 13 Bankruptcy Reorganization Plan.

The New Jersey Bankruptcy Debtor usually receives a New Jersey Bankruptcy Discharge order in their Chapter 13 New Jersey Bankruptcy Case if the New Jersey debtor:

• The New Jersey Bankruptcy Case is not dismissed.
• The New Jersey Bankruptcy Case is not converted to another Bankruptcy Chapter.
• The New Jersey Bankruptcy debtor finishes an approved financial management course - if the United States Bankruptcy Trustee or New Jersey Bankruptcy Court administrator determined that such courses are available to the New Jersey Bankruptcy debtor.
• The New Jersey Bankruptcy debtor makes all payments under the New Jersey Chapter 13 Bankruptcy Reorganization Plan.
• The New Jersey Bankruptcy debtor is current in their domestic support obligations and signs a certification saying so.
• The New Jersey Bankruptcy debtor has not received a Discharge in a previous New Jersey Bankruptcy Case in a specific period of time.
• The New Jersey Bankruptcy Court holds a hearing and concludes there is no reason to think there exists any pending matter limiting the New Jersey Bankruptcy debtor's homestead exemption.

With certain exceptions, the New Jersey Chapter 13 Bankruptcy Discharge may release the New Jersey Bankruptcy debtor from:

• All debts covered in the New Jersey Chapter 13 Bankruptcy Reorganization Plan or disallowed.
• Further debt collection efforts as to any Discharged obligations by creditors provided for fully or partially in the New Jersey Chapter 13 Bankruptcy Reorganization Plan.
• Debts for willful and malicious injury to property
• Debts incurred to pay nonDischargeable tax obligations.
• Debts from property settlements in divorce or separation proceedings.

If certain debts are never fully paid under the New Jersey Chapter 13 Bankruptcy Plan, the New Jersey debtor remains responsible at the end of the New Jersey Chapter 13 Bankruptcy Case for those remaining debts. There are other specific types of debts that may not be Discharged under the New Jersey Chapter 13 Bankruptcy Reorganization Plan.

Even if the New Jersey Bankruptcy debtor failed to complete the New Jersey Chapter 13 Bankruptcy Plan, in certain situations, the New Jersey Bankruptcy debtor may be able to get a special kind of New Jersey Bankruptcy Court Discharge order, called a "hardship Discharge."

Before filing a New Jersey Bankruptcy Case, New Jersey Bankruptcy Debtors should discuss the scope of the New Jersey Bankruptcy Case Discharge that the New Jersey Bankruptcy Debtor might receive if they file and successfully complete a New Jersey Bankruptcy Case.

Some people can and do successfully handle New Jersey Bankruptcy Court Cases, from filing the first paperwork to the entry of a New Jersey Bankruptcy Court Discharge order. However, many other people also make mistakes that lead to the dismissal of their New Jersey Bankruptcy Court Cases or that result in the entry of money judgments against them. Since so much can be at stake in a New Jersey Bankruptcy, you should seriously consider using the services of a competent attorney licensed to practice law in New Jersey to handle your New Jersey Bankruptcy Court Case. The following are reasons to use an attorney to handle your New Jersey Bankruptcy Court Case:

• New Jersey Bankruptcy Court fees often change
• New Jersey Bankruptcy Court rules often change
• New Jersey Bankruptcy Court employees cannot give you "free" legal advice and a judge may refuse to let you claim that you were right in taking an action (or in deciding not to take action) because you relied on advice from such employees
• New Jersey Bankruptcy Court forms available on websites may not cover every situation you may face in Court
• Each New Jersey Bankruptcy Court Case has its own particular legal issues and therefore, its own challenges
• It is very common for people to file inadequate or incorrect New Jersey Bankruptcy Court petitions that result in problems with the New Jersey Bankruptcy Court Case because of procedural or other deficiencies.
• It is not uncommon for New Jersey Bankruptcy judges to get very frustrated by an unrepresented party's lack of preparation or ignorance of the facts or law of the New Jersey Bankruptcy Court Case.
• A Court has the power to punish unprepared parties, such as by fining them, throwing their New Jersey Bankruptcy Court Case out of Court or limiting what they can present to the New Jersey Bankruptcy Court.
• Federal and New Jersey law includes many published Cases, laws, regulations, Court rules and rules of evidence that can be very tricky to understand and that can be used to prevent you from doing much of what you want to do in New Jersey Bankruptcy Court.
• It is very common for New Jersey Bankruptcy Courts to refuse to allow a party to use or refer to documents or items at the New Jersey Bankruptcy Court.
• Without the proper preparation, items and documents may never be considered by the New Jersey Bankruptcy Court. Also, if there are any legal issues to be dealt with at the New Jersey Bankruptcy Court hearing or trial, you must be prepared to argue them, which may require you to refer to Court rules, evidence rules, laws, regulations or published Cases.
• You cannot show up at the New Jersey Bankruptcy Court expecting the judge hearing your New Jersey Bankruptcy Court Case to explain Court rules, evidence rules, Court procedure or the details of the law that applies to your New Jersey Bankruptcy Court Case. The judge hearing your New Jersey Bankruptcy Court Case is not permitted to give you legal advice.

It is important to remember that even if you have an attorney, you could lose your New Jersey Bankruptcy Court Case. Hiring an attorney to handle your New Jersey Bankruptcy Court Case does not guarantee your success. However, it may provide what is needed to successfully complete your New Jersey Bankruptcy Court Case or to avoid certain mistakes.

Yes. The Law Office of Ronald E. Norman, LLC is dedicated to protecting the rights of consumers. We handle Bankruptcy Cases only in the State Of New Jersey. We take Bankruptcy Cases from anywhere in the State of New Jersey. The Law Office of Ronald E. Norman, LLC is designated as a Federal Debt Relief Agency. The Law Office of Ronald E. Norman, LLC has performed the following tasks:

• Handled New Jersey Bankruptcy Cases for people and businesses across New Jersey, including representations of individuals and businesses.
• Filed thousands of New Jersey Bankruptcy Petitions
• Settled New Jersey debt disputes for New Jersey creditors and New Jersey Debtors.
• Prepared and filed many New Jersey Bankruptcy Petitions
• Personally appeared in all 3 of the New Jersey Bankruptcy Courts - Camden, New Jersey - the United States Bankruptcy Court For The District of New Jersey, Camden Vicinage, Trenton, New Jersey - the United States Bankruptcy Court For The District of New Jersey, Trenton Vicinage and Newark, New Jersey - the United States Bankruptcy Court For The District of New Jersey, Newark Vicinage
• Appeared at New Jersey Bankruptcy 341 hearings - New Jersey Bankruptcy first meeting of creditors'
• Successfully argued New Jersey Bankruptcy Court motions
• Represented New Jersey Debtors in New Jersey Bankruptcy Court
• Represented New Jersey Debtors in New Jersey post judgment collection proceedings