I was recently discharged from bankruptcy and just incurred additional expenses. What do I do now?

Posted on February 8, 2012 by glmain

I have represented many clients who have been discharged from either Chapter 7 or 13 and have then incurred additional expenses.  Even though the bankruptcy code has changed the law with regard to refiling, please contact me, and I will discuss all of your options. Continue reading →

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The Effect of Filing Bankruptcy on A Cosigner / Co-debtor

Posted on January 26, 2012 by glmain

When you file a bankruptcy there is an impact on the person who is a cosigner on your loans.  Although the cosigner will not have a bankruptcy on his/her credit report, any missed or late payments you made may show up on the report, damaging the cosigner’s credit rating.  Even if you have a mortgage or a car payment which is up to date, there is still an impact on your cosigner’s credit rating.  Usually I advise my clients to have the cosigner contact the credit bureau and advise that the loan is up to date but that the bankruptcy code requires that notice be given to the creditor.  If you are concerned about the impact that filing bankruptcy may have on your cosigners, then it is important to understand the difference between Chapter 7 and Chapter 13 protection. Continue reading →

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The 411 on Preparing to Meet with Your Bankruptcy Attorney for the First Time

Posted on January 4, 2012 by glmain

Want information on the financial relief that filing for bankruptcy can offer?  You’ve taken the first step to make the appointment with a bankruptcy attorney.  Now what?  During your first consultation, I consider your individual circumstances to determine whether or not you are a candidate for bankruptcy filing, and whether you qualify for a Chapter 7 or Chapter 13 bankruptcy.  To that end, you will need to bring documentation that will show your total income and expenses.  The Bankruptcy Code underwent revisions that passed on October 17, 2005.  Under the new law, I can still help people resolve their financial issues, but there is much more documentation required than before. Continue reading →

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Loan Sharks Masquerading as Loan Companies

Posted on December 28, 2011 by glmain

It appears that more and more of my current clients have gotten suckered into loans from companies such as Payday.  These loans are not merely usurious; they are pure loan sharking, charging interest as high as 139% annually.  That is 5 to 10 times higher than most credit card interest rates! Continue reading →

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Steps to Restoring Credit After Bankruptcy

Posted on December 13, 2011 by glmain

One of the biggest fears people have concerning filing bankruptcy is that it will damage their credit rating.  What people don’t realize is that when they have financial difficulties and choose not to file bankruptcy, they are often faced with late payments, lawsuits, repossessions, foreclosures, or other financial issues which can ruin their credit rating.  In addition, any credit counseling or debt settlement programs outside of bankruptcy that don’t require full payment of the outstanding balance will also have a negative impact on their credit rating. Continue reading →

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Chapter 7 Bankruptcy Relief in New Jersey

Posted on December 6, 2011 by glmain

Individuals overwhelmed by debt are often confused and distressed about how to solve their financial problems.  While there are many solutions to financial woes, depending on your circumstances, Chapter 7 bankruptcy may be the right solution for you.

Chapter 7 is also called straight bankruptcy or clean slate bankruptcy.  This type of bankruptcy enables eligible consumers to eliminate debt such as credit card bills, hospital bills, and unsecured loans and other unsecured debt with the following exceptions:

  • Student loans
  • Certain taxes
  • Child support and alimony
  • Court fines and criminal restitution
  • Government fines, penalties or forfeitures Continue reading →
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Tips for Staying Out of Hot Financial Water during the Holidays

Posted on December 1, 2011 by glmain

“Can you believe it’s almost Christmas?”

How many times have you heard that in the last week?  And when you heard it, did you get a warm feeling, or did it make you just a little uneasy?  Unfortunately, the holidays are the time of year when many people face serious financial challenges.  The desire to give your loved ones a “nice holiday” can leave you paying for months, if not longer.  But it doesn’t have to be that way.  There are lots of ways to show your loved ones you care without taking on excessive financial burdens.  This blog post gives you some ideas to make your holidays merrier, free from the stress and anxiety of bills you can’t pay. Continue reading →

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Bankruptcy is a Global Approach

Posted on November 18, 2011 by glmain

We all know people who have been touched by the financial crisis.  Perhaps you have a client who has been facing financial difficulties.  To obtain relief, he has been trying to get a loan modification and has contacted the mortgage company, sending in supporting documents several times.  Unfortunately, the mortgage company has been stringing him along and keeps on losing the documentation.  As a result, he is falling further behind on his mortgage and is now falling behind on his second mortgage too.

What the client didn’t tell you is that with current market conditions, his home is worth less than his first mortgage.  He could perhaps afford the regular first mortgage if he didn’t have to pay the second mortgage.  He’s saddled with significant unsecured credit card debt and has an outrageously high truck payment for a vehicle that is worth 50% of what is owed that he has been paying for over 910 days.

Continue reading →

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The Pitfalls of Procrastination: Don’t Delay Filing for Bankruptcy

Posted on November 8, 2011 by glmain

Too many people wait until their back is against the wall to file bankruptcy.  For example, they receive a notice of wage garnishment, their bank account is frozen, or their vehicle has been repossessed.  Just as it is easier in medicine to treat a disease in its beginning stages, it is much easier and much less stressful to file bankruptcy before the creditors are pressuring you in full force.

It is a misleading notion to believe that all is well as long as you are making the minimum payments on your credit cards.  First of all, you are throwing away money since the payments are only paying the interest and not the principal.  In time the creditor will sue you for the balance, and once the creditor obtains a judgment against you, there is the possibility of losing your property. Continue reading →

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Why Use a Lawyer to File Bankruptcy?

Posted on November 1, 2011 by glmain

Preparing a bankruptcy petition is not just a matter of filling out forms.  Trying to file bankruptcy on your own or relying on a petition preparer can result in negative consequences and missed opportunities.

A bankruptcy petition in Chapter 7 or 13 has many complex provisions.  One of the most complicated forms is the MEANS TEST.  This form alone can take over an hour to complete if you are above the median income, and you have to understand the law to fill it out correctly.  An error in the means test can lead to disastrous results such as dismissal of your petition, which can lead to loss of property.

In addition, an understanding of permissible exemptions is essential, since failing to exempt permissible property can result in the trustee requiring its sale to satisfy debts under Chapter 7, or substantially higher payments to the trustee in a Chapter 13 bankruptcy.

Also, preparing a Chapter 13 plan takes much analysis.  One who is not familiar with bankruptcy may miss many opportunities.  Just as an expert in tax law can help maximize tax savings, an expert in bankruptcy law can help identify opportunities to eliminate debt, minimize payments, and protect assets. Continue reading →

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