Chapter 13 Bankruptcy

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Chapter 13 bankruptcy will stop foreclosure.  When you file for Chapter 13 bankruptcy, you will not lose any property to the bankruptcy trustee as long as you can make the payments. If you cannot make your payments or arrange for loss mitigation you can still save your home from foreclosure.

If you have been turned down in the past for loan modification a chapter 13 can give you another shot at modification.  In New Jersey a chapter 13 bankruptcy allows you to pay 60% of your principal and interest and 100% of your escrow to your lender while in loss mitigation. Your arrears normally are paid by dividing your arrears by 60 so that if you completed your chapter 13 plan over a 5 year period the arrears would be paid by the end. A chapter 13 trustee is paid 10% of your payments to pay for their services. If you have questions talk to an NJ Foreclosure Defense attorney who understands bankruptcy.

Financial hardship can happen to anyone. Sometimes, it’s hard to face this type of circumstance alone. Luckily, there are solutions and professionals waiting to help when financial hardships become too burdensome to bear alone. If you find that your debt is not diminishing, but rather increasing with no end in sight, it may be time to consult with a Chapter 13 bankruptcy attorney in New Jersey.

If you do not qualify to file for Chapter 7 bankruptcy, a Chapter 13 bankruptcy could be the best option. Chapter 13 is often called debt reorganization or debt adjustment. Unlike a Chapter 7 bankruptcy that liquidates or eliminates debt, a Chapter 13 bankruptcy helps the debtor pay off their debt. In other words, Chapter 13 requires that a debtor incorporate a payment plan to pay all or parts of their obligations. To qualify for Chapter 13, a debtor must have current qualifying income.

It is wise to seek the legal advice of a professional Chapter 13 bankruptcy attorney in New Jersey. Filing a Chapter 13 alone is not recommended. Mistakes and incorrect paperwork can cause the court to delay or deny your case. Delaying or denying your case can result in more court costs and fees that could have been avoided if an attorney was enlisted to begin with. Moreover, the stress and headache of filing alone may not be worth the trouble of trying to save a little bit of money.

The office of Patel & Soltis, LLC, can help you with your Chapter 13 Bankruptcy, whether you’re located in Jersey City, NJ; Hackensack, NJ; Freehold, NJ; Newark, NJ; Brooklyn, NY; or New York City, NY.

Qualifying for Chapter 13 Bankruptcy

People who have a regular income, but are behind with their monthly payments should consider Chapter 13 bankruptcy. Since Chapter 13 allows debtors to repay all or part of their debt, they must have sufficient disposable income to do so. This option also allows debtors to eliminate unsecured debt. Eliminating unsecured debt frees up money that can be allocated to paying an individual or married couple’s mortgage. A trustee is appointed by the court to supervise, collect, and distribute payments.

To qualify for a Chapter 13 bankruptcy, the debtor has to meet the following:

  • Regular income.
  • Unsecured debts under $395,000. 
  • Secured debt under $1,184,200. 

Filing a Chapter 13 Bankruptcy

When a Chapter 13 is filed with the court, the debtor presents a payment plan that demonstrates how they will pay their past due and current debts. Along with all required bankruptcy paperwork, the debtor must disclose their source or sources of income. Aside from regular employment income, a debtor can also submit pension information, social security checks, unemployment, and amounts incurred from a sale on a property as proof of income.

Debtors planning to file a Chapter 13 must also be current on their tax filings. Proof of tax returns is required for the past four years. If a debtor is unable to provide proof of tax returns, their case will be dismissed. An experienced Chapter 13 bankruptcy attorney in New Jersey will ensure that all paperwork, documents, and proofs are filed correctly and entirely to avoid getting a case dismissed.

Once all required paperwork, proofs, and documents are filed with the court, a hearing will be scheduled to determine whether the proposed plan is acceptable. The timeframe to pay off debt under a Chapter 13 is three to five years. When all payments under the Chapter 13 bankruptcy has been satisfied, the case will be discharged.

The Appeal of Chapter 13

What makes Chapter 13 appealing is the fact that a debtor is able to keep their house and car throughout the bankruptcy. Since Chapter 13 stipulates that a debtor remit payment to his or her creditors, keeping a primary home and car is of no consequence.

Mortgage and car payments under Chapter 13 will depend on your specific situation. These payments are often equal to or more than your regular monthly payments. In cases where the debtor is behind or past due, payments will be more so that they catch up to a current status.

It is important to remember that all mortgage payments must be made on time under the stipulations of a Chapter 13. Late payments are not allowed. However, if your financial situation becomes worse, it is imperative to notify your Chapter 13 bankruptcy attorney in New Jersey and bankruptcy trustee right away. A modification of your payment plan may be warranted. If you do not inform your bankruptcy trustee and fail to keep the terms of your bankruptcy, the case could be dismissed.

The bankruptcy process can be challenging. But with the right legal representation, it is possible to obtain a financial solution that meets your needs.

Whether you’re in New Jersey or New York, Patel & Soltis, LLC serves the following areas: Jersey City, NJ; Hackensack, NJ; Freehold, NJ; Newark, NJ; Brooklyn, NY; or New York City, NY.

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Very pleased with the level of care and attention in dealing with this law firm. They were always quick to respond and patient with a very impatient first time home buyer! Robert Ranalli was my attorney and I would recommend for any legal needs.

Nashir M.

I had the pleasure of working with Veer Patel and staff for several months and could not have been more pleased with the attention, care, and professionalism of everyone at the firm. Really good experience and would definitely recommend!

Brian R.

Mario GarzonaMario Garzona
14:15 27 Mar 23
Thank to Patel and Cardanas. They helped us with an extreme amount of litigation with a partition real estate case. It’s allways difficult fighting with family but they navigated all the twists and turns we’re experienced and prepared to deal with it all. The outcome was better than anticipated I would use them and 100 percent recommend then. Thanks too Veer and John for the amazing work
Monica OzMonica Oz
02:29 03 Jan 23
I had a wonderful experience working with Veer Patel. He worked hard for me and got me the best possible result. His fees were reasonable and there were no surprise charges. He was also very compassionate regarding my circumstances. Mr Patel is skillful in explaining complex legal processes in layman's terms. He was always available for me night and day and would always return calls promptly. I would highly recommend him to anyone in need of legal services.
Mustafa PachaMustafa Pacha
22:06 18 Nov 22
A respectable law firm. The attorneys & staff are courteous, prompt with return calls/emails and provide me with exceptional attention. As a first time home buyer, their patience with me was exceptional. Would definitely recommend to anybody who is looking for a real estate lawyer for their next closing
Melissa DuranMelissa Duran
21:19 01 Nov 22
Veer Patel and John Voorhees helped me file a partition against my ex boyfriend in April 2022 and in Nov 2022 I am happy to say my case was settled. I am beyond grateful to have chosen them for my legal battle. They were knowledgeable of the process, hard working, dedicated, and detailed. It was great to work with a team who I knew was fighting hard for me. I 100% recommend working with this law firm and would work with them again.
DhokhadhariNala LaroDhokhadhariNala Laro
00:45 23 Sep 22
True evil exists in this world and you DON'T want to meet it. If you do meet it, you need assistance from people who can fight it, such as this law firm. Mr. Patel and his associates helped me fight evil. That is not an elementary task.I saw a very few 1-star reviews of the firm (some pretty old). As you know, some people who write reviews on Amazon or elsewhere are not reliable reviewers and you cannot take their comments seriously. You decide.Read on if you care about my story (or skip it if you are satisfied that I rated them 5 stars). You will see the depths of evil that exist and what you can do. It may be too big to tackle on your own, so you need some expert help to navigate a way out.You know true evil exists, but you don't think too much about that fact or it would paralyze you. People would rather safely view evil on a fictional crime show, confident that they will never meet it in real life. You have seen evil yourself on television, but, unlike me, you may not have met it in person.I see true evil when I turn on the television and see sworn members of the US government utter completely false statements, assertions demonstrably untrue, but which they assume I will believe. My jaw hangs open at the malevolence of such action, the blatant dishonesty, the disregard for me as a citizen, the insidious diminution of my personal rights, the insatiable hunger for power and control that it exposes.Such people do not walk around enveloped by a cloud of green smoke; you won't realize it, at first, when you have met such a person. Hannah Arendt knew that and described it as the "banality of evil."Meeting evil doesn't have to mean encountering Ted Bundy in a parking lot. Evil can do things other than kill you. They are people with no conscience. Those are the most dangerous foes because they acknowledge no limits.I met such a person and, unfortunately, conducted business with him.He lied to me repeatedly and actively worked to prevent me from finding out the truth. He nimbly worded his sentences to avoid saying the words that would clue me in to the truth. Someone else knew the truth, so he tried to prevent me from talking to her. He even, perversely, tried to verbally prod me into thanking him for his seeming generosity, all the time knowing that he was very far short of generous. He knew what he was doing and did it with the cool efficiency of a member of the Sicherheitsdienst. He has apparently made a profitable career of it.After my lawsuit was filed, he lied frequently and extensively in court filings under oath and falsified evidence to deflect blame from himself, temporarily fooling even my own lawyers. He insisted he was actually the victim and expressed phony outrage that anyone would say he had been lying.It was like seeing one of the pernicious television people I described above, but in real life.True evil. No conscience. Chilling.You should pray you do not meet such a person. You would gasp in horror if I told you from which profession he had retired.Mr. Patel and the lawyers at this firm did some adroit legal work to set things right. The firm provides service in different legal areas, but I can only comment on the case for which I hired them, which is in the litigation area.You don't go to a reconstructive plastic surgeon to put 4 stitches into a laceration your son got on his leg sliding into base in Little League. Your insurance company would tell you it is a waste to use such an expert--a resident in the ER can do it instead. Similarly, you probably don't use these lawyers for a routine house closing. That would be a waste.You use these lawyers for complicated work.Mine was a complicated case requiring legal research and artful construction of court filings and we got a good result. That is why I recommend them.
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