How a NJ Bankruptcy Attorney can file a chapter 13 bankruptcy to save a NJ home after a NJ Tax Lien foreclosure with a 547 motion to void a preferential transfer.

Dec 30, 2019 | Bankruptcy, New Jersey Bankruptcy, New Jersey Foreclosure Defense

How a NJ Bankruptcy Attorney can file a chapter 13 bankruptcy to save a NJ home after a NJ Tax Lien foreclosure with a 547 motion to void a preferential transfer.

You can save your home after a NJ tax lien Foreclosure using Bankruptcy final judgement by allowing a NJ Bankruptcy attorney at Patel, Soltis, and Cardenas file a chapter 13 bankruptcy and have the trustee file a 11 usc 547 motion to avoid a preferential transfer if the final judgment is recent.

The law offices of Patel Soltis & Cardenas focus on saving people’s homes.  One of the tools we use is bankruptcy.  We file chapter 7, chapter 13, and chapter 11 bankruptcies in New Jersey and New York.  So, even if you live in New York, but lost a property in New Jersey from a Tax Lien Foreclosure we can help. We have attorneys that practice in Both New York and New Jersey.

One of the questions we get here: I lost my house in a tax lien foreclosure What can I do well?

There’s the possibility of using a bankruptcy. A chapter 13 bankruptcy to be specific. To be able to pull the property back into the chapter 13 bankruptcy estate. Even if the final judgement on the tax lien certificate has been signed by the judge.  If the judgement was in within the last 90 days, there is an 11 usc 547 motion for Preferential transfers that is able to recover the property.

Even though the foreclosure is not a technically a fraudulent transfer the trustee can recoup the property to ensure that all creditors are paid and not just the tax lien certificate holder. The Tax Lien Certificate holder is the only creditor that benefited from the New Jersey Tax Lien Foreclosure. The new Jersey tax lien certificate holder has basically taken all of your equity. It received a all of your hard earned equity in your home for paying your past taxes for two years. You lost a life time of work.  This is not fair.

As an example, let’s say say the property is worth a million dollars. The Nj tax lien holder put $100,000 into it by paying taxes for two years. They now have your property after the foreclosure and they got $900,000 in equity. A 900% return on investment sounds great, unless you are the person that just lost $900,000 in equity. All of your other creditors are also left holding the bag. They also did not get paid, and would be in favor of selling your home on the open market to get paid too.  They’ve got nothing nothing to show for the New Jersey tax lien foreclosure, so a chapter 13 or chapter 7 bankruptcy trustee can go out get that get your property to pull it back into the bankruptcy estate. The bankruptcy trustee can then sell the property and then distribute the proceeds.

At which point that’s gives you the opportunity that at that point to save your house pay off all your creditors. So this is this is kind of a tricky maneuver. We don’t recommend people trying it on their own. If you find yourself in the situation. Hopefully you’re talking with an attorney prior to the final judgment for the NJ tax lien.

However, if if you something went wrong, talk to an attorney, it doesn’t have to be us. Find somebody who understands bankruptcy and how to pull property back into into the estate after a tax lien foreclosure.  You can call us at 973-200-1111 or email us at

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