Bankruptcy Info

Debtors Need Their Monthly Bills from Creditors

March 15, 2017


  • Most banks will no longer send monthly statements to the debtors when debtors are in bankruptcy.
  • Debtors must call or contact the bank if they want to find out the monthly amount owed.
  • Creditors/banks must notify the debtors only if there is a change in the monthly payment.
  • Debtor filed a Chapter 13 Plan and added in the Plan that the creditor was to continue with monthly statements to the debtors.
  • HSBC objected on the basis that it would be a violation of the automatic stay and create a logistically burden to the bank.
  • HSBC stated that adding the clause requiring statements, the Plan was unconfirmable.

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Chap. 13 Case Dismissed – Adversary Proceeding Must Stop

March 13, 2017


  • Debtor (attorney) and his wife filed for Chapter 13 Bankruptcy.
  • Prior to filing for Bankruptcy, Debtor was convicted of stealing money from elderly clients.
  • Complaint was filed by Debtor’s victim that the restitution could not be discharged in bankruptcy.
  • Adversary proceeding was started.
  • Debtor’s wife severed the joint bankruptcy.
  • Debtor eventually voluntarily dismissed his case shortly thereafter.
  • Debtor’s victim wanted the adversary proceeding to continue in Bankruptcy Court so this claim could never be included in another bankruptcy and Exempt from Discharge.

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Liquor Store Owner Sentenced to Prison-False Statements

February 19, 2017


  • Small business owner sentenced to prison.
  • Filed Chapter 7 Bankruptcy.
  • Owner of a liquor store.
  • When the small business owner sold the liquor store for $171,000, he had his parents deposit the proceeds in their bank account.
  • Parents paid his expenses and gave him cash on a regular basis from the funds.
  • This income/profit was never recorded in the Bankruptcy Petition.

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Loan Modification – Ocwen Did Not Follow HAMP

February 10, 2017


  • Loan was acquired through a divorce and the wife remained in the home after divorce.
  • Wife had previously filed for a Chapter 7 bankruptcy; Ocwen did not allow Wife to apply for a loan modification.
  • Before assuming the mortgage, wife applied for a loan modification from Ocwen Loan Servicing.
  • Debtor participated in good faith to apply for the loan modification.
  • Ocwen presented that the Debtor was not acting in good faith since she did not want to assume the mortgage before applying for a loan modification.

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Attorney Cannot Keep Ferrari & MG from Debtor Client

January 22, 2017


  • Attorney was a debtor’s business attorney.
  • There was a long-standing personal relationship between the debtor and the attorney.
  • Even though the debtor had no funds to pay the Attorney, the attorney continued to provide legal services for the debtor which resulted in $70,000.00 outstanding.
  • Debtor filed for Chapter 7.

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Used Car Dealer False Statements – Deceived Bank

January 7, 2017

Honesty includes disclosure of all facts –Used Car Dealer Misrepresents Intent to Bank.


  • Debtor owned a used car dealership and began to have financial problems with his business debts.
  • Debtor using an auction sale contract purchased a 2007 Mercedes-Benz for $19K.
  • Car had a book value of $30K
  • Debtor represented that the car was purchased for a personal vehicle and approached the bank for a loan.

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Dining Out – Effect on 2017 Budgets and Waistlines

dining-outDecember 13, 2016

I read something interesting today:   Dining out is the No. 1 item that Americans blow their budgets on, according to the Principal Financial Group’s annual Financial Well Being Index, which was released in December 2016. The company surveyed more than 1,100 employed American adults.

Besides your Budget – eating out has these effects:

  • tend to consume 200 more calories than when they eat at home
  • eat more or eat higher calorie foods
  • obesity and higher body fat

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What is Median Income in NJ? – Highest Compared to Other States

njNovember 15, 2016

Median income is the amount that divides the income distribution into two equal groups:

  1. Half having income above that amount
  2. Half having income below that amount.

New Jersey has the highest median income in all 50 states.

  • 1 earner = $62,149
  • Family Size: *
    • 2 = $74,367
    • 3 = $92,489
    • 4 = $113,455

 Add $8,400 for each individual in excess of 4.

 Median income is an important factor that your Bankruptcy attorney will use to work with you in determining not only the type of bankruptcy but also your eligibility.

If you  would like to see the complete chart, go to:

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