Bankruptcy Info

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:

Creditors Do Not Receive Share of $ Debtor Receives for Disabled Childcare

Disabled CircleOctober 14, 2016


  • Debtor Filed Chapter 13 Bankruptcy
  • Debtor waived Medicare benefits for home care to her son; rather than son being cared for in a hospital or nursing home.
  • Trustee objected stating all of disposable income should be devoted to paying back creditors, including the benefits for care of her son.
  • Trustee argued that the benefits should be included since an outside agency hired by the State pays this amount rather than the State directly.

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Non-Dischargeable Debt for Disbarred Lawyer

October 11, 2016Bad lawyer

Debtor was a disbarred lawyer who did not want to pay a fee for a personal injury case that he received to another lawyer.


  • Debtor was a disbarred attorney
  • Case settled for $1,980,000.
  • Disbarred attorney received $661,879.92 but did not pay the other attorney who was entitled to a split of the award.

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