Bankruptcy Info

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.

Continue reading…

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.

Continue reading…

Credit Counseling Deadline Strictly Enforced in Bankruptcy

Credit CounselingOctober 10, 2016

One requirement that is very specific in the Bankruptcy Code is:

Within 180 days from filing bankruptcy, the Debtor must complete a debtor’s education course.  

What does 180 days mean?

Before the date and time the petition is filed, that course must be completed.   In other words, you cannot take it after the Petition is filed.  Not even a minute later.

As I have pointed out in the past, Bankruptcy Code and Courts are very strict with deadlines.

Background on Case: Continue reading…

Serial Filer – Case Dismissed

Serial FilerSeptember 28, 2016

Bankruptcy is a privilege and not a means for debtors to try to delay the fact that they cannot pay a debt.


  • Debtor filed for Chapter 7 in July 2008 and received a discharge on April 3, 2009.
  • Debtor filed for Chapter 13 relief in December 2013, January 2014, April 2014 and November 2015.
  • None of the Chapter 13 cases lasted for more than a couple of months; debtor did not make the agreed upon payments.
  • All the Chapter 13 cases were dismissed.
  • Debtor filed again in January 2016.
  • Wells Fargo had a secured claim of the Debtor’s home of $879,256.
  • Debtor owed arrearages of $417,823.31
  • Monthly mortgage payment was $6,303.56 – $4,603.28 was for principal and interest.
  • Debtor had not made a single mortgage payment since 2010.
  • Debtor stated she needed more time to consult with an attorney.

Continue reading…

State Cannot Garnish Pay for Chapter 13 Debtors

GarnishmentsSeptember 23, 2016

All creditors, even the State, must abide by the Bankruptcy Court rules.


  • Debtor was behind in Child Support Payments.
  • State garnished debtor’s wages
  • Debtor filed a Chapter 13 Bankruptcy
  • Child Support Payments were included in the Plan as well as the arrearages
  • State continued to garnish debtor’s paycheck
  • Debtor requested State stop garnishments
  • State would not stop garnishments.

Continue reading…

Picasso Signed His Paintings – You Must Sign Your Bankruptcy Petition

September 14, 2016

Signature Required


Although many courts allow fax signatures and other document signing other than the actual “wet” signature, Bankruptcy Courts do not.   When you sign your petition, like an artist, it must have your actual signature.



  • Attorney electronically filed a debtor’s petition and related schedules with signatures that had been created using software.
  • Software he used was called DocuSign.
  • Attorney did not have an actual “wet” signature on file to back up the electronic signatures.
  • DocuSign allows someone to approve a document by clicking the “Sign Here” button to be treated as the person signing to be his actual signature.
  • Debtor also liked the process and found it safe.

Continue reading…

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