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    What is a Bankruptcy Audit?

    Last updated 6 days ago

    Bankruptcy is a powerful tool. Unfortunately bankruptcy is routinely abused, which is why federal bankruptcy watchdogs attempt to ferret out fraud by auditing consumer debtors. If your bankruptcy case is audited and the U.S. Trustee’s office finds evidence of fraud, it could lead to the dismissal of your case or even criminal penalties. Filing with a bankruptcy attorney is one way to make sure that your claim is accurate and to the letter of the law, but it doesn’t completely eliminate your chances of being audited. To help you prepare in the event that your claim is audited for accuracy, here is a closer look at the bankruptcy audit process.

    Random vs. Non-Random Selection
    Random and non-random selection are two ways that the U.S. Trustee selects bankruptcy cases for audit. U.S. bankruptcy law permits the U.S. Trustee to randomly audit one out of every 1,000 Chapter 7 or Chapter 13 cases filed. The U.S. Trustee’s office will also audit bankruptcy cases based on red flags in the petition, such as when the debtor’s income and expenses greatly vary from those of most filers in their filing district.

    Bankruptcy Audit Procedures
    After identifying a case for audit, the U.S. Trustee selects an audit firm to conduct the audit. The firm will review the debtor’s petition, schedules, and documents and verify the debtor’s income, expenses, and assets reported therein. The firm has three weeks (21 days) to complete the audit and submit its report to the U.S. Trustee’s office. If the firm discovers material misstatements, the debtor must then provide evident that explains the misstatements.

    Even if you don’t mean to commit fraud, it can be easy to accidently misstate your income, expenses, or assets when filing bankruptcy on your own. To make sure that your claim is accurate and legal, contact Low & Low Bankruptcy Lawyers of Hackensack, NJ. At Low & Low, our experienced bankruptcy attorneys will help you file Chapter 7 or Chapter 13 and defend you should your case be audited by the U.S. Trustee. Call us today at (201) 546-5753 to schedule your free consultation.

    Can You Choose Which Bankruptcy Creditors are Paid First?

    Last updated 13 days ago

    After you file bankruptcy, there is a way to give one unsecured creditor priority over another. However, unsecured creditors can get priority only if entitled to it by the U.S. bankruptcy laws. Creditors who may be given priority include individuals who are owed child support, former employees who are owed wages, and the taxing authorities. Secured creditors are a different story, particularly in Chapter 7 bankruptcy.

    If you’re thinking about filing bankruptcy, wait until you speak with the bankruptcy attorneys at Low & Low. Our bankruptcy lawyers will help you file Chapter 7 or Chapter 13 and give priority to any unsecured creditors who need money first. Visit our bankruptcy attorneys at one of our four locations in Elizabeth, Jersey City, Hackensack, and West New York. You can also call us at (201) 546-5753 if you have any questions.

    Famous Celebrity Bankruptcy Cases

    Last updated 20 days ago

    If you’re feeling frustrated, anxious, or depressed due to financial debt, bankruptcy could be your solution. While there seems to be a negative connotation associated with bankruptcy, it is a perfectly normal decision for individuals who are buried in debt and struggling to get out. Even celebrities who are supposedly better than the rest of us find themselves in need of financial help. If you’re feeling embarrassed about your financial situation, look at these famous celebrities who decided it was best to file for bankruptcy.

    Burt Reynolds
    Burt Reynolds (and his famous mustache) once had it all: mansions in California and Florida, a helicopter, a private jet, and a 160-acre ranch. But by 1996, Reynolds was just like everyone else. After his fortune had been severely drained by a career slump, failed investments, and a separation from his wife Loni Anderson, Burt Reynolds was forced to file bankruptcy to keep his head afloat financially.

    Wayne Newton
    The crooner who became known as “Mr. Las Vegas” won big in Vice City, but he lost just as much, just as fast. When Newton filed for bankruptcy in 1992 to reorganize some $20 million in debt, he was reportedly making $250,000 each week by performing in Las Vegas. It just goes to show that even with (almost) all the money in the world, bankruptcy is sometimes the only way to get out of debt.

    Mike Tyson
    At one point, Mike Tyson was one of the richest men in the world of boxing. In fact, he was one of the richest men in the world, period. But after years of mismanagement and poor decisions, Mike Tyson had accumulated debts around $38 million. By 2004, he was down to just $1,200 in cash. Luckily bankruptcy helped Tyson before he was totally knocked out by debt.

    If you want to eliminate your debt, reestablish your credit score, protect your property, and give yourself peace of mind, contact the bankruptcy attorneys at Low & Low. Our bankruptcy attorneys help people throughout New Jersey eliminate their financial burdens and frustrations. Visit one of our four locations in Elizabeth, Jersey City, Hackensack, and West New York. Call us at (201) 546-5753 to schedule your initial consultation with a bankruptcy lawyer today.

    Why Bankruptcy Isn't the Solution to Student Loans

    Last updated 27 days ago

    With youth unemployment rates at an all-time high, recent college graduates are finding it harder than ever to get the jobs that were once waiting for people with college degrees. This also means graduates are having harder times repaying student loan debt. In fact, since 2008, nearly three-quarters of a million students have defaulted on their student loans. And with two-thirds of students graduating with an average student loan debt of $24,000, there’s no end in sight to this problem in America. And as you’ll see in this video, bankruptcy isn’t the solution to student loan debt.

    Bankruptcy might not be the direct answer to student loan debt, but it can help ease other debts and financial obligations which may help with your monthly student loan payments. To decide whether bankruptcy is right for you, contact Low & Low Bankruptcy Lawyers today. Our bankruptcy attorneys in Hackensack, Elizabeth, Jersey City, and West New York can help you file Chapter 7 or Chapter 13 to eliminate debt and gain peace of mind. Call us today at (201) 546-5753 to speak with one of our bankruptcy attorneys about your case.

    A Look at the History of the United States Bankruptcy Courts

    Last updated 24 days ago

    Today, bankruptcy is a perfectly legal and honest means of discharging debt. However, bankruptcy law has a long and complicated history. It’s taken the United States hundreds of years of tinkering to get to the point where bankruptcy is fair to debtors and creditors. Here’s a brief look at the history of bankruptcy law and bankruptcy courts in the United States. 

    Early Bankruptcy Law
    Centuries ago, many people with considerable debts were sent to “debtor’s prison” or forced to work as indentured servants in exchange for debt forgiveness. The United States Constitution, which was ratified in 1789, gave Congress the power to create new bankruptcy laws. U.S. citizens were granted the ability to voluntarily file for bankruptcy with the ratification of bankruptcy laws in 1841, 1867, and 1898.

    Bankruptcy and District Courts
    As part of the Bankruptcy Act of 1841, district courts around the country were granted jurisdiction to handle bankruptcy-related matters. As time progressed, voluntary access to bankruptcy expanded, and it became easier for debtors to file bankruptcy with their local district courts. The Bankruptcy Act of 1898 appointed “referees” to oversee bankruptcy cases that came to district courts. 

    Bankruptcy Courts
    As bankruptcy became a more common practice, district courts became congested and overwhelmed with bankruptcy cases. The Bankruptcy Reform Act of 1978 allowed for the establishment of independent bankruptcy courts, which helped ease congestion in the district courts considerably. Today, all bankruptcy cases are automatically referred to these independent bankruptcy courts. Bankruptcy judges are appointed by local courts of appeals.

    While you don’t have to know the history of bankruptcy to discharge your debt, some background can help make the process a little easier to understand. If you have questions about the past or present of bankruptcy law, call Low & Low Bankruptcy Lawyers at (201) 546-5753. We’ve been helping Hackensack residents get out of debt since 1965.

Do you like Low & Low Bankruptcy Lawyers?

Why Should You Choose Low & Low?

Consultation is absolutely free. We can make the bankruptcy process affordable. We will get you through the process so that your debts will be eliminated. We offer payment plans. We have flexible hours. Low & Low is a father and son Bankruptcy firm, which has been in business since 1965. Our attorneys’ motive is to help you eliminate financial burden and frustration. To learn more, contact Low & Low Bankruptcy Lawyers today at (201) 546-5753.

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