Last updated 2 days 17 hours ago
Bankruptcy is used by countless Americans every year to get out of debt and regain their financial independence. However, filing for bankruptcy does not automatically wipe out all of your debts. In fact, there are quite a few types of debt that cannot be discharged through bankruptcy, including child support, alimony, student loans, federal income tax, and employer withholding taxes. Furthermore, bankruptcy does not wipe out mortgages or car loans. If the debtor wishes to keep his home or vehicle, he must continue to make payments agreed upon by the bankruptcy court or trustee.
Watch this video to learn more about the limitations of bankruptcy. To understand how bankruptcy can help you and your family, contact the law team at Low & Low Bankruptcy Lawyers. Our experienced bankruptcy attorneys serve residents throughout the Garden State with locations in Elizabeth, Hackensack, Jersey City, and West New York. Contact us online or call us at (201) 546-5753 to schedule your initial consultation with one of our bankruptcy lawyers.
Last updated 10 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.
Last updated 17 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.
Last updated 24 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 (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.
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.
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.
Last updated 1 month 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.