Our Chapter 7 bankruptcy attorneys will require key information about your assets, debts, and property in order to determine what we believe will happen once a bankruptcy case is filed. One of the main benefits of contacting an attorney is that we can typically predict how the case would proceed and what information might be required in the future. Thus, you will want to have a full accounting of your assets and property when our New Jersey lawyers help you through a Chapter 7 bankruptcy.
The Bankruptcy Code asks you to disclose all real or personal property that you own, or have an interest in, when you file a bankruptcy case. The law protects certain property from liquidation in a bankruptcy case, so when a petition is filed, it should include a disclosure for exemption claims. It is extremely important that you and New Jersey attorney carefully review all assets and property to confirm which will be protected or exempted in a Chapter 7 bankruptcy.
In New Jersey, we typically choose to claim the federal exemptions that are available under the Federal Bankruptcy Code. These exemptions apply to either specific assets or have general catch-all provisions for the value of certain assets.
The most common category of property that is not exempt are amounts which exceed the statutory exemptions allowed by the Federal Bankruptcy Code. That could be a certain amount of equity that you own in your residence or other real estate, or funds that you hold in a bank, brokerage, or other bank account. It could even be the value of your personal property such as an automobile or other rights.
Non-exempt property could also include rights that you may have to existing claims, such as personal injury claims, workers’ compensation action, or other lawsuits where you have the right to a recovery. It may also include your right to receive money through an estate, inheritance, or life insurance plan.
The amount of each of these exemptions is fixed under the Bankruptcy Code, and the amount that can be protected is specific to the individual client.
Schedule I of the bankruptcy petition requires you to disclose your gross wages, salary and commissions, estimated overtime, and deductions against your wages such as payroll deductions and insurance retirement contributions. You must also disclose any income from the operation of a business or from real property, including rental property, as well as alimony, child support, unemployment benefits, Social Security and other government assistance, or retirement income.
Schedule J of the bankruptcy petition discloses all the expenses you pay on a regular basis to support yourself or your dependents. This could include rent or mortgage payment, utilities, food, clothing, personal care, auto loans and lease payments, alimony or child support payments, and contribution to charitable organizations or religious donations.
When a person in New Jersey is filing a Chapter 7 bankruptcy, all debts must be disclosed in the bankruptcy petition. The difference is that some debts may be discharged or released through the bankruptcy proceeding, while some debts may yet remain.
A secured debt is an obligation that includes a lien or attachment to some form of property. The most common secured debt is a mortgage, where someone owes money to their mortgage company, and a mortgage is recorded and attached to a property. Other secured debts can include car loans, where the debt is secured against the vehicle, or a business loan where a bank will provide a UCC-1 financing statement in which the bank obtains a security interest in one or all the business assets.
Unsecured debt is not secured against some form of property. The most common forms of unsecured debt are credit card debt, medical bills, student loans, and personal loans, though a lot of unsecured debt cannot be discharged into bankruptcy, such as certain federal or state tax obligations.
The bankruptcy petition requires you disclose current assets and their current value. However, you are also required to disclose transfers of property or money that you received in the past, as well as information regarding prior financial transactions.
For example, the petition requires you to disclose any transfers of property in the two years prior to the bankruptcy filing, but it may be possible that the bankruptcy trustee or creditors would ask about transfers from earlier than that in the bankruptcy petition.
Yes, any assets which were sold, transferred, or given away in the two-year period must be disclosed in the bankruptcy petition under a Statement of Financial Affairs. You must also provide information about any gifts or charitable contributions exceeding $600 that you made in the two-year period.
As you can see, there is a lot of information to include. The skilled bankruptcy attorneys at Gillman Capone can keep you on track and explain any confusing aspects about the bankruptcy petition or the assets you must disclose. For more information on assets and property in a New Jersey Chapter 7 bankruptcy, please call our office for a case evaluation.
Gillman Capone Law Group
N/a
