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Bankruptcy offers a new financial start to individuals struggling with overwhelming debt. But not everyone who files for bankruptcy gets this fresh start. It is increasingly common for individuals filing for Chapter 7 bankruptcy to have their petition denied before their case can even begin. We live in a culture of DIY. And while a do-it-yourself attitude can save you money when it comes to small house projects or crafting, it isn’t exactly the best approach to bankruptcy. Veitengruber Law is an experienced Chapter 7 attorney in Monmouth County, NJ. We have been helping NJ residents get a Chapter 7 discharge for over a decade.
Buying a home is a significant milestone and dream for many. Home ownership is a massive responsibility, but it comes with some uniquely rewarding perks like the ability to build equity, tax benefits, long-term housing stability, and the freedom to turn your property into your ideal living space. All too often, homeownership dreams are dashed due to bad credit. Veitengruber Law is a Monmouth County real estate lawyer and credit repair attorney/law firm. We have over a decade of experience helping NJ residents realize their real estate dreams.
Divorce is a life-altering event. Separating from and divorcing a spouse changes so many aspects of your life personally, financially, and legally. It can be easy to get caught up in the immediate financial and legal difficulties of divorce and ignore potential legal problems it can create down the road. After a divorce, it is critical to develop an estate plan or update an existing plan. Working with an experienced estate planning attorney after a divorce can ensure you protect your assets now and in the future. Veitengruber Law is an experienced NJ estate planning attorney. We can help you avoid costly errors and get peace of mind. Here are five mistakes to avoid making when estate planning after a NJ divorce:
In New Jersey, it is not required for buyers or sellers to work with a real estate lawyer to participate in a real estate transaction. Many folks buy and sell property without the assistance of a real estate attorney. But real estate transactions involve complex legal and financial procedures that require expertise and experience to navigate with success. It is easy to find yourself trapped in a bad deal if you try to go through the transaction without a team of expert real estate professionals at your side. In addition to an agent, a real estate attorney can provide legal guidance and professional representation throughout a real estate transaction.
Foreclosure is a scary word. You are not only facing an extreme financial setback but also the loss of your home. When letters from your lender start arriving, mentioning foreclosure, it can be a worrying and overwhelming experience. If you’ve fallen behind on your mortgage, it can feel impossible ever to catch up again. After 120 days past due, your lender can begin the foreclosure process. But even a Notice of Foreclosure isn’t the end of the line when it comes to saving your home. If you are looking for foreclosure defense, Metuchen, NJ attorney George Veitengruber and Veitengruber Law can help. We can help you develop a plan to save your home, whether you are a few months late on your mortgage or facing foreclosure. Here are some of our foreclosure defense strategies and how they can help you save your home, get in control of your finances, and finally breathe easier. 1. Work With Your Lender After your first missed payment—or even your second—the best first step is to contact your lender to discuss your options. Until you are 120 days late on your payments, your lender cannot begin foreclosure proceedings. During this time, from the first missed payment, your lender may be open to working out a plan outside of the court system. Foreclosures are time-consuming, expensive, and create a lot of work for lenders. It is as much in their best interest as it is yours to work out a deal before the issue snowballs into foreclosure. Be prepared to explain your financial circumstances. They will likely want to know details about your income, your expenses, and how you propose to pay back your past-due balance while continuing to make your regular mortgage payments. Some common agreements mortgage providers will consider include: Payment Plan: If you can prove that your missed payments were due to a temporary setback or simple mistake, your lender may be willing to put your past-due balance on a payment plan. This will allow you to catch up on past-due payments while remaining current on your mortgage. This path is best for folks who can afford the extra monthly payments until the past-due balance is cleared. Forbearance: Many lenders offer forbearance as an option for those struggling with their mortgage payments. Forbearance allows you to pause your monthly mortgage payments or pay a reduced amount for a specified period, typically up to 12 months. Most lenders have established criteria that borrowers must meet to qualify for forbearance. This is an excellent option for those experiencing a temporary setback, such as income loss, unemployment, or divorce. Loan Modification: In some circumstances, your lender may agree to a loan modification. A loan modification is a permanent change to the terms of your loan. This change is designed to reduce your monthly payments, making them more affordable for your income. While lenders are not obligated to accept your request for a loan modification, they may approve your request if you meet specific hardship parameters. You must demonstrate that you can reasonably pay the lower monthly payments. Some common loan modifications include extending the repayment period, reducing the interest rate, replacing a variable rate with a fixed rate, or even forgiving the principal of the loan. You should expect to provide your lender documentation detailing your credit report, debt, expenses, income, savings, and even retirement account information. Working with a skilled attorney can help you present a compelling case for your loan modification, increasing the likelihood that your lender will accept it. 2. Bankruptcy Once foreclosure proceedings have begun, bankruptcy is one of the most effective tools available to halt legal proceedings. Filing for bankruptcy will kick off the automatic stay period. This means that lenders and creditors cannot initiate legal proceedings for the duration of the bankruptcy case. The automatic stay can provide you with enough time to determine a better path forward, allowing you to keep your home, sell it through a short sale, or get approved for a loan modification. When you are considering which kind of bankruptcy to file, you have two main options: Chapter 7 Bankruptcy: Chapter 7 bankruptcy involves the liquidation of your assets to pay back debts. For some, this may include liquidating the equity in your home to repay your mortgage. While you do not always lose your home through Chapter 7 bankruptcy, it is a possibility. Chapter 13 Bankruptcy: Chapter 13 bankruptcy allows you to create a repayment plan based on your income to repay all of your debt. This repayment plan is structured to be completed in 3 or 5 years. After this period, any remaining debt is discharged. This type of bankruptcy allows you to maintain ownership of your property while also repaying your debts. You must be able to prove that you can make the monthly payments to qualify for Chapter 13. Working with a bankruptcy attorney like Veitengruber Law can help you determine which kind of bankruptcy is right for you. 3. Short Sale A short sale is another option struggling homeowners can consider when facing foreclosure. Before your home is seized, it is possible to sell the property to cover the mortgage debt. If your house sells for less than what you owe, this is called a short sale. If your lender approves the short sale, it can be preferable to foreclosure. While a short sale obviously will not save your home since you are selling it, a short sale can help you recoup some of the cost of your investment and limit the damage to your credit report. To qualify for a short sale, you need to get your lender to approve the sale and provide supporting documentation proving that you are experiencing hardship and must sell your home. Going forward with a short sale can be risky. There is no guarantee that your lender will accept a short sale, nor is there a guarantee that you will find a buyer. A short sale will also remain on your credit report for up to seven years, negatively impacting your score. You may still owe your lender the difference between the total amount you owe and what you receive from the short sale. It is not an ideal solution, and it involves the loss of your home, but it may be preferable to foreclosure. Your best chance of saving your home after missing a mortgage payment is to work with an experienced attorney. When you need top-tier foreclosure defense in Metuchen, NJ, Veitengruber Law is the right choice. Foreclosure is a complex legal process. We can help you understand your legal rights and explore all of your options to determine your best path forward to saving your home.
Being named the beneficiary in someone’s will is typically considered a positive financial development. While most people are not celebrating the passing of a loved one, it can feel good to know that they thought your relationship worthy of naming you as an heir. Additionally, if you share assets with the deceased, an inheritance from savings, retirement plans, or life insurance can make you feel more prepared to face a financial future without them. However, not everyone named as a beneficiary of an estate will view the situation positively. Some individuals facing extreme debt may not wish to accept the inheritance to avoid the funds going directly to creditors. Depending on your legal and financial situation, you may want to reject the gift of your inheritance. But can you? Veitengruber Law is an experienced law firm and bankruptcy attorney in Wall Township . We have worked with many locals to help them make informed decisions about their options when dealing with unmanageable debt. Figuring out how to deal with being named as an heir during bankruptcy can be tricky, but we are here to help. Here are some things to consider: What happens if I receive an inheritance while swimming in debt? When you are struggling to deal with a mountain of debt that you just can’t seem to chip away at, creditors are likely to come calling. If you have creditors constantly calling or threatening legal action—or if legal action is already in progress—you can be certain that those creditors will be very aware if you receive a sudden inheritance. Once your creditors are aware of your inheritance, they will use every legal avenue available to them to secure the funds to pay back your debts. They can petition the court to have your bank account levied, allowing them to gain access to the funds in the account to settle your debts. Can I reject an inheritance? Yes, you can. Under New Jersey estate law, you are legally allowed to refuse to accept a gift. In this case, the “gift” is your inheritance. This right is commonly referred to as a disclaimer. However, how you choose to disclaim your inheritance can impact the outcome. While you may be hoping to divert this inheritance to your children or other beneficiaries, that won’t work. Diverting an inheritance to avoid paying creditors is a criminal offense. It is highly probable that your creditors will still be able to access these funds under the Uniform Fraudulent Transfer Act. Disclaiming your inheritance altogether so the funds never pass into your possession at all is the only way to ensure creditors do not gain access to the funds. Because the inheritance will remain with the original holder of the assets, the creditors will be unable to petition the estate for the funds needed to settle your debts. That money will instead pass to the next listed beneficiary. What if the inheritance is physical property? If the inheritance is physical property, like a home, car, or other secured asset, it could still be vulnerable to creditors once it passes into your possession. For example, if you inherit a home, your creditors can request that a lien be placed on the property to secure it against your debt. This would give them the ability to foreclose upon the property, dissolving your ownership rights and using the funds from the sale of the property to settle your debt. There are some exemptions to this. For example, the Homestead Exemption may allow you to protect your home if: 1) you live in the inherited property, and 2) the equity in the home is less than the amount owed to your creditors. What happens to my inheritance if I am in the middle of bankruptcy? If you are the recipient of an inheritance after you have already filed for bankruptcy, it could become part of your bankruptcy estate. For Chapter 13 bankruptcy, this could mean you will be expected to pay back more to your creditors than you would have before the receipt of the inheritance. If you are filing Chapter 7, it may mean that the trustee will use the inheritance to repay creditors. It all depends on timing. If you inherit the money before filing for bankruptcy, it will automatically be included in your bankruptcy estate. If you become entitled to an inheritance 180 days after you have already filed for bankruptcy, you are required to notify the court and include the inheritance in your bankruptcy estate. It doesn’t matter if you receive the inheritance within the 180 days—simply becoming entitled to the inheritance means it must be included in your estate. After 180 days from filing for bankruptcy, the consequences of accepting an inheritance may be different. If you declare Chapter 7 bankruptcy, you will be able to claim any inheritance that you become entitled to after the 180-day mark. In Chapter 13 bankruptcy, a judge must decide if the inheritance will enter the estate to go to the creditors or if your plan needs to be revised. Can estate planning help my beneficiaries avoid creditors? If you or a loved one is concerned about inheritance, the best way to resolve the problem is to do so before the death of the person writing the will. Working with a skilled estate planning lawyer can illuminate all your estate planning options and help you determine the best way to ensure your wishes are carried out. Trusts are an efficient way to protect assets from creditors. A protected trust is a separate legal entity that holds listed assets and property for the benefit of beneficiaries. While your creditors would still be able to access any funds distributed from the trust into your accounts, they could not access the money unless you chose to take a distribution. With a trust in place, you could work towards getting out of debt through debt settlement, bankruptcy, or other repayment options before taking a distribution of your inheritance, ensuring it is protected from creditors. Another option is to leave your financially encumbered loved one out of the will altogether, instead choosing to name their children or other loved ones as beneficiaries. Creditors will have no claims to any money inherited by children, spouses, or other family members not listed on the defaulted accounts. If you want to ensure that all your beneficiaries receive their inheritance, regardless of financial struggles, an experienced estate planning attorney can help. How can I get out of debt now? If the idea of receiving an inheritance has you worried about creditors, chances are it is way past time you found a solution to your financial struggles. No matter how bad your debt situation is, there is a way to improve your finances and finally escape the stress of constant debt and creditor calls. Veitengruber Law can help. Our Wall Township team has experience in debt management, bankruptcy, and estate planning. Our knowledgeable team can devise a workable solution to help you overcome unmanageable debt and work towards a brighter future.
Scheduled your free consultation appointment today, email us or call our office in Monmouth County at
(732) 695-3303.