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First Time New Jersey Home Buyer Advice

Tue, 07 Apr 2026 07:09:33 GMT

New Jersey has a lot to offer homeowners. NJ is known for proximity to major metro areas like Philadelphia and New York City, as well as coastal towns and cultural landmarks. Moving to the Garden State can be rewarding, but as with any real estate transaction, the process can seem overwhelming. But help is available for first-time NJ homeowners. Whether you are moving to NJ for the first time or are a first-time homebuyer but longtime resident, Veitengruber Law can help.

Here are some tips for first-time NJ homebuyers from an experienced NJ real estate attorney.

1. Means Test Your Budget

Many first-time home buyers are not sure how much to save or how much house they can afford. Your basic house budget should include your annual household income, your monthly debts and expenses, and the amount you expect to put down on your home purchase. While this calculation will give you a basic idea of how much house you can afford, the true calculation is much more advanced.

Your credit score, the interest rate you are likely to get, the term of your loan, mortgage insurance, property taxes, and general spending habits all influence the affordability of your home purchase.

The best way to determine if you can afford any given home you are considering purchasing is to do a means test on your own. Determine your likely monthly housing costs for your ideal home. Make sure you include estimated property taxes and any insurance premiums. For three to six months, compare those costs to your budget. Better yet, transfer what you would pay into a savings account every month. Month-to-month, could you cover these costs with your current budget? Are you coming up short every month?

If you can easily afford your projected homeowner expenses, you’re likely ready for homeownership.

2. Boost Your Credit Score

While you are working on your budget, try to boost your credit score. A good credit score can open up financing opportunities. For buying a home, a credit score above 700 is ideal. That said, certain first-time homebuyer loans allow lower credit scores, sometimes as low as 500. However, a higher score will save you money in most cases. Lenders use your credit score to evaluate your risk as a borrower. The higher your score, the lower your interest rate is likely to be.

To boost your score, reduce your debt, make all payments on time, and avoid new credit applications in the months leading up to trying to get approved for a home loan. Even boosting your score by a few points can make a difference in your loan rate.

3. Check Out First-Time Buyer Programs

As mentioned above, there are plenty of first-time home buyer programs available to prospective NJ homeowners who meet the requirements. These include:

NJHMFA First-Time Home Buyer Program: This program offers reasonable, 30-year, fixed-rate loans for qualified buyers, including down payment assistance.
Down Payment Assistance (DPA) Program: Homebuyers can receive up to $15,000 for their down payment and closing costs through a 0% interest loan that requires no monthly payments and can be forgiven after 5 years, as long as you have not moved or refinanced your home.

These are just two of the programs available to NJ homebuyers, with many others county-specific. Eligibility requirements include first-time homebuyer status, a minimum credit score of 620, and completion of a HUD-approved homebuyer education course. Some programs have income eligibility limits.

4. Get Pre-Approved

Do not just get pre-qualified, get pre-approved. Working with a lender to get pre-approval status means you are vetted and ready to finance when you find a home you are interested in. This will alert sellers that you are a serious buyer and allow you to act quickly to make an offer. Pre-approval will also give you a great idea of how much house you can afford and the estimated rate you can expect on your loan.

5. Create a Priority List

Create a priority list of your home must-haves. The big factors you need to consider are: size, location, price, condition, and essential features. Understanding your needs in these areas will help you narrow your search. Rank your priority list to determine what is a “need” and what is a “want.” You may want a laundry room, extra storage space, and a brand-new HVAC system, but you need to find a home within your budget and close to schools for your kids. Having these priorities ranked—and agreed upon if you are purchasing a home with a spouse—can help you make quick decisions.

6. Work With Experienced NJ Professionals

The best thing you can do when beginning your first-time homeowner property search is to enlist the help of an experienced NJ real estate professional. Agents with experience in NJ real estate markets will be able to provide invaluable advice about homes that meet your needs (and maybe some of those wants!) within your budget and in the locations you want to live. Agents schedule showings, perform market analysis, negotiate on your behalf, coordinate inspections, and offer closing assistance. They have unique insight into different neighborhoods you may be interested in.

Another real estate professional you may want to consider is a real estate attorney. In NJ, every real estate contract enters a mandatory 3-day attorney review period after signing. This allows all parties to have a real estate attorney review the contract. A real estate attorney can work with you to protect your interests as you enter into one of the biggest investments you will ever make. Beyond the initial attorney review period, a real estate lawyer can help with title research, negotiate on your behalf throughout the transaction, and ensure a smooth closing.

First-Time Buyer Mistakes

If you follow the six tips above, you are likely to avoid these three common first-time homebuyer mistakes:

1. Going Over Budget

If you have never owned a home, it can be difficult to gauge exactly how expensive owning one can be. You may have calculated your monthly mortgage payment, but you also need to consider taxes, insurance, and the costs of regular maintenance and repair. About 90% of NJ’s border is water, and around 53% of NJ properties will require some kind of flood insurance. If your home requires flood insurance, this may be an expense you did not factor into your housing budget. Real estate professionals can help you calculate a budget that covers every facet of homeownership.

2. Skipping Inspection

A home inspection is not mandatory for many NJ real estate transactions. During the post-pandemic real estate market in NJ, buyers exiting urban areas were so desperate to buy in NJ suburbs that they were foregoing home inspections. But a home inspection is a critical part of the buying process. An inspection is a detailed, thorough report of the property's condition. Inspectors provide an in-depth report of any issues you may face as a new homeowner. If the issues are extensive, you could have cause to back out of the deal.

3. DIY Homebuying

Overall, the biggest regret we see first-time buyers have is not working with professionals from the very beginning. Experienced NJ real estate professionals can save you time, stress, and money.

Veitengruber Law is a knowledgeable real estate attorney in New Jersey. We have years of experience helping NJ homeowners achieve their real estate goals. We love working with first-time home buyers! Call us today for a free consultation.

What Happens to a Home in Probate

Fri, 03 Apr 2026 02:21:14 GMT

Probate is the legal and financial process through which a deceased person’s estate is administered. The probate process identifies a person’s estate, pays off any debts or taxes owed by the deceased, and distributes any remaining assets of the estate as directed in a will or by New Jersey probate laws. The probate process can be complex and time-consuming—especially when there is no estate plan in place.

Here, we will explore what happens to a home in probate.

Who owns a home in probate?

In New Jersey, a home in probate is managed by either the executor named in the will listing the property OR a court-appointed administrator. This person is responsible for maintaining the property until ownership can be transferred to the rightful heir(s) or until the property is sold to pay off debts or distribute assets. With real estate transactions, the probate process can take several months to over a year. The executor is also responsible for ensuring the property remains up to date on insurance and taxes.

The executor/administrator does not own the property. Instead, they are responsible for the property's financial and physical management. They also have the authority to make decisions regarding the maintenance, sale, or distribution of the property. The executor is legally compelled to act in the best interest of the estate and the beneficiaries of the estate.

Can I sell a home in probate?

It may be necessary to sell a home in probate to pay off debts or distribute assets evenly amongst beneficiaries. To sell the home, the executor needs court approval to place the property on the market and to accept an offer of purchase. The court will determine whether it believes the sale is in the best interests of the estate's heirs. If a sale is approved, the proceeds will be used to pay off any debts first, with any remaining funds distributed to the beneficiaries.

Can I buy a home in probate?

Buyers may see homes in probate as attractive deals. Homes in probate are often listed at a reduced price because of the need to liquidate assets quickly to close the estate. These homes are often sold “as-is,” which gives buyers less wiggle room to negotiate the price because of property flaws. Buyers interested in a home in probate should work with an experienced real estate agent and ensure a thorough inspection is completed prior to closing.

Considerations

Whether you are considering buying or selling a home in probate, keep in mind that you should expect extended timelines due to court proceedings and approvals. You could also face disputes from potential beneficiaries about the sale of the property. Generally, properties under probate require additional legal and administrative requirements that can also significantly delay closing.

Veitengruber Law is an experienced real estate and estate planning attorney. We are uniquely positioned to help our clients make knowledgeable decisions when buying or selling a home in probate. We can help you navigate the NJ probate process and achieve your real estate goals.

My Credit Score has Tanked - Now What

Fri, 03 Apr 2026 02:14:57 GMT

Your credit score is basically a report card of your financial well-being. This three-digit number, between 300 and 850, is intended to alert creditors and lenders to your creditworthiness. The higher your score, the less “risk” you present to lenders. Creditors use this score to determine how likely you are to repay your debts on time. They will base your loan eligibility and the interest rate you receive on your credit score.

A good score helps consumers secure low interest rates and better lending terms, and can help secure approval for apartments, utility services, and more. But what happens if your credit score has gone down?

A low credit score does not have to stay that way. Here are some ways to improve your score after taking a hit to your credit report.

What is a bad credit score?

A “bad” score is typically considered anything below 580. Some common credit score ranges are:

Exceptional: 800+

Very Good: 740-799

Good: 670-739

Fair: 580-669

Poor: below 580

Why did my score tank?

While it may be obvious in some instances why your credit report has fallen—bankruptcy, foreclosure, late payments, etc.—other factors may not be as clear.

Your credit score is calculated by the information in your credit report. Specifically, it includes:

Payment History: 35% of your score. Late or missed payments can drastically impact your credit score, as your payment history accounts for the majority of your score.
Debt Ratio: 30% of your score. Your debt-to-income ratio (DTI) is the amount of debt you have compared to your income. A DTI ratio below 36% is considered normal. A DTI ratio above 43% can negatively affect your credit score.
Credit History: 15% of your score. The length of your credit history affects your total score, with older credit lines boosting it.
New Credit: 10% of your score. New credit accounts can impact your score in two different ways. First, the hard inquiry into your credit report by a third party can cause a temporary dip in your score. Secondly, a new account will lower the average age of your accounts.
Credit Mix: 10% of your score. Lenders like to see proof that you can successfully manage a broader range of accounts, like revolving accounts (credit cards, HELOCs) and installment accounts (loans).

The reasons behind your low credit score will likely be specific to your unique circumstances. Regardless of the reasons behind your low score, you can improve it in as little as 3-6 months.

Strategies to Improve Your Credit Score

1. Pay In Full, On Time

Because payment history is 35% of your credit score, it is critical that you are paying your bills in full and on time, every time, if you want to improve your credit score. Many accounts let you set up autopayments so you don’t miss a payment deadline. If you are struggling to keep up with payments, contact your lender to see if you can work out a revised repayment plan.

2. Reduce Credit Utilization

The lower your credit utilization is, the higher your overall credit score will be. If you carry balances month to month on revolving accounts, such as credit cards, your score will likely take a hit. Aim to pay off your balances each month to keep your DTI low.

3. Keep Old Accounts Open

Keep your old credit lines open, even if you are not using them anymore. For example, you buy a couch and decide to get the store credit card to finance the purchase. Once the couch is paid off, you decide to close the account. This can shorten your credit history, lowering the average age of your credit and decreasing your score.

4. Do Not Try To Open New Accounts

If your score is low, it will be difficult to get new lines of credit anyway, but even trying can further reduce your score. Especially if you already have a high DTI ratio or many new accounts, avoid taking on new loans or applying for a new credit card.

5. Check Your Credit Report for Errors

Errors happen, even on credit reports. Especially if your score has decreased significantly, it is critical to review your credit report for errors or inaccuracies. Look for fraudulent accounts, incorrect late or missed payments, items that should no longer be on your report, and other inaccuracies. You can dispute errors directly with the credit bureaus. If you are able to get your report corrected, you could see an immediate increase in your credit score.

How can Veitengruber Law help?

Vietengruber Law has been working with NJ consumers to improve their financial health for over 15 years. We understand the anxiety seeing a low credit score can cause. Our credit repair and counseling services provide our clients with personalized solutions. Our legal team will help you make informed, financially sound decisions and implement credit repair strategies. We will also work directly with your lenders, creditors, and the credit bureaus to remove errors and inaccuracies from your report.

You don’t have to restore your credit on your own. Veitengruber Law cares about your financial future.

I'm Filing for NJ Bankruptcy: Can I Still Bet on Sports?

Thu, 02 Apr 2026 15:55:21 GMT

The proliferation of online casinos, betting apps, and digital gambling platforms has significantly increased the accessibility of gambling to the general public. Similar to other addictions, problematic gambling can have profound effects on many aspects of life, particularly financial stability. Individuals may incur substantial debt to support their gambling activities, frequently utilizing credit cards, loans, or personal savings while disregarding other financial responsibilities. This behavior can rapidly lead to acute financial distress and, in some cases, bankruptcy.

Bankruptcy is designed to offer individuals protection from creditors and an opportunity for a financial fresh start. A primary benefit of declaring bankruptcy is the potential to discharge some or all existing debts. However, the process for discharging gambling-related debts involves specific considerations.

Veitengruber Law is an experienced bankruptcy law firm in New Jersey. The following information outlines key considerations regarding gambling debts in bankruptcy.

Can gambling debts be discharged in bankruptcy?

In general, debts incurred as a result of gambling may be discharged through bankruptcy proceedings. There are no statutory prohibitions against the discharge of gambling debts. Nevertheless, in practice, discharging gambling debts can be more complex.

In bankruptcy, gambling debts are considered unsecured creditors and will be treated just like credit card debt or personal loans. This means the debt is dischargeable under Chapter 7 bankruptcy. Under Chapter 13 bankruptcy, gambling debts are included in the 3- or 5-year repayment plan, with any remaining debt discharged at the end of the repayment term.

In practice, gambling debts may prompt increased scrutiny from bankruptcy trustees, and judges often examine such cases more critically. Particularly when gambling debts are recent or excessive, bankruptcy petitions are subject to heightened review. This situation may also result in additional objections from creditors, potentially leading to further legal complications.

Judges, trustees, and creditors may determine that gambling debts were incurred without any intention of repayment. Courts are generally unsympathetic toward individuals who accumulate substantial debt immediately prior to filing for bankruptcy. If it is concluded that borrowed funds were gambled away shortly before the bankruptcy filing, the court may refuse to discharge these debts.

In most bankruptcy cases, debt accumulation occurs gradually or results from a clear loss of income, often developing over several months or years prior to filing. Courts are particularly concerned when gambling debts are incurred rapidly, especially shortly before a bankruptcy petition is submitted. This pattern may suggest an absence of intent to repay the debt. If the court suspects an attempt to defraud creditors, it may deny the request for discharge.

Some other reasons for denial include:

False Representation: Signing credit markers when you know you do not have funds to cover them or providing false financial information to obtain additional lines of credit is fraud. Evidence of this can result in a denial of discharge.
Illegal Gambling: Debts incurred from prohibited gambling activities are generally not dischargeable.
Bad Faith Filing: Debts incurred immediately prior to filing (within 60 to 90 days), particularly through credit cards or personal loans and without the intention or ability to repay, may be interpreted as an abuse of the bankruptcy process.

If the court determines that you are attempting to use the system to avoid responsibility for your gambling debts, they will deny your discharge.

If the court denies a bankruptcy discharge, the individual remains legally responsible for all outstanding debts. It is important to recognize that denial of discharge can result in serious, and in some cases permanent, consequences. These include:

You remain responsible for all debts owed at the time of filing. Debts listed in a denied case cannot be discharged in future bankruptcy filings.
If your bankruptcy case is denied, the automatic stay ends and creditors may resume collection efforts, including lawsuits, wage garnishment, and foreclosure.
In Chapter 7 bankruptcy, the trustee may still liquidate non-exempt assets to repay creditors.

What are my options after discharge denial?

Following a denial of bankruptcy discharge, several options remain available. An appeal may be pursued if the denial resulted from a legal error or other issue, typically with the assistance of a bankruptcy attorney. In cases involving Chapter 7 bankruptcy, it may be possible to convert to a Chapter 13 repayment plan, provided the individual can demonstrate sufficient income to realistically repay the debts under a structured plan.

However, once a bankruptcy discharge is denied, there are limited avenues for an attorney to secure a discharge. Therefore, it is essential to consult a bankruptcy attorney at the outset, particularly in cases involving gambling debts. An experienced bankruptcy lawyer can assist in presenting the strongest possible case, thereby increasing the likelihood of a favorable outcome.

Veitengruber Law recognizes that individuals facing significant gambling-related challenges are not necessarily seeking to defraud the court. Those striving to recover from gambling addiction deserve an opportunity for a second chance. Individuals filing for bankruptcy after addressing problematic gambling can still pursue relief.

Demonstrating good faith is highly regarded by the courts. Recognizing the problem and seeking professional assistance, including cessation of all gambling activities, are important initial steps. Depending on the severity of the gambling behavior, working with a therapist or reputable support program may provide valuable resources for long-term recovery. These actions can illustrate to the court both the seriousness of the issue and a genuine commitment to change.

Past gambling behaviors can complicate bankruptcy proceedings, but this does not render a case hopeless. Most bankruptcy-related debts remain dischargeable. Demonstrating a sincere commitment to improved financial habits and accountability for past actions can significantly enhance the likelihood of obtaining a discharge. Veitengruber Law is available to assist individuals seeking a financial fresh start.

Why Bankruptcies in New Jersey are Increasing in 2026

Thu, 05 Mar 2026 14:00:44 GMT

More people are filing for bankruptcy in 2026.

With a seemingly endless news cycle focused on high prices, inflation, elevated interest rates, and financial uncertainty, it’s no surprise to see bankruptcy filings increase across the US. Bankruptcy filings reached a five-year high in 2025, totaling 533,949, a 12% increase from 2024. We expect that trend to continue into 2026.

At Veitengruber Law, we have seen this trend personally as more New Jersey residents file for bankruptcy. Year after year, we have seen more folks making the decision to file for bankruptcy. We tell our clients that every bankruptcy case is different—because it is. No two bankruptcy filings will be the same because the people filing for bankruptcy come from different personal, financial, and logistical circumstances. However, when we see overarching trends like we are currently seeing, it points to a bigger picture.

Here, we will explore the broader causes of the increase in bankruptcies.

Delayed Filings

Bankruptcy filings are almost never caused by current economic conditions. Instead, they are typically caused by economic events months or even years ago. The big-picture conditions that often lead to individual bankruptcy filings take a while to trickle down to the average person. Folks also tend to hold off on filing for bankruptcy as long as possible, long after they likely needed to file.

Bankruptcy has a ton of negative connotations associated with it. Many people can experience feelings of shame, guilt, and despair when they are considering filing for bankruptcy. And while bankruptcy certainly comes with some trade-offs, it is often the financial reset required to get back to financial health. Still, these negative connotations can further delay filings.

Big Picture Causes for Bankruptcy

As discussed above, the decision to file for bankruptcy is often deeply personal and will vary from person to person. No two bankruptcy filings are exactly the same. That said, Economists have identified several economic factors over the past few years that have led to a general increase in bankruptcy filings. Those include:

Rising Medical Costs: Health insurance premiums have been increasing annually, and more Americans are choosing to forego coverage to maintain their already tight budgets. With the cost of healthcare surpassing many Americans' means, more and more individuals and families are finding themselves saddled with unmanageable healthcare debt. One unexpected medical emergency can lead to bankruptcy.
Increased Credit Card Debt: According to Lending Tree , US credit card debt has reached an all-time high of $1.28 trillion. As the cost of living exceeds many Americans’ budgets, more and more consumers are turning to credit cards to make ends meet. With high interest rates, using a credit card for groceries, gas, or other basic needs can quickly snowball into an unmanageable pile of high-interest debt.
Student Loan Payments Restarting: The Trump administration is set to resume wage garnishment on student loan borrowers in default in 2026. Some notices have already gone out to borrowers in default on their federal student loans. While it is not clear how much people can expect to be garnished from their paychecks, this will be another financial blow to struggling individuals and families.
Income Disparity: As the cost of living gets higher, incomes are simply not rising to meet the increased costs. So, while it costs the average consumer more to heat the house or put food on the table, incomes remain stagnant. As individuals try to keep up with the cost of living and fall behind, they may turn to debt to make ends meet, while at the same time having fewer means to repay it.

All of these problems could individually lead to an increase in bankruptcy filings. Together, they are a major catalyst for the financial uncertainties of the average American. With many Americans already living paycheck to paycheck, preparing for emergencies caused by the above issues can be impossible for the average family.

An Important Note

It is important to point out that while bankruptcies are on the rise, they have not yet reached pre-pandemic levels. Before the 2020 COVID-19 pandemic, bankruptcy levels were much higher. Many economists see the increase in bankruptcies as a return to the pre-pandemic norm. During the pandemic, government funding and lender forbearance programs offered temporary relief measures to many Americans. Now that these programs have ended, we have seen a gradual return to pre-pandemic bankruptcy levels.

The concern is that 2026 will see filings surpass even pre-Pandemic levels as more and more Americans face insurmountable debt.

Should I file for bankruptcy?

The economic issues above point to big-picture problems impacting nearly every American right now, especially the middle and working classes. Not every person grappling with these issues will file for bankruptcy—but the rising rate of filings suggests many Americans are. Bankruptcy is a powerful financial tool.

Here are some signs you should consider filing for Increase.docxbankruptcy:

1. Legal and Collections Actions: If creditors are suing you, attempting to garnish your wages, or taking you to court to seize assets to pay back your debts, it may be time to file for bankruptcy. When you file for bankruptcy, you enter into the automatic stay period. During this time, your creditors are not allowed to move forward with legal actions against you. They must also stop all collection efforts until the end of your bankruptcy.

2. Foreclosure or repossession: If you are facing foreclosure, bankruptcy may be the best path to keeping your property. The automatic stay will also pause foreclosure proceedings, giving you time to determine how to keep your home. The same applies to vehicle repossession. Depending on what kind of bankruptcy you file, you can get caught up on your past due payments while still maintaining ownership of your property.

3. Increased Credit Card Debt: If you are using credit cards to pay for basic needs and carrying this debt from month to month, this is a sign that you are financially stretched beyond your means. When your budget cannot keep up with basic living expenses without going into debt, it may be time to consider bankruptcy.

The big-picture causes of financial stress trickle down to individuals just trying to make ends meet. The cost of eggs at the grocery store is beyond your control, but it does affect your bottom line. If you are facing financial hardship, you have options. Bankruptcy is not a last resort. It can be a lifeline for individuals trying to pull themselves out of unmanageable debt.

Vetiengruber Law is an experienced bankruptcy attorney in New Jersey. We have nearly two decades of experience helping NJ residents file for bankruptcy, manage their debt, fight foreclosure, and find a path towards a brighter financial future.

Will a Debt Jubilee Happen Under the Current Administration?

Thu, 05 Mar 2026 13:56:54 GMT

Americans are in debt.

According to Experian data , the average American adult’s debt was $104,755 as of mid-2025, with Millennials and Gen X carrying the most debt out of all generational demographics. US credit card debt reached an all-time high of $1.28 trillion in the final quarter of 2025. We have also seen bankruptcy filings and foreclosures increasing throughout 2025 and into 2026. All this data points to a clear picture: Americans are struggling financially.

Over the last decade, various debt-forgiveness proposals have been put forward by grassroots organizations, lawmakers, and economists. Some have focused on a single type of debt, such as student loan debt. Others have focused on specific demographics of debt holders, like the elderly. This kind of sweeping cancellation of debt is called a debt jubilee.

Some experts believe the US is due for a general debt jubilee. But could it happen here?

What is a debt jubilee?

A debt jubilee is the cancellation of public or private debt in an effort to combat economic instability. The intention of the debt jubilee is to forgive specific debts for a large group of people, enabling a general economic restart. A debt jubilee has historical precedent, with governments and rulers throughout history enacting them to avoid economic or social crises. In fact, the idea of a debt jubilee goes all the way back to ancient Syria and Babylonia.

The US has seen some debt forgiveness and relief efforts in recent years, including large-scale debt relief following the 2008 recession and during the COVID-19 pandemic. Still, many fear the consequences of total debt forgiveness.

What kinds of debts would be forgiven with a debt jubilee?

Proponents of a debt jubilee policy point to three major areas of debt relief: student debt, medical debt, and consumer debt.

Student Loan Debt
This is perhaps the most well-known and highly contested of all the proposed debt jubilee ideas. US student loan debt totals $1.78 trillion, with federal loan debt accounting for 92.1%. Student loan debt impacts 42.7 million Americans. During the COVID-19 pandemic and after, student loan repayments were paused. Payments resumed in October 2023, and defaulted loan collections resumed in May 2025. As of January 2026, wage garnishment letters began going out to borrowers in default. At the end of 2025, 5.5 million borrowers were reportedly in default on their federal student loans.
Medical Debt
Data from 2024 shows that 36% of US households carried medical debt, totaling $194 billion in active collections. Unpaid medical debt tends to be less damaging to credit reports than other kinds of defaulted debt, but it can still lower credit scores and hinder financing options. With rising health insurance costs, more middle- and working-class families are being priced out of medical care.
Consumer Debt
As stated above, US credit card debt reached its highest level in 2026. Inflation, high living costs, and incompatible income growth mean more Americans are using credit cards to pay for basic necessities. Of all credit card holders, 46 % carry a balance month to month.

A debt jubilee in one or more of these areas could stimulate the economy, allowing consumers to spend less money on debt and more money on goods, entertainment, and services. Supporters of a debt jubilee also point to the opportunity for increased economic and social mobility, allowing individuals and families to build wealth and improve their quality of life—thereby limiting the need for social services.

What are the criticisms of the debt jubilee?

Critics of a debt jubilee argue that large-scale debt forgiveness would cause severe economic disruption. There is concern that widespread debt forgiveness could threaten many of our financial systems that rely on debt to function. For example, while a debt jubilee would help the poor, it could also destroy retirement assets for 401(k) holders whose investments are tied up in the system. Many detractors point to a potential moral hazard—they believe it will lead to increased irresponsible spending. They argue that debt forgiveness is unfair to those who have already paid off their debts.

Still, the idea of a debt jubilee is thought-provoking. Proponents and critics alike can agree that the economic conditions in the USA are difficult enough that debt struggles are an issue for many American households.

What are your thoughts on a debt jubilee?

Veitengruber Law is an experienced NJ law firm focused on debt management, bankruptcy, foreclosure defense, and more. We work with people struggling with unmanageable debt. While a debt jubilee continues to be hotly debated on the national stage, we can help you find solutions to financial issues today.

Why NJ Bankruptcy is so Often Misunderstood.

Thu, 26 Feb 2026 18:20:00 GMT

Just the thought of filing for bankruptcy is enough to send some people directly into a panic attack. The embarrassment, the feelings of failure, and the fear of losing everything keep many people from exploring what bankruptcy is all about. If you’re facing some financial hurdles and have considered filing for NJ bankruptcy, let’s talk about why it’s so misunderstood and why it’s truly not as bad as its reputation.

Big banks and financial institutions have kept the pressure on borrowers for so many years that the stigma of bankruptcy has grown into a looming dark cloud. Many debtors are misinformed about bankruptcy, preventing them from utilizing it as the tool it is meant to be.

Some of the more common bankruptcy falsehoods include:

Fear of losing everything
Permanently ruining your credit score
Potentially dragging your spouse’s credit score down
Losing your home or other important assets
Everyone knowing your private financial business
Gaining a reputation as a reckless spender
Never being able to buy a house in the future
Being blacklisted by banks for future loans
Friends and family thinking less of you
Incorrectly assuming that filing for bankruptcy is too complicated

Most of the above fears are simply not founded in reality, and while some of them may hold a kernel of truth, the reality is that the positives of bankruptcy greatly outweigh any fears that may be preventing you from moving forward.

When you work with Veitengruber Law, a bankruptcy law firm in New Jersey, you’ll understand that changing your perspective can very likely mean the difference between clearing your financial hurdles or hitting every single one as you continue to struggle along through life.

First, and foremost, filing for a New Jersey bankruptcy puts an immediate stop to creditor calls and letters. As soon as your creditors learn that you have filed for bankruptcy, they are no longer permitted to bother you. If they continue to call or send mail, they’ll be in violation of the law. This is typically a huge relief to our clients, as it takes a huge amount of pressure off and gives them some breathing room.

With the pressure cooker turned down to low, you can work with our bankruptcy team to decide which type of bankruptcy is best for your unique situation. We know New Jersey bankruptcy well, and with us by your side, you can rest assured that your decisions will all be the right ones.

We’ll help you sort through all of your financials – from how much you owe creditors, to late fees, interest rates, and more. If your house is in danger of foreclosure, we can help with that, too. In fact, filing for bankruptcy in New Jersey puts foreclosure into “Automatic Stay” status, and your lender cannot move forward on foreclosing while your bankruptcy case is active.

This gives us ample time to work toward righting your financial situation, deciding what, if any, of your assets you want to liquidate, and determining the best decision regarding keeping your home. Sometimes downsizing might be the right answer, but many of our clients can continue living in their homes after a loan modification. Just knowing that you have options is enough to ease most everyone’s fears.

Filing for bankruptcy will impact your credit score, but only temporarily. Our credit repair specialist will help you work toward bringing your score back up as quickly as possible. You will be able to apply for and be approved for a loan again in your (dare we say near) future! If you don’t own a home currently, home ownership is definitely still in the cards for you after a bankruptcy.

Is bankruptcy such a bad thing? No! Here at Veitengruber Law, we love bankruptcy and we work hard to educate our clients about the possibilities that filing for bankruptcy can bring. It’s not a magic pill, and you will have to make some sacrifices, but it is an extremely useful tool when used in conjunction with the right NJ bankruptcy team, credit repair strategies (we will help you implement these as we move through the process), and looking beyond your bankruptcy discharge toward a new approach to finances.

We want you to view bankruptcy as a launch pad that not only isn’t shameful, but that is the leg up you maybe didn’t even know you needed. When incorporated with a big picture plan, your future can look bright again, and your money stressors will decrease while your credit score goes up, up, UP!

NJ Foreclosure Rates Increasing: Veitengruber Law is Here to Help

Sat, 21 Feb 2026 19:25:46 GMT

At the end of 2025, foreclosure activity increased across the United States. In the month of December, national foreclosure filings totaled 44,990 properties—up 26% from November 2025 and a staggering 57% from December 2024. The state with the highest foreclosure rate is New Jersey, with 2,178 foreclosure filings in December 2025.

Experts point to many factors behind the increase in foreclosures nationwide: financial instability, a difficult job market, high prices for basic goods, and more. Incomes are not rising to keep pace with the rising cost of living, making it increasingly difficult for the average American to make ends meet. But the whys and hows of foreclosure rates at the macrocosmic level do not mean much to NJ homeowners struggling with the very real possibility of losing their home.

Veitengruber Law is here to help. We have worked with NJ homeowners for years to ensure their rights are protected. Here are just a few ways we can protect you and your home from foreclosure.

Loan Modification

Struggling with your mortgage payments? A loan modification may provide the relief you need. A loan modification restructures the terms of your existing mortgage to better align with your current financial situation. While a modification does not guarantee a lower monthly payment, it is intended to make your loan more manageable and sustainable over the long term.

Depending on your circumstances, a modification may:

Adjust your interest rate
Extend your repayment term
Add past-due payments to your loan balance
Modify other loan terms to improve overall affordability

Once a complete application is submitted and under review, foreclosure proceedings are typically placed on temporary hold. If the modification is approved, foreclosure proceedings are discontinued. A mortgage modification is designed as a long-term solution to help you remain in your home.

Veitengruber Law has worked with many NJ homeowners to get a load modification approved. We know what lenders are looking for and how to negotiate terms that support our clients' financial well-being.

Bankruptcy

Filing for bankruptcy is one of the most effective ways to stop foreclosure proceedings. From the moment you file Chapter 7 or Chapter 13 bankruptcy, you enter into the “automatic stay” period. During this time, creditors and lenders are not allowed to pursue collection efforts—including foreclosure proceedings. Bankruptcy law also allows filers to exempt certain property from the bankruptcy estate. This can include protections for your home equity, such as the federal home equity exemption, which allows you to protect up to $31,575 in equity in a primary residence.

Which Kind of Bankruptcy is Right for You?

Chapter 13 bankruptcy allows you to restructure your debt into a court-approved repayment plan to be paid over 3 or 5 years. At the end of the repayment plan, any unpaid debt is forgiven. This includes mortgage arrears. Chapter 13 is a great option for those who can afford to stay in their home and just need help digging out of unmanageable debt.

Chapter 7 bankruptcy can delay foreclosure, but your options for protecting your home may be limited depending on your situation. Filing for Chapter 7, otherwise known as liquidation bankruptcy, means your assets can be liquidated to pay back your creditors. If you have little equity in your home, or you can fully protect your equity with the above-mentioned bankruptcy exemptions, there is a good chance you will not lose your home as long as you are current on your mortgage.

Veitengruber Law is an experienced bankruptcy and foreclosure attorney and law firm in New Jersey. We offer knowledgeable, compassionate legal advice and defense for NJ homeowners facing difficult times.

What is a Clawback Claim in NJ Bankruptcy?

Tue, 03 Feb 2026 23:42:11 GMT

When you hear the term “clawback” in reference to bankruptcy, your mind may go to high-profile cases like the Bernie Madoff Ponzi scheme bankruptcy or similar cases with Lehman Brothers, Bayou Hedge Fund, Nine West, and more. But clawback provisions in the U.S. Bankruptcy Code are tools that can be used in any bankruptcy.

A bankruptcy clawback can potentially allow for the recovery of assets transferred out of your ownership in the 90 days before bankruptcy. The purpose of a clawback is to ensure equal and fair treatment of all creditors and to deter bankruptcy filers from engaging in fraudulent activities. If you are being asked to return funds in a clawback situation, it is important that you understand your rights and what kind of legal defenses are available to you. Veitengruber Law can help you assess the claim and determine the best way to protect your assets.

What does a clawback action do?

In the Bankruptcy Code, the clawback action, also known as an avoidance action, is a policy intended to ensure that all creditors are paid back equally. In all types of bankruptcy proceedings, the legal processes are not adversarial or litigation-based. Bankruptcy is intended to give folks a path towards better financial health—not punish them for financial mistakes. But clawback actions are separate legal proceedings that are referred to as bankruptcy litigation.

Sections 547 and 548 of the Bankruptcy Code authorize the trustee or debtor in possession to “claw back” asset transfers made by the debtor prior to bankruptcy.

Fraud deterrent: Giving bankruptcy trustees the authority to clawback assets transferred in the 90-days prior to a bankruptcy filing is intended to help deter debtors from fraudulent activity. Some debtors may seek to hide or get rid of assets before filing for bankruptcy to make their case more personally favorable. But this is illegal, and the clawback option allows trustees the ability to recoup these funds.
Equity: All creditors are supposed to be treated fairly under the bankruptcy code. The clawback action gives every creditor the opportunity to share in the debtor's assets, rather than favoring one creditor over another.
Estate preservation: Clawback provisions allow recovery of assets belonging to the bankruptcy estate, thereby increasing the resources available to satisfy creditor claims.

What is the timeframe?

The timeframe to reclaim transferred assets depends on the circumstances surrounding the transfers.

One kind of transfer is called a preferential transfer. Under section 547 of the Bankruptcy Code, if the debtor is insolvent, any preferential payments made in the 90 days prior to filing for bankruptcy can be clawed back. This 90-day period can be extended to one year if the recipient of the payment or asset transfer is considered an “insider.” An insider would be a relative, close friend, or business partner. This often happens when insolvent individuals choose to repay debt owed to someone they know personally rather than the debt they owe other creditors.

Another kind of transfer is fraudulent transfers, covered under section 548 of the Bankruptcy Code. This is any movement of funds or assets out of the debtors possession for “less than reasonable value: while the debtor was insolvent. The lookback period for this is two years under federal law and up to four years under NJ law. So, for example, if you “sell” a vehicle worth $10,000 to a relative for $500 to avoid losing the vehicle through bankruptcy, that is considered fraud. Gifting large sums of money to friends, relatives, and other close associates is also fraud.

What is the clawback process like?

The bankruptcy trustee can initiate a clawback action by filing a complaint with the bankruptcy court. The complaint seeks court approval to use the clawback provision to retrieve assets transferred in the above-mentioned time frames. The complaint will legally involve the entity or individual who received the assets in the bankruptcy proceedings.

From there, the funds will be reabsorbed into the bankruptcy estate, and the court will include these new assets in its equitable distribution to all creditors.

What cannot be included in a clawback action?

Generally, clawback actions cannot be brought forth to recover regular, timely payments to secured lenders. These payments are considered payments for value received. This would be like your mortgage, car loan, or other secured debt payments. You do not have to stop making regular payments on your debt out of fear that the payments will lead to clawback claims in bankruptcy.

However, if the payments were abnormally large, above your normal monthly payment amounts, or non-routine, there could be a case for your trustee to attempt to claw back those funds.

Can I legally defend myself from clawback claims?

If you are facing a clawback claim, it is critical to understand your rights and any potential defenses you can use in court. Common clawback legal defences include:

1. Ordinary Course of Business

The debtor must prove that the payment was made for a debt incurred in the ordinary course of business. This is typically proved by showing historical patterns. This defense is typically used in Chapter 11 bankruptcy to show that debt incurred by a business or entity was legitimate for the business's operations.

2. Good Faith

Good-faith arguments are made to show that a debtor acted honestly and transparently, and made a sincere attempt to reorganize or repay debts. Many folks who find themselves dealing with clawback claims did not intentionally set out to commit fraud. When reviewing a good-faith argument, the court will look at the “totality of the circumstances” to make a decision about the intention behind large sum payments in the time before a bankruptcy filing.

3. Statute of Limitations

If your assets were transferred outside of the federal or state statute of limitations, they are not eligible for a clawback claim. So, if you sold a property below value to your child ten years ago, this transfer cannot be considered for a clawback claim. Attempts to include these assets through clawback actions can be dismissed in court.

How can I prevent bankruptcy clawback actions?

Transfers of assets in the months and years before a bankruptcy filing are often made in complete innocence. Not every debtor who finds themselves dealing with a clawback action did anything attempting to defraud the court or their creditors. But unintentional violations of the Bankruptcy Code can still result in clawback actions.

The best way to prevent clawback actions is to work with an experienced bankruptcy attorney. You need to be fully transparent with your lawyer and disclose all recent transfers of money or assets. They can help you determine if any actions could be considered fraudulent and how to deal with those issues before you open a bankruptcy case.

Veitengruber Law is well-versed in New Jersey bankruptcy law. We understand the intricate complexities of bankruptcy proceedings. In adversary proceedings, clawback actions require different legal skills than in a typical bankruptcy case. Veitengruber Law has experience with bankruptcy litigation. Let us help you protect your assets .

Can My Home Equity Help me in a Chapter 13 Bankruptcy?

Tue, 03 Feb 2026 23:32:19 GMT

One of the defining differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy is that under Chapter 13, you can keep all of your property. While bankruptcy allows exemptions for specific property based on state or federal guidelines, in Chapter 7 bankruptcy, the trustee will liquidate any non-exempt property to raise funds to pay your creditors. In Chapter 13 bankruptcy, liquidation of assets does not typically occur. Instead, you enter into a repayment plan based on your income and the debt owed.

Home equity can be helpful in Chapter 13 bankruptcy—but it can also complicate things. The specific ways your home’s equity can impact your Chapter 13 filing will depend on how much equity you have, how much debt you have, and your income. Veitengruber Law has nearly two decades of experience representing NJ homeowners in bankruptcy cases. We understand how to make your equity work in your favor during bankruptcy.

Here is everything you need to know about your home’s equity during a Chapter 13 bankruptcy.

Exemptions in Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, exemptions are used to calculate the minimum amount the filer is expected to repay to unsecured creditors. Because you keep all your property under Chapter 13, these exemptions are not used to protect assets from liquidation. Instead, they help the courts determine how much of your debts you should be expected to repay.

Typically, you will need to repay at least as much as your creditors would get if your assets were to be liquidated. This amount does not include assets protected by exemptions, such as the homestead and wildcard exemptions. The value of any non-exempt property will be used to determine how much you will repay creditors in your 3-5 year repayment plan. This process is known as the “Best Interest of Creditors” test.

The federal homestead exemption protects equity in your primary residence up to $31,575. This amount is protected and cannot be used in the calculation of what you owe your creditors. So, if you have $50,000 in equity in your primary residence, the value of $31,575 is protected. This leaves $18,425 in excess of the exemption limit. This means you will have to pay at least $18,425 in unsecured debt back to your creditors. This does not include other non-exempt assets that also have equity, like cars, boats, real estate, and other secured property.

So, if you have a lot of credit in your property, or at least credit that exceeds your exemptions, you may end up having to pay back more to your creditors. Exempting the highest amount of equity that you possibly can is the best way to lower your monthly payments. In NJ, you will have the option to choose between using state or federal bankruptcy exemptions. Working with an experienced bankruptcy attorney can help you determine which set of exemptions is better for your specific situation.

Funding Your Repayment Plan with Equity

After you go through the bankruptcy process and the court determines your repayment plan, you can use your home equity in creative ways to pay off the total amount you owe. Refinancing your home or taking out a home equity loan/line of credit can be options. It is possible to use your home’s equity to pay off your Chapter 13 repayment plan in full, but there are quite a few hoops to jump through.

First, because you are under court supervision throughout the entirety of your Chapter 13 repayment plan, you need to receive approval from the court, the bankruptcy trustee, and your lenders to obtain new debt against your home. All parties need to agree that it is in the best interest of all involved to use your home’s equity in this way.

Next, you will need to work with your lender to determine your eligibility for refinancing OR a home equity loan/line of credit. Your lender may be wary of approving you for new credit since you are in bankruptcy. You will likely need to work carefully with a bankruptcy attorney to negotiate approval with your lender. If you are able to get approved, you can use the funds to pay off your Chapter 13 plan.

Of course, there are risks involved in this plan. Under a Chapter 13 repayment plan, your home is protected from foreclosure and cannot be liquidated to raise funds to repay your creditors. Once you borrow against your home and your equity, however, it is possible to lose your home. Your property will be at risk if you are unable to afford the new loan payments.

Alternative Ways to Use Equity

If you have significant equity in your home, you may be able to sell your home to raise the funds needed to pay off the bankruptcy plan. Selling your home would also require approval from the bankruptcy trustee. If you are able to get approval and sell your home for more than you owe on your plan, you can pay it off outright and be totally free of your debts.

However, you would need to find a new place to live, which can be difficult in the aftermath of bankruptcy. Your credit will be negatively affected, and the bankruptcy will remain on your credit report for 7 years after you file. It may be challenging to get approved for a loan to purchase a new home, or even to rent. Selling your home to get out of debt without a plan for where you will live afterwards can put you in an even more precarious situation.

You should take these factors into consideration before trying to use your home to pay off your bankruptcy plan. You should compare the monthly costs for any new loan versus the monthly cost of your bankruptcy plan payments and determine which is more affordable for you.

Working with a Bankruptcy Attorney

It is always crucial to work with a bankruptcy attorney. Bankruptcy law is complex. With your financial well-being on the line, it is important to explore every available option. A bankruptcy attorney will be able to help you sit down and come up with the best plan to move forward on a better financial footing. Having assets, like equity, should never be considered a negative. Finding ways to make those assets work in your favor can make a huge difference in the outcome of your Chapter 13 bankruptcy. An attorney can also help you protect your assets.

Veitengruber Law has experience helping NJ homeowners protect their assets during bankruptcy. In addition to our bankruptcy knowledge, we have experience in debt management, credit repair, and real estate law. We offer holistic solutions to financial challenges that help our clients plan for a brighter future. Call us today for a consultation .

Can I Cancel My Home Sale in NJ?

Tue, 03 Feb 2026 23:19:22 GMT

There are many reasons to sell a home. Moving for a new job opportunity, upsizing, downsizing, financial changes, and other major life events can trigger a home sale. The process of selling a home can be expensive, time-consuming, and stressful. From repairs and renovations to staging and home viewings for potential buyers, sellers go through a lot to finally secure a deal and get their home under contract. Most sellers celebrate a successful sale.

But what happens when a seller changes their mind after a contract has been signed?

Real estate contracts are legally binding agreements. There can be huge legal and financial consequences for backing out of any contract. Sellers could have to pay fines and damages, and even be forced to sell their home anyway. Still, while a seller shouldn’t view backing out of their contract lightly, it is possible. Here, we will look at why—and how—some sellers are able to back out of a contract.

When can a seller back out of a contract?

There may be many reasons a seller wants to back out of a contract. It can be difficult to leave a place you call home. Some sellers find the emotional distress of leaving a beloved property more real after a contract has been signed. Sellers can also run into logistical issues when selling, such as not being able to find or afford a new residence. In more practical terms, a seller could get a better offer on the property.

In terms of protecting yourself, the “why” of backing out of your contract does not matter as much as how you do it.

Whether a seller can legally back out of a contract depends a lot on the clauses in the sale contract. These clauses, called contingencies, allow a buyer or seller to exit a purchase agreement under specific conditions. Some common contingencies include:

The seller receives a higher offer from another buyer
The seller has not secured a replacement home
The seller experiences unexpected financial losses
The property appraises for more than the buyer has offered
The buyer fails to secure funding to purchase the home

Contingencies can allow a seller to build an escape plan into the contract from the beginning. However, sellers should be wary and realistic about the contingencies they include. Buyers and their attorneys may be turned off by too many contingencies that favor the sellers interest over those of the buyer.

There are other reasons, beyond contract contingencies, that a seller may be able to legally back out of a contract. Those include:

Issues With Attorney Review
In New Jersey, there is an automatic three-day attorney review period. This phase happens after both parties have signed the contract and lasts three days. During this time, buyers and sellers should have the contract reviewed by a real estate attorney. An attorney will go through the document and note areas of concern or where the contract is in need of revision. They may suggest adding contingencies to protect you in case you need to get out of the contract.
You Reach a Mutual Agreement
It is very possible that after you explain why you need to back out of the deal, the buyer will understand and agree to let the contract end. While the buyer is not obligated to agree to end the contract, it does not hurt to ask. It is very possible that the buyer, while being disappointed, would understand, depending on the circumstances.
Fraud is Discovered
If you can prove that the buyer made a fraudulent statement or that you are the victim of a scam, you can cancel the sale and end the contract. For example, a buyer is taking advantage of an elderly seller by offering a low price. In this case, the contract could be canceled for cause.

What are the consequences of backing out?

Sellers who attempt to back out of a real estate contract without cause can face costly consequences. Typically, real estate contracts are written with language geared towards protecting buyers more than sellers. A seller who goes back on the agreement could end up being sued for breach of contract. After this, the buyer could choose to sue for damages or even sue for ownership of the property.

If this issue ends up in court, a judge could order the seller to sign the deed over to the buyer and complete the sale. Judges may also stack on other penalties, like:

Returning the buyer’s earnest money deposit, plus interest
Reimbursing fees paid by the buyer for inspections and appraisals
Paying the listing agent the cost of the lost commission

Breach of contract is a civil matter, not a criminal one. So while a seller may have their day in court, they typically do not need to worry about jail time. However, this should not diminish the stark financial consequences of breaching a contract.

What are the buyer’s options?

If a seller backs out of a contract without cause, buyers have a lot of protections. An experienced real estate attorney will be able to review the contract to determine exactly how it was violated. If the buyer decides to take the issue to court, they can sue the seller for breach of contract. Buyers should note, however, that regardless of the results of the court case, legal action can be expensive and time-consuming. Buyers are well protected, but they are also not guaranteed a satisfying result in legal action.

How can a real estate attorney help a seller?

The best way to protect yourself as a seller is to work with a real estate attorney from the very beginning. A real estate attorney can work with you to protect your assets and your interests while ensuring you are following the law. Real estate attorneys are experienced contract negotiators. They can recommend clauses, terms, and contingencies in the contract that can protect sellers from becoming in breach of contract.

If a seller does want to exit a contract, working with a real estate attorney can help them find the legal path forward. Attorneys are expert negotiators who can work with the buyer to find a mutually agreeable resolution to end the contract.

Ultimately, the onus is on the buyer to hold the seller responsible. Many folks are not going to want to worry about a legal battle and will cut their losses and resume the search for a new property. But if a buyer is insistent on a deal, there is not much a seller can legally do to get out of it.

Veitengruber Law is an experienced real estate attorney in New Jersey. We help NJ homeowners protect their assets throughout every real estate transaction. Whether you are buying or selling, we offer knowledgeable legal advice for a smooth transaction. We offer contract writing and review, negotiation, title research, closing services, and more. Buying or selling property can be intimidating, but it does not have to be. Veitengruber Law is ready to help you achieve your real estate goals.

Should I Take Out a Second NJ Mortgage?

Sat, 31 Jan 2026 17:21:51 GMT

Your home is likely your largest asset. As such, being a homeowner plays a significant role in your overall financial health and future financial goals. Homeowners can use their home as collateral to access different financing opportunities, such as taking out a second mortgage on their home.

A second mortgage is an additional loan taken against a property that already has an existing primary mortgage. The second mortgage uses the equity in the home as collateral. The equity in a home is the difference between its value and the amount still owed on the property. Many homeowners use the equity in their homes to address financial issues or achieve goals they otherwise would not have the funding for, such as home expansion or remodeling.

The decision to tap into your home’s equity is a big one. You need to have a thorough understanding of how second mortgages work and determine if it is truly the better choice over other financing options.

How does a second mortgage work?

A second mortgage gives you the ability to borrow against the equity you have built up in paying your regular primary mortgage payments every month. As you’ve owned your home, the value of your property has likely increased as well. As your home’s value increases and your debt on the property decreases, you build equity, a powerful asset that can be used for financing opportunities.

A second mortgage, otherwise known as a junior lien, is secondary to your primary mortgage. This means if the home were to be foreclosed on, the primary mortgage holder would receive funds to satisfy the debt before the second mortgage lender. Payments for your second mortgage would be made separately from your primary mortgage and would carry their own interest rate and terms.

What kinds of second mortgages are there?

There are two kinds of second mortgages. Which one you qualify for depends on how much equity you have and your overall financial standing.

1. Home Equity Loan

A home equity loan is a fixed-rate loan for a specific amount, paid out in a lump sum and then repaid over a set term. You would calculate how much you can take out as a loan by subtracting your mortgage balance from your home's market value. Most lenders will approve homeowners to borrow up to 80-85% of their home’s equity. They will also consider factors such as your income and credit report to determine how much they are willing to lend. This type of loan is ideal for big, one-time expenses such as debt consolidation, education, or home renovations.

2. Home Equity Line of Credit (HELOC)

A HELOC loan is a revolving loan, like a credit card, except your home’s equity is used as collateral for the loan. This allows you to borrow funds up to a set limit for expenses as needed. HELOC loans typically have variable interest rates. With a HELOC, there is a draw period and a repayment period. During the draw period (typically around 10 years), you can borrow, repay, and borrow again indefinitely as long as you stay below your limit. During this time, you only pay interest on what you’ve drawn.

Once the draw period is over, you enter the repayment period. During this time, you cannot borrow more, and you begin paying back the principal and interest over a predetermined term (10-20 years). The variable rate can change your monthly payment significantly over the life of the HELOC.

What are the benefits and drawbacks of taking out a second mortgage?

Rates for a second mortgage are typically lower, and terms are more favorable than those of credit cards or personal loans. Because a second mortgage uses your home as collateral, lenders are more flexible on other terms of the loan. You can save a lot of money on interest by opting for a second mortgage instead of taking out a personal loan or maxing out a credit card.

There are also potential tax benefits to taking out a second mortgage instead of an unsecured loan. In some cases, home equity or HELOC loans are tax-deductible if the money is used to improve, renovate, or purchase a home. This can also help offset the loan's costs.

On the other hand, if you fail to make the payments for your second mortgage, you could end up losing your home. Defaulting on your second mortgage can lead to foreclosure and the loss of your home. Also, when you use your equity as collateral, you could end up with less equity if property values drop.

You may also face qualification hurdles to get approved for a second mortgage if you do not have a strong financial profile and substantial home equity.

The decision to take out a second mortgage is personal. Whether a second mortgage is a good idea for you depends on your specific situation. If you are considering a second mortgage or are having trouble making payments on one, Veitengruber Law can help.

What is Partition Action in New Jersey?

Sat, 31 Jan 2026 17:05:59 GMT

It is common for parents to leave their home to their children in their estate plan. A home is likely to be the largest asset a person has at the end of their life, and it makes sense that parents want to share this asset with their children. Where things get complicated, however, is when a parent leaves property in equal parts to multiple siblings without specifying how it should be divided. This can frequently lead to disagreements.

Some siblings may view the property more sentimentally, wishing to live in the home themselves or keep it in the family. Other siblings may view the property as a means of generating income, either by selling the home or setting it up as a rental. Disagreements can arise among siblings dealing with different life circumstances, financial needs, and aspirations.

When these disagreements cannot be resolved with compromise, a legal solution may be required to allow all parties to move forward. This is called a partition action.

What is a partition action?

A partition action is a legal process through which co-owners of a property can divide and distribute the property. This legal recourse is normally taken when co-owners cannot agree on how to manage or utilize the property. A third party, such as a judge, will review the case details and determine how the property should be divided in accordance with legal precedent. The goal is to find a solution that is fair, equitable, and in the best interest of all parties involved.

Types of Partition Actions

1. Partition By Sale

In this partition, the co-owned property is sold, and the profits are divided among the co-owners. Everyone will receive an equitable share of the proceeds and can use their portion as they wish. There will be no more co-owned property, so the disagreement is resolved as well. The partition by sale can be an issue for siblings who have an emotional attachment to the property, intend to live in it, or are financially dependent on it as a source of income.

2. Partition In Kind

This kind of partition physically divides the property among the co-owners. This is more likely to be an option for larger plots of land. Each co-owner receives an equitable share of the property and can use their portion however they want. However, physically dividing the property can decrease its value. It can also make it harder to find buyers if one owner is looking to sell the property.

3. Partition By Appraisal

Partition by appraisal involves an appraiser determining the property's value so that one party can pay the other the amount they would receive if the property were sold. This way, one sibling can keep the property and own it outright, while the other sibling (or siblings) receive their fair share now. This can be a great option if the person who wants to keep the property has the means to buy out the other co-owners. Also, depending on the market and how the property is appraised, the sibling keeping the property may have to pay out far more than they want or can afford. On the flip side, if the property is appraised for less, the siblings getting bought out may feel they are getting the short end of the stick.

Final Thoughts

Taking a family member to court can be a life-altering event. Your relationship may never be the same again. Before you initiate a partition action, consider whether there are any other options to resolve your conflict without taking legal action. Consider if the outcome—even if it is the outcome you desire—is really worth it. Negotiation, mediation, and compromise are typically the best path forward for all.

For parents planning to leave property to multiple children, having conversations with your children about your expectations for dividing property can help alleviate any conflicts when you are gone. Veitengruber Law is an experienced estate planning attorney. We work with folks in NJ to ensure their assets are protected during their lifetime and after. We can help you establish an estate plan that minimizes the risk of conflict among your heirs.

Do I Have to Join my Neighborhood HOA?

Sat, 31 Jan 2026 16:53:39 GMT

While there are more than 370,000 Homeowners Associations in the USA, joining an HOA is not for everyone. While some appreciate the benefits of HOA membership, others find the rules overly restrictive or have no interest in paying the associated fees. If you have found the house of your dreams in an HOA neighborhood, you may be wondering what your options are to avoid joining the HOA. Here, we look at a few scenarios:

1. Voluntary HOAs

As the name suggests, purchasing a home or condo in a voluntary HOA community does not require you to join the HOA. Voluntary HOAs typically use their membership fees to maintain common-area facilities such as pools, clubs, tennis courts, and other amenities. If you opt out of the HOA in this instance, you simply would not have access to these amenities—or you would have to pay for every use. Unlike other HOAs, voluntary HOAs do not have the authority to dictate rules about how you keep your property. Similarly, they cannot enforce rules on nonmembers.

Voluntary HOAs are typically low-commitment and primarily focus on access to community recreational areas.

2. Mandatory HOAs

If you purchase a home in a neighborhood with a mandatory HOA, you must join the HOA. At closing, you will need to sign documents agreeing to abide by HOA rules and pay any fees or fines incurred if those rules are broken. While mandatory HOAs typically also maintain common facilities, they also have a lot of power to enforce rules about the maintenance of your personal property. Rules can range from fines for grass that has grown too high to restrictions on how many lawn ornaments you can have in your front garden bed.

If you are considering putting an offer in on a home but do not want to join the mandatory HOA, you may need to find a different property. Work with a real estate agent to find homes not included in an HOA. Getting a home out of an HOA is very difficult because it is legally tied to the property's deed. While it is possible to de-annex a property from an HOA, this process is legally fraught. You would be required to prove the HOA failed its obligations, or get your neighbors to vote to dissolve the HOA altogether.

3. Newly Forming HOA

If an HOA is forming in your area, you are not obligated to join. To form a mandatory HOA, the vast majority of your neighbors would have to agree to join the HOA and confirm the terms. You can absolutely opt out of this process if you purchased your home before the HOA was formed. Even if all of your neighbors join the newly formed HOA, you are not obligated to do so unless your deed makes specific mention of the HOA.

If you are getting pressure to join a forming mandatory HOA, you have legal rights. Review your property deed and closing documents to determine if there is a mention of an HOA or an obligation to join any future association. Do not sign any new documents, such as a membership agreement, and do not pay any fees or fines if you are not part of the association. A real estate attorney can help you formalize your refusal to join the HOA and ensure your legal rights as a homeowner are upheld.

Veitengruber Law is an experienced real estate attorney in New Jersey. We work with NJ homeowners to protect their rights and ensure they are not being taken advantage of. If you have questions about HOAs, reach out to us today.

Gambling Debts In a Bankruptcy

Thu, 29 Jan 2026 21:10:11 GMT

Gambling is a serious addiction. The surge in popularity of online casinos, betting apps, and digital gambling platforms means the average person can gamble in their living room. Like other addictions, problematic gambling can result in dire problems in other areas of life, including financial health. With a gambling addiction, finding money to place the next bet can cause individuals to accumulate monumental levels of debt. Gamblers may turn to credit cards, personal loans, cash advances, savings, and other funds to maintain their habit, all while stopping payments on other debts. This can quickly snowball into a massive financial problem and bankruptcy.

The point of bankruptcy is to provide individuals with protection from creditors and a financial fresh start. One of the biggest benefits of declaring bankruptcy is the ability to discharge some or all of your existing debts. But how does discharge work with gambling debts?

Veitengruber Law is an experienced bankruptcy attorney in New Jersey. Here is everything you need to know about gambling debts in bankruptcy.

Can gambling debts be discharged in bankruptcy?

Generally, debts accrued due to gambling can be discharged through bankruptcy. There are no legal stipulations against discharging gambling debts in bankruptcy. However, in practice, it may be more complicated to discharge gambling debts.

In practice, however, gambling debts can raise red flags for the bankruptcy trustee, and judges may be more critical of cases involving bankruptcy debts. Especially in the case of recent or excessive bankruptcy, additional scrutiny is likely to be applied to the bankruptcy petition. It can also lead to additional objections from creditors, potentially resulting in further legal issues.

A judge, the trustee, and your creditors could come to the conclusion that you accumulated these debts without any intention of repaying them. The courts have a dim view of those who accumulate massive debt just before declaring bankruptcy. They may even refuse to discharge the debt if they conclude you gambled away borrowed money immediately before declaring bankruptcy.

What are some red flags courts look for with gambling debts?

In the majority of bankruptcy cases, there is a natural increase in debt or a clear loss of income that has led to financial difficulties. This debt is accumulated over months or even years before the bankruptcy is filed. One of the biggest issues courts have with discharging gambling debt is that it is typically accumulated in a short time just before filing for bankruptcy. It gives the impression that the person filing for bankruptcy had no intention of repaying the debt. Essentially, if the court suspects you of attempting to defraud your creditors, they may deny your request for discharge.

Some other reasons for denial include:

False Representation: Signing credit markers when you know you do not have funds to cover them or providing false financial information to obtain additional lines of credit is fraud. Evidence of this can result in a denial of discharge.
Illegal Gambling: Debts incurred from prohibited gambling activities are generally not dischargeable.
Bad Faith Filing: Debts incurred right before filing (60-90 days) without the intention or ability to repay the debt—specifically through credit cards or personal loans—can be seen as abusing the bankruptcy process.

If the court determines that you are attempting to use the system to avoid responsibility for your gambling debts, they will deny your discharge.

What happens if my bankruptcy discharge is denied due to gambling?

If the court denies your bankruptcy discharge, you will remain legally responsible for all debts. It is crucial to note that there are serious, in some cases permanent consequences of receiving a discharge denial during bankruptcy. This includes:

Permanent Liability: You will still be responsible for all debts owed at the time of filing. Any debts listed in the denied case are permanently barred from being discharged in future bankruptcy filings.
Creditor Actions May Resume: With the denial of your bankruptcy case, the automatic stay period ends. This means creditors can continue their collection attempts, including lawsuits, wage garnishment, and foreclosure.
Loss of Assets: If you filed Chapter 7 bankruptcy, the trustee can still liquidate any non-exempt assets to pay back creditors.

What are my options after discharge denial?

After your bankruptcy discharge is denied, there are still options. You can appeal your case if you believe the denial was based on a legal error or some other issue. You can work with a bankruptcy attorney to file an appeal. If you filed Chapter 7 bankruptcy, it may be possible to convert to a Chapter 13 repayment plan instead. You would need to prove you have the ability to repay your debts under a repayment plan, meaning you need to have enough income to realistically repay debts.

That being said, once your bankruptcy discharge is denied, there is not much an attorney will be able to do to help you get a discharge. It is critical to work with a bankruptcy attorney from the beginning, especially if your case includes gambling debts. An experienced bankruptcy lawyer can help you put your best case forward, making it more likely you receive a favorable outcome.

How can I avoid these issues?

At Veitengruber Law, we understand that not everyone who gets in deep with gambling issues is a bad person looking to defraud the court. Folks trying to turn their life around after a gambling addiction deserve a second chance. If you are filing for bankruptcy after coming to terms with problematic gambling, there is still hope.

A show of good faith can go a long way with the courts. The first step is to recognize the problem for what it is and seek professional help if necessary. Stop all gambling activity right away. Depending on the severity of your gambling, you may want to work with a therapist or a reputable program to help give you the resources to avoid gambling in the future. Taking these steps can demonstrate for the court both the severity of the issue and your earnest desire to turn your life around.

Gambling can complicate your bankruptcy case, but it doesn’t mean your case is hopeless. Most bankruptcy debts are dischargeable. Showing the court your genuine interest in developing better financial habits and taking accountability for your past errors can go a long way in securing a discharge. Veitengruber Law can help you get your fresh start.

New Jersey Real Estate 2026 Outlook

Thu, 29 Jan 2026 21:03:26 GMT

Home sales were down in 2025—and not because of a lack of aspiring homeowners. Many renters continue to say they would prefer to own if they could afford it. The problem is, most have not been able to over the last few years. A report from CBRE found that only 12.7% of renter households could afford a median-priced home. This is down from 17% in 2019. The NJ housing market has been chaotic since the staggering high-home prices of 2022.

The outlook for the 2026 New Jersey housing market is generally optimistic. While most real estate experts are not expecting major shifts in the market this year, those in the know expect better affordability, stabilized prices, growing inventory, and increased sales. 2026 is looking to be a year of rebalance in the real estate market.

2026 Housing Market Trends

1. Increased Affordability

Many average folks have been priced out of buying a home over the last few years. The NJ market has been chaotic, with high interest rates, high housing prices, and low inventory, making it a highly competitive market in which many people could not afford to compete. In 2026, real estate experts expect a modest dip in mortgage rates, making financing more affordable. We also expect to see an increase in inventory, giving buyers more options to shop around for a property that is desirable and affordable.

2. More Activity

One big expectation for the 2026 housing market is more home sales. As inventory increases and financing costs decline, more buyers will enter the market. Someone who could not afford the 2023 market may see a dip in mortgage rates as a sign that 2026 is the year to buy. Given how unbalanced the market has been, even small improvements in affordability will open the door to more home sales. Zillow reports that it expects home sales to increase by 4.3% in 2025.

Increased activity is expected across buyer types, from first-time homebuyers to growing families looking to upgrade or retirees ready to downsize. As more homes hit the market and buyer demand increases, previously reluctant sellers may feel more confident about selling.

3. Slowed Price Growth

The home price appreciation rate has dropped significantly from pandemic-era rates. In 2022, the home appreciation rate was 15-20% nationally. For 2026, a home appreciation rate of 1-4% is expected. This slower, steadier growth allows for real estate prices to stabilize. This isn’t the red-hot sellers market of a few years ago. Instead, we are working with a more balanced market.

Advice for Buyers and Sellers

So, what does this mean for buyers and sellers?

In 2026, buyers have a lot to be optimistic about. Increased affordability gives buyers the opportunity to explore more real estate options. Instead of just focusing on affordability, buyers have a little more wiggle room to focus on value, condition, location, and aesthetics. Still, buyers need to remember this is still a competitive seller’s market. Prospective buyers need to remain strategic in accomplishing their real estate goals. Getting pre-qualified can help buyers move quickly and decisively to secure a good deal when they see one.

While sellers have lost a bit of their power over the last few years, 2026 is still a seller’s market. Increased activity means more buyers on the market to purchase your home—and hopefully results in less time your property sits on the market. To be successful in 2026, sellers need to focus on strategic home pricing. Price growth is slowing. Sellers need to work with experienced local realtors to determine a price that attracts buyers while still netting the seller a good return on their investment.

While price growth has slowed, sellers are still profiting from high sales prices. One way to ensure you get top dollar for your property is to present it in the best possible light. Spend some time investing in the aesthetic appeal of your property.

What about renters?

Rent affordability is expected to get better in 2026. Median-income households spent, on average, 27.2% of their household income on rent in October 2025. This is the lowest figure since August 2021. Multifamily rents are only expected to rise 0.3% in 2026. This gives households a chance for their income to catch up to the cost of renting.

Veitengruber Law is an experienced NJ real estate attorney. We work with NJ homeowners to achieve their real estate goals while protecting their assets and getting the best deal. From contract negotiation to title research to closing, we are with you every step of the way.

Chapter 13 and the Cramdown Explained by a NJ Bankruptcy Attorney

Wed, 03 Dec 2025 04:27:50 GMT

Chapter 13 bankruptcy, otherwise known as a “wage earner’s plan” or “reorganization” bankruptcy, allows you to reorganize your debt into a more realistic repayment plan. You can file for Chapter 13 bankruptcy if you have a regular income and can develop a plan to repay all or part of your debt over a period of three to five years. Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy allows you to maintain ownership of your assets. Chapter 13 can be a beneficial way to stop collection efforts, including foreclosure or repossession.

Once you and the court agree on a repayment plan, you will be expected to make a monthly payment that is manageable with your income. If you can make all your monthly payments on time and in full for the duration of your repayment plan, any remaining debt will be discharged at the end of your repayment term. Chapter 13 repayment plans typically offer smaller monthly payments and better interest rates than the original terms of the debts. This way, you can pay less money overall on your debt.

One powerful tool of Chapter 13 bankruptcy is the “cramdown.” The cramdown allows a debtor to reduce the secured balance of specific loans to the fair market value of the collateral. The remaining debt amount above the fair market value is often discharged at the end of your Chapter 13 repayment plan.

Veitengruber Law works with NJ residents to get out from under unmanageable debt through bankruptcy. We have helped many folks utilize the cramdown to keep their car, secondary house, and other property. Here, we explore how the Chapter 13 bankruptcy can help you.

How does the cramdown work?

The basic idea behind the cramdown is to ensure you pay a fair market price for your property. The cramdown adjusts the amount of debt owed to align with the actual value of the secured asset. For example, suppose you owe more on a car than it is actually worth. In that case, the cramdown can allow you to reduce the amount owed on your auto loan to the vehicle’s market value. This amount will be rolled into your Chapter 13 repayment plan. The remaining balance then becomes unsecured debt.

Once you have completed all the payments in your repayment plan over three or five years, the remaining unsecured debt can be discharged. The cramdown not only reduces your monthly payments, but it also reduces the amount you will pay overall.

Many folks use the cramdown to pay back car loans. For example, let’s say your car loan balance is $20,000. In a fair-market-value analysis, your car is only worth $12,000. Chapter 13 bankruptcy will allow you to cram down your loan to the car’s actual value of $12,000. The remaining balance of $8,000 will be included in the unsecured debt balance, such as credit cards and personal loans. Once you have completed your repayment plan, these unsecured debts are often discharged. This means you will only pay a fraction of the unsecured debt you owe. Meanwhile, because you paid back the actual value of your car, you will own it free and clear at the end of your Chapter 13 bankruptcy.

What debts are eligible?

Not all debts qualify for a Chapter 13 cramdown. The cramdown applies to specific types of secured debts, but not all secured debts are eligible. Car loans are the most common debts that can be subject to cramdown. However, your vehicle must have been purchased at least 910 days (two and a half years) before filing for bankruptcy. Other personal property purchased with financing, such as furniture or appliances, may be eligible if purchased more than 365 days before filing for bankruptcy.

The 910-day rule for car loans and the 1-year rule for other personal property are federally mandated restrictions designed to prevent folks from cramming down recent, expensive purchases.

Unsecured debts cannot be crammed down.

Can I cram down my mortgage?

Investment properties or secondary properties can also qualify for cramdown, but primary residences do not. Many NJ courts will expect debtors to pay off the full debt owed on secured property. While this expectation may be realistic for personal property like appliances or furniture, it can be incredibly challenging to repay the fair market value of an investment property in three or five years. Even a crammed-down mortgage can total tens of thousands of dollars.

Attempting to pay back this amount of debt in three or five years typically results in one of two scenarios:

At the end of your Chapter 13 repayment plan, you will be left with a balloon payment for the balance of your mortgage. For the average person, this balloon payment would be an unmanageable financial burden, especially coming out of bankruptcy. Bankruptcy courts understand the impracticality of this result. They will not allow you to end up in this situation unless you can prove that you would be able to pay off the balloon payment.
Including the mortgage on your investment property would make your monthly bankruptcy payments so high that you would be unlikely to be able to make them. If you are going through bankruptcy, you are likely doing so to lower your monthly payments.

Because of these potential issues, most people opt not to cram down their mortgage for investment properties. However, for folks who have the means, a mortgage cramdown has a couple of benefits, including:

A lower interest rate: The bankruptcy court will determine your cramdown interest rate once you file for Chapter 13. Typically, the interest rate set by the court will be the prime rate plus a few points. This is usually much lower than the interest rate from the original loan. You can use this to your advantage and avoid paying high-interest rates. This helps lower the total amount you pay for your property.
No deficiency: Bankruptcy is the single most powerful tool you have to avoid foreclosure on your property. During foreclosure, your lender will try to sell your property for the amount still owed on your loan. However, if you owe way more than the fair market value of your property, your lender may end up selling the property for less than you owe. In some cases, you may have to pay your lender the difference between what you owe and what the property has sold for. This amount is called the deficiency.

If you can cram down your mortgage, you will not be liable for the amount of debt that is no longer secured if the property is foreclosed and sold. The unsecured amount of the loan is typically about equal to the deficiency. This means you will not be responsible for repaying your lender for this debt. You will, however, lose the property in this situation.

Veitengruber Law is an experienced NJ debt relief legal team. Our bankruptcy attorney helps people utilize all the tools available through bankruptcy to avoid foreclosure, halt collection efforts, and minimize further financial issues. If you are considering Chapter 13 bankruptcy, we can help.

Should I Buy a Home with My Best Friend? NJ Real Estate Lawyer Gives His Opinion

Wed, 03 Dec 2025 04:27:37 GMT

Home prices have hit record highs in 2025, making it extremely difficult for the average adult to purchase their own home. While home prices have surged, income increases have stagnated, leading to a high price-to-income ratio. Combined with a long-term housing undersupply and high mortgage rates, homeownership is incredibly unaffordable in 2025. Individuals entering the housing market are looking at creative ways to afford homeownership.

Many are purchasing a home with their friends to pool their financial resources. Splitting the cost of buying a home amongst two or even several individuals can drastically reduce the financial contribution required for homeownership. Splitting the down payment, monthly rent, and any incidental expenses can be an affordable way to maintain a home. It can also help you avoid the exorbitant cost of renting and instead put your money towards an investment.

But there are many considerations you need to think about before teaming up with your friend to buy a home. Purchasing a home is, after all, a complex legal and financial transaction. Here are six steps to ensure a smooth transaction.

1. Pick a Good Investment Partner

Maybe you are considering purchasing a home with a friend to rent out and generate additional income. Perhaps you are looking to buy a house to flip. Or you may intend to live in your shared home together. Regardless of your intentions, you need to view this for what it is: a legally binding transaction. This purchase will legally and financially bind you to this person for as long as you co-own the property. It is critical that you consider the qualities in your friend that may make them a good investment partner—or a bad one.

This decision goes beyond who you personally enjoy spending time with or whom you trust with your secrets. Your high school BFF may be a perfectly wonderful person, but that doesn’t mean they make sound financial decisions. Do your due diligence before you consider making this kind of investment together. Transparency about each other’s finances is essential to establishing the trust needed to purchase a home together.

You can have a local title company do a judgment and liens search, a litigation search, and a bankruptcy search on a prospective partner, so you aren’t surprised down the road. You can each share your credit report as an additional measure of good financial standing. Much of this information will come out anyway when lenders review your legal and financial history if you are financing a property.

2. Determine Your Goals

Why are you purchasing this property?

Before you even begin your property search, sit down with your friend and establish your goals. For example, if you are purchasing a house to rent out for extra income, you need as many details hammered out as possible before making an offer. Will you be renovating? How much do you expect to invest in home improvements? What do you expect to charge for rent? Who will be responsible for paying for or doing property maintenance?

All of these details and more should be carefully thought through to avoid conflict and ensure you maintain your friendship throughout this process.

3. Work With Professionals

Once you understand your goals, it is a good idea to sit down with a real estate attorney and a real estate agent to determine the best way to move toward them. While a real estate agent can help you find the property you are looking for, a real estate attorney can help you and your friend protect yourself, your partner, and your investment. Working with experienced professionals can help you feel supported and more confident in your decisions throughout this complex process.

For example, if you do not plan to live in the house but instead intend to flip or rent it, it may be legally advisable to form an LLC. An LLC can protect you and your co-owner from certain liability. While an LLC will often pay a higher interest rate than an individual, the legal peace of mind is worth the extra cost. It will also help you if your partner decides to stop providing their share of the monthly mortgage payments.

Regardless of your goals, a real estate attorney can ensure you are protecting your interests.

4. Apply for a Mortgage

Most lenders will approve mortgages for friends buying a home together. When applying for a mortgage with a friend or friends, you will apply for a joint mortgage, but each individual will fill out their own separate application. The lender will gather all the personal and financial details on each applicant. Then, they will look at the group as a whole to determine if you qualify for the loan. If every individual checks out AND the lender determines you have the financial ability to achieve your purchasing goals, you and your friend(s) will be approved for the loan.

5. Determine Type of Ownership

When two individuals who are not married purchase a home together, they need to determine the parameters of their co-ownership. Specifically, you need to determine whether your ownership agreement is a tenancy-in-common (TIC) or a joint tenancy. This differentiation is arguably the most crucial decision you will make throughout the entire process.

The differences between these ownership agreements basically come down to what happens to the property after your death. With tenants in common, your share of the property would pass to your beneficiaries. With a joint tenancy, your co-owner would automatically inherit your portion of the property. Unless your co-owner is a beneficiary, you would most likely want to enter into a tenants-in-common agreement.

However, not all legal advice is one-size-fits-all. Your specific circumstances may make other legal agreements or protections more beneficial. Working with an expert real estate attorney can help you fully understand your legal options and do everything you can to protect the interests of you and your friend.

6. Create a Side Operating Agreement

We know what you’re thinking: another contract? You will sign a ton of legal paperwork throughout the home-buying process. But none of these documents may adequately address the complexities of owning a home with a friend. Hammering out the details while the purchase is fresh can help alleviate stress and disagreements down the road. You need to consider every aspect of home ownership, including what it looks like when you co-own a property.

Who gets the house at what times? Who pays utilities? Who maintains and repairs the property? What happens if one person wants out of the deal? A side operating agreement can help you and your friend define these responsibilities.

Veitengruber Law has worked with NJ homeowners for over a decade to protect their investments and achieve their real estate goals. When friends purchase property together, it can make an already complicated situation more complex. Working with an experienced real estate lawyer can help you avoid legal hassles and friendship fallouts.

VA Loans Explained by a Real Estate Lawyer in Monmouth County

Wed, 03 Dec 2025 04:27:23 GMT

United States military servicemen and women go above and beyond for our country. They work hard to keep us safe and to protect the American dream—a considerable part of which is homeownership. About 80% of veterans are homeowners—a significantly higher rate than the 60% of non-veterans who are homeowners. This is primarily due to access to VA loans. Because of their dedicated service and sacrifice, service members and veterans are eligible for U.S. Department of Veterans Affairs (VA) home loan benefits. Backed by the VA, these home loans offer competitive rates and help lenders offer more flexible financing terms.

Veitengruber Law has worked with many veterans who have purchased homes in NJ. We know what you can expect when you apply for a VA loan. Here is everything you need to know.

What is a VA home loan?

A VA loan is a home loan through a participating private lender that is guaranteed by the Department of Veterans Affairs (VA). Service members, including National Guard and reserve members, veterans, and surviving spouses, are all eligible to receive a VA loan. Because the VA backs a portion of, or all of, the home loan, lenders are more willing to offer favorable terms, such as no down payment, lenient credit requirements, and flexible income requirements.

VA loans are part of the 1944 GI Bill that grants service members access to many benefits intended to help them transition from military service to civilian life. VA loans make homeownership more accessible for military members and their spouses. Since 1944, the program has been expanded to include veterans of other wars and their spouses, as well as additional benefits.

What are the benefits of a VA loan?

Some key features of most VA loans include:

No down payment: Many eligible individuals can purchase a home with no down payment as long as the final sales price does not exceed the VA’s appraised value.
No PMI: Private mortgage insurance is often required for conventional loans if the buyer makes a down payment of less than 20% of the home’s value. With VA loans, PMI is not required. This can result in a lower monthly payment.
Capped Closing Costs: The VA limits the closing costs the buyer can be charged to 4% of the home’s reasonable value. The maximum origination fee for lenders is 1%.
Waived prepayment fee: Unlike conventional loans, which may charge a prepayment penalty for prepaying your mortgage, VA loans allow you to prepay without penalty.
VA Funding Fee: Most veterans and servicemembers must pay a one-time VA funding fee. This fee can be paid at closing or rolled into the loan. Some veterans are exempt from this fee, such as those who receive disability compensation.

Who is eligible for a VA home loan?

Those who are eligible for a VA loan include:

Active Duty: Current service members who have served for a minimum of 90 continuous days of active duty.
Veterans: Wartime and peacetime veterans are eligible for VA loans, but with different requirements. Wartime veterans must have served for 90 consecutive days of active duty and obtained an honorable discharge. Peacetime veterans must have served for 181 continuous days of active duty and acquired an honorable discharge. Those who enlisted after September 7, 1980, must have 181 days of continuous active duty to qualify.
National Guard and Reserve: These individuals must have completed at least six years of service, or 90 days of active duty (at least 30 days consecutive) under Title 32 orders.
Surviving spouses: Surviving spouses are only eligible if they are the unremarried spouse of a service member who died in the line of duty or due to a service-related disability.

How do VA home loans work?

The process for obtaining a VA home loan has a few more steps than a regular conventional loan, but it is relatively simple.

1. Get Your COE

Once you know you are eligible for a VA loan, you can work with your local VA to acquire your Certificate of Eligibility (COE). A COE is a document confirming your eligibility for the VA loan benefit. Your lender can also help you get your COE.

2. Get Pre-Approved

Just like with a conventional loan, you will need to get pre-approved. You can compare different VA lenders to find the best financing option for your area and financial situation. You will likely need your driver’s license, Social Security card, DD-214, pay stubs, W-2s, and bank statements. While the credit and income requirements for VA loans are much less stringent, you will still undergo a credit check.

3. VA Appraisal

Once you find a home and your offer is accepted, your lender will order an appraisal to determine the home’s value. The home must meet VA minimum property requirements to qualify.

4. Closing

Once the home is appraised and is found to meet VA requirements, you have basically met all the criteria to go through with your VA loan. While there will be other requirements and documentation needed that are part of the typical homebuying process, enlisting the support of an experienced real estate agent can help you get through closing and into your new home.

Veitengeruber Law and George Veitengruber, Esq. is an experienced NJ real estate attorney. We work with veterans to help them protect their investment and ensure that all parties comply with VA loan guidelines.

Planning for Aging Comfortably: Advice from a Monmouth County Estate Planning Attorney

Wed, 03 Dec 2025 04:27:06 GMT

Today, ageing comfortably involves a lot of planning. Most experts agree that individuals should have 10 to 12 times their annual income saved for retirement, which averages $1.25 million. But holistic estate plans go beyond a healthy retirement account. Those looking to create a comprehensive estate plan should integrate long-term care planning into their targets.

Many adults eventually need long-term care in their later years. For some, this may mean living in a nursing home or assisted living facility. For others, it may require more extensive in-home care from nursing professionals. Long-term care costs can exceed thousands of dollars a month, depending on the level of service.

Planning for this kind of expense in advance can bring a sense of relief, alleviating the stress of making decisions in the moment during medical emergencies. It can also provide a safety net for your loved ones, sparing them the financial burden of paying for expensive long-term care out of pocket.

So, how do you successfully create a long-term care plan?

First, you need to protect your assets. Often, the high costs of long-term care cannot be managed without assistance from services such as Medicare and Medicaid. However, to gain access to Medicaid, you will need to meet specific requirements. This often involves keeping assets and income below strict pre-set limits.

Applications for long-term care under Medicaid include a review of your assets in the five years before filing your application. This consists of a review of asset transfers. If it appears that you have been transferring assets or property in an attempt to qualify for Medicaid, you could face penalties. On the other hand, many aging adults find themselves sacrificing their hard-earned assets in their later years to be eligible for benefits. Even if you can keep your assets now, Medicaid estate recovery efforts could make your assets vulnerable after your death.

Your estate plan should address these concerns well in advance of your need for services like Medicare or Medicaid. Creating a trust or naming co-owners of important property can help you protect your assets now and in the future while also allowing you to qualify for Medicaid to cover long-term care costs. You can also explore long-term care insurance to cover expenses not met by Medicaid.

It is also critical to define your care preferences in your estate plan. Name a power of attorney, medical care proxy, and list what kind of care, medical interventions, and services you will desire for the future. Proper planning can maximize your options for the future while avoiding financial strain and minimizing family disputes.

Estate planning goes beyond a will. It is also about planning for whatever the future holds for you and your loved ones. Veitengruber Law has been helping clients plan for the future for over fifteen years. We can provide the professional guidance and support you need to prepare for retirement and your golden years. Estate planning gives you the power to shape your future to ensure you can retire in comfort.

Inflation Causing Increase in NJ Bankruptcies

Wed, 05 Nov 2025 04:20:16 GMT

It’s no secret: times are tough. Since 2020, the US dollar has experienced an average annual inflation rate increase of 4.5%. Grocery prices are increasing. Since last year, we have seen a 12% increase in ground beef, a 5% increase in chicken, and an 18% increase in orange juice, among other items. The growing cost of our food is just one factor in how inflation is raising the cost of living. As a bankruptcy attorney in Monmouth County, Veitengruber Law has seen an increase in NJ bankruptcies over the last year.

Let’s look at how inflation is driving New Jersey bankruptcies:

1. Reduced Purchasing Power

As inflation increases, the cost of essentials like groceries, housing, and utilities rises. Wage increases cannot keep up with the rapid acceleration of inflation we have seen since 2020. Folks have less discretionary income, and many households are left with little to no money for savings or debt repayment after their monthly bills are paid. The budget that worked for you five years ago may no longer keep up with the cost of living your typical lifestyle.

2. Higher Interest Rates

To combat inflation, lenders and banks raise their interest rates on loans. High interest rates make borrowing money more expensive. At a time of financial uncertainty, banks want to protect their own interest by making it more difficult for the average person to borrow money. This causes interest rates on existing variable-rate debt, such as credit cards and adjustable-rate mortgages, to rise. A sudden increase in your interest rate could make it difficult or impossible to afford your monthly payment.

3. Increased Borrowing

Despite the high rates, inflation pushes people to borrow to cover the increased costs of everyday expenses. By depending on credit cards and personal loans to afford groceries, gas, and other essentials, it is easy to find yourself struggling with unmanageable debt. High rates contribute to rapid debt growth.

4. Less Savings

If you have savings, inflation can cause you to gradually withdraw funds to cover your essential expenses. Even if you manage not to touch your savings for emergencies, you may find it more difficult to continue putting money aside for savings. If you do not already have a savings account, it may seem impossible to start now. This also means that any emergencies requiring funds beyond your monthly income will likely be paid for by accumulating more debt.

5. Fixed Income Struggles

Folks on a fixed income, like retirees, do not see their income increase with the cost of living. They are specifically vulnerable to a sharp decrease in purchasing power. It can become impossible for these folks to afford essentials on their fixed income.

While inflation can contribute to the need for bankruptcy, it is typically not the sole cause. Common causes, in addition to inflation, include income reduction or job loss, medical debt, divorce, disability or health issues, among others. If you are struggling to maintain a budget with the rising cost of inflation, you’re not alone. New Jersey’s Veitengruber Law can help you explore bankruptcy and other debt management solutions.

5 Benefits of Hiring a NJ Real Estate Lawyer When Buying a Home

Wed, 05 Nov 2025 04:14:31 GMT

In New Jersey, the attorney review period is often the first time homebuyers consider whether they need a NJ real estate lawyer. Although there is a mandatory three-day attorney review period, New Jersey homebuyers are not required to retain an attorney to purchase a home.

IMPORTANT: That doesn’t mean you should ignore the benefits of working with a real estate attorney. Veitengruber Law is an experienced NJ real estate law firm with over a decade and a half of experience helping homebuyers purchase their dream home.

Here are five reasons you should hire a real estate lawyer when purchasing a home in New Jersey:

1. Contract Negotiation

Once you sign a real estate purchasing agreement, you are bound to the terms of that contract. If your circumstances change or something goes wrong, you are still beholden to the signed agreement you made with the seller. It is critical that the contract you sign is purpose-built to protect your best interests. Standard purchase agreements do not offer the protection of an attorney-reviewed, customized contract that addresses the specific details of your transaction.

When an attorney reviews, modifies, or creates your contract, they can tailor the terms to your needs and ensure all legal and financial responsibilities are clearly defined. An attorney can help you add contingencies to safeguard your investment and allow you to get out of a contract if issues arise later in the purchasing process. Attorneys are trained in contract negotiation and can help you work with the other party to reach an agreement.

2. Title Search and Issues

A title search is critical to the outcome of any real estate transaction. Ensuring the title of a property is free and clear of any legal or financial entanglements can prevent homebuyers from encountering expensive issues down the line. A title search can identify existing liens or legal disputes that could put your newfound homeownership at risk.

A real estate attorney is not only trained to conduct a title search but can also help resolve any issues uncovered during the search. If the problems are complex enough, they can even represent you in court. Their intervention can prevent costly delays and save your real estate transaction from falling apart.

3. Compliance with NJ Real Estate Law

Every state has specific real estate laws that buyers need to be aware of. If you are purchasing a home in NJ, a real estate attorney knowledgeable about NJ real estate law can help protect your rights while ensuring compliance with legal requirements. The average homebuyer is not going to know the specifics of real estate law, but your attorney will. Working with a real estate attorney can prevent you from accidentally putting yourself on the wrong side of a lawsuit. Especially if you are facing specific legal issues, such as zoning disputes, historic sites, or easements, a lawyer can help you protect your rights and safeguard your investment from the outset.

4. Closing Management

Closing is the last step in any real estate transaction. This is the meeting at which property officially changes hands, and you go from homebuyer to homeowner. At closing, all legal and financial aspects of the sale are finalized. This involves reviewing and signing a lot of paperwork and presenting important documents such as the deed, mortgage contract, title insurance, and settlement statements.

A real estate attorney will explain documents and paperwork to you to ensure you understand precisely what you are signing. Your attorney will also coordinate with other parties involved in the closing, like your lender, the title company, and real estate agents. They will also be available to tackle any last-minute legal issues so you can close on time.

5. Managing and Preventing Legal Issues

When you work with an attorney from the beginning of your homebuying journey, you are giving yourself the best legal protection available during a complex financial and legal process. Buying a house is one of the most momentous investments you will ever make in your lifetime. An attorney can help you protect that investment and protect yourself from costly consequences.

NJ real estate law is complex, and there are plenty of opportunities for things to go awry. When you work with a real estate attorney from the beginning, you shield yourself from potential legal risks. Attorneys can use their experience to identify and resolve issues before they jeopardize your deal.

Veitengruber Law can help you navigate the legal complexities of buying a home while protecting your interests and avoiding financial risk. We can help you make informed purchase decisions with confidence. If you are buying a home in New Jersey, reach out to us to discuss the next steps.

How the Government Shutdown Could Affect Your Mortgage

Fri, 31 Oct 2025 19:03:17 GMT

As of October 1st, the US federal government has entered a shutdown. Our elected representatives must vote to approve a budget that outlines how government funds and taxpayer dollars will be spent. If these representatives cannot agree on a budget by the deadline, our government will go into a shutdown. Any federal government operations not deemed "essential" will cease for the duration of the shutdown. Services like Social Security, defense, and veterans' benefits will continue to function, but federal museums and zoos, as well as national parks and monuments, will cease operations.

While the impact of this shutdown will hit everyone differently, it could affect those with a mortgage or seeking one. If you are looking to finance a new home, refinance your current mortgage, or make payments on an existing mortgage, here is what you should know about the impact of the government shutdown.

New Mortgages

Those trying to originate a new mortgage during the government shutdown may experience slight delays, but should ultimately still be able to secure a mortgage. But even a delay can be frustrating during real estate transactions. The longer the shutdown drags out, the longer the delays may be.

Still, the Department of Housing and Urban Development (HUD) will continue to process FHA loans, and the Department of Veterans Affairs (VA) will also continue in its capacity as a loan originator. Fannie Mae and Freddie Mac are government-sponsored enterprises, but they operate independently of the government. Operations for both are expected to continue as usual, with some slight delays.

However, there are specific instances in which folks seeking a mortgage could face challenges getting approved during the federal government shutdown. Those issues include:

1. Getting Required Documentation

Getting documentation from the government that is required for your mortgage loan application could be more difficult during the shutdown. While the IRS operated normally for the first five days of the shutdown, that time has passed, and the IRS is now operating under a contingency plan. This plan prioritizes "essential" work. So, if you need documentation from the IRS for your mortgage application, it may take longer than usual to complete the paperwork, delaying your financing and possibly resulting in a lengthy closing process.

The IRS and other government entities have many automated systems that allow you to get some documents, such as tax transcripts. Other documents, like payoff letters, federal tax liens, or documents that require human processing, will typically be delayed.

2. Flood Insurance

Depending on where you live, you may be required to obtain flood insurance in order to qualify for a mortgage. NJ is surrounded by water, with about 90% of NJ's border touching water. This means that NJ residents are more likely to live in a flood zone than residents in other landlocked states. Those in NJ who live within Special Flood Hazard Areas—those beginning with the letter A or V as identified by the Federal Emergency Management Agency (FEMA)—will be required to carry flood insurance to have a mortgage.

For many, the National Flood Insurance Program (NFIP) is the most affordable and accessible source for flood insurance. During the shutdown, the NFIP will continue to service existing policies, but no new policies will be issued. If you have an existing flood insurance plan through NFIP and you are expecting to close on a refinance, some lenders may accept a copy of your flood insurance declarations page to certify that you have flood insurance.

3. Government Employee Challenges

If you or your partner are employed by the federal government and you are currently experiencing a loss of income or have been furloughed, obtaining a mortgage can be tricky. Not only can it be challenging to verify employment and income during the shutdown, but your finances may also be changing as you navigate this difficult financial time. If you are a government employee unprepared to face the loss of income with the shutdown, you may find you need to rely on savings intended for a down payment.

If you do not have savings, you may even find yourself taking on debt to make ends meet during the shutdown. As your financial circumstances change, so does your ability to qualify for a mortgage. Some mortgage lenders may not even recognize your employment during the shutdown, even if you are continuing to work without pay. Other lenders will count those affected by the shutdown as maintaining employment for qualification purposes.

Government Delays Can Push NJ Closing Timelines

Most NJ real estate transactions will close within 30 to 45 days. While delays can occur even in typical circumstances, a government shutdown can create even greater delays for those looking to close on a new property. You could face delays of 2 to 4 weeks, depending on the specific government agencies you need to work with and how far into the shutdown we are when you try to purchase your home.

There are, however, things you can do to reduce your risk of delay throughout the government shutdown. NJ home buyers and sellers should take the following steps for a smoother closing process.

Add buffer time to your contract: Working with a real estate attorney, you can include an extension clause that specifically cites expected federal delays. This can give you and other parties extra time to meet timeline requirements if you hit roadblocks due to the government shutdown.
Determine your loan path early: If you know you are likely to use an FHA, VA, or USDA loan to finance your home purchase, be proactive about working with your lender. Reach out to the entity to see what their contingency plan is for dealing with the shutdown. Ask for their advice on the best path forward and determine whether alternative processes are available.
Get flood insurance early: If the property you are buying is in a flood zone, initiate the flood insurance process early to avoid delays in coverage.
Submit all documentation early: Do not wait until right before a deadline to reach out to federal entities for documentation. Since delays are expected, gathering your documentation early in the buying or selling process can help you avoid delays due to the shutdown.
Communication: Keep in touch with your lender, title company, real estate agent, attorney, and other stakeholders. If you know there will be a delay, inform everyone as soon as possible. Keeping all parties informed and on the same page can help prevent further delays in your closing.

Working With an NJ Real Estate Attorney

When you work with an NJ real estate attorney like Veitengruber Law, you can avoid hitting roadblocks on the path to closing on your real estate transaction. An attorney can guide you through issues and help you find alternative verification paths during the mortgage approval process. An attorney can help you stay on schedule for closing, so if you encounter any snags due to the shutdown, your closing is more likely to proceed as planned.

Real estate transactions are complex financial and legal processes on a typical day. When you add a government shutdown to the mix, it can turn into a stressful and frustrating experience. If you have been experiencing closing delays due to the federal shutdown, Veitengruber Law can help. Reach out to us today to get back on track to closing on your New Jersey home.

Should Taylor Swift Have a Prenup? NJ Estate Planning for the Super Wealthy

Fri, 31 Oct 2025 16:51:02 GMT

The lives of the ultra-wealthy have always piqued the public's curiosity. We are fascinated by their homes, their wardrobes, their careers, and, of course, their life events. And when two big names decide to join their empires? That’s a real headline maker!

Taylor Swift and Travis Kelce are two such names that have been hitting headlines with their long-awaited engagement at the end of August. Swift is one of the most successful—and wealthiest—musicians of all time. Recent estimates put her net worth above $2 billion. Travis Kelce is one of the NFL's most recognizable faces and has played with the Kansas City Chiefs through three Super Bowl wins. Alongside his NFL alum brother, Kelce has been building the Kelce brand and growing an entertainment career.

So, what happens when two big names decide to join forces?

We hope a prenup.

As an estate planning lawyer in New Jersey, Veitengruber Law works with individuals and couples at all stages of life to protect their interests within the legal and financial entanglements of marriage. After engagement and before marriage, it is incredibly common and legally advisable for the wealthy to have a prenuptial agreement in place before getting legally married. Marriage is, after all, a legally binding contract that typically entitles each spouse to the other's assets and property. Once the contract is signed, there is no going back.

While prenuptial agreements have gotten a bad reputation as indicative of ulterior motives or greed, they are the standard, not the exception, for celebrities and the wealthy. Each individual is bringing a sizeable estate into the marriage and wants to protect their assets, brand, and legacy.

So, what does a prenuptial agreement do?

A prenuptial agreement, colloquially known as a prenup, establishes a legal distinction between marital and separate property. Marital property becomes subject to distribution in divorce. In contrast, separate property is not vulnerable to distribution after the termination of marriage. Common marital property includes shared bank accounts, jointly purchased property, and much more. Separate property typically includes assets acquired before the marriage.

For the super-rich, a prenuptial agreement protects them personally, but it also protects their brand and their business. When significant assets include a multi-million-dollar business, a personal divorce can affect the lives and finances of employees. Beyond the material and the now, a prenup can also help protect the legacies of two individuals, both within and outside their marriage.

What makes a good prenuptial agreement?

To be legally enforceable, a prenuptial agreement must have three elements:

1. Signed and in Writing

A prenuptial agreement is legally binding only if it is put in writing and signed by both parties. As far as prenups go, verbal contracts are not valid. The laws governing marriage and asset sharing are well established. To override these legal defaults, a prenuptial agreement must be in writing and mutually agreed upon. Many attorneys will have each individual sign every page of the prenuptial agreement to ensure each party has read the entire agreement and fully understands what they are agreeing to.

2. Total Financial Disclosure

Both parties will need to provide a complete reckoning of their financial situation. This will include all income, assets, earnings, debt, or any other financial liabilities leading up to the signing of the prenuptial agreement. This is meant to offer each individual a clear picture of the other person's financial situation, allowing each party to make an informed decision before entering into marriage and entangling their finances.

This can also allow both parties to negotiate the terms of the prenup to better favor their own position. For example, if one party discovers the other party is carrying a large amount of debt, they may seek to include a clause in the prenup stating that they will not be responsible for any premarital debt. Withholding this information during the creation and signing of the prenup can result in the prenup's dissolution.

3. Voluntary Entry

Voluntary entry is a legal term that means all parties to a contract or legal agreement enter into the agreement knowingly and willingly without coercion, force, or duress. Someone who is mentally incapacitated is not capable of entering into a prenuptial agreement. The use of bribery or other illegal means of coercion can also invalidate a prenup. It is crucial for all parties involved to decide to sign a prenuptial agreement of their own accord.

What can a prenup protect?

A prenuptial agreement can be tailored to encompass a wide range of protections for different assets and situations. If you and your spouse-to-be want to retain control over how your assets are divided, a prenup is the best way to ensure you keep those rights—no matter what happens down the road.

Here are some of the ways prenups can offer future protection:

Protect Children from a Previous Relationship: When you enter into a new marriage with children from a previous relationship, you may want to protect particular property and assets for your children. Couples may consider setting aside specific property for their children to ensure they are cared for and provided for. Otherwise, one spouse could take a significant share of the other's assets in divorce or upon the other's death, leaving less for the children.
Predetermine Your Financial Responsibilities: A prenup can detail exactly how you and your future spouse will manage joint accounts, credit cards, household bills, and savings accounts. For the wealthy, this may mean a predetermined spousal allowance. For the everyday person, this may just be a detailed plan for how you will handle debt incurred during marriage.
Limit Spousal Support: Many prenups outline what spousal support would look like in the event of divorce. Predetermining spousal support can help a couple make a logical decision now so they can avoid costly legal disputes about details later.

While prenups can protect a lot, they cannot make legal provisions for everything. With Nicole Kidman's and Keith Urban's separation and impending divorce, rumors are flying about the conditions of their prenuptial agreement, including an alleged "cocaine clause" precluding both from partaking in drug use.

A prenup cannot cover child custody, custody schedules, and child support. "Lifestyle" clauses cannot be enforced either. Many couples try to include a no-cheating clause. However, most courts do not uphold these clauses, as they are considered to conflict with no-fault divorce principles. Similarly, most courts will not enforce requirements relating to appearance, sex, social activities, religious practice, or substance use.

The truth is that while the ultra-wealthy may have more assets to protect, everyone can benefit from a well-designed estate plan. You don't need to be Taylor Swift and Travis Kelce to work with an estate planning attorney to protect your assets. Marriage, divorce, death, the birth of a child—all these milestones can change your estate planning needs.

If you are planning on acquiring a prenuptial agreement or solidifying an estate plan with your new spouse, Veitengruber Law can help. From the ultra-wealthy and famous to your average Joe, an estate plan can help you protect your assets, look after your loved ones, and solidify your legacy.

Bankruptcy Exemptions Explained by Top Bankruptcy Attorney in Monmouth County

Mon, 06 Oct 2025 14:40:30 GMT

As a trusted law firm and bankruptcy attorney in Monmouth County for over a decade, Veitengruber Law works with many folks who are unsure if bankruptcy is the right choice. The reluctance to file for bankruptcy is often two-fold. There is a taboo surrounding bankruptcy that frequently leads individuals to avoid filing until their financial situation is dire beyond repair. Even when bankruptcy is considered, people can hold off on filing because they believe they will lose all their property and assets through the bankruptcy process. This is simply untrue; in fact, both state and federal laws are in place, outlining specific exemptions that allow bankruptcy filers to exempt particular property from the bankruptcy estate.

Exemptions in bankruptcy allow you to keep the essential personal property you need to work and live. The decisions you make about which property to exempt are individual and will vary from person to person, depending on your goals and financial situation. Here is what you need to know about bankruptcy exemptions in New Jersey.

Choosing Federal or State Exemptions

In New Jersey, you have the choice to use one of two different sets of exemptions: State or Federal. Each offers a unique path to protect your personal property and assets. To make an informed choice, you must understand the differences between these exemption statutes.

NJ Bankruptcy Exemptions:

New Jersey’s exemptions generally do not protect as much property as federal exemptions. Still, depending on your specific goals, it may be the right option for you. NJ bankruptcy exemptions include:

Personal Property Exemptions: this includes clothing, burial plot, stocks and interest in corporations, $1,000.00 for furniture and household goods
Public Benefits: workers’ compensation, unemployment compensation, Social Security, veterans’ benefits, disability assistance, and crime victims’ compensation
Pensions for Public Employees

Federal Bankruptcy Exemptions:

Federal exemptions offer much more protection for NJ residents who file for bankruptcy. These include:

Homestead Exemption: $27,900 for individuals, $55,800 for spouses who co-own property
Motor Vehicle Exemption: up to $4,450
Tools of the Trade Exemption: up to $2,800 in tools and equipment required for work
Wildcard Exemption: $1,475 to be used however the filer desires OR up to $13,950 if the homestead exemption is unused
Personal Property: $700 per item, $14,875 total for animals, crops, clothing, appliances, furnishings, books, household goods, and musical instruments; jewelry up to $1,875
Public Benefits and Retirement Accounts: personal injury recoveries up to $27,900, wrongful death recoveries, alimony or child support, tax-exempt retirement accounts, IRA/Roth IRA accounts up to $1,512,350

Because federal exemptions typically allow individuals to protect more of their property, most opt to utilize them. However, you should not automatically opt for either state or federal exemptions without first discussing your options with an attorney. Bankruptcy is never a one-size-fits-all solution for everyone. Different individuals will benefit from different options within the bankruptcy process. Working with an experienced NJ bankruptcy attorney will help you to make informed choices and protect your assets.

Who is Eligible for State Bankruptcy Exemptions?

There are specific rules in place regarding who is eligible for specific state exemptions. Some states offer better opportunities for exemptions than others. Because of this, it may be tempting to relocate to a state with more favorable bankruptcy exemptions; however, some rules prevent this kind of strategic moving.

To determine if you are eligible for certain exemptions from a specific state, the rules are:

IF you have lived in your current state for at least two years, you are allowed to use that state’s exemptions.
IF you have moved within the last two years, you are eligible for the exemptions from the state in which you lived the longest during the 180 days immediately before the two years before filing.

You might be thinking: WHAT? It can be a bit confusing, so we will look at this through an example.

Let’s say you plan to file for bankruptcy in New Jersey on January 1, 2026 . The two-and-a-half-year period you are considering would begin on July 1, 2023. Whatever state you resided in for the majority of the days between July 1, 2023, and December 31, 2023, is the state’s exemptions you are allowed to use. While you will not have to file your case in that state, you can use that state’s exemptions.

Property That Cannot Be Exempted in NJ Bankruptcy

Depending on the type of bankruptcy you file, you may lose property not covered by an exemption. The bankruptcy trustee can sell any non-exempt property to pay back your creditors. Here are the exemption differences between Chapter 7 and Chapter 13 bankruptcies:

Chapter 7: When you file for Chapter 7 bankruptcy, your assets enter into a bankruptcy estate. Assets from this bankruptcy estate can be sold to pay off debts to your creditors. If the property or asset falls under one of the state or federal exemptions, you can protect it from being sold.

Chapter 13: If you file for Chapter 13 bankruptcy, you can keep all your property. The bankruptcy court will not take your property to pay back your creditors. Instead, you must pay your creditors back the value of any property not covered by an exemption. This payment will be included in your Chapter 13 repayment plan and will be paid over a period of three or five years.

For example:

Let’s say you own a car outright. This car is worth $3,000. You decide to use the federal motor vehicle exemption of $4,450. If you decide to file for Chapter 7 bankruptcy, you will be able to keep your car because the exemption protects the equity of the vehicle. If you file for Chapter 13 bankruptcy, you will not have to pay your creditors through your repayment plan, as the full equity of your vehicle is protected.

But let’s change the example and say your vehicle is owned outright and worth $15,000. When filing Chapter 7 bankruptcy, the bankruptcy trustee would sell your vehicle, give you $4,450 for the exemption, and distribute the remaining funds from the sale to your creditors. However, if you file Chapter 13, you would need to pay your creditors at least $10,550 through your plan.

How Do I Protect Financed Property in NJ?

You cannot use bankruptcy to discharge a home mortgage loan or a car loan and keep the property without paying for it. If you still owe a balance on your loan, you must pay as initially agreed upon to prevent foreclosure or repossession of the property. How secured debt is managed under bankruptcy again depends on which chapter you file under:

Chapter 7: While Chapter 7 bankruptcy can allow you the time to sort out your payments and get caught up on your mortgage, no mechanism within Chapter 7 allows you to catch up on or cure your past-due payments for secured debts. Your mortgage or car payment must be up to date to maintain the property. Otherwise, you risk losing it.

Chapter 13: You will not lose property under Chapter 13 bankruptcy. However, the judge will only approve your repayment plan if you can prove you make enough money to continue making monthly payments AND repay any late payments by the end of your three- or five-year plan.

Bankruptcy exemptions can be complex and confusing. Exemption laws are also constantly changing, so it is crucial to the success of your bankruptcy that you work with an experienced attorney. Veitengruber Law has been assisting individuals in filing for bankruptcy in Monmouth County for over a decade. We can help you make informed choices to get your finances back on track.

Estate Planning Lawyer in Monmouth County Explains When to Revisit Your Will

Mon, 06 Oct 2025 14:38:44 GMT

Many people believe that after they create a will, their estate planning is complete. And while estate planning involves more than just a will , even your will needs to be updated regularly. Most estate planning attorneys will recommend a periodic review of your plan to ensure that it is up-to-date and still reflects your wishes. A cursory review every two years, with a more in-depth review every five years, is a standard that should account for the life changes that occur over time. However, certain circumstances necessitate a more prompt review of your estate plan.

Veitengruber Law is an experienced law firm and will lawyer in Monmouth County, New Jersey. For over a decade, we have worked with individuals, couples, and families in NJ to create effective estate plans. As the circumstances of your life change, your will needs to reflect those changes so that it can continue to legally and financially benefit you and your loved ones.

Here are some circumstances that should prompt you to revisit and revise your will:

1. Marriage

Marriage holds deeply personal relevance for the couple involved, but it also has a very real legal and financial impact. Marriage is a legal contract between two people that creates mutual, legally binding obligations and responsibilities. In the realm of estate planning, this typically means your spouse will become entitled to your estate in the event of your incapacitation or death. In New Jersey, your spouse is generally entitled to one-third of your estate. Without a will, the remaining assets will be distributed to other relatives based on NJ inheritance laws.

When you get married, it is crucial to update or create a will with your new spouse in mind. You will be able to designate exactly how much of your estate should pass to your spouse. Leaving a specific portion of your estate to your spouse in your will can legally override the inheritance proportions set out by NJ. Whether this is your first marriage or a later-in-life marriage, updating your will to reflect your wishes for your spouse can ensure they are protected in the future.

2. Divorce

Just like it is crucial to update your will following marriage promptly, it is equally important to update your will following a divorce. In marriage, you likely had your spouse listed in a position of prominence in your will and general estate plan. In divorce, your wishes for your ex-spouse may have changed. If your former spouse is recorded as a beneficiary, an agent in a power of attorney, or as the executor of your will, you will want to make quick changes to your will post-divorce. Doing this in a punctual manner can prevent your ex-spouse from having any control over or access to your estate if you become incapacitated or pass away.

3. Death

The death of a family member or loved one can also require changes to your will. If a beneficiary or executor passes away, you need to account for how that loss impacts the future of your assets. For example, suppose your spouse was listed as your executor and the sole beneficiary of your estate. If s/he precedes you in death, you will need to designate a new inheritor for your assets. This is also true for the death of other beneficiaries or essential actors in your estate plan. The unexpected death of a loved one can drastically change your plans for the future and should prompt the updating of your will.

4. Having Children

As soon as you have a baby, adopt a child, or become the legal guardian of a child, you need to update your estate plan. It is especially critical to account for minor children in your will. Not only will you be considering the financial security of your minor dependents, but you will also be considering who should care for them if you are disabled, incapacitated, or pass away. Without explicit instructions in your will, these decisions will be left up to the state. Pre-selecting a guardian that you trust for your minor children can give you peace of mind that no matter what happens, your kids will be cared for.

If you have children with multiple spouses, have adopted children from your spouse’s previous relationship, or have other less straightforward connections with dependents, it is vital to work with an experienced attorney. New Jersey estate law does not cover the detailed complexities of our lives, but your will can when you work with a skilled lawyer.

5. Moving to a New State

If you move into or out of New Jersey, you will need to update your estate plan. When you draft a will in any US state, it is created under the laws of that state. New Jersey will have different estate planning laws than other states. Any state-specific aspects of your will should be addressed if you move to a new state, especially when it comes to estate taxes.

Moving to a new state can also change your designations for executor, power of attorney, or medical proxy, since previously listed individuals may no longer live in proximity to you.

6. Disability

If you or a loved one receives a diagnosis of a long-term disability, it may require you to update your will. Creating a will with a disability in mind can look quite different from making a will when everyone involved is reasonably healthy. For yourself, receiving a difficult diagnosis or becoming disabled may change the way you look at the future. You should nominate a power of attorney and a medical proxy that you trust to follow your wishes. Your wishes for medical intervention or end-of-life care may change over time. Considering these things immediately after a diagnosis can help you and your loved ones prepare for any future challenges that may arise.

Alternatively, if your spouse or beneficiary receives a diagnosis of disability, it may change the way you think about the distribution of your assets. Suppose your spouse gets an Alzheimer’s diagnosis, for example. In that case, it is advisable to remove them from the position as executor of your will since they will likely be unable to carry out those responsibilities in the future.

If a beneficiary is or becomes disabled, you can adjust your will to account for their needs. There are numerous financial implications when working with beneficiaries who are eligible for or receive government assistance due to their disability. Inheritance can complicate access to Medicaid and other assistance programs. Working with a knowledgeable NJ attorney to establish a trust for these individuals can ensure they are financially provided for from your estate while allowing them to maintain access to assistance programs and benefits.

Estate planning can be a daunting and intimidating process. No one likes to think about what should happen in worst-case scenarios. However, working with an experienced estate planning attorney, like Veitengruber Law, ensures a smooth experience. We do our job with compassion, expertise, and over a decade of practiced knowledge of New Jersey estate law. Reach out to us before you make any changes to your will. We can help you make the right choices to prepare for your future.

If My Home is Sold at Sheriff's Sale Can I Get it Back? Legal Foreclosure Defense Attorney Answers

Mon, 06 Oct 2025 14:36:36 GMT

A sheriff’s sale is a type of foreclosure auction. Properties are entered into a sheriff’s sale after a judge legally orders the sale of a property to satisfy legal judgments against the current owner of the property. If you are seeking a legal foreclosure defense attorney, Veitengruber Law is ready to assist you. With over fifteen years of experience helping New Jersey homeowners save their homes from foreclosure, we know it is possible to save your home—even after it is sold at a sheriff’s sale.

Veitengruber Law offers legal solutions to help you save your home. Here are some of the common questions we answer for folks facing the loss of their home through a sheriff’s sale.

What happens at a sheriff’s sale?

At a sheriff’s sale, members of the public can bid on the property, often sold in “as-is” condition. Attendees will be free to make competing bids on a property. The highest bidder wins the right to purchase the property, typically with a percentage of the bid, immediately after the auction closes. Proceeds from the auction are used to pay mortgage lenders, lienholders, tax collectors, and other creditors who have incurred losses on the property.

How can I save my home after it is sold at a sheriff’s sale?

Finding out your home has been sold at a sheriff’s sale can feel like the end of the line. But even after your home is sold at auction, you still have homeowner rights and legal recourse.

NJ Right of Redemption

Under NJ foreclosure law, a homeowner has the right of redemption for ten days after the sheriff’s sale. The right of redemption allows homeowners to maintain ownership of their property if they can pay the full amount due on the foreclosure judgment, plus the costs of the sale. If the homeowner can make this payment before the ten-day period expires, they will be able to keep their home.

During these ten days, homeowners also have the right to file written objections against the sale with the court. Your objection must contain a valid argument that the sheriff’s sale is invalid. An attorney can look at your case and help you determine if there are any grounds to object to the sheriff’s sale.

Additionally, you can use these ten days to file for bankruptcy. When you file for bankruptcy, your estate enters into the automatic stay period. During this time, other court proceedings pause. The NJ Bankruptcy Code provides homeowners facing foreclosure with an additional 60 days to cure the defaulted mortgage. If you can come up with the money required to pay off the foreclosure deficiency during these 60 days, you will be free to maintain ownership of your home.

Reopening a Foreclosure

After your home has been sold at a sheriff’s sale, your mortgage creditor will go to the court to obtain a deficiency judgment against you. This deficiency judgment will be used to ask for payment from you for the difference between what you owed on the property and what the property actually sold for at the sheriff’s sale. This reopens the foreclosure.

When the foreclosure is reopened, you have the opportunity to file an application with the court to redeem the property. This application of redemption must be filed within six months of the entry of the deficiency judgment. Redeeming the property will involve paying the full amount due in the foreclosure judgment, along with interest and any expenses incurred by the purchaser.

How can Chapter 13 Bankruptcy Help?

Besides the obvious benefits of the 60-day pause on foreclosure proceedings, Chapter 13 bankruptcy can be a more affordable path towards clearing your defaulted debt. While it may be challenging for homeowners facing foreclosure to come up with a lump sum of money to cure their defaulted debt, they may be able to afford a repayment plan. Chapter 13 allows you to repay your mortgage arrears through a monthly repayment plan lasting either three or five years.

Catching up on your past-due payments over time can make repayment more realistic. To get a repayment plan approved, you will need to prove you can make the monthly bankruptcy repayment plan payments.

Chapter 13 also presents the opportunity for you to apply for a loan modification with your mortgage lender. While you may have been denied a mortgage modification previously, applying for one during bankruptcy allows you another shot at modification – this time with court supervision. This added oversight can improve your chances of getting your modification approved.

Need help to save your home after a sheriff’s sale?

Veitengruber Law has the experience and knowledge you need to save your home. Just because your house has been sold at a sheriff’s sale doesn’t mean you are out of options. We can help you protect your homeowner rights and stay in your home.

Avoid Foreclosure Defense Scams! Find a Reputable Debt Relief Law Firm Metuchen NJ

Mon, 06 Oct 2025 14:31:45 GMT

New Jersey experienced a significant increase in foreclosures in 2025. Cost of living increases, high housing prices, and a stagnant job market have led many NJ individuals and families to struggle financially this year. In response to this, scammers and other malicious actors are increasingly emerging. Folks struggling with unmanageable debt may be tempted by scams promising quick relief and easy answers. As a debt relief law firm in Metuchen, NJ, Veitengruber Law can help you find legitimate, legal, and practical solutions to debt.

The NJ Department of Banking and Insurance is warning residents of an increase in ads, direct-mail solicitations, and other seemingly legitimate marketing ploys targeting NJ consumers. While these businesses and companies may make big promises about loan modification and debt relief, those promises are often empty.

Here are some things all NJ consumers should know to avoid falling into a long modification scam:

1. What is a loan modification?

A loan modification is when a lender and a borrower agree to change the terms of an existing loan to make the payments more affordable, allowing the borrower to avoid default or repay past-due debt. This can be achieved by extending the loan's term, adjusting the loan's interest rate, or even forgiving a portion of the loan. Under NJ law, loan modification falls under the category of "debt adjustment."

A" debt adjuster" is a person who acts as an intermediary between a debtor and a creditor for the purpose of altering terms of payment, OR who receives money or other property from the debtor and provides it as payment to the creditor.

2. Who can be a debt adjuster?

NJ law is very clear about who is legally allowed to be a debt adjuster. That includes:

The lender or owner of the loan
The loan servicing company
An individual or entity licensed by the Department as a Debt Adjuster
Other entities exempt from debt adjuster licensure, like nonprofit social services agencies or nonprofit consumer credit counseling agencies

Unless a business falls under one of the above categories, it is not a legitimate debt relief service, regardless of how it presents itself.

3. What can happen with loan modification scams?

Folks who seek the services of dishonest debt relief companies can find themselves in a worse position. Many of these companies require a substantial investment up front without providing a clear return on that investment. Victims of debt relief and loan modification scams can experience some dire financial and legal consequences, including:

Payment and loss of exorbitant upfront fees with no legitimate services in return
Loss of precious time during time-sensitive default or foreclosure processes
Loss of title to home or other property without benefit
Significant damage to the credit report and credit score

4. Who can I trust with a loan modification or debt relief?

If you are struggling with your mortgage or other debts, working with an experienced New Jersey debt relief attorney, such as Veitengruber Law, is a wise choice. Veitengruber Law is knowledgeable of NJ consumer laws, foreclosure defense, bankruptcy law, and debt relief solutions. We can provide direct legal representation and are bound by strict professional and ethical guidelines. We are skilled negotiators with over a decade of experience working with lenders.

Metuchen debt relief law firm Veitengruber Law can help you protect your legal rights as you work through unmanageable debt. We are transparent with our fees and our process. Our goal is to give our clients the knowledge and self-confidence to make informed decisions about their financial future.

Get Your Debts Discharged with the Right Chapter 7 Attorney in Monmouth County NJ

Mon, 08 Sep 2025 09:20:35 GMT

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.

Working with the right bankruptcy attorney can make a crucial difference in the result of your bankruptcy petition. If you want to get your debts discharged, this is how an experienced attorney like Veitengruber Law can help:

Why can bankruptcy be denied?

A bankruptcy petition can be denied for many reasons, most of which have nothing to do with whether you are actually qualified to receive a bankruptcy discharge. There are dozens of forms, laws, court orders, and requirements that must be filled out or responded to correctly. Missing just one item or notification can result in your case being dismissed.

There are three main reasons that a bankruptcy will be denied or dismissed:

1. Your circumstances do not meet Chapter 7 requirements and rules.

2. Your filing is missing documentation, information, or a required form.

3. You are unwittingly—or deliberately—trying to defraud the system.

Ultimately, the court holds the power to decide whether or not your bankruptcy will result in a discharge. It is critical to provide the court with all requested information, as well as any additional information that you believe is relevant to your case. There are crucial deadlines that must be met and documentation that must be submitted. Even a minor slip-up can result in your case being denied.

However, nearly 99% of Chapter 7 cases that move through the entire court process receive a discharge in the end. What is the key difference between these cases and those that are denied? Typically, it is an experienced and knowledgeable bankruptcy attorney.

Here are some ways a bankruptcy attorney at Veitengruber Law can ensure your Chapter 7 bankruptcy ends in a discharge:

1. Proper Filing

An improper filing is the number one reason bankruptcy petitions are denied or dismissed. There are many reasons the court might label your petition as an improper filing. Some of these reasons include:

Seeking discharge under Chapter 7 as a business or entity: Only individuals can receive discharge of debts under Chapter 7 bankruptcy. While businesses, corporations, and other entities can file for Chapter 7, they can only do so to liquidate their assets and pay back creditors.
Mistakes and omissions in filing documents: The amount of paperwork and documentation that goes into a successful bankruptcy can be overwhelming. One small mistake, omission, or missing document can result in your entire case being thrown out. Attention to detail and meticulous tracking of everything required for your filing is paramount to your success.

2. Filing at the Right Time

The timing of your filing is essential and can make the difference in the success of your case. Federal law outlines the timeframe for repeat filings of bankruptcy. If you have already received a successful discharge under Chapter 7 bankruptcy, you must wait eight years from the discharge date before you can file for discharge under Chapter 7 again. If you previously received a discharge under Chapter 13 bankruptcy, you must wait six years from the date of discharge to file again.

Even if you did not receive a discharge but did file for bankruptcy, there are rules for when you can file again. If your case was denied, dismissed, or if you voluntarily withdrew, you must wait 180 days before reapplying. Disregarding these timeframes will result in the automatic denial of your discharge.

3. Passing the Means Test

The means test is a two-part process intended to determine if you qualify for discharge under Chapter 7 bankruptcy. Put simply, the means test proves to the bankruptcy court that you do not have the means to pay back your debts.

The first step of the means test takes a look at your gross income for the six months leading up to your filing. This is your household income, so if your spouse lives with you, then you must include their income. If your gross household income is below the median income for your state, you are eligible for Chapter 7 bankruptcy. The median income for NJ is $101,050 for households and $47,833 for individuals.

If your income is not below the median household or individual income for your state, then you move on to part two of the means test. You will look at how your income compares to your assets and expenses to come up with a complete picture of your financial reality. To proceed, you will need to complete numerous forms and have a solid understanding of IRS rules regarding exempt and nonexempt expenses. Sometimes these exemptions can also vary by state. This calculation is not simple, and working with a skilled bankruptcy lawyer can help you discover your eligibility based on the means test.

4. Preventing Dishonesty and Fraud

While it is typically not the intention of those filing for bankruptcy to be dishonest in their filing, it does happen. Compiling a full accounting of your finances without leaving anything out can be more complex than it sounds. It can also be tempting to fudge the numbers a bit to make your financial situation appear more dire. Some people attempt to retain property and assets by “gifting” them to friends and relatives in the weeks and months preceding a filing for bankruptcy.

However, the court will dismiss your case if it believes you have been dishonest, even if the dishonesty resulted from an error rather than a deliberate attempt to deceive. There are specific laws in place to prevent filers from withholding financial information or attempting to hide assets and income. If you are found trying to defraud the court, you can face legal consequences. A bankruptcy attorney can help you avoid making these disastrous mistakes, ultimately saving you time and money in the long run.

If you have an excess of time, patience, commitment, and understanding of “legalese”, it may be possible for you to file for bankruptcy on your own. But filing for bankruptcy without a legal representative opens you up to increased risk. For many, turning bankruptcy into a full-time job is not an option. You have a family, a career, and a life outside of your bankruptcy case that still need your attention. Not to mention, the stress of going through bankruptcy can become overwhelming, especially if you are trying to take on the process alone.

Working with an experienced bankruptcy attorney like the Veitengruber Law firm can take some of that stress off your plate and ensure that you have the best odds of getting your debts discharged. We are equipped with in-depth knowledge of the law, court procedures, and legal remedies for even the most precarious of financial situations. When you work with the right bankruptcy attorney, you can get on the road to a brighter financial future with fewer bumps.

Buying a Home with Bad Credit in 2026: Our Monmouth County Real Estate Lawyer Advises

Mon, 08 Sep 2025 09:08:14 GMT

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.

According to Experian data, nearly 1 in 3 consumers in the US have a credit score below 670, falling in the “subprime” range where lenders start to question eligibility for financing. While bad credit is a common concern for hopeful homebuyers, with the right strategies and resources, homeownership is still a possibility. Veitengruber Law works with individuals and families to understand their options and feel empowered to make the jump into purchasing a home. Here are some of our practical tips for entering the real estate market as a buyer with less-than-ideal credit.

What is a poor credit score?

Some people don’t even consider their credit score until they try to buy a home and discover their financing options are limited. Most mortgage lenders will identify a credit score as “poor” if it is below 580. A poor credit score indicates to lenders a trend of financial instability, high debt, or repeated late payments. The following is a typical outline for how lenders categorize credit scores:

The higher your credit score, the more options you will have for financing your home, and typically at a lower rate. The worse your credit is, the higher your rate will be. But while a poor credit score can narrow your options, it does not eliminate them. There are alternative financing methods that specifically cater to those with lower credit scores.

Is it possible to purchase a home with bad credit?

Your credit score is just one part of your finances. Other factors could help offset a poor credit score, potentially opening the door to better financing options. Here are some other things to consider:

1. Evaluate Your Income: Lenders typically require proof of steady employment and income. They will be looking for a debt-to-income ratio below 43%. This helps reassure the lender that you can afford the monthly payments for your mortgage and all the other expenses that go along with homeownership.

2. Check Your Savings: If you have significant savings, this can also help offset a poor credit score. A larger down payment will require you to finance less of your home purchase and encourage lenders to approve your mortgage application. FHA loans have less stringent financial requirements for eligibility and require just a 3.5% down payment. If feasible, purchasing a home could be an option even with a poor credit score.

3. Eliminate Debt: Lowering your outstanding debts can make you look like a more appealing applicant to mortgage lenders. If you plan on purchasing a home in the near future but your credit is struggling under the weight of unmanageable debt, take some time to resolve some of your debt issues before beginning your home-buying hunt. Even improving your credit by ten or twenty points can open up more options for financing.

What are my mortgage options with a low credit score?

While your mortgage options may be limited if you have a poor credit score, you should not count yourself out of homeownership entirely. You have choices. Working with a skilled and knowledgeable real estate attorney like Veitengruber Law can help you explore all of your options and ensure you are making the best choice for you and your specific situation. Here are some of the options we have helped our clients with:

Government Programs

Federal Housing Administration (FHA) loans specifically cater to individuals with lower credit scores. To qualify for most FHA loans, you must have a credit score of at least 580 and the ability to cover a 3.5% down payment. If your credit score is below 580, however, you still have options to get approved for an FHA loan. If your score is between 500 and 579, you may still get approved if you have a 10% down payment.

The US Department of Agriculture (USDA) also offers loan options for those with low credit looking to purchase property in a designated rural area. They provide various loan options for individuals and families seeking to purchase, construct, or renovate affordable homes in rural areas. Some of these loan options include no down payments for low-income families.

Veterans Affairs (VA) loans can help veterans and other eligible relatives purchase a home with little or no down payment. While the VA does not list a universal credit score minimum, different VA lenders will have individualized credit score requirements. However, these requirements are typically lower than for conventional loans. They are specifically designed to be flexible enough to accommodate a wide range of military borrowers.

A real estate attorney can assist you in determining your eligibility for government programs and assist you in the application process to ensure you are presenting your best case for access to these financing resources.

Alternative Financing

Subprime mortgages can offer buyers with poor credit the opportunity to purchase a home when other avenues to homeownership are not an option. Borrowers who do not qualify for conventional or government assistance loan programs may still be eligible for a subprime mortgage. Many people associate subprime mortgages with the mortgage crisis of 2008, which devastated the US housing market. Today, the government has put many regulations in place to make subprime mortgages less predatory. That being said, it is critical to understand every aspect of a subprime mortgage before signing the contract.

Subprime mortgages typically involve high closing costs and high interest rates. Lenders want to offset the risk of lending to borrowers with poor credit. They do this by collecting high payments up front. High interest payments can also mean you will pay tens of thousands of dollars more over the lifetime of a subprime mortgage loan than you would with a conventional loan. Subprime mortgages are more expensive in both the short and long term, so it is crucial to consider the financial feasibility before agreeing to the terms.

Subprime mortgages provide an avenue to homeownership for individuals with low credit who otherwise have no financing options. Subprime mortgages also have government-regulated, capped interest rates. Securing and making regular payments on a subprime mortgage can also improve your credit score, which may make different financing options possible in the future. The decision to accept a subprime mortgage should be based on your circumstances. An experienced NJ real estate attorney can also help you determine if a subprime mortgage is the right choice for you.

Having a lower-than-average credit score can make it more complicated to finance the purchase of a home, but you have options. Veitengruber Law has worked with many NJ homeowners to secure government and alternative financing to achieve the dream of homeownership. We are skilled professionals ready to share our in-depth knowledge of alternative financing options. Reach out to us today for your consultation.

What NOT to do if Estate Planning After a NJ Divorce

Mon, 08 Sep 2025 08:59:43 GMT

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:

1. Forgetting to Update Your Will

After a divorce, you will need to do a detailed review of your estate plan and determine areas where revisions are necessary. Many folks list their spouse as executor, administrator, or beneficiary. If you do not want your ex to have control over your estate or receive an inheritance from your estate, you will need to revise your estate plan to reflect this. Neglecting to update your estate plan to remove your ex-spouse could result in them receiving your assets after your death instead of other loved ones or even a future spouse. This is especially true for trusts that your ex may be listed on as a trustee, as this could potentially impact the inheritance of your heirs.

2. Failing to Remove Your Ex as Your POA or Health Care Proxy

The person you choose as your Power of Attorney and Health Care Proxy is in a position to have much power over your life and your assets. If you become incapacitated, this person will have the ability to make crucial medical, financial, and legal decisions for you. After a divorce, you may no longer trust your ex to make the decisions in good faith. Changing your POA and health care proxy selections immediately after you divorce is crucial to protecting your assets. Failing to do so could lead to significant legal battles for your loved ones.

3. Not Updating Guardian Designations for Minors

If you still have minor dependents, it is crucial to nominate guardians post-divorce. While a guardian you nominate would not supersede the parental rights of your ex-spouse, it would give them a legal precedent for guardianship if you and your ex pass, or if you pass and your ex is deemed unfit. This can help you ensure your children are cared for no matter what the future holds for you or your ex. Nominating guardians can help your children avoid more heartache during an already difficult time.

4. Neglecting to Update Life Insurance and Retirement Accounts

If you have a life insurance policy, the beneficiaries listed in this policy will supersede whatever is written in your will. Even if you have explicitly listed a different beneficiary for your life insurance policy in your will, the company you have your policy through will only disperse funds to your policy beneficiary. This means your ex-spouse could receive your life insurance payout or retirement account. Contact your life insurance or retirement plan provider to change your designated beneficiaries.

5. Ignore Financial Consequences

Divorce is expensive. Legal fees, dividing assets, moving expenses, splitting your household income in half—it adds up. When you add child support or alimony to this, the financial impact of divorce can drastically alter your financial circumstances. You could find yourself in a different tax bracket. Adjustments within your estate plan can help you minimize your tax obligations post-divorce.

6. Act Before Talking to an Attorney

There may be terms or stipulations in your divorce settlement that apply conditions to how much of your estate you can protect from your ex. For example, the divorce settlement could state that your ex is entitled to half of your retirement savings. In this case, you could not legally remove them as a beneficiary of this account. Working with an attorney can stop you from making expensive mistakes and help you find legal ways to protect your assets from a former spouse. Estate planning can be complex, and it is crucial to have a knowledgeable legal expert to help you avoid problems.

Veitengruber Law is an estate planning attorney in New Jersey with experience working with divorced individuals navigating the legal complexities of estate planning after separation. Divorce creates unique circumstances that can make it difficult to effectively estate plan. We can help you avoid common mistakes and start anew.

Looking for a Real Estate Attorney in Monmouth County New Jersey?

Mon, 08 Sep 2025 08:56:40 GMT

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.

Veitengruber Law is a real estate attorney in Monmouth County. Here are just some of the reasons you should work with us to protect your interests and avoid costly mistakes if you are buying or selling a home:

1. Avoid Legal Entanglements

Working with a practiced real estate attorney is the easiest way to protect your interests and avoid legal issues. In NJ, the mandatory three-day attorney review period is built into the real estate process to encourage home buyers and sellers to seek the legal advice of an experienced lawyer. Attorneys are trained to meticulously review purchase agreements, mortgage documents, and other legally binding contracts. They can help you determine if you should sign a contract or how to amend a contract to better protect your rights.

Attorneys can also perform title searches. This can help you identify any possible legal issues that may come with the property. An attorney will work with you to resolve these problems prior to closing. A lawyer can also help you get title insurance to protect against any future claims against the property.

2. Prevent Problems

As an experienced real estate attorney, Veitengruber Law has seen it all when it comes to problems in real estate transactions. Our in-depth knowledge of real estate law, combined with our real-world experience helping NJ residents achieve their real estate goals, can serve your interests. We can identify and prevent potential disputes and problems before they escalate into major legal battles. Boundary disputes, zoning issues, title defects, and faulty contracts can be prevented when you work with a real estate attorney from the beginning.

If legal disputes arise during the course of a real estate transaction, your attorney can represent your best interests during negotiations and work towards resolving the issue in your favor.

3. Facilitate a Smooth Closing

A real estate attorney can be indispensable at the closing table. Everyone has heard a horror story or two about a real estate deal that was seemingly going great, only to fall through at the last minute. Issues that arise during closing can be costly, time-consuming, and emotionally draining. Working with a real estate lawyer can help you avoid last-minute problems and get through closing with as little fuss as possible.

A real estate attorney can prepare all the documentation required for closing, like the deed, mortgage, and transfer documents. They can also attend the closing and help you address any potential issues quickly, ensuring you can close on time.

Veitengruber Law is an experienced real estate attorney in Monmouth County. If you are looking for a legal expert to guide your real estate transaction, we can help. We can assist you through the legal complexities of NJ real estate law and help you protect your interests.

Foreclosure Defense Metuchen NJ - Stay in Your Home with Veitengruber Law

Tue, 05 Aug 2025 07:50:57 GMT

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.

Disclaiming Your NJ Inheritance to Avoid Creditors in Bankruptcy - Attorney in Wall Township Weighs In

Tue, 05 Aug 2025 07:48:29 GMT

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.

7 Signs It is Time to Reach Out to a Debt Relief Law Firm

Tue, 05 Aug 2025 07:45:44 GMT

If you are struggling with debt, you may be unsure who to reach out to or whom you can trust. Individuals dealing with unmanageable debt are frequently targeted by scams, dishonest companies promising unrealistic outcomes, and creditors that attempt to skirt the law. While there are numerous legitimate companies offering debt relief and settlement services, it is essential to remember that even these reputable companies prioritize the success of their business over the well-being of their clients.

Collaborating with a well-respected debt relief attorney can help you avoid making costly mistakes and explore all the debt relief opportunities available to you. If you are looking for a trustworthy and knowledgeable debt relief law firm, Monmouth County’s Veitengruber Law is ready to help. We offer compassionate, skilled legal advice for NJ residents struggling with debt.

Here are some signs it is time to call the skilled team at Veitengruber Law:

1. Lawsuits, Garnishments, and Collection Actions

Does your stomach drop every time the phone rings after weeks of calls from aggressive collections agencies? Chances are, it is time to take a more proactive approach to your financial situation. Especially if you are facing lawsuits or wage garnishment, it is advisable to consult with an attorney. A debt relief attorney can guide you on how to protect your rights and ensure that these companies and lenders are not acting illegally.

2. Your Debt Is Growing Monthly

You’re making monthly payments, but your debt continues to grow beyond your ability to pay. Being stuck in a cycle of high-interest debt can make it feel like you will never pay down your debts. A debt relief attorney can help you determine a solution-oriented path forward to finally eliminate your debt. Depending on your unique circumstances, a debt relief law firm may suggest bankruptcy, a debt management plan, or other options.

3. Foreclosure, Repossession, or Eviction

If you are behind on payments toward your housing or vehicle, you may face dire legal and financial consequences. Receiving a notice of foreclosure, eviction, or repossession is a significant warning sign, and you should consult a debt relief law firm to explore your options ASAP. Depending on your situation, an attorney may be able to help you save your home, keep your car, or stay in your rental. You have legal options even after a notice to foreclose, evict, or repossess. Ensure your legal rights are protected by consulting with an attorney.

4. You Use Credit Cards to Pay for Basic Living Expenses

Frequently using your credit cards to pay for groceries, utilities, or other basic living expenses is a big red flag that your expenses exceed your income. Repeated use of credit cards to pay for these expenses can quickly lead to unmanageable debt. A debt relief attorney can help you pinpoint the most financially draining areas of your budget and help you determine the best way forward. If you are no longer able to make your monthly credit card payments, it is time to reach out to an attorney.

5. You Have Experienced a Financial Setback

Sometimes, people find themselves in a precarious financial situation due to life events beyond their control. Job loss, income loss, divorce, the loss of a spouse, medical emergencies, and more can all result in dire financial circumstances. Regardless of what kind of financial setback you are experiencing, there are options available to help. Many lenders have forbearance options for those facing temporary financial difficulties. Chapter 13 bankruptcy can also be a great option to overcome debt incurred during a temporary gap in employment or income.

So, how can a debt relief attorney help?

Debt relief and bankruptcy attorneys offer a comprehensive financial analysis of your unique situation. They will be able to review your income, assets, and expenses to determine your best options moving forward. From there, they can provide a strategic plan to help you maximize the legal options available to you. An attorney provides expert guidance as well as protection from creditor harassment and legal action.

With Veitengruber Law, your best interest is our best interest. We will use the law to ensure that your assets are protected. We’ll also provide in-depth explanations of all your options, helping you come to an informed decision that is best for you. If bankruptcy is not the winning choice moving forward, our attorney can help you explore other solutions like debt settlement, consolidation, or repayment plans.

Veitengruber Law offers services that go far beyond debt relief. We are knowledgeable about bankruptcy, foreclosure defense, short sales, and credit repair. Our team provides compassionate, practiced, and proven legal solutions to help our clients gain financial security. Don’t delay seeking relief from unmanageable debt. Reach out to us today for a free consultation.

Do You Need a Chapter 13 Attorney in Monmouth County?

Tue, 05 Aug 2025 07:43:44 GMT

How do you know your debt has become unmanageable? Payments that do nothing to chip away at your balance, late or missed payments, and calls from creditors are good indicators that your debt is no longer manageable with your income. After a certain point, it can begin to feel like there is no way out. Bankruptcy can be an effective tool to help you regain control of your financial future.

If you are looking for a Chapter 13 attorney in Monmouth County, Veitengruber Law can help. We are ready to help you turn Chapter 13 bankruptcy into a tool to fix your finances. Here are some signs that Chapter 13 bankruptcy is the right choice for you:

1. You Have a Steady Income

Chapter 13 bankruptcy, as opposed to Chapter 7 bankruptcy, is ideal for folks who have a steady income but are simply struggling to manage their debt. If your income can cover basic living expenses but is being overwhelmed by debt payments, Chapter 13 can help set you up with a repayment plan that you can afford.

2. You’re Facing Foreclosure or Repossession

One of the major appeals of Chapter 13 bankruptcy is its ability to stop foreclosure or repossession. From the moment you file bankruptcy, the automatic stay period goes into effect. This prevents creditors from collecting on past-due debts or pursuing legal action. The automatic stay lasts the entirety of your bankruptcy case. It will not be lifted until your bankruptcy is either dismissed or the court approves your repayment plan. Any past-due payments leading to foreclosure or repossession can be rolled into your Chapter 13 repayment plan, allowing you to catch up on these payments while maintaining ownership of your property.

3. You Do Not Qualify for Chapter 7 Bankruptcy

Not everyone seeking discharge under Chapter 7 bankruptcy will qualify for it. Chapter 7 includes strict income requirements. If your income is too high to pass the means test for Chapter 7 bankruptcy, Chapter 13 is an excellent alternative that can still help you eliminate unmanageable debt.

Certain debts can't be discharged under Chapter 7 bankruptcy. These include back taxes, child support, spousal support, and other court-ordered payments. Chapter 13 bankruptcy allows you to include these debts in your court-approved repayment plan.

4. You Want to Protect Assets

Secured debts, like your car loan or mortgage, are backed by collateral. Unlike Chapter 7 bankruptcy, which can result in the liquidation of your assets to pay back your debts, Chapter 13 helps you repay your debts while still protecting your assets. This allows you to maintain ownership of your home, your car, and other valuable assets while also making significant progress towards paying down your debts on these items.

5. You Are Committed to Repaying Your Debt

Chapter 13 is the best fit for individuals who can repay their debt and want to do so, but need a little more time. If you can stick to a repayment plan and are ready to make consistent payments, Chapter 13 is a great option to get out of debt.

When you need an experienced Chapter 13 Attorney in Monmouth County, look to Veitengruber Law . We have over a decade of experience helping individuals and families in the community file for bankruptcy and get their finances out of the red. Don’t deal with overwhelming debt alone.

Estate Planning for Seniors in New Jersey

Fri, 04 Jul 2025 03:29:22 GMT

Life is unpredictable. Estate plans are intended to help you plan for the unexpected. While it is ideal to start estate planning early on in your adult life, it is never too late to create or update an estate plan. The benefits of asset protection, medical directives, and other estate planning tools remain valuable even for seniors who have not done any estate planning. However, seniors who start estate planning later in life may face specific obstacles that younger individuals may not encounter.

Here, we examine the benefits of estate planning for seniors and provide guidance on navigating the potential challenges associated with late-in-life estate planning.

The Benefits

1. Your Wishes Are Followed

Perhaps the biggest motivation for seniors doing estate planning later in life is to have their wishes known and respected. As we age, we start to consider end-of-life planning and what will happen to our assets after we pass away. An estate plan allows you to be direct and specific about what assets pass to which loved ones. Clear directives also help loved ones avoid confusion and conflict after your passing.

2. Medical Preferences

Estate planning enables seniors to be specific about how their assets should be distributed while also providing crucial details about their preferences for medical care and end-of-life care. Naming a medical power of attorney to make decisions for you in the event you are incapacitated can help family and loved ones intervene quickly on your behalf. You can also provide detailed preferences about which treatments or medical interventions you accept. Even if you already have an estate plan in place, your preferences for medical intervention may be very different from the preferences you had when you were younger. A comprehensive estate plan can ensure that your wishes are followed even when you cannot advocate for yourself.

2. Avoid Probate

Without an estate plan in place, your assets will be subject to the probate process. During probate, all your assets are identified and appraised by the court. This includes real estate, bank accounts, investments, personal belongings, retirement accounts, and other assets. Probate is time-consuming and potentially costly. Not only will the state have purview over your assets and what happens to them, but probate opens your estate up to scrutiny. The state will allocate your assets based on New Jersey intestacy law—not your preferences. Creditors seeking repayment of debts can also receive repayment through the probate process. When you work with an attorney to develop an estate plan, they can help you avoid the probate process so that more of your assets go to your loved ones.

The Challenges

1. Incapacity

One of the biggest challenges seniors face with later-in-life estate planning is the risk of incapacity. As we age, our mental acuity can decrease. Especially with a diagnosis of Alzheimer’s or dementia, seniors can lose the right to plan for their future. Mental incapacitation can prevent a senior from legally making changes to an existing estate plan. If you are worried about claims of incapacitation, you can work with an attorney and your medical team to determine what choices you can still make for your future. For seniors whose mental incapacity has progressed to a certain level, family members and loved ones will need to utilize the probate process to manage the estate.

However, mental incapacity is not a problem for all seniors. If you still have good mental capacity, now is the time to create or change an estate plan. You can create an estate plan even after moving into an assisted living facility or gain the assistance of an aid. As long as your mind is not impacted, you are legally able to make decisions about your assets and your future.

2. Medicaid’s 5-Year Lookback Period

In New Jersey, seniors seeking to qualify for Medicaid will have their assets scrutinized under the five-year look-back period. Medicaid will review financial transactions from the previous five years to determine if there are any red flags indicating that assets were intentionally given away as gifts or transferred in an attempt to qualify for Medicaid. This artificial reduction of assets to qualify for Medicaid can result in a senior being disqualified from receiving long-term care services through Medicaid. Working with an experienced attorney early on can help you set up the gifting of your assets in a way that does not raise any red flags for Medicaid.

Veitengruber Law is an experienced estate planning law firm in Monmouth County. Estate planning for seniors presents unique challenges that require the expertise of a legal professional. We offer compassionate and beneficial legal services to help seniors navigate their later-in-life estate planning.

Estate Planning for New Jersey Business Owners

Fri, 04 Jul 2025 03:26:05 GMT

Estate planning for New Jersey business owners is a critical task. You’ve put your time, energy, and resources into building a prosperous business, and you want to see that business thrive even after you’re gone. Regardless of the size and scope of your business, having a comprehensive estate plan in place can help facilitate the smooth transition of ownership, minimize the tax impact on your successors and loved ones, and establish a lasting legacy for you and your business.

As a business owner, you will need to make special considerations for your business. Even if you have an estate plan in place for your personal assets, you will also need to consider the needs of your business and those tied to it. Veitengruber Law has been providing expert estate planning for business owners in New Jersey for over a decade. We work with NJ business owners to create a customized estate plan tailored to the unique needs of their business.

Here are seven essential features of estate planning for business owners in NJ:

1. Will

As a business owner, you have many estate planning tools at your disposal to help protect your assets and set your business up for future success. The most well-known document is a will, but the truth is that your will is just one part of a larger estate plan. Just as with personal estates, business owners will outline their assets and how those assets should be distributed after death. The will also lists an executor of your estate. This is the person who will oversee your estate and ensure your wishes are carried out. For business owners, your will is a good place to outline your successor, as well as outline management and ownership.

2. Power of Attorney

A durable power of attorney allows you to designate a trusted person in your life to manage your financial and business affairs if you are unable to do so yourself. If you are incapacitated during an accident or due to a medical issue, this person could step in to ensure your business runs smoothly in your stead. This person can be a family member, business partner, trusted employee, or even a financial or legal advisor. It is essential to select someone familiar with your business to ensure they are capable of managing your business affairs effectively.

3. Trust

While a will is a crucial estate planning tool, it cannot protect your assets as thoroughly as a trust. Trusts are flexible but efficient estate planning tools that can help you transfer business ownership while avoiding probate, maintaining confidentiality, and reducing your successor’s tax burden. Trusts are often used to transition ownership of family businesses. Without a trust, your business will be subject to probate, a time-consuming and costly process. Probate can hinder the smooth transition of your business and also puts your business assets in jeopardy for creditors and other legal action. Transferring business assets into a trust can also help business owners reduce their taxable estate, lowering estate taxes for their heirs.

4. Business Succession Planning

A business succession plan is a document that allows you to outline the transition of ownership and leadership for your business. Succession planning can include plans for your transition into retirement or for what should happen in the event of your death. This plan outlines how you want the business to be managed and who should own the business after your departure. Your business succession plan should identify successors for ownership and leadership roles to ensure operational continuity and preserve the value of your business. You can also outline how you want ownership to transfer—to family, partners, key employees, or even external buyers.

Business succession planning helps business owners ensure the lasting legacy of their life’s work and the continued success of their business.

5. Asset Protection

Estate planning is the best way to legally protect your assets. However, business owners must be cautious about how they protect personal assets from business liabilities. Personal assets and business assets should be addressed separately to avoid potential issues. The easiest way to do this is to establish your business as a separate and distinct legal entity from yourself. You can do this by establishing an LLC or corporation. Work with an estate planning lawyer to ensure your assets are addressed separately in your estate plan. Establishing a trust for your business can help safeguard your business from creditors and lawsuits.

6. Buy-Sell Agreement

If you share ownership of your business with one or more other owners, a buy-sell agreement can outline how ownership of your part of the business will be transferred under different circumstances. You can work with an estate planning attorney to determine buy-sell agreements for death, disability, or retirement. A buy-sell agreement should include the following:

Ownership Transfer: This section of the agreement outlines the method for transferring ownership if one owner leaves. This can help prevent business disruptions and also provide for the heirs of the departing owner.
Triggering event: The agreement should specify what events will initiate the transfer of ownership. This can include death, disability, retirement, termination of employment, or any other major event that would impact ownership rights.
Valuation: A buy-sell agreement should include the method used to measure the value of the subject’s business interest. This will also help establish the estimated value of the business for estate tax purposes.
Funding: The departing owner may wish to fund the buy-sell agreement. By providing the capital needed for remaining or future owners to purchase the departing owner’s interest, the departing owner can ensure a smoother transition. Life insurance is commonly used to provide the funds needed to purchase the business interest.

7. Tax Implications

In New Jersey, after a business owner passes away, heirs and successors may be required to pay the IRS estate tax. This tax could be anywhere from 35% to 50% of the business’s worth. Often, heirs cannot pay this tax outright, which can result in the sale of the business. However, with some thoughtful estate planning, you can avoid this tax burden. Trusts can help minimize taxes or offer tax-efficient strategies to limit the tax burden for your heirs. Buy-sell agreements can also work strategically to help reduce the tax burden on remaining owners.

8. Regular Reviews and Updates

Periodically reviewing and updating your business estate plan is critical to the success of your plan and the easy transition of your business. Things can change quickly when it comes to businesses. Employees and leadership may change, valuation can fluctuate, and your beneficiaries may also change. Regularly review your estate plan with an experienced estate attorney to ensure that your estate plan effectively protects your business, assets, and future.

Veitengruber Law is an experienced estate planning attorney in New Jersey. We work with NJ business owners to protect their personal assets and business interests. Business owners face unique challenges when it comes to estate planning. Working with a skilled attorney who understands estate law can help NJ business owners ensure that the future of their business is secure. Contact us today for a consultation!

Monmouth County Real Estate - What to Know Before Listing Your Home for Sale

Fri, 04 Jul 2025 03:20:37 GMT

Selling a home can be a daunting task. Contrary to popular belief, the process of selling a home is more than just sticking a "For Sale" sign in the front yard. Selling a home in Monmouth County presents its own unique set of benefits and challenges. Desirably located on the coast with quick access to major metro areas, Monmouth County is an appealing place to set down roots for a wide variety of buyers. At the same time, the real estate market in Monmouth County is competitive. To sell your house quickly and for the best possible price, sellers need to do some preparatory work.

The steps you take to sell your home will depend entirely on your unique goals for the sale. Some homeowners are looking to sell quickly and are willing to make significant concessions or accept a lower sales price to ensure the property does not linger on the market. Some sellers are looking to maximize their profits and spend their selling preparation focused on maximizing value. Regardless of your motivations and goals, most sellers will benefit from these 5 tips for homeowners trying to sell a Monmouth County home in 2025.

1. Work With Real Estate Professionals

One of the biggest mistakes we see sellers make is to try to go it alone. Many DIY sellers feel they have already gone through the real estate transaction process and, therefore, understand how to manage the sale alone. However, experts know that "for sale by owner" transactions are, more often than not, a disaster, forcing sellers to expend undue time and money.

When you are assembling a real estate team to help you sell your home, you are looking at two leading professionals: real estate agents and real estate attorneys. While neither are required to sell a house in Monmouth County, both offer invaluable benefits to sellers. Experienced real estate professionals provide a deep understanding of the market and skilled negotiation prowess that can save buyers time, effort, and money in the long run.

2. Research Your Local Market

Even when working with professionals, it is essential to gain a thorough understanding of the Monmouth County real estate market. Sellers who have a good grasp of the market tend to have more realistic expectations for the sale. They are also able to make informed decisions based on their own desires, goals, and needs.

The Monmouth County real estate market is particularly competitive due to the numerous amenities and attractions that Monmouth County offers its residents. With a balanced mix of suburban living and quick access to major metropolitan areas, this is a desirable place to live. Red Bank, Middletown, Colts Neck, and other popular towns offer a charming lifestyle that attracts individuals, couples, and families. This competitive market requires sellers to carefully consider the presentation and pricing of their property to maximize profit.

Sale timing is just as important to understand. If you are listing your home in the fall or winter, you may have less competition from other sellers, but you also may experience a lack of buyers in Monmouth County. The real estate professionals you work with can help you determine the best timing and conditions under which you can get the best deal to sell your home.

3. Prepare Your Home for Sale

Like it or not, most buyers are judging your home by its appearance. While some buyers are okay with a home that needs a little work or some minor repairs, the vast majority are looking for move-in-ready homes that look appealing. To prepare your home for sale, take the time to make it sale-ready.

Some things to consider:

Curb Appeal: The outside of your home is the first view a potential buyer sees upon arrival at your property. First impressions are everything in real estate. The outside of your home and surrounding areas can be an invitation to come in or a turnoff, depending on the effort you put into your curb appeal. Some simple fixes, such as weeding, planting colorful flowers, repainting the front door, and cleaning up your outdoor spaces, can go a long way in boosting curb appeal and increasing the chance that buyers will want to take a second look at your home.
Declutter: Your home is lived in—that is what makes it a home. However, too much clutter can have the effect of making your space appear smaller. During home tours, buyers will want access to every area of your home to ensure they have a thorough understanding of the property. To showcase your space to its best advantage, start by decluttering your living areas and then tackle closets, drawers, cabinets, and other storage spaces.
Depersonalize: Similarly, buyers want to be able to envision themselves living in a home—which can be challenging when the home is cluttered with the seller's personal items, family photos, bold or unique artwork, or untraditional furniture. Make your space as much of a blank slate as possible to encourage buyers to envision themselves living in the house.
Repaint: Painting every room in your home may sound daunting, but with the cost of some paint supplies and sweat equity, you could gain thousands after the sale. While you may love your bright accent wall, a buyer might see it as a big eyesore. Choose neutral colors to repaint more vibrant areas of your home. If your home already has a neutral color pallet, ensure the walls still look fresh and touch up if needed.
Repair: This is the word sellers dread the most. Every property is bound to have some needed repairs, but who wants to spend the money fixing things in a house you are soon to be leaving? However, you don't need to spend thousands on repairs to make your home appealing. Focus on things buyers are sure to notice during a walkthrough: tighten loose handles, replace burnt-out light bulbs, repair broken hardware, etc.
Keep It Clean: Whether you're still living in your home or not, you need to keep your home clean and ready for spur-of-the-moment viewings.
Pre-Sale Inspection: A pre-sale inspection can help you identify problem areas that could delay or prevent the closing or result in a sale falling through completely.

4. Market Your Home

In such a highly competitive market, Monmouth County sellers must execute a comprehensive marketing plan. Working with your experienced real estate team, you can develop a marketing plan that showcases the property's highlights, making it stand out in listings. Highlight all the features that make your home uniquely attractive, such as extra storage space, ample outdoor areas, or proximity to local attractions. Open houses and private viewings can also help boost your marketing reach. The more people who see your home, the more likely you are to have a buyer.

5. Prepare to Navigate Legal Details

NJ real estate law is complex. Even the most straightforward real estate transactions involve significant legal and financial considerations. By partnering with a skilled Monmouth County real estate attorney like Veitengruber Law, you can ensure that you are meeting all of your legal responsibilities as a seller and protect yourself from legal consequences. A real estate attorney can advise on local, state, and federal regulations that can impact your sale.

Real estate attorneys can ensure that all your documentation is in order and that any legal issues that may arise are resolved promptly, allowing your sale to proceed as planned.

Selling your Monmouth County home is a huge undertaking. Having the right experts working with you can make all the difference. Veitengruber Law is an experienced real estate law firm in Monmouth County, NJ. Our deep knowledge of the Monmouth County real estate market can ensure you achieve your real estate goals.

How To Save Your Jersey Shore Home From Foreclosure

Fri, 04 Jul 2025 03:16:19 GMT

The Jersey Shore is a gorgeous area in which to own a home. But it is not surprising that such an attractive area can also be costly. Monmouth County has experienced a sharp increase in foreclosures over the last few years. Homeowners have many legal and financial options available to prevent foreclosure or save their homes after foreclosure has been initiated.

If you are looking for strategies for how to save your Jersey Shore home from foreclosure, Veitengruber Law has you covered. Here are just some of the foreclosure defense strategies we offer our clients.

1. Loan Modification

Loan modification is an excellent option for homeowners looking to avoid foreclosure. A loan modification grants you the ability to alter the terms and conditions of your mortgage to make your monthly payments more manageable and help you catch up on past-due payments. You may be able to modify the loan by lowering your interest rate, switching to a different loan type, extending the loan term, reducing your principal balance, or other adjustments. Mortgage modification is a great option for homeowners facing long-term financial issues or who have already explored other forbearance options. However, obtaining a mortgage modification can be challenging. Lenders are looking for particular information, and DIY mortgage modifications are often denied. Working with a knowledgeable NJ foreclosure defense attorney can increase your chances of getting your mortgage modification approved.

2. Bankruptcy

Bankruptcy is another great option for homeowners facing potential foreclosure. If foreclosure proceedings have already begun, bankruptcy is a legal avenue to halt the foreclosure process. Once bankruptcy is filed, you enter the automatic stay period. This prevents any legal proceedings from going forward. This can give you the time you need to come up with a solution to save your home from foreclosure. There are two main kinds of bankruptcy homeowners can utilize to save their homes:

Chapter 13 bankruptcy: This kind of bankruptcy allows homeowners to reorganize their debt into manageable monthly payments. If you are behind on your mortgage, you can roll this debt into a repayment plan that works for your income. You can catch up on missed mortgage payments over time and still keep your home.
Chapter 7 bankruptcy: This kind of bankruptcy will delay foreclosure until your debt is discharged. Depending on your level of debt and your ability to continue paying your mortgage after bankruptcy, it is possible to keep your home even if you file Chapter 7. Chapter 7 can help you eliminate other debts, freeing up your income to pay your mortgage.

Many homeowners fear losing their homes through bankruptcy. While this is a possibility, it is not common, and many NJ homeowners can keep their homes in bankruptcy. State and federal bankruptcy exemptions include ways to protect the equity you have built in your home.

4. Vacation Home Options

While many Jersey Shore homeowners are year-round residents, there is also a sizable number of second-home or vacation-home owners. The legal protections available to second-residence owners are different from those of primary-residence owners. For example, bankruptcy exemptions may not be applicable in certain situations. If you are facing foreclosure on a non-primary residence at the Jersey Shore, working with an experienced foreclosure defense attorney is critical to understanding the legal recourses available to you.

Veitengruber Law has been working to help Jersey Shore residents save their homes from foreclosure for over a decade. We can help you determine the most effective foreclosure defense strategy for your unique situation.

NJ Estate Planning Lawyer Answers the Question Why Wills Aren't Enough

Fri, 06 Jun 2025 19:40:23 GMT

Estate planning is like a puzzle. Every individual and family will have different needs, goals, and issues that need to be addressed and resolved as they create their estate plan. The plan that offers the most holistic protection for one person may not be the best plan for another. Determining what estate plan tools best meet your needs and goals can be difficult. While many folks still think a will is the be-all and end-all of estate planning preparedness, an experienced estate planning lawyer can tell you that a will is just one small piece of the estate planning puzzle. Proper protection of your estate and loved ones involves implementing a variety of tools, including power of attorney (POA), health directives, medical proxies, and even trusts.

Trusts are often overlooked in the estate planning process, even though they are powerful tools that can solve many estate planning problems. The idea of establishing a trust can seem overwhelming or even unnecessary. But the truth is that you don’t need to be super wealthy to benefit from a trust. If you are looking for an estate planning lawyer who can help with trusts, look no further. George Veitengruber is an experienced estate planning lawyer in New Jersey. We have worked closely with our clients to establish trusts that protect their interests, meet their estate planning objectives, and create a lasting positive legacy.

Here are some reasons why a will is not enough:

1. Wills don’t bypass the probate process.

There is a common misconception that creating a will can prevent the estate from undergoing the probate process. This is not true. Instead, the will simply provides a set of instructions to be used by the probate court. Probate is the legal process used by the courts to validate a will and distribute the assets as per the will's instructions. Your assets will still undergo this typical legal process of probate before being distributed as indicated in your will. Probate can take months or even years, during which your loved ones are dealing with legal fees and court costs that can reduce the value of your estate. The probate process is not only time-consuming and expensive, it leaves your estate open to disputes. Creditors or unhappy loved ones can use the probate process to challenge your will.

The probate process can be emotionally, financially, and mentally draining for loved ones—which is why most people try to set up their estate plan to avoid the probate process. If you want to avoid the probate process and ensure that your wishes are carried out as intended, consider establishing a trust. A trust will allow your assets to pass straight to your beneficiaries without the need for court involvement.

2. Wills offer no protection if you are incapacitated.

A will only goes into effect upon death. Incapacity due to illness, injury, age-related decline, or another problem is not accounted for with a will, leaving you and your assets unprotected. If you become incapacitated and only have a will, your loved ones may face a stressful, costly, and time-consuming process trying to get approval from the court to manage your affairs.

Alternatively, a trust can appoint a trustee of your choosing to manage your financial, legal, and medical affairs if you are incapacitated. This ensures your assets are secure while allowing your trustee access to your finances to ensure your bills continue to be paid. A trust can work in partnership with a power of attorney, medical POA, and other directives to give your loved ones the legal power to get you through a difficult time.

3. Wills offer few tax planning benefits.

If you or your family has significant assets, using only a will for your estate planning can lead to exorbitant taxation. Because your will undergoes the probate process, it exposes your beneficiaries to the New Jersey Inheritance Tax. This can reduce the impact of the inheritance and cause financial issues for your loved ones.

Instead, a trust can help shield your beneficiaries from the most excessive tax liabilities. Trusts can help you utilize strategic gifting, allowing you to give assets to loved ones while minimizing tax burdens. Some kinds of trusts, like an irrevocable trust, can help you and your family shield wealth from creditors.

A trust enables your beneficiaries to maximize the benefits of their inheritance with minimal tax implications.

4. Wills offer less control over asset distribution.

A will distributes assets outright to beneficiaries upon the death of the testator. While a will can include instructions and your wishes for these assets, it does not hold legal weight to ensure these wishes are fulfilled. A trust can allow you to structure distributions of an inheritance ahead of time, giving you control over how your beneficiaries utilize your assets.

Trusts can be established to disperse funds at a specific age or life milestone, such as attending college or getting married. This can help you create a plan for the future of your younger beneficiaries. You can also establish a trust for specific purposes, such as education, healthcare, real estate, or charitable giving. For instance, a trust can be set up to pay for a grandchild's college tuition or to cover future medical expenses for a disabled family member. Trusts can be established to be distributed in installments rather than as a single lump sum. This can also ensure that your assets will be managed responsibly when you are gone.

5. Wills offer little protection for business owners.

When you own a business or significant real estate, you need a trust to protect your assets. Wills cannot offer adequate protection for the succession of your business or the transfer of ownership of multiple properties. This can leave your heirs in a sticky legal situation as they try to navigate the transfer of ownership.

Alternatively, a trust can allow you, as the owner, to define who has decision-making capabilities concerning your business. You can also outline in detail how profits will be allocated, who ownership transfers to, and even what can happen to specific business-owned assets. Trusts can help you protect your business, family estates, or rental properties from being sold, neglected, or mismanaged.

Trusts Are Key Estate Planning Tools

If estate planning is a puzzle, trusts are a significant piece that can solve many problems. Estate planning enables you to create a lasting legacy in line with your vision. Trusts can help you protect your family’s future, honor your life’s work, and ensure your wishes are followed exactly as you intended. Wills are a piece of the puzzle—but they cannot solve every problem. Trusts can provide adaptable solutions that give you more control over your assets while protecting your beneficiaries legally and financially.

When you need an experienced estate planning lawyer in Monmouth County, look no further than Veitengruber Law. We can help you develop a holistic estate plan that goes beyond a basic will. We can work with you to create an estate plan that addresses all your concerns and provides peace of mind, knowing your future is protected.

7 Things You Must Do After You Sell Your Home in Monmouth County

Fri, 06 Jun 2025 19:33:49 GMT

When selling your home, it can seem like your to-do list is never-ending. Repairs and maintenance, packing and moving, listing and showing your home — all of this can be stressful. Once the sale is finalized, you can finally breathe a big sigh of relief. But there may be a few things you need to add to your to-do list. As a real estate lawyer in Monmouth County, Veitengruber Law works with sellers to ensure all the little details are correct—before and after closing. Here are 5 things you can check off your to-do list after the sale of your home:

1. Confirm Closing Payoffs

After closing, ensure that all funds have been transferred correctly. This includes:

Mortgage Payoffs: Your mortgage lender will give you a payoff amount to settle your loan. You should check with your mortgage servicer to ensure that the loan is fully paid. You should also receive a confirmation letter stating that your mortgage was paid in full.
Late Property Taxes: Unpaid late property taxes are typically cleared during the closing process. You can confirm that taxes have been settled by contacting the tax office of the municipality where the property is located.
Liens or Judgments: Liens or judgments associated with your property must be paid at or before closing. You can confirm this by contacting the lienholder or the court. The title agency or attorneys working on your closing should also be able to help verify that these issues are resolved.

This information should all be in the closing documents you receive at settlement. Confirming these payoffs with the entity listed in the closing documents is crucial to avoid future financial and legal setbacks. Keep any confirmations in your records.

2. Retain All Documents

You should hold on to any documents you received throughout the sale of your home, including the settlement statement, deed transfer paperwork, and any contracts you signed. If any questions about the sale arise in the future, you will have the necessary documentation to resolve any issues quickly. These documents can also help when it comes time to file your taxes. Keep hard copies in a safe, secure location where they will be protected from damage. For electronic copies, store them with an encrypted cloud service or a digital filing service that offers authentication procedures.

3. Prepare for Tax Season

How you must prepare for tax season depends on your specific situation. If you made a significant profit from the sale of your home, you should likely consult with an experienced tax professional to understand what capital gains taxes you could owe. A tax professional will be able to help you prepare by calculating how much you may owe in taxes and helping you correctly apply for the exclusion. This number will change depending on how long you have had the property, your filing status, and any deductions you qualify for.

Many home sellers benefit from the Primary Residence Capital Gains Exclusion, which allows individuals to exclude up to $250,000 of capital gains from their income, with married couples filing jointly able to exclude up to $500,000. This exclusion is designed to help homeowners avoid a significant tax liability when they sell. To qualify for this exclusion, the home must have been the primary residence for at least two out of the five years preceding the sale of the house.

4. Update Your Estate Plan

When selling your home, it's also a good idea to update your estate plan documents. If your home is listed in a will, power of attorney, trust, or any other legal documents related to your estate, you need to revise these directives. If you have significant profit from your sale, you will also need to factor this new wealth into your estate plans. Veitengruber Law is an estate planning and real estate law firm in Monmouth County, and we can help ensure you are protecting your assets before and after the sale of your home.

5. Update Your Address

Don't overlook the steps required to update your mailing address correctly. You can submit a change-of-address request with the postal service so that any mail sent to your old home will be forwarded to your new address.

You should also take the time to update your address on all critical accounts, such as your bank, credit cards, insurance, investment accounts, and utilities. You should also inform your employer of your move. Notifying government agencies, such as the DMV and Social Security Administration, can also ensure you receive timely notifications from these entities. And, of course, you should inform your friends and family of your move so that those holiday cards reach the correct address.

Veitengruber Law has been assisting New Jersey homeowners with selling their homes for over a decade. We can work with you to tackle your to-do list before, during, and after the sale.

Selling Your Property As-Is in NJ

Fri, 06 Jun 2025 19:29:16 GMT

Selling a home "as is" can help sellers save time, money, and stress on repairs and renovations. Many sellers are unable to afford major repairs and upgrades. While selling "as is" can lower your sales price and even result in fewer interested buyers, it is an attractive option for those seeking to sell a property with the least amount of work and up-front costs.

In New Jersey, sellers are permitted to sell a property in "as is" condition. However, that does not relieve sellers of specific legal responsibilities throughout the sale. If you are selling an NJ property "as is," consulting with an experienced real estate attorney to discuss your obligations is crucial. Monmouth County attorney George Veitengruber and Veitengruber Law have been helping buyers and sellers fulfill their real estate goals for over a decade. Here are some things you need to understand about real estate law before you list your home "as is."

What does selling "as is" actually mean?

In New Jersey real estate law, selling "as is" simply means the seller intends to transfer the property in its current condition, with existing, disclosed defects. This is the seller telling the market they are unwilling to make repairs or improvements and, in some instances, will not make price concessions. An "as is" sales agreement releases the seller of any obligation to provide reimbursement for any losses or damage resulting from the condition of the property. It sets a clear expectation for the buyer up front that the seller is not willing to negotiate on repairs.

While the "as is" clause relieves the seller from fixing the property's issues, it does not exempt the seller from disclosing these problems. The seller is still legally required to disclose any major defects with the property. The seller cannot knowingly withhold information about defects associated with the property. The condition of the property as presented in the listing and via correspondence with potential buyers must be accurate and honest to the best of the seller's knowledge.

What is seller disclosure law?

In New Jersey, sellers are legally required to disclose defects or repairs needed for the property they are attempting to sell. If the seller knows about a defect, they must tell any potential buyer. If a seller is found to be deliberately concealing a defect or even if the seller simply remains silent about a problem, they could face fraud charges and liability for damages incurred by the new owners.

Adding an "as is" clause or a general disclaimer to a real estate contract does not exempt sellers from their disclosure obligations. If a damage or defect is not readily apparent to the buyer, the seller must still disclose these defects. For example, you are selling your home and you know that the roof leaks. A buyer tours your home on a sunny day and sees no water damage in the attic. As the seller, you are required to disclose that the roof leaks even if the defect is not obvious to the buyer.

What is a Property Condition Disclosure Statement?

A property condition disclosure statement is a common way for sellers listing a home "as is" to ensure they are satisfying their legal obligations to disclose any known defects. These statements can help establish buyer expectations, point inspectors to problem areas, and minimize the chance a buyer will back out at the last minute. While they are not required under NJ law, they can greatly reduce the chance of legal action against the seller.

Some common issues the disclosure statement can address include:

Roof: Detail the age and repair or replacement history of the roof. The seller can also disclose any leaks or previous damage from leaks.
Attics, Basements, or Crawl Spaces: Disclose the condition from any current or previous water issues, including damage, mold, moisture retention, etc.
Termites and Pests: You must disclose the presence of or damage from termites and other wood-destroying insects. You should also disclose the presence of any other pests that may damage the property.
Structural Defects: Shifting, movement, or other damage to walls, floors, or foundations of all structures should be disclosed. You can also disclose defects with pathways, retaining walls, patios, driveways, or other hardscape structures. Water or smoke/fire damage also needs to be disclosed.
Additions/Remodels: Any structural changes or alterations should be disclosed, including building permits and approvals.
Plumbing: Water and sewage system issues should be disclosed, including issues with the discharge of wastewater, the water heater, and abandoned or shut off systems.
Heating and AC: Disclose what kind of system you have, how old it is, and any known problems.
Electric: Disclose any known problems and any modifications to wiring, amp service, or additions, including permits and approvals.
Major Appliances: The working conditions of appliances included in the sale should be addressed. This includes smoke detectors, garage door openers, and pools.
Environmental Hazards: If your household has received notification from any agencies about conditions on the property that may affect the quality of the air, soil, or water on the property, you must disclose this information to potential buyers. This includes testing for and treatment of radon gas or the presence of lead paint.
Land or deed restrictions: This can include legal restrictions like zoning ordinances, protected areas, encroachments, easements, or HOAs. It can also include physical restrictions like wetlands, drainage or flooding issues, tidal water, mining operations, etc. If any boundary disputes are in progress, the buyer should be made aware of this.
Legal actions: Any legal issues associated with the property should be disclosed to potential buyers, including zoning violations, nonconforming use, unpaid assessments, title problems, liens, and other ongoing legal matters.

Can I sell without a certificate of occupancy?

A certificate of occupancy (COO) is a document issued by a local authority that certifies the property's safety and compliance with local code laws. Typically, the seller is responsible for obtaining the COO prior to closing and paying the application fee. However, COOs are not required for every real estate transaction in NJ. As an alternative, sellers can obtain a temporary certificate of occupancy or a certificate of title transfer if the property's condition does not meet local municipal standards. If these alternatives are used, the seller should disclose this to the buyer and ensure they understand there is no COO for the property. Buyers may consider this option if they intend to make substantial repairs or renovations prior to moving into the property.

Selling your home "as is" in New Jersey can simplify the sale for the seller, provided they comply with local, state, and federal disclosure laws. Working with an experienced attorney can help sellers protect their interests throughout a real estate transaction. Veitengruber Law can offer peace of mind throughout the sale of your property. Our Monmouth County real estate attorney can reduce your legal risk and simplify the selling process.

Why Our Estate Planning Attorney in Monmouth County is Better than DIYing Your Will

Fri, 06 Jun 2025 19:22:09 GMT

A Google search of “DIY estate planning” will return hundreds of results. Many online tools claim to offer easy, quick, and budget-friendly ways to create wills, power of attorney (POA) documents, medical directives, and even trusts. Many folks turn to these services because they feel more private and appear to be cost saving. However, the one-size-fits-all templates used by these companies offer limited protection and tend to overlook the intricacies inherent to every individual’s specific financial, legal, and personal circumstances. Often, ignoring the complexities of estate law can lead individuals and their loved ones into messy legal and financial territory, or even result in expensive court battles.

We are an estate planning attorney in Monmouth County. At Veitengruber Law, we have expertise that has been earned over years of experience helping individuals and families plan for the future. We have worked with many folks facing the ramifications of DIY estate planning. Here are some of the big reasons why doing your estate planning with an online tool is a bad idea:

1. They don’t account for state-specific laws.

Estate law is not uniform, and each state has unique rules and protocols. These variations can be significant enough that a will that is valid in another state may be invalid in New Jersey. This can cause considerable issues for your loved ones and may prolong, complicate, and increase the cost and stress of the probate process.

When you work with an attorney experienced in estate law specific to your state, you know you are getting the most up-to-date and correct information possible. We can ensure that all your documents are valid and help your heirs avoid legal issues in the future.

2. They do not account for life changes.

Life is constantly changing. Marriage, divorce, birth, death, adoption, estrangement—all of these events can drastically alter your estate plan. DIY plans often fail to capture the complex nature of these shifting personal realities. Additionally, creating an estate plan with a DIY tool means you will be responsible for periodically reviewing and updating it to reflect your current wishes for the future.

When you create an estate plan with the help of an attorney, we can revisit your plan periodically to ensure timely updates of life changes. We can also help you draft documents that encompass the full breadth of your relationships, regardless of their complexity. This can help you guarantee that your loved ones are always taken care of.

3. They cannot help you avoid tax consequences.

The rules surrounding estate and inheritance tax are complex. When you create an estate plan without considering the tax consequences for your loved ones, they could ultimately end up receiving a fraction of what you initially intended. You can limit the tax burden on your family and loved ones by working with an experienced professional who understands how to minimize taxes. A Monmouth County estate planning attorney can help you set up trusts to skip the probate process, take advantage of tax exemptions, or come up with a personalized strategy based on your needs.

Estate planning law is intricate and complex. Protecting your assets and your legacy is not something you want to leave up to a boilerplate internet template. Veitengruber Law is a trustworthy and experienced estate planning attorney in Monmouth County. We can help you find the right plan to feel confident and secure in your estate planning.

Can I Discharge My Student Loan Debt?

Mon, 05 May 2025 14:16:50 GMT

Student loan debt represents a significant percentage of total household debt, accounting for about 9.2% of total household debt in the US. Most of this debt is held through federal loans, with just 7.5% of this debt held through private loans. While private loans can sometimes be discharged through bankruptcy, federal student loans have historically not been included in bankruptcy discharge. However, this standard is no longer as set in stone as it used to be.

There are many avenues to student loan debt relief. Veitengruber Law is an experienced bankruptcy lawyer in Monmouth County. If you are considering including your student loans in your bankruptcy case, here are some things you should know.

1. There are different kinds of student loans.

As discussed above, there are two main types of student loans: federal student loans and private student loans. Generally, neither is eligible for discharge through Chapter 7 or 13 bankruptcy. That being said, there are some kinds of private student loans that can be discharged through bankruptcy.

2. What loans can be discharged?

Some private loans can be automatically discharged through bankruptcy. These include private loans that fall under any of the following provisions:

Loans to attend schools ineligible for federal aid (like foreign schools or non-Title IV schools)
Loans for attending school less than half-time
Loans made in excess of the cost to attend the school
Loans to cover fees and other living expenses incurred while the student was in preparation for a professional exam (like the bar exam or medical board exams)
Loans that covered living expenses and moving costs for medical residencies

Any loan made for non-qualified higher educational expenses

3. There is a risk of legal action after discharge.

While the above circumstances make it perfectly legal to discharge your private student loan debt through Chapter 7 or 13 bankruptcy, private student loan lenders frequently try to sue borrowers for the debt after a discharge has been granted. If a lender contacts you about paying a discharged debt, you can reach out to an experienced NJ bankruptcy attorney who can guide you through your rights and how to respond to a lawsuit of this nature.

4. The "Undue Hardship Standard" is a difficult but not impossible option.

In extreme cases, the court may grant you a Chapter 7 bankruptcy discharge for your student loans under the Undue Hardship standard. This is a very expensive, very difficult option that requires a lawsuit called an adversary proceeding to be filed in bankruptcy court. To prove undue hardship, you must prove that you:

Cannot support a minimal standard of living based on your income and expenses
Additional circumstances exist that will limit your ability to repay your loans (like a chronic medical diagnosis or permanent disability)
You have made a good-faith effort to repay your loans

If you decide to pursue discharge under the undue hardship standard, it is highly advisable to work with an experienced attorney.

5. Bankruptcy is not the only option.

Besides the vast array of forgiveness programs, repayment plans, deferment options, and forbearance programs for federal student loans, you have other options if you are struggling with student loan debt. Filing for bankruptcy to eliminate other debts from credit cards, private loans, mortgage arrears, and more can open up more income to dedicate to your student loans. Even if you are unable to include your student loans in a bankruptcy discharge, getting rid of your other debt can make your student loan payments more manageable.

Veitengruber Law is an experienced bankruptcy law firm. We can help you devise a plan to get out of debt. Call us today for a free consultation.

Rebuilding Credit After Foreclosure in Monmouth County

Mon, 05 May 2025 14:16:04 GMT

Foreclosure can be a stressful process resulting in financial devastation. The extent of the damage to your credit can depend on a number of factors. Regardless of how far your credit score drops after foreclosure, rebuilding your credit from the first day after foreclosure is possible. If you're looking for help with NJ credit repair after foreclosure, Veitengruber Law can help. As an experienced NJ foreclosure defense and credit repair attorney, we have worked with hundreds of clients to reduce the damage throughout the foreclosure process and help them rebuild their credit scores afterward.

Working with an experienced credit repair professional can help you rebuild your credit quickly and efficiently, eliminating stress and giving you a clear plan for your future. Here, we will explore what foreclosure does to your credit score and simple, proven ways you can improve your credit after foreclosure.

What will foreclosure do to my credit score?

A foreclosure entry remains on your credit report for seven years from the date of the first missed payment that led your mortgage to enter default. At the end of these seven years, the entry is deleted from your credit report. Depending on your credit score before foreclosure, you can expect your score to drop between 100 and 160 points, on average. The higher your score before your foreclosure, the more you can expect it to fall after.

Your score will be impacted as long as you have a foreclosure entry on your credit report. This impact will be most pronounced in the first few years and then slowly decrease until the end of the seven years.

Lenders consider foreclosure a major red flag when considering your application for more credit or a loan. Many lenders will refuse to work with you in the first few years after your foreclosure. However, as time goes on and your credit improves, more lenders will be willing to work with you, even with a foreclosure entry on your report.

Ultimately, you can begin improving your credit score on day one after a foreclosure entry is added to your credit report. The more proactive you are in the immediate aftermath of foreclosure, the sooner you will be able to improve your score and seek new financial opportunities.

How can I limit damage to my credit score?

There are some things you can do to limit the damage to your credit score while you are going through the foreclosure process. If you know you cannot save your home, focus your financial energy on paying your other bills on time and in full. Keep your credit utilization low, aiming to keep your utilization below 30% at least, but ideally 10% if you are facing foreclosure.

You could also work with an attorney to look into alternatives to foreclosure, like a loan modification or a short sale. While these options will have some effect on your credit, it will not be as severe as with a foreclosure entry.

How do I improve my credit score after foreclosure?

Rebuilding your credit score is very possible, but it takes time, patience, and discipline. Veitengruber Law works with our clients to find achievable goals and actionable solutions that do not involve a ton of financial know-how. Often, the best path forward is utilizing basic good credit habits. Here are some of our tips:

1. Keep All Accounts Current

Pay your bills on time, in full, every time. Payment history is the most critical factor in determining your credit score. Every single on-time payment adds positive data to your report and improves your score.

The best way to ensure you can pay all your bills on time is to develop a realistic budget and stick to it. Determine your essential expenses and ensure you can pay for those before you pay for extras like entertainment. Sign up for automatic billing so you cannot forget to make a payment. Making on-time payments throughout the seven years after a foreclosure is the best way to ensure your score will rise quickly.

2. Lower Credit Utilization

Keep your credit card balance as low as possible. While using credit cards and making payments on time each month can also help you rebuild your credit, there is no benefit to carrying card balances month to month. By paying off your credit card balance every month can keep your credit utilization low, which is another major aspect of improving your credit score. Low credit utilization typically means an improved credit score. This shows lenders that you understand how to use your credit and can manage your finances. You will also save money on interest charges.

3. Consider a Secured Credit Card

Using a secured credit card can be very useful for rebuilding credit. With a secured card, a user puts a security deposit down that will serve as your credit limit. Deposit amounts typically start at just $200. To start, we usually suggest that our client use this card monthly for one expense, like groceries or gas. At the end of the month, pay off the balance. Every on-time payment will boost your score a little bit. Secured cards are a great way to build or repair credit without risking getting in over your head with credit card debt.

4. Monitor Your Credit Report

This is a practice everyone should do periodically, but it is especially critical in the aftermath of foreclosure when you are trying to rebuild your credit. There are many free credit report services. Your bank or current credit card lenders may already provide these services to you. You can check these reports quarterly for any errors. If you find any errors on your credit report, you can file a dispute. This will prevent any inaccurate entries from dragging your credit score down unnecessarily.

5. Be Patient and Smart

You will not rebuild your credit score overnight. It will take a bunch of time, dedication, and patience. Stay consistent, stick to your budget, and avoid any impulsive financial decisions. For example, applying for a new line of credit may be tempting when you see your score improve. But you need to keep in mind that credit inquiries can impact your score, too. Stay patient and work with an experienced credit repair attorney or financial expert to make a plan. This guidance can help you improve your score as quickly as possible. Within a few years, you may be able to apply for a vehicle loan, a credit card, or even a mortgage.

George Veitengruber is an experienced NJ foreclosure defense and credit repair attorney. Our firm has worked with many NJ homeowners to save their homes from foreclosure, get out from under unmanageable debt, and find solutions to repair a low credit score. Every individual will benefit from different strategies based on their unique situation. Our credit repair solutions are fully customized to meet your needs and help you achieve your goals. If you are going through foreclosure or struggling in the aftermath, reach out to us for a consultation today.

How to Write an Effective Loan Modification Hardship Letter

Mon, 05 May 2025 14:12:50 GMT

Can you save my Monmouth County home?

We get this question all the time at Veitengruber Law. As an experienced NJ foreclosure defense attorney, we have worked with thousands of residents to fight foreclosure and stay in their homes. We are familiar with the foreclosure process and can help you utilize different legal and financial tools to save your home.

Once you are more than 120 days past due on your mortgage, your lender can begin the foreclosure process. To start this process, your lender must first notify you through a breach letter that your loan is in default. This letter will explain that you are facing foreclosure and will include information about how to resolve the issue to avoid foreclosure, including your options for loan modification.

Submitting a request to modify your mortgage will include a financial hardship letter. This letter is your first step towards getting approved for a loan modification. How you present yourself and your case in your hardship letter can make or break your chances for loan modification approval. Working with an experienced attorney like Veitengruber Law is the best way to give yourself the best chances of approval.

Here are some tips on how to write an effective mortgage loan modification hardship letter:

Part One: Explanation of Financial Hardship

Financial hardship letters help explain why you are struggling to make your mortgage payments to your mortgage lender. This is your opportunity to be honest with your lender so they can better understand your financial situation. Before you detail your proposed plan for a loan modification, you need to show your lender why the modification is necessary. This should include an explanation for why you have fallen behind on your mortgage.

You may struggle to keep up with your monthly mortgage payments for many different reasons. Common problems include:

Illness or disability
Medical debt
Divorce
Death of a spouse
Job or income loss for you or someone else in the household
Loss of transportation
Property damage

Your explanation does not have to be detailed. You do not have to write down personal details or private information. You simply need to give your lender a general idea of your financial circumstances. For example, you could say: "I fell behind on my mortgage after losing my job in 2023."

An experienced attorney can help you find the best way to explain why you could not make payments in the past.

Part Two: Your New Circumstances

This part of your letter is your opportunity to explain how your circumstances have changed since the event that triggered your financial struggles. The lender needs to know that you actually have the ability to pay back your mortgage if they grant the modification. You will need to demonstrate how you have made an effort to resolve your problems and change your financial situation for the better.

Again, you do not need to include super personal details or provide a long, drawn-out explanation. For example: "After searching for a job for two years, I secured full-time employment in April 2025."

Part Three: Loan Modification Request

The final part of your hardship letter should include your request for a loan modification. You can request a modification in two ways: one, by asking the lender to come up with a loan modification plan for you, or two, by proposing a loan modification plan that will work with your new financial circumstances.

When you propose your own mortgage modification plan, you should include details on what terms you want modified and also what monthly payment you believe you can afford. The following are common mortgage modifications:

Interest Rate Cut: Lowering your interest rate can lower your monthly payments and lead to money savings in the long run.
Extended Repayment Period: Extending the life of your loan will also help you lower your monthly payments.
Principal Reduction: Some lenders may consider forgiving some of your loan balance to lower monthly payments. Be aware that any forgiven debt will be treated as income by the IRS and must be reported on your tax return.
Switch to a Fixed-Rate or Adjustable-Rate Mortgage: Changing your interest rate to fixed or adjustable, depending on your circumstances, can help lower your interest rate or make your monthly payments more predictable.
Loan Modification Program: Individual lenders may offer specific loan modification programs based on the kind of loan you have. You should contact them about your options and your eligibility. If you believe you are eligible for these programs, you can reference them in your letter.

Which of the above changes to the terms of your loan will help you the best depends on your specific circumstances. A skilled foreclosure defense attorney can assist you in determining the best plan for your financial situation and how best to word this in your letter.

Remember that while you do not need to apologize for your financial circumstances, this is the time to express thanks to your mortgage provider for the help you hope they can provide. This is not the chance to discuss your discontent with high interest rates or frustration with your lender. Keep your letter professional and respectful.

Part Four: Include Documentation

With your letter, it is critical to provide evidence of your financial situation. You can provide bank statements to prove a reduction in income or medical bills to show your undue financial burden due to disability. Whatever your situation, an attorney can help you determine which documents are required to prove your hardship to your lender.

Part Five: Contact Your Lender

Once you have drafted, reviewed, and finalized your hardship letter with the expert advice of an attorney, you or your attorney can contact your lender. You will likely be dealing with your servicer's loss mitigation department. Most lenders have a specific person or team that manages loan modifications. Keep a diligent record of the representatives you correspond with and ensure that every agreement or communication is done in writing. If your request for modification is denied for any reason, this record may help ask for a second review.

An experienced foreclosure attorney can help you throughout the negotiation process as you seek a mortgage loan modification. When you work with an attorney, you have a much higher chance of receiving approval for your loan modification request. They can communicate with your servicer, negotiate on your behalf, and protect your rights. Their invaluable expertise can be particularly helpful in understanding what mortgage lenders seek in a loan modification request. They can ensure you are submitting your most promising request.

Loan modification is a great way to avoid foreclosure proceedings and save your home. You must submit your hardship letter and application 45 days before the scheduled foreclosure of your home, so it is crucial to act quickly for this process. If you have received notice that your mortgage is in default, reach out to Veitengruber Law today. We can help you create a hardship letter and make the case to save your home from foreclosure.

When is it too Late to Save My Home from Foreclosure?

Mon, 05 May 2025 14:09:36 GMT

When you are facing foreclosure, it is common to feel hopeless and overwhelmed. The stress and anxiety of dealing with foreclosure proceedings can put homeowners in a state of freeze. We hate hearing stories of homeowners who felt powerless to protect their interests, only to find out after losing their homes that they had other options. The long foreclosure timeline provides ample opportunity for homeowners to save their homes or find a better alternative to foreclosure.

An experienced foreclosure defense lawyer can explain all of your options at every stage of the foreclosure timeline. Just because you have been served with a notice of foreclosure does not mean you will imminently lose your home. If you are looking for a foreclosure defense lawyer in Monmouth County, Veitengruber Law has helped hundreds of NJ residents save their homes.

Here is an overview of your options at every step of the foreclosure timeline:

1. Missed Payment

After missing a few monthly mortgage payments, your lender will notify you of default. This does not mean that foreclosure proceedings have begun. It does mean that you should think seriously about how to get ahead of this financial problem. If you are struggling to make your mortgage payments, you can try to work directly with your lender. Work with an attorney to create a hardship letter and ask your lender for a mortgage modification. Your attorney may suggest other options like bankruptcy or debt negotiation, depending on your financial situation. The important thing at this stage is to be proactive and not wait to act until after foreclosure proceedings have been initiated.

2. Formal Notice of Intent

After you have been in default on your loan for 120 days, your mortgage servicer will send a Notice of Intent to Foreclose. This document will detail your lender's intentions to file for foreclosure on your property if the default is not cured within a specified timeframe. In NJ, lenders cannot file a foreclosure complaint until 30 days after the Notice of Intent has been sent. This letter must be sent by regular and certified mail. Many lenders will include options for curing the debt, like mortgage modification or different forbearance programs.

Once you receive the Notice of Intent, you must act quickly to avoid foreclosure proceedings. Depending on your circumstances and ability to pay back the debt, you can work directly with your lender to determine a repayment plan or work with an attorney to file for bankruptcy, which will prevent any new court proceedings from being brought against you.

3. Filing of the Complaint

If the debt is not cured or an agreement with your lender cannot be reached within 30 days after the Notice of Intent, your lender can file a foreclosure complaint with the court. This is when the official foreclosure proceedings begin. Once served with a notice of the complaint, the homeowner will have 35 days to respond.

At this point, you can still attempt to work with your lender to find a solution that allows you to stay in your home. You can cure the debt, apply for a loan modification, or file for bankruptcy to determine the best way to restructure your debts. If your goal is not to stay in your home, you could also consider a short sale. A short sale cannot save your home but will allow you to get something out of your investment. Your lender may agree to settle your debt with the proceeds of a short sale, which would mean you can walk away from your home with less debt.

4. Final Judgement

If you cannot find a solution to avoid foreclosure within 35 days after the complaint has been filed, or if the court rules in favor of the lender, your case will enter final judgment. This means a judge has ruled that the foreclosure can proceed, and your home will be scheduled for a sheriff's sale. At the sheriff's sale, your home will be sold to the highest bidder as your lender attempts to recover their losses. But even if your home is sold at a sheriff's sale, you still have the 10-day right of redemption period to overturn the sale and save your home.

During the right of redemption period, you have one final chance to pay off the amount owed on the foreclosure judgment. The amount required to redeem your home and save it from foreclosure will often include the principal amount of your mortgage debt, interest, and any fees, taxes, assessments, or other costs incurred by your lender during the foreclosure process.

The end of the right to redemption period is when it is officially too late to save your home. However, the foreclosure timeline is purposely lengthy, allowing homeowners plenty of time to find a better solution. Veitengruber Law can work with you at any stage of the foreclosure timeline to help you save your home or find another solution that allows you to protect some of your investment. Reach out to us today for a consultation!

What You Need to Know About Living Wills and Power of Attorneys

Thu, 03 Apr 2025 03:27:16 GMT

At the start of their estate planning journey, most people are often surprised to discover that they need more than just a will. While a will is important, it just scratches the surface of all the legal protections you can put in place to safeguard your future. An estate plan isn't just about what happens after you die. It is also about how you intend to spend your final days or years. An estate planning attorney is likely to urge you to discuss a power of attorney or a living will.

Veitengruber Law is an experienced estate planning attorney in Monmouth County. We have over a decade of experience crafting personalized estate plans designed to protect our clients and offer peace of mind. The future is uncertain, but the multitude of options available to you as you devise an estate plan can help you prepare for the future no matter what it has in store. However, all these options can be confusing to those unfamiliar with estate law. What is a power of attorney? What is a living will? Do I need one, or both, or neither?

Here, we take a deep dive into examining these two critical tools, exploring how they function and which option is best suited for your circumstances.

What is a Power of Attorney (POA)?

A POA is a legal document that appoints a trusted person to make decisions on your behalf if you are unable to do so yourself. There are two primary types of POAs in estate planning, serving distinct functions: medical and financial. A medical POA gives someone the authority to make healthcare decisions on your behalf. A financial POA grants someone the ability to manage your financial accounts, pay your bills, and make financial decisions if you are incapacitated.

You can also have a durable POA or a regular, non-durable POA. A durable POA remains in place even after you are incapacitated. A POA can be as specific as you want it to be, and you can have a joint or dual POA in which two or more people are allowed to act together to manage your affairs.

What is a Living Will?

A living will is also sometimes referred to as an advanced directive. This legal document will outline your healthcare preferences if you cannot make these decisions at some point in the future. You can indicate your wishes for different medical treatments like life support, resuscitation, tube feeding, palliative care, and organ donation, among other things. By documenting your preferences regarding these treatments, your medical team can ensure that they follow your wishes, even if you are unable to voice them.

Key Differences

These essential estate planning tools complement each other in providing comprehensive coverage for anything life throws at you. However, there are a few important differences that you should be aware of when creating an effective estate plan.

1. Purpose and Scope

A living will does not empower anyone to make choices on your behalf. Instead, it empowers you to have your choices heard even if you are unable to communicate or are in mental decline. A living will only covers your preferences related to medical treatments and healthcare. On the other hand, a POA legally empowers someone you trust to make broad decisions about your finances, healthcare, or both. You are granting this person, or "agent," permission to have the final call on how things should be handled if you can no longer make those decisions yourself. A POA has a much broader scope than a living will.

2. Activation Criteria

A living will goes into effect only if you are incapacitated and cannot communicate. Medical professionals will follow the directives in your living will to provide treatment through the end of your life or until you are no longer incapacitated. A POA will be activated or deactivated depending on the criteria listed in the POA. For example, if you have a durable financial POA, it will go into effect if you are no longer able to make your own decisions financially (from mental deterioration or medical incapacitation). A POA is much more specific in the instances in which it can be activated.

What are the benefits and drawbacks of a living will?

A living will ensures your wishes are followed even if you are not mentally or physically able to make a choice. Advanced directives, such as living wills, can ensure a more consistent healthcare experience and stricter adherence to a patient's end-of-life preferences. Without a living will, someone else will make decisions on your behalf. A living will can also reduce the burden on your family and loved ones. Without a clear directive in place, those closest to you may have to make difficult and emotional choices about your end-of-life care. This can lead to conflict and heartbreak if loved ones cannot agree on a path forward for your treatment. A living will can give loved ones the peace of mind that they are following your wishes.

However, there are some limitations to living wills. Living wills that lack specificity can lead to misinterpretations by medical professionals. For example, "no heroic measures" can mean different things to different people. A living will must also be updated with an individual's most recent health conditions. If your condition or treatment preferences change, it is essential to revise your living will as soon as possible to ensure that your treatment aligns with your current wishes.

What are the benefits and drawbacks of a POA?

POAs are flexible, versatile legal tools that cover a wide scope of issues with one document. A Power of Attorney (POA) can authorize someone to make all of your legal, financial, and medical decisions. This enables you to plan for various scenarios and allows your agent to adapt to diverse needs. This can ensure comprehensive management of all your personal affairs. You also get to choose your agent, ensuring it is someone you trust and who will have your best interests at heart. Choosing this person yourself is often preferable to someone you do not trust making these decisions on your behalf.

The biggest word of caution with POAs is choosing an agent that you can trust with your legal, financial, and medical affairs. Because POAs are so flexible, in the hands of someone with ulterior motives, they can lead to overreach. It is critical to vet your potential agents to ensure they are responsible, genuine, and capable.

Do you need a Power of Attorney (POA) or a Living Will? The answer is likely: Both!

These documents work together to create a comprehensive estate plan that covers all possible scenarios. Veitengruber Law can help you create an estate plan tailored to your specific needs and goals. We work with clients to establish explicit and detailed documentation that clearly communicates their wishes. Comprehensive estate plans that include a living will and a POA provide peace of mind for you and your loved ones.

Who Needs a Trust? Your NJ Estate Planning Questions Answered

Thu, 03 Apr 2025 03:27:14 GMT

When planning for the future, most folks think a will is all they need. A will does a lot. A will can determine who gets what property, who will care for minor children, what kind of funeral arrangements you desire, and so much more. However, a will is not always the best document to handle all of your end-of-life planning needs. Especially if you are leaving behind significant assets, most estate planning attorneys will suggest establishing a trust. But who needs a trust?

A trust is a fiduciary arrangement that determines how your assets will be distributed outside of a probate court. For example, most wills still need to go through the probate process to prove their validity and distribute the assets. This means that assets will be brought under public scrutiny, legal proceedings will take place prior to the distribution of assets, and your heirs will likely need to pay estate taxes on any inherited assets. But with a trust, this process can take place outside of the court system.

Trusts can also be structured to be effective prior to the death of the grantor, or the person establishing the trust. Trusts can take effect on a specific predetermined date, upon the incapacitation of the grantor, or upon the grantor's death. Trusts can also be utilized to achieve various objectives, such as transferring property, minimizing estate taxes, preserving assets for minors until they reach a certain age, or providing one-time or long-term charitable benefits.

Despite the effectiveness of trusts, many are wary of establishing one or think their assets are not "worthy" of a trust. Our experienced estate planning attorney works with clients across NJ to plan for the future. Here is how we determine if a trust is appropriate for your estate plan.

1. You need a highly specific plan.

Trusts offer a high level of specificity that wills and other estate planning strategies simply do not. Trusts enable you to specify in advance exactly how, when, and to whom your assets will be distributed. There are also many different special-use trusts that will meet all kinds of estate planning goals. You can establish a trust for a number of reasons, including charitable giving, tax reduction, care for special needs dependents, etc. Some of the most common trusts include:

Revocable Trust: A trust that can be revised, changed, or revoked by the grantor at any time throughout their lifetime, as long as they are medically capable.

Irrevocable Trust: A trust that cannot be changed or revoked at all after the signing of the agreement. Revocable trusts become irrevocable after the death of the trust owner.

Testamentary Trust: A trust that takes effect only after the death of the grantor.

Special Needs Trust: A trust designed to benefit a special needs dependent but does not interfere with the receipt of government benefits like Medicaid and Medicare.

Charitable Trust : A trust established to provide contributions to charitable causes. These trusts often provide tax benefits to the grantor.

There are different tax liabilities associated with the above trusts. An estate planning lawyer can help you determine the best plan for your estate. Whatever level of specificity you are looking for, a trust can provide the structure through which your specific desires can be legally protected.

2. You are worried about becoming incapacitated.

The biggest drawback with relying solely on a will for all your estate planning needs is that a will can only go into effect after you die. Prior to your death, your loved ones will need to rely on a Power of Attorney or medical proxy document to make decisions on your behalf. While these documents do offer some legal and financial protections, they may not be as legally effective as a trust.

You can establish the terms of a trust to take effect if and when you become incapacitated. Especially if you are worried about a stroke, mental decline, or some other incapacitating medical event, a trust ensures that your assets are preserved and managed in accordance with your wishes while you are still alive. You can determine how your resources should be used while you are in the care of loved ones or health professionals.

3. You need to protect minors or special needs dependents.

When you are planning for the future of minors and special needs dependents, trusts can allow you to control their care even after you are gone. You can provide the funds to ensure their continued financial security while putting limits or requirements on how the money is spent. These trusts can be set up to go into effect while you are alive or after your death.

Trusts are extraordinarily flexible in the different ways they can be deployed. For example, when establishing a trust for a special needs dependent, you can appoint a trustee to assist in the management of funds to ensure your intentions for the trust are respected and to protect your loved one. For minor children, you can appoint a trustee to manage assets until they meet a certain age or milestone. This can prevent minors from irresponsibly squandering their inheritance and even protect them from creditors or lawsuits.

Are there any downsides to a trust?

Trusts offer a more robust and specific estate plan than a will. The terms will be more detailed and specific and therefore need to be held to a higher level of legal scrutiny. Because of this, it is almost always necessary for the person setting up the trust to sit down with an attorney. For this reason, trusts can be more expensive and legally complex. However, these up-front costs frequently save your beneficiaries a significant amount of money in the end.

It can also be challenging for individuals unfamiliar with trusts to determine which type of trust is best suited to help them achieve their goals. A skilled estate planning attorney can work with you to determine what kind of trust is right for your situation and help you think through effective terms that align with your wishes. An attorney's job is to work in your best interests. They will be able to recommend an estate plan—with or without a trust—that best protects the assets and people you care about the most.

You do not need a significant amount of money or assets to establish a trust. A trust is another critical legal and financial tool that helps you plan for the future, protect your assets, ensure your wishes are fulfilled, and gain peace of mind.

Veitengruber Law is an experienced estate planning attorney in NJ. We work with clients to develop strategic estate plans that protect them both legally and financially. We have extensive experience helping clients establish trusts for various purposes. We approach estate planning with compassion and a deep understanding of New Jersey inheritance laws. Contact us today to discover how trusts can safeguard your interests.

If I Don't Have an Estate Do I Really Need an Estate Plan?

Sat, 29 Mar 2025 19:57:07 GMT

Estate planning is one of those things that often gets put off. As an estate planning lawyer in Monmouth County, Veitengruber Law sees many clients who are unaware of the need for an estate plan. It can be tough to answer questions about what should happen to your assets and loved ones if the worst should happen. Approximately half of adults in the US do not have a will, and even fewer have a comprehensive estate plan. Some of these folks believe they do not need an estate plan because they do not have a significant enough estate. However, this misconception leads to legal battles and financial difficulties on a daily basis.

Here, we will explore why you need an estate plan, regardless of the number of assets you possess.

What is an estate?

An estate is a legal and financial term used to refer to all of the assets and liabilities you own. It includes items such as your home, car, personal belongings, debts, insurance policies, and retirement accounts. So, while many folks may think their possessions do not amount to an "estate," the truth is that most adults will have assets and liabilities that need to be dealt with after their death.

An estate plan will also cover other aspects of your future through a power of attorney (POA) or medical directives. This gives you the power to elect a trusted loved one to control your medical care and finances if you are incapacitated. Planning for the future requires a well-thought-out plan. An estate plan can help you feel more at peace with the unknown variables of the future.

We think everyone deserves the assurance of a great estate plan, but if you fall into any of the categories below, you must have an estate plan in place:

1. You Have Minor Dependents

If you have minors in your care, you need to have an estate plan in place to prepare for their care in the event of your death or if you are no longer able. You must consider how you will provide financially for these dependents through life insurance or even a trust. You will also need to elect a trusted individual to take over guardianship of your children or other dependents. Discussing this possibility with the guardian you select before naming them in your estate plan is advisable.

Without an estate plan in place, determining the guardian for minor dependents can turn into a nasty legal battle—one that does not include your wishes for your children. Making these decisions beforehand can save your loved ones a lot of heartache at an already difficult time.

2. You Are Preparing for Medical Problems

You can be happy, healthy, and thriving one day and suddenly face medical uncertainty the next. Accidents, sudden diagnoses, or worsening chronic issues can quickly shift your medical prognosis. The uncertain nature of life is one of the biggest reasons you should have an estate plan, especially if you are planning for medical issues in the near future. A critical aspect of estate planning includes preparation for if you become incapacitated. A financial POA will allow you to name someone you trust who is responsible for managing your financial affairs if you are unable to do so. You can also name a healthcare proxy through a healthcare or medical POA. This person will be allowed to make healthcare decisions on your behalf if you are unable to do so.

While these documents are suitable for anyone to have, if you are imminently facing a medical battle, it is critical to have these documents to protect your wishes for your medical care.

3. You Have Complex Family Relationships

When you pass away, your estate enters the probate process. This includes dividing your assets and giving them to beneficiaries. If you do not have an estate plan in place to determine which beneficiaries get which assets, the state will decide for you. The state utilizes specific rules that tend to favor a more "traditional" family structure: one marriage with one spouse who shares all of your children. If you are unmarried and do not have children, the beneficiary next in line—typically parents or siblings—will be selected to inherit. If you do not have parents or siblings, the state will find your closest living relative.

For some, this may be acceptable and in line with their wishes. However, for many others, these inheritance rules simply will not work. Divorce, children with multiple partners, estrangement, death, and blended families can all disrupt the efficacy of traditional inheritance laws. By establishing an estate plan, you can choose exactly who your beneficiaries are and determine exactly who gets what. As your life changes and the people in your life change, so should your estate plan.

Veitengruber Law is a seasoned team of estate planning lawyers and professionals based in New Jersey. We can work with you to solidify a plan that offers legal reassurance and peace of mind for your future.

How Do I Set Up A Trust in NJ?

Sat, 29 Mar 2025 19:02:29 GMT

Estate planning is way more involved than just creating a will. While most folks think a will can protect all their interests, this is simply not the case. A robust estate plan often includes a will, a power of attorney, medical directives, beneficiary designations, and trusts. Trusts help ensure that your assets are distributed according to your wishes and can help your beneficiaries minimize estate taxes. If you are considering setting up a trust in NJ, Veitengruber Law can help. Here are some of the top questions we receive about trusts from our clients.

Q: What kind of trust do I need?

A: There are several different kinds of trusts available to NJ residents. Each type of trust is specifically designed to serve various purposes with different benefits and restrictions. Here are some common types of trusts and what they are used for:

Revocable living trust: This type of trust allows you to retain control over your assets and change the terms of the trust while you are living and capable. Once you pass, control of the assets in the trust will pass to those indicated in the terms of the trust.
Irrevocable trust: This type of trust legally transfers assets to a trustee who manages the trust's assets for all designated beneficiaries. It is irrevocable because the grantor (or the person creating the trust) cannot change the terms once the trust is established.
Special needs trust: This type of trust is established to protect individuals with special needs or disabilities. An SNT allows the beneficiary to receive financial support from the trust without jeopardizing access to benefits like Medicaid and SSI.
Charitable trust: This is a legal arrangement where a trustee manages the grantor's assets to benefit a charity or organization. These provide some tax benefits and ongoing philanthropy even after the grantor's death.

Q: What are the benefits of establishing a trust?

A: The main reason to set up a trust is to avoid the New Jersey probate process. Probate can be cumbersome, time-consuming, and costly for beneficiaries. When your assets are included in the probate process, they become vulnerable to public scrutiny and creditors. Trusts allow you to safeguard your assets while living and distribute them privately once you are gone. Beneficiaries of trusts do not have to go through the probate process and can avoid potentially hefty estate taxes.

Q: How do I create a trust?

A: The first step in creating a trust is to determine which kind of trust best suits your specific circumstances. Not all trusts will protect your assets the same way, and each will have different implications for tax purposes. Once you decide what kind of trust will be most beneficial, you need to select a trustee to manage the assets in the trust. This person will be responsible for the distribution of assets after the grantor passes. Once these terms are established, the grantor will fund the trust by legally transferring ownership of assets to the trust.

Q: Do I need a lawyer to have a trust?

A: It is possible to successfully create a trust without the assistance of an estate planning attorney—but it will likely not be as effective. An experienced estate planning attorney will offer guidance on the best trust for your specific circumstances. They will also be able to help you tailor the terms of the trust to best protect your assets and objectives. An attorney can ensure the trust is adequately funded and meets all legal requirements.

Working alongside a skilled attorney is highly recommended, especially if you have significant assets, multiple beneficiaries, complex family situations, or special needs dependents.

Q: When do I need to update my trust?

A: Regularly reviewing the terms of your trust is critical to ensuring the trust's accuracy in carrying out your goals. Life happens. Divorce, re-marriage, new children or grandchildren, estrangement, death, medical problems, or drastic financial changes can all lead to the revision of the terms of your trust. Update your trust as soon as possible after significant life changes.

Veitengruber Law is an experienced estate planning law firm in New Jersey. We help our clients plan for the future and find peace of mind. If you are considering setting up a trust, we can help you develop a tailored plan to protect your interests.

The Role of a Real Estate Lawyer in Home Inspections and Appraisals in Monmouth County, NJ

Mon, 24 Mar 2025 20:09:42 GMT

Purchasing a home is one of the most significant investments a family can make, and ensuring that the process runs smoothly is crucial. With so many details to manage, it’s easy to feel overwhelmed, especially when it comes to home inspections and appraisals. These steps are crucial for ensuring you’re making a sound investment. That’s where Veitengruber Law comes in. As your trusted real estate lawyer in Monmouth County, NJ, we guide families through every aspect of the homebuying process, ensuring you’re protected every step of the way.

Why Home Inspections Matter for Homebuyers

A home inspection provides an in-depth look at a property’s condition. It reveals hidden problems that might not be obvious during a standard viewing. Here’s why home inspections are so important:

Identify Hidden Issues: An inspection can uncover problems that aren’t immediately visible, such as structural damage, plumbing issues, or electrical problems.
Negotiate Repairs: Knowing about potential issues in advance allows you to negotiate repairs or a better price with the seller.
Peace of Mind: Understanding the true condition of the home ensures you are making a sound investment.

How Veitengruber Law Can Assist With Home Inspections

At Veitengruber Law, our experienced real estate attorneys in Monmouth County, NJ, will:

Recommend Reputable Inspectors: We can connect you with trusted professionals who will do a thorough inspection.
Review Inspection Reports: Our real estate attorneys will carefully review the findings to identify any potential legal issues.
 Negotiate on Your Behalf: If problems are discovered, we will help you negotiate with the seller to address these issues before the sale is finalized.

The Importance of Appraisals: Ensuring a Fair Value

Once you’ve made an offer on your dream home, the next step is the appraisal. A home appraisal determines the fair market value of the property, ensuring that the price aligns with the home's condition and location. Lenders require appraisals to protect their investment by making sure the home is worth the loan amount. Here’s why you need a fair and accurate appraisal:

Secure Financing: Lenders require an appraisal to ensure the property’s value justifies the loan amount.
Avoid Overpaying: An accurate appraisal prevents you from paying more than the home is worth.
Support Negotiations: If the appraisal comes in lower than the agreed price, it gives you leverage to renegotiate.

An experienced real estate attorney helps you understand the appraisal process and what to do if the appraisal comes in lower than expected. If the appraisal doesn’t reflect the true value of the home, we can help you negotiate with the seller to adjust the price or reconsider the purchase.

Why You Need a Real Estate Lawyer for Inspections and Appraisals

Legal Guidance

We ensure that all inspection and appraisal reports are handled correctly in line with local real estate laws.

Negotiation Assistance

If issues arise during the inspection or appraisal, we assist in negotiating the best possible outcome.

Contract Review

Our real estate attorneys will review any agreements related to home inspections, appraisals, and contingencies to ensure you’re not locked into an unfavorable deal.

Ready to Ease Your Homebuying Journey? Contact Us Today!

Purchasing a home is one of the biggest decisions you'll make, and we’re here to ensure that the home inspection and appraisal processes go smoothly, protecting your investment. Contact us today and let our real estate lawyers in Monmouth County, NJ, guide you every step of the way.

Do You Need Real Estate Legal Assistance in Monmouth County New Jersey?

Fri, 07 Mar 2025 12:34:52 GMT

Real estate transactions involve high-stakes legal and financial dealings. The legal issues that can come up during a transaction can bring a real estate deal to a screeching halt. Some of the most common real estate law issues can create significant legal and financial distress for buyers and sellers. Real estate attorneys are there to help you avoid legal trouble and advocate for your rights if you find yourself dealing with legal issues. Veitengruber Law is a knowledgeable, experienced real estate attorney in Monmouth County. We have a deep understanding of real estate law and tons of experience helping clients navigate legal issues to fulfill their real estate goals.

The laws that guide real estate transactions tend to be state-specific and sometimes even include local laws and statutes. A successful real estate deal requires an understanding of purchase agreements, contracts, title searches, property inspections, compliance with zoning and land use regulations, and other aspects of due diligence. A thorough knowledge of real estate law can be vital when you need to act decisively. Working with a real estate attorney from the beginning can help you mitigate legal risks and protect your rights and interests.

At Veitengruber Law, we believe buying or selling property in New Jersey should be exciting, not headache-inducing. But if legal issues arise, we are here to help. Here are some common real estate problems that we offer legal advice for in Monmouth County:

1. Contract Disputes

The purchase agreement or contract is likely the single most critical document throughout any real estate transaction. The contract determines a timeline for the transaction, establishes the rights and responsibilities of all involved parties, and indicates under which circumstances a party is entitled to exit the contract. After signing, you are legally bound to the contents of the contract. This is why it is incredibly important for a real estate attorney to look over the document before you sign anything.

Vague or poorly written contracts can often result in contractual issues between the buyer and seller. Common issues include failure to disclose, failure to meet financing deadlines, and confusion over what is and is not included in the sale. You can squash these problems from the beginning by working with an experienced attorney to draft a customized contract. But if these issues arise later in the process, an attorney can still help you negotiate a path forward that protects your interests. Without an attorney, these disputes can drag on, costing you more money, delaying closing, and potentially landing you in court.

At Veitengruber Law, we can review and revise contracts to offer better legal protection. When issues arise, we have the expertise needed to minimize the impact on the deal and keep you on schedule to close.

2. Title Disputes and Liens

When you purchase a new property, a title company will perform a title search. This search is intended to show the full legal history of a property, including ownership and legal claims. A title search determines if the property in question is free and clear of any entanglements that could cause legal issues for the new owner. The title search is intended to uncover the owner of a property and determine if that property has any liens due to debt, like unpaid property taxes. A title search can also reveal any easements or restrictive covenants applicable to the property.

Because debts and legal issues like lawsuits can follow the property—instead of the owner—it is critical for the new buyer to understand the potential problems associated with the property. If issues uncovered in the title search are not resolved prior to the sale, they can put the buyer and new owner at significant risk for legal problems.

Attorneys are expert researchers who can help you determine potential issues uncovered in the title search report. We can help you rest assured that the property you purchase is free and clear of any encumbrances. If the property is not clear of problems, we can work quickly to resolve any dispute to ensure the transaction continues smoothly and on time.

3. Zoning and Permitting Issues

Zoning laws regulate how real estate can be used, and these laws can vary from municipality to municipality. Buyers purchasing a property with the intention of utilizing it for a specific purpose may find they are not legally able to do so. A residential-zoned property cannot be used commercially and vice versa. Even modifying an existing property can require permits or result in fines and legal action. A skilled attorney can help you navigate these regulations and ensure you can use your property as intended. An attorney can help you with zoning variances and the permitting process to avoid costly setbacks.

4. Disclosure Failures

There are some specific defects that sellers are required to disclose under NJ law. These are typically more severe issues like water damage, foundation defects, pest infestations, roof issues, plumbing issues, and other high-dollar repairs. Undisclosed issues that the new homeowner must repair can be costly—and even lead to a lawsuit.

For buyers, an attorney can establish in the contract what kind of damage or repairs a seller is responsible for prior to closing. After inspection, an attorney can review the report and determine if any undisclosed issues must be addressed before the sale moves forward. Attorneys can re-negotiate the sale based on the inspection findings to protect their client's interests. If undisclosed issues pop up after closing, an attorney can help the new homeowner take legal action against the seller to recoup repair costs.

An attorney can guide a seller through the disclosure process to ensure they are not accidentally withholding disclosure of any major issues. If problems the seller was unaware of come out in the inspection report, the attorney can negotiate with the buyer for a path forward that doesn't jeopardize the sale.

5. Backing out of a Contract

There are many reasons someone may want to back out of a real estate contract. Regardless of the reasons, exiting any contract can be incredibly difficult. Contracts are legally binding. If you have worked with an attorney from the beginning, they may have revised your contract to include contingencies allowing you to legally back out of the contract. These contingencies can refer to a lack of financing, issues uncovered in the inspection, inability to sell/purchase another property, etc.

Just as each real estate transaction is unique, the best way to back out of a contract will hinge on the specifics of the situation. Working with a trusted, local real estate attorney is the best way to achieve an agreeable outcome and avoid legal trouble.

Buying or selling property in NJ is a major investment and a huge legal and financial transaction. Having experienced legal representation from the start is critical to ensuring a successful transaction. Veitengruber Law offers personalized support and expert legal advice in Monmouth County. We can help you fulfill your real estate goals, advocate for your interests, and protect your investment.

Why Hire a Real Estate Lawyer When I Already Have a Real Estate Agent?

Sat, 01 Mar 2025 17:07:58 GMT

Monmouth County continues to experience a highly competitive market. From the end of 2024 through the first two months of 2025, Monmouth County has seen closed sales increase despite tightened inventory and increasing median list prices. With proximity to major metro centers and the idyllic attraction of the shore, competition for residency in Monmouth County is high. This market solidly favors sellers, while buyers are urged to move quickly and decisively.

To ensure success, most buyers and sellers enter this market with the adept guidance of a real estate agent. But what about a real estate attorney?

While it is not a New Jersey requirement to work with a real estate attorney during real estate transactions, it is highly advisable—especially when there is intense competition. Real estate agents are knowledgeable professionals whose expertise can be invaluable for buyers and sellers. However, the laws surrounding real estate are complex, and it is equally important to have a legal expert on your side when you purchase or sell property.

Here are just some of the ways a real estate attorney can protect your legal interests throughout any real estate transaction:

1. Protection Against Legal Issues

Purchasing or selling a home in NJ is a complex financial and legal transaction with many moving parts. It is highly possible that legal issues can arise. While real estate agents can guide you through the process, they cannot give you actual legal advice. A real estate agent may not be knowledgeable of common contract law, statutory real estate law, or any other legal issues that arise. On the other hand, an experienced real estate attorney will be up to date on the latest laws surrounding real estate transactions. They will be able to handle any complex legal issues quickly, so you are not stuck in legal limbo waiting for a resolution. If you run into problems with easements, zoning restrictions, or title issues, a lawyer can help you protect your rights and find a speedy solution.

Similarly, a lawyer can help you understand your legal obligations as a seller or buyer. They can ensure you do not accidentally shirk your agreed-upon legal responsibilities. If you need to back out of a contract, they can explain your options and guide you through the process to limit legal fallout. There are real legal consequences for missteps when purchasing or selling a home. A knowledgeable lawyer can help you avoid or limit these consequences.

2. Your Best Interest is Protected

Real estate transactions involve a ton of different parties. The buyer, seller, and agents representing them have individual interests in the transaction. Real estate agents work hard on behalf of their clients, but there are no obligations for the agents to have a legal duty to their clients. Because most agents make their money on commission, they have a vested financial interest in the sale. Alternatively, real estate attorneys have a specific fiduciary legal duty to always act in their client's best interests. Your attorney's job is to protect your rights. Period. They will offer advice to help you make an informed decision that is best for you.

3. Creating a Robust Contract

The contract you sign at the beginning of a property sale is likely the most crucial document throughout the entire transaction. It sets out the terms of the sale and guides the specific conditions that must be met for a sale to continue to closing. Most real estate agents utilize boilerplate contracts with simplified terms that can apply to a wide range of property sales. The generalized nature of these contracts can leave buyers and sellers open to legal issues. And while real estate agents may have a cursory understanding of contract law, they are likely not legal experts. An attorney will be intimately familiar with contract law. They can draft a contract specific to your situation and include contingencies to protect your legal rights more effectively. The more specific the contract is, the better your chances of getting exactly what you want from the transaction.

4. Contingencies and Concessions

Boilerplate contracts will likely not include the contingencies or concessions that can protect your interests. For buyers, working with an attorney who can advise on adding any contingencies or concessions in line with your goals can make a huge difference in the transaction's success. Contingencies offer buyers and sellers an extra layer of protection within the contract, offering a way to back out of a contract if the sale is not going according to plan. While there are some common seller contingencies, the vast majority of contingencies work in favor of the buyer. These include:

Inspection Contingency: This outlines what should happen if any significant defects with the property are discovered during the inspection. The contingency can include who is responsible for these defects, how they should be remedied, and if the contract can be canceled based on the findings of the inspection.
Appraisal Contingency: This is included to protect the buyer in the event the appraisal of the property comes in under the market value for the home.
Financing Contingency: This protects the buyer from being forced to go through with a transaction if they cannot secure financing through a mortgage or other loan.
Sale of Current Residence Contingency: Buyers can also include a contingency that closing on their new home can only happen after the sale of their current home.
Seller's Contingency on Purchase of a New Property: Sellers can also make the sale of their home contingent on the purchase of a new residence to ensure they have a place to go after closing.

5. Negotiating

Both real estate agents and lawyers are trained negotiators, but only lawyers will be able to utilize the law to negotiate on your behalf. Real estate attorneys have a ton of experience working with insurance companies, the government, buyers, sellers, and real estate agents. They can negotiate on your behalf and in your best interest while utilizing the full extent of their legal knowledge. The addition of an attorney to your real estate team can give you the extra edge, especially in a competitive market.

6. Peace of Mind

At the end of the day, when you work with an experienced real estate attorney, you are gaining peace of mind. You can rest assured knowing that a skilled professional is looking out for your best interests and that every aspect of your sale is legally sound. You can spend less time worrying about the complexities of buying or selling property and focus on realizing your goals.

When you need an experienced real estate attorney in Monmouth County, you can count on Veitengruber Law. We are committed to serving the needs of our community by staying on the cutting edge of real estate law. We have an excellent relationship with many real estate professionals in our area. If you want to buy or sell a Monmouth County property in 2025, Veitengruber Law can help you achieve your goals.

When Should I Start Estate Planning in Monmouth County?

Fri, 28 Feb 2025 15:37:05 GMT

The short answer: right now!

Estate planning is often thought of as end-of-life planning—but that's not really the case. From the moment you become a legal adult, you need an estate plan. Estate plans include your last will and testament, yes, but they also include so many directives and legal protections for when you are still living. Veitengruber Law is an experienced estate planning attorney in Monmouth County. We work with clients at all life stages to protect their interests and establish their legacy. Here are some ways we can help you plan for the future at any life stage.

1. Legal Adulthood

From the moment you turn 18, you are a legal adult. This comes with new privileges but also a lot more responsibility. You are now legally responsible for your finances and power of attorney. Even if you do not have many assets to protect, establishing an estate plan from the beginning will help you ensure that your wishes for your life are legally protected. An estate plan will help you designate beneficiaries for any accounts you have, determine who you want to be in charge of your legal and financial affairs if you become permanently or temporarily incapacitated, and who you want to make medical decisions for you if you are unable. Regardless of how old you are, you deserve to have your wishes legally protected.

2. Homeownership

Once you are a legal homeowner, you will need to either revise your estate plan or seriously consider establishing one. Purchasing a home is likely one of the biggest investments you will make. Protecting this major asset is critical for the well-being of your investment, as well as the well-being of any loved ones sharing your home. An estate plan can help you plan for what should happen to your home once you are gone.

3. Marriage and Children

If you are married or have children, you must seriously consider establishing a robust estate plan to protect your assets and your family. Combining assets during marriage is a crucial time in the estate planning process. You need to determine what assets you will own independently and jointly and what happens to those assets in the event of one or both spouse's deaths. This is especially important after the birth of your first child and every subsequent birth thereafter. In fact, most people begin to seriously consider estate planning as they determine the guardianship rights of underaged children. However, even for adult children, establishing clear inheritance designations is in the best interest of all parties involved. You will need to revise your estate plan as you have more children or even grandchildren.

4. Divorce and Loss

As the people in your life change, so should your estate plan. If you go through a divorce or lose a spouse or other beneficiary, your estate plan will need to be updated. Any changes should be made promptly to accurately reflect your current wishes and desires.

Estate planning can seem intimidating. Few people want to think about what will happen to their loved ones and assets if the worst should happen. But the sooner you have an estate plan in place, the better you will be able to protect the people and things you care about. Veitengruber Law can help you protect yourself, your assets, and your loved ones.

Top Ways a Monmouth County Real Estate Attorney Can Help You

Fri, 28 Feb 2025 15:27:57 GMT

While the financial realities of purchasing or selling a home are typically at the forefront of people's minds as they enter the housing market, the complex legalities of real estate transfers are often an afterthought. In New Jersey, you are not required to obtain a real estate attorney when buying or selling a home. However, navigating this complex transaction without the expertise of a real estate attorney is rarely a good idea. If you want to purchase or sell a property in Monmouth County, Veitengruber Law is an experienced local attorney with years of successful real estate law practice.

Here are just some of the ways working with a real estate attorney can give you an advantage in any real estate transaction:

1. Drafting, Reviewing, and Negotiating Contracts

Real estate attorneys will often utilize boilerplate contracts in real estate transactions. These contracts typically include the standard terms of a real estate sale and vague language that can apply across various situations. While these standardized contracts offer some legal protections for the buyer and seller, they are not nearly as effective as customized contracts. New Jersey real estate transactions require a three-day attorney review period. During this time, it is critical to have an attorney look over the contract. A skilled attorney will likely suggest adding clauses or specific language to better protect their client. These amendments, if approved by both parties, can protect you legally throughout the transaction. Some common modifications include:

Inspection Contingency: Clauses can be added to the contract to determine what kind of defects will be negotiated or can result in the termination of the contract
Financing Contingency: This is a common provision that allows buyers to back out of a contract if they cannot get financing for the purchase
Appraisal Contingency: This provision allows buyers to back out of a contract if the property is appraised for less than market value
Clear Title Contingency: A provision that allows buyers to back out of a contract if the seller cannot provide a clear title

While these are common contingencies, an attorney can include a clause to cover your concerns or interests in the transaction.

2. Protection Against a Lawsuit for Nondisclosure

Sellers and real estate agents must follow mandatory disclosure laws when selling property. These laws determine which existing issues with a property the buyer must be made aware of before agreeing to purchase the property. If a seller does not correctly disclose these problems, the buyer can file a lawsuit against them for nondisclosure. Sellers can reduce their risk of lawsuits and liability by working with an experienced real estate attorney to ensure they follow all disclosure laws and guidelines. Even an honest mistake can lead to legal issues. Working with a lawyer can help sellers avoid legal headaches.

3. Negotiating After Inspection

While not a legal requirement, the property inspection is one of the more critical aspects of buying a home. Typically, a buyer has 14 days from signing the contract to complete the inspection. The inspection gives the buyer an expert's overview of the property. The inspector's findings can help buyers assess if any significant issues need to be addressed by the seller before closing. An inspector will search for plumbing issues, roof damage, mold, termites, and other environmental hazards. After the inspection, they may suggest certain actions be taken before closing.

An attorney can review this report with you and determine if your sales agreement should be re-negotiated. They can ask the seller for certain concessions based on the severity of defects found in the report. An attorney may negotiate with the seller for repairs or a price reduction. Sellers are not legally obligated to remedy any repairs, but the expert negotiations of a knowledgeable attorney can improve the odds of a more favorable outcome for the buyer.

4. Title Research

Typically, a title company will perform a title search on the property you will buy. The title company reviews public records to determine the current owner, past owners, and previous deed transfers. They will also search for open court cases, claims against the property, liens, delinquent taxes, and other encumbrances. Your real estate attorney will assess the title history report to determine if there are any defects. If there are title defects, they can ensure they are cured before closing to prevent future losses for the buyer. An attorney can also help the buyer find title insurance that offers protection against future issues.

Real estate attorneys can help sellers and buyers from contract negotiations to closing. Working with an experienced, knowledgeable local real estate attorney can give you an advantage in real estate negotiations and help you protect your legal and financial interests. If you are buying or selling in Monmouth County, Veitengruber Law can help.

Protecting Your Legacy: Estate Planning for Blended Families in Monmouth County

Tue, 25 Feb 2025 16:02:21 GMT

Blended families face unique challenges when it comes to estate planning. Ensuring that all loved ones are provided for while avoiding disputes requires careful legal guidance. An experienced estate planning attorney or estate planning lawyer can help you create a strategy that aligns with your wishes and protects your family’s future. If you live in Monmouth County, NJ, having a solid estate plan is crucial to ensuring that your assets are distributed fairly and that your loved ones are cared for according to your intentions.

Why Estate Planning Matters for Blended Families

Blended families often include children from previous marriages, stepchildren, and new spouses, making estate planning more complex. Without a well-structured plan, assets may not be distributed as intended, leading to legal battles and strained relationships. Key considerations include:

Providing for Your Spouse and Children—Without clear instructions, state laws may distribute assets in ways that don’t reflect your wishes.
Avoiding Family Disputes—A well-crafted estate plan helps prevent conflicts over inheritance.
Ensuring Stepchildren Are Protected—Stepchildren do not automatically inherit assets unless specified in legal documents.

Key Estate Planning Tools for Blended Families

To ensure that your legacy is preserved and your family is protected, consider these essential estate planning tools:

Wills and Trusts

A will specifies how your assets should be distributed, but a trust can provide more control, especially in blended families. Trusts allow you to set conditions for inheritance, ensuring that assets are used responsibly.

Beneficiary Designations

Review and update beneficiary designations on life insurance policies, retirement accounts, and financial assets. This ensures that the right individuals receive the intended benefits.

Power of Attorney and Healthcare Directives

Appointing a trusted person to handle financial and medical decisions is essential. This prevents disputes and ensures that your wishes are followed if you become incapacitated.

Prenuptial and Postnuptial Agreements

These agreements can clarify financial arrangements and protect children from previous marriages, ensuring that assets are distributed fairly.

Common Estate Planning Mistakes to Avoid

Blended families should be especially cautious about common estate planning pitfalls, such as:

Failing to Update Documents – Outdated wills and beneficiary designations can lead to unintended asset distribution.
Not Communicating with Family Members – Open discussions about your estate plan can prevent misunderstandings and disputes.
Overlooking Stepchildren – Without specific legal provisions, stepchildren may be excluded from inheritance.

Work With an Experienced Estate Planning Attorney in Monmouth County, NJ

Estate planning for blended families requires professional guidance to navigate legal complexities. A knowledgeable estate planning attorney in Monmouth County, NJ, can help you create a customized plan that protects your loved ones and preserves your legacy.

Secure Your Family’s Future Today

Don’t leave your family’s future to chance. Consulting with an estate planning lawyer in Monmouth County, NJ, can provide peace of mind and ensure that your assets are distributed according to your wishes. Contact Veitengruber Law, your trusted estate planning professional in Monmouth County, NJ. Call us at 732-695-330 or complete our contact form to get started on securing your legacy.

When to Call a Bankruptcy Attorney - Monmouth County

Fri, 07 Feb 2025 13:23:14 GMT

You've decided to file for bankruptcy. Sometimes, making this huge decision feels like a weight has been lifted, especially if you have been struggling with unmanageable debt for quite some time. However, for some, it brings on a whole new set of worries and questions: How will bankruptcy affect my credit? Will I be able to keep my home? Can I afford a repayment plan? Should I work with a lawyer?

Bankruptcy attorneys are there to answer all of these questions and more. Enlisting the help of a skilled attorney can ease the stress of filing for bankruptcy and result in a more favorable outcome. If you are looking for a bankruptcy attorney - Monmouth County attorney Veitengruber Law can help. Here, we will explore all the ways an attorney can help your bankruptcy.

Can I file for bankruptcy without an attorney?

Yes, it is perfectly legal for individuals to file for Chapter 7 or Chapter 13 bankruptcy without the representation of a bankruptcy attorney. However, there are some major drawbacks to filing for bankruptcy alone, or pro se. Bankruptcy comes with long-term financial and legal repercussions. The process can be complicated, and the laws may be confusing to navigate by someone who is not familiar with New Jersey bankruptcy law. You must complete extensive paperwork on time and in compliance with state and federal laws. Even tiny mistakes can impact the effectiveness of your bankruptcy petition, leading to your case being thrown out.

So, while you certainly can file for bankruptcy without the assistance of an attorney, it is not advisable to do so. An attorney can help you avoid hold-ups and penalties, protect your assets, and even rebuild your credit once your bankruptcy is resolved. When your entire financial future is on the line, it is best to work with an expert to save yourself from wasting time and money and causing yourself stress.

How do I know it is time to reach out to a bankruptcy attorney?

If you are considering filing for bankruptcy, it is likely time to call a bankruptcy attorney. Most people do not think of bankruptcy the first time they hit a financial speed bump. So, if you are looking into your options to tackle debt, reaching out to a bankruptcy attorney is a great first step. At Veitengruber Law, we understand that unmanageable debt does not come with a one-size-fits-all solution. We will never advise our clients to file for bankruptcy if another solution—like loan modification or debt negotiation—would be more beneficial. But if bankruptcy IS the right solution for you, we are here to demystify the process and offer knowledgeable legal advice.

It is time to contact a bankruptcy attorney if:

1. You can no longer pay your monthly expenses.

You do not need to be in a dire financial emergency to consider bankruptcy. In fact, the earlier you reach out for help from a bankruptcy attorney, the better. If you notice yourself continually putting off some bills to pay others, racking up late fees, or spending more and more of your budget towards debt—it is likely time for a financial change. Again, this doesn't mean that bankruptcy is necessarily a definite. There are many solutions experienced debt management attorneys can offer outside of bankruptcy. But if bankruptcy is the right option for you, the earlier in your financial troubles that you file, the better.

2. Creditors and collectors are calling you.

If your creditors or lenders are calling you non-stop or your debts have been sent to collections, it is time to contact a bankruptcy attorney. Your creditors and lenders will expect payment on the debts you owe, and they will make attempts to collect on this debt, especially if you are habitually past due. If this goes on long enough, creditors can threaten a lawsuit against you and take you to court to force you to pay back your debt. The court can place a lien on personal or business property or approve wage garnishment.

Avoiding these legal consequences is in your best interest. A bankruptcy attorney can help you avoid lawsuits, stop a lawsuit in progress, and hopefully settle some of your debts.

3. You're facing foreclosure.

The possibility of losing your home is scary. If you are behind on your mortgage or creditors are trying to seize your property, bankruptcy can be a great foreclosure defense strategy. When you file for bankruptcy, you enter into the automatic stay period. The automatic stay will stop all creditors' attempts to collect on debts. This includes any attempts to foreclose your property. An attorney can also guide you through how different bankruptcy exemptions can help you save your home while you go through the bankruptcy process.

4. You have filed for bankruptcy before.

If you have filed for bankruptcy before, you may think you understand the process and, therefore, do not need the help of an attorney. However, there are different rules for filing for bankruptcy again after already filing previously. If you previously filed for Chapter 7 bankruptcy, you have to wait eight years before filing for Chapter 7 again and four years before filing for Chapter 13. If you previously filed for Chapter 13 bankruptcy, you must wait two years after your discharge to file for Chapter 13 again and four years after your discharge to file for Chapter 7. An attorney will be able to guide you through this process and help you understand the timelines as they apply to your specific case.

5. You're confused about which type of bankruptcy to file.

Most individuals and couples file either Chapter 7 or Chapter 13 bankruptcy. Each type of bankruptcy comes with its own set of benefits and drawbacks. Which one is right for you will depend on your specific circumstances. Each type of bankruptcy comes with its own laws and rules, requirements, filing deadlines, and procedures. Reading through bankruptcy codes can be confusing, and with so much conflicting information online, it is wise to enlist the help of an expert to guide you through the process of deciding which type to file.

An experienced bankruptcy attorney will be able to listen to the specifics of your case and help you determine the best path forward. They will likely help you do the means test to decide if you qualify for Chapter 7 bankruptcy. They may also do a deep dive into your finances to see if you can afford a repayment plan under Chapter 13 bankruptcy. The benefits of each type will weigh differently to different people. A good attorney's job is to help you weigh these benefits and drawbacks to come up with the best solution for you.

Bankruptcy is a highly powerful legal and financial tool. It can provide a clean slate if your financial troubles have become too much to handle. If you are in need of a bankruptcy attorney – Monmouth County attorney George Veitengruber and our team can help. We have been helping clients through the bankruptcy process in NJ for over a decade. Do not wait for your financial situation to get worse. Call us today for a free consultation.

What to Look for in an Estate Planning Lawyer in Monmouth County

Fri, 07 Feb 2025 13:17:45 GMT

When creating an estate plan, you are thinking through some of the most important decisions of your life. What happens to your money and assets? Who will care for minor children after you are gone? How will you protect and provide for loved ones? What kind of legacy will you leave behind? It can be stressful to try to organize your thoughts on all these decisions alone. Working with an attorney highly recommended when tackling estate planning. But making the decision about what lawyer to work with when you are beginning your estate planning journey can be similarly overwhelming. A Google search of your area's estate planning attorneys can yield a deluge of results. But how do you decide which attorney is the right one for you?

Veitengruber Law is an experienced estate planning lawyer in Monmouth County. We understand the complexities of the laws that guide estate planning and how important it is to work with an attorney that cares about your future. Here are some of the things you should consider in your search for an estate planning attorney:

1. They Specialize in Estate Planning

If you find an attorney advertising as a jack of all trades, they may not be the best fit for your estate planning needs. When it comes to planning for your future, it is best to work with an experienced specialist who understands the intricate details of estate law. These experts are more likely to correctly identify potential problems with your estate planning and offer solutions that will work. There are so many variables to consider when strategizing your estate plan. Not every estate plan strategy will lend itself well to every situation. For the best results, it is essential that you work with an attorney who is a proven estate planning specialist.

2. They Are Familiar With Local Laws

While it's advisable not to restrict your search to a very small geographic area, your estate attorney should at least be based in your state. It's crucial for your attorney to have a deep understanding of state-specific estate laws. New Jersey, for instance, has very specific inheritance laws with tax implications. Working with a knowledgeable NJ estate planning attorney can help you avoid placing a tax burden on your heirs and loved ones. A local attorney will also be more likely to stay abreast of any changes to the law in your state, ensuring you are updating your plan when necessary.

3. They Were Referred by Another Professional

If you already work with a trusted professional who does not specialize in estate planning, ask them for a referral. Other attorneys, financial advisors, or CPAs often have connections with other professionals in parallel fields—like estate planning. These personal recommendations will help you narrow down your search to a few trusted professionals. You can also ask for recommendations from your close friends and family who have already gone through the estate planning process. Internet searches, specialist directories, and newspaper advertisements can be misleading. Talk to the people you trust to find out who they would trust with their future.

4. They Offer Clear Communication

Working with someone that you have good communication with is essential when it comes to estate planning. Clear and consistent communication from an attorney is critical to a smooth, organized estate planning process. Estate planning is complex and involves a lot of moving parts and sensitive decisions. Working with someone who really listens to your needs before offering solutions and considers estate planning a conversation will likely result in a highly effective and customized estate plan. You should also ask a potential attorney how often they review and revise your estate plan and how best to communicate any needed changed from your side.

5. They Offer Comprehensive Options

The best estate plan will be completely tailored to your specific circumstances and needs. If an attorney only offers cookie-cutter solutions and one-size-fits-all wills, they likely will not provide the same protections as a more experienced attorney. A good estate planning attorney will be prepared to help with advanced healthcare directives, establish trusts, set up a power of attorney, offer tax strategies, and more. Estate planning is so much more than a will. A good estate planning lawyer understands this and will help you come up with a comprehensive plan that protects your assets, your loved ones, and your legacy.

6. They Belong to Professional Organizations

Membership in professional organizations in your area or in general can also indicate you are working with a committed professional. Attorneys who maintain active involvement in these organizations are more likely to be up-to-date on estate planning law. They are also more likely to have access to continued education and increased networking with other estate planning professionals. When you work with an attorney affiliated with a professional organization, you and your family get to benefit from all of these connections.

7. They Are Willing to Meet for an Interview

If an attorney is unwilling to meet you before getting down to business, that should be a big red flag. Not every client will click with every attorney. Come to the interview or consultation prepared with a list of questions about the attorney, their practice, and how they handle estate planning. Ask about their team, their experience, and how payment works. Be honest about your expectations of an attorney, and don't be intimidated by the process of "shopping around." You are trying to find the best attorney to develop an open and honest relationship with as you work on your estate plan.

8. They Connect With You

A good estate attorney will care about developing a rapport with you based on mutual trust and respect. The sometimes sensitive nature of estate planning means you need to be able to really trust the person you are working with. The decisions you have to make can be difficult and overwhelming. Find an attorney that seeks to understand your concerns and goals before the planning process begins. A great attorney will check in periodically to make sure you are fully confident in the estate plan you are creating together. You should feel comfortable asking questions, knowing you will receive an unbiased explanation of your options.

If you are looking for an estate planning lawyer in Monmouth County, Veitengruber Law is the professional legal team you need. We have been doing wills, trusts, and estate planning in the area since 2010. We understand how overwhelming it can be to plan for the future, and our goal is to simplify the process. Our personalized legal solutions can help you protect your assets and safeguard the well-being of your loved ones after you are gone. We pride ourselves on having a sterling reputation in our community and being a law firm that genuinely cares about finding the best outcomes for our clients.

It is never too early or too late to start estate planning. Reach out to us today for a free consultation.

Discussing Chapter 7 vs Chapter 13 in Monmouth County

Fri, 07 Feb 2025 13:13:59 GMT

When you are dealing with unmanageable debt and considering bankruptcy, it can be challenging to determine which kind of bankruptcy is right for you. Chapter 7 and Chapter 13 bankruptcy offer different solutions for eliminating debt. Each type of bankruptcy has a different method of paying back your creditors, and each provides specific protections and benefits for the debtor filing. Veitengruber Law has extensive experience working with clients to file Chapter 7 and Chapter 13 in Monmouth County. Here are a few of the main differences between Chapter 7 and Chapter 13. Understanding these differences can help you make an informed decision about your financial future.

1. Liquidation v. Reorganization

Chapter 7 bankruptcy is referred to as liquidation bankruptcy, while Chapter 13 bankruptcy is frequently called reorganization bankruptcy. The mechanism for dealing with debt under Chapter 7 includes liquidating assets to pay back creditors. While you can protect specific assets under Chapter 7 based on federal or state exemptions, unexempt property can be sold to raise the funds needed to pay some of the debt owed to creditors. On the other hand, Chapter 13 is a reorganization of debts that allows you to pay back creditors over three or five years with agreed-upon monthly payments. Unlike Chapter 7, which allows a discharge after a few months, Chapter 13 debts are discharged only at the end of a successful repayment plan.

2. Eligibility Requirements

Chapter 13 and Chapter 7 have different eligibility requirements. For Chapter 7, you are required to pass the Means Test. This financial test determines if your income is low enough to be eligible for Chapter 7 bankruptcy. This can either be because your take-home income is below the median income for your state OR your expenses exceed your income, making it impossible for you to complete a Chapter 13 repayment plan successfully. Similarly, you must prove that you have the income to realistically make payments under a court-approved repayment plan.

3. Benefits and Drawbacks

There are general benefits and drawbacks to both kinds of bankruptcy. Under Chapter 7, debtors get a quick discharge and a fresh start but may lose valuable or beloved property in the process. Under Chapter 13, debtors can keep their property and catch up on missed or late payments on non-dischargeable debt, but they must make all monthly payments in full and on time for the entire repayment period. These general benefits and drawbacks will impact individual filers in different ways. There will also be some aspects of each type of bankruptcy that benefit some while hurting others. The individualistic nature of how bankruptcy impacts each person is why it is crucial for those seeking bankruptcy to discuss their options with an experienced attorney first.

Veitengruber Law offers a personalized approach to debt solutions in New Jersey. We understand that the circumstances surrounding your debt troubles are as unique as you. Getting out of unmanageable debt is not a one-size-fits-all solution. Whether you are considering debt negotiation, load modification, Chapter 7 bankruptcy, or Chapter 13 Bankruptcy in Monmouth County, we can help. Reach out to us for a free consultation on your options today. We are here to listen, understand, and provide you with the best possible solution for your financial situation.

Your Monmouth County Foreclosure Defense Solution

Fri, 07 Feb 2025 13:10:23 GMT

Foreclosure rates increased at the end of 2024 across the country. Economic turmoil is beginning to affect the bottom line for many US homeowners, including NJ residents. In the last quarter of 2024, one in every 2,638 housing units experienced foreclosure in NJ. As the cost of living increases, more and more NJ homeowners are struggling to cover their housing costs. But if you are worried about the possibility of foreclosure, you do have options. Veitengruber Law is an experienced Monmouth County foreclosure defense attorney. We have a proven history of successfully helping NJ homeowners find foreclosure alternatives.

Here are some of our foreclosure defense solutions:

1. Bankruptcy

While bankruptcy isn't the right solution for everyone, it is a formidable financial tool that can provide much-needed relief. It can be used to stall foreclosure or eliminate the need for foreclosure. When you file for bankruptcy in NJ, you enter an automatic stay. This court order bars creditors from attempting to collect on debts, including your mortgage lender. The automatic stay will stop legal proceedings--including foreclosure--until your bankruptcy case is settled. During this automatic stay, you and an experienced bankruptcy attorney can devise the best plan for your circumstances.

If you have the financial ability to pay back the arrears owed to your mortgage company, Chapter 13 bankruptcy can help you do just that. Through a court-approved repayment plan, you can pay back mortgage arrears and other debts over a three- or five-year period. This will allow you to get back in good standing on your mortgage without losing your home.

If you are unable to pay back the arrears on your mortgage and need to get out of the financial obligations surrounding homeownership, Chapter 7 bankruptcy may be the better option. While it is unlikely that a bankruptcy trustee would sell your home unless it has substantial equity, Chapter 7 can help you get your finances in order and eliminate debt while awaiting the ultimate foreclosure of your home.

2. Mortgage Loan Modification

Most mortgage lenders have programs available to help homeowners modify their mortgages in the face of financial challenges. However, getting approved for a loan modification can be extremely difficult. One mistake in paperwork can end in denial of the modification. When you work with an experienced foreclosure defense attorney, the chances of your loan modification getting approved increase. We can help you modify your mortgage to lower your monthly payments or help you eliminate past-due debt. Frequent loan modifications include reducing the interest rate, adding past-due payments to the end of the loan, eliminating arrears, or even extending the life of the loan. Foreclosure attorneys understand what mortgage companies are looking for and what they need to hear to be willing to negotiate a modification that works for everyone.

3. Short Sale

If you are unable to or uninterested in saving your home, a short sale is an option that can put you back in control. It is typically more beneficial to the homeowner than foreclosure. With a short sale, a homeowner can walk away from the property without mortgage obligations and without the black mark of a foreclosure showing up on a credit report. In a short sale, you sell your home for less than what you owe on the house. Your lender must agree to the short sale and decide if they will consider the funds from the sale sufficient to "pay off" what you owe. Many mortgage lenders will consider a short sale preferable to time-consuming and expensive foreclosure proceedings. However, working with an attorney to help you negotiate a short sale can improve your chances of success.

4. Fraud and Legal Violations

There are many complex laws surrounding homeownership, foreclosure, and mortgage loans. These laws are often put in place to protect homeowners' rights from the unfair practices of lenders. For example, lenders are required to follow specific rules for servicing your loan, including offering options to modify your loan. If your loan servicer is not allowing you to modify your loan, this can be considered a violation of your rights as a homeowner. Fraud or other violations of these laws can invalidate the foreclosure case. An experienced attorney can review your loan terms and ensure your rights are not violated.

At Veitengruber Law, we understand how devastating it can be to lose your home. As a Monmouth County foreclosure defense attorney, we offer customized solutions to your foreclosure problems. You do not have to face this fight alone; we are here to help. Call our offices today for a free consultation.

Bankruptcy Lawyer in Monmouth County Can Help You Reduce Holiday Debt

Fri, 10 Jan 2025 04:02:51 GMT

The holidays are a time of giving but can also be a time of escalating financial stress. Gifts, food for gatherings, travel expenses, decorations—it all adds up. Most consumers will use credit cards to cover at least some of these extraordinary costs. For many, creating the magic of the season can result in unmanageable debt. In a year of increased inflation and financial strife, this reality is bound to impact more folks than normal. If you are already regretting your financial decisions around the holidays, you have options. It's important to act quickly as ignoring this debt can cause further financial strain and potential long-term consequences.

Veitengruber Law is a bankruptcy and debt negotiation law firm in Monmouth County. We help individuals and families struggling with holiday debt every year. The solutions we offer are always tailored to the specific needs of our clients. We know there are many solutions to dealing with overwhelming debt, and each debt management plan will look different. Here are some options to explore if your December spending has overwhelmed your budget:

1. Debt Negotiation

If you find yourself juggling payments the entire month of December and beyond to afford holiday spending, it may be time to consider debt relief. Veitengruber Law offers a comprehensive approach to debt relief that considers the entire financial picture in order to provide the most effective debt relief strategy. We can help you determine which debts are causing the most financial stress and offer solutions for tackling those issues. Here are a few of those solutions:

Negotiating with lenders: At Veitengruber Law, we understand how creditors and lenders operate. Through this insight, we can better negotiate with your lenders to agree to new terms on your debt. Most individuals are surprised that negotiating with creditors and lenders is an option. Many credit card companies would rather negotiate with cardholders and get some return on their investment. It costs these companies a lot of time, money, and effort to go through the collections process. Negotiating for better terms, a different payment plan, or even to settle your debt is a great way to finally squash unmanageable debt. You may even qualify for a hardship agreement that would allow you to lessen or defer payments depending on your circumstances.
Debt consolidation: If you are struggling to pay back multiple sources of debt, consolidation may help you move high-interest credit card debts to one loan with a more reasonable interest rate. Consolidation can significantly reduce your monthly payments and the total amount of interest you pay over time. Consolidating debt can also help by providing a single monthly payment to focus on instead of multiple high-interest payments a month, making it easier to manage your finances and keep an eye on your debt.
Loan modification: Changing the terms on loans for secured debts—like your home or car—can also shift your budget to allow you to put more money into paying down debts. If your mortgage is a huge aspect of your financial struggles, securing a loan modification agreement can remove some of the burden from a strained budget. Negotiating a lower interest rate or a lower monthly payment, extending the repayment period, reducing the principal owed, or even changing from an adjustable rate to a fixed rate can improve the terms in your favor.

Many debt relief options are available, and Veitengruber Law can help you find the one that is right for you.

2. Bankruptcy

We know—bankruptcy may seem like overkill for some holiday spending. But the truth is that if you put all or most of your holiday spending on credit cards, there are likely some more significant issues at work in your budget. Maybe you've lost income or employment, maybe you are dealing with costly medical problems, or maybe you got hit with significant home repairs during your holiday spending. Regardless of the reason, holiday spending can exacerbate existing financial issues. Often, the credit card bill received after the holidays is the final straw for individuals who have been considering a big financial change for a while. If this sounds like you, bankruptcy may be the best option for dealing with all of your debt, not just the debt you accumulated over the holidays.

What kind of bankruptcy you file can be tricky when considering holiday spending. For individuals filing for bankruptcy, your options are typically to file either Chapter 7 or Chapter 13. Bankruptcy laws dictate that any spending on "luxury" items or services in the 90 days before filing for bankruptcy cannot be discharged. Luxury goods include gifts. You also cannot discharge cash advances within 70 days of filing. This means that if you file in January, February, or March, you likely will not be able to discharge any debt accumulated around the holidays under Chapter 7 bankruptcy.

While every individual's financial circumstances are different, if you are looking to get rid of holiday spending debts, Chapter 13 is likely the best option for you. If you went over budget or experienced financial hardship while dealing with end-of-year debt, Chapter 13 can help you pay back this debt in a way that works for your financial situation. By re-organizing the debt under Chapter 13, you can spread out more realistic payments over three or five years, making it more affordable under your budget. This can be a great way to restructure your financial life in a way that reduces stress and sets you on the path to a brighter future.

3. Credit Repair

When your debt is out of control, your credit score will drop. How far it drops depends on how much debt you have and how you reduce that debt. Whether you are watching your score decrease due to immense debt or dealing with a low score in the aftermath of bankruptcy or debt relief, we can help. Our holistic approach to debt relief includes helping you improve your credit score in the wake of unmanageable debt. Your credit score is your financial power. With a poor score, you lose out on financial opportunities. We aim to help you become a stronger consumer so you can access these financial opportunities, empowering you to take control of your financial future.

We offer individualized counseling to help you improve your credit score, clear your credit report, and bounce back from financial difficulties with more knowledge and financial empowerment. We will offer a step-by-step plan to help you repair and rebuild your credit score. If holiday spending has tanked your credit score, we can help you find a plan to dig out of that debt and get your score back to where it was.

Financial stability is a common New Year's resolution, and it's a goal that is within reach. Veitengruber Law can help you assess your situation and formulate a plan to get you on a path to financial health in 2025. We offer individualized and appropriate solutions to tackle your debt worries, giving you hope for a brighter financial future. Being proactive about your debt at the beginning of the year will help you end next year on better financial footing.

What to Ask Your Monmouth County Real Estate Lawyer Before Buying a Home

Fri, 10 Jan 2025 03:58:24 GMT

As anyone who has ever purchased a home can tell you, buying a property is a lot more involved than simply paying the downpayment and signing on the dotted line. Real estate transactions involve intricate legal and financial processes that can sometimes be confusing. Not only are you likely working with lenders, competing against other buyers, and negotiating for a fair deal—you have local, state, and federal laws to grapple with. When mistakes happen, they can be costly.

In New Jersey, you do not have to work with a real estate attorney to purchase a home. Still, many home buyers seek the guidance of an experienced attorney to help them navigate NJ real estate law. If you are a hopeful homebuyer looking to purchase a home, you may want to consider the benefits of working with an attorney. Enlisting the service of an attorney will help you be a more informed and protected home buyer.

If you choose to work with a real estate attorney, here are six questions you can ask them as you go through the home buying process:

1. How can the real estate contract protect my interests?

In New Jersey, any real estate contract automatically goes through the three-day attorney review period. While buyers and sellers are not obligated to utilize this period to have an attorney review their contract, it is highly recommended. Typically, if attorneys are not involved in drafting the sales agreement, a boilerplate agreement is used to facilitate the transaction. This standard agreement should cover the basics, but it will protect your legal rights and personal interests as much as a customized, attorney-created contract can.

Your real estate attorney can review and amend your contract to protect your rights and best interests throughout the transaction. They can also insert clauses that will make it easier for you to legally exit the contract if you face any setbacks, like a bad inspection report or the inability to get financing. A customized contract is typically in the best interest of all parties and helps create a smoother transaction overall.

2. Are there any deed restrictions?

Every home comes with a deed. The deed to a home or property is a legal document that legally passes ownership from one owner to another. Unlike a title, which is the actual right of ownership, a deed is essentially the paper trail that shows the change in ownership from the previous owner to the current owner. There are some things you should look for when you review the deed to your new home.

Some deeds come with restrictions. Deed restrictions are limitations on your right to utilize your property as the owner. These restrictions typically exist due to a homeowners' association or agreements put in place at the bequest of community members. Deed restrictions can cover many things, from the color you can paint your home to if you can have sheds or fences in your backyard. Before proceeding with the transaction, you should review any deed restrictions and determine if they align with your lifestyle. An attorney can help you carefully review the deed and assess your rights going forward if you disagree with any listed restrictions.

3. Are there any liens or claims on the property?

When you purchase a home, you must do so with the full knowledge of any potential issues with the property. Attorneys are excellent researchers who can provide expert assistance in researching the history of a property and reviewing the legal documents associated with a property. Attorneys are adept at performing title searches, where they go through all public records to determine the legal owner of the property and the history of deed transfers associated with the property. Title searches can also help you discover building code violations, legal issues, or property claims like court judgments, liens, mortgages, and delinquencies associated with the property.

Even if you were totally unassociated with the property when the above issues occurred, these encumbrances could diminish your ownership rights and lead to legal or financial headaches. An attorney can help you ensure that all potential problems with the property are resolved before closing so you can begin life in your new home without issues hanging over your head. Working with an experienced attorney for the title search process will help you protect your interests as a homebuyer.

4. Can a real estate attorney assist with my mortgage?

Yes! There are a lot of moving parts in the homebuying process. One of those parts is securing financing if you are not paying for your home outright. There are a number of conditions that need to be met to secure a residential mortgage in NJ. Lenders will request a ton of paperwork and documentation from you to prove your financial standing and determine if you qualify for their financing options.

A real estate attorney can review your financial documents to ensure that you meet all the criteria to get approved for your loan. An experienced attorney will also be able to ensure that you are following the conditions laid out in the loan contract and that everyone is in compliance with NJ residential real estate law.

5. Are there any tax implications with my purchase?

Depending on your circumstances, you may have to consider the tax implications of your home purchase. For example, NJ has a Mansion Tax that applies to home purchases of residential properties of homes sold for $1 million or more. This 1% fee of the home's total sale price must be paid at the time of closing.

You may also have to pay prorated property taxes to the seller. In NJ, property taxes are paid quarterly in advance. So, it is likely that the seller has paid the property taxes for the quarter in which the home is sold, despite the fact that they will not live at the property for the entirety of the quarter. Typically, the buyer is then responsible for reimbursing the seller for an agreed-upon portion of those property taxes. This amount will be due to the seller at closing.

6. The inspection or final walkthrough revealed issues. What can I do?

An attorney can help you review the inspection report for a property to ensure that the seller has been honest and upfront about any issues with the home. If you have been working with an attorney from the beginning, they will likely have clauses in your contract that make the sale contingent upon specific standards being met. If these standards are unmet and the property has more issues than previously disclosed, your attorney can help. They will work with you to either negotiate for these issues to be resolved prior to closing or find a way to back out of the deal completely.

Even if these issues are not noticed until the final walkthrough right before closing, your attorney can offer you the tools you need to navigate any last-minute problems. You have legal rights throughout this process, and an attorney can ensure those rights are respected.

Buying a home is one of the most important investments you will likely make in your lifetime. Working with an attorney can help protect this investment from the very beginning. Veitengruber Law is an experienced, full-service real estate law firm in New Jersey. We have years of experience helping NJ residents sell and purchase property. NJ real estate law can be complicated, but your homebuying process doesn't need to be. We are ready to help you secure your dream home.

Why Choose a Debt Relief Attorney Over a Debt Settlement Company?

Fri, 10 Jan 2025 03:52:25 GMT

When you are struggling to pay back debt, it can feel immobilizing. Even once you do decide to act, it can be challenging to determine the best path forward. Do you have the credit to consolidate with a personal loan? Should you work with a debt settlement company? Is a debt relief attorney a waste of money? It can be confusing to sift through all your options for the one that will be the most helpful for your situation. As a debt relief attorney, Veitengruber Law has helped countless individuals break free from unmanageable debt. We understand how stressful and vulnerable it can be to seek help for debt problems. Our goal is to guide our clients with compassion and expertise.

Here are four reasons why you should work with an attorney instead of a debt settlement company when you need debt relief:

1. Attorneys Have Negotiation Skills

The charming salesman you talk to on the phone when you call a debt settlement company is likely not the one who will be negotiating with your creditors to settle your accounts. When you work with a debt relief attorney, you know exactly who will negotiate with creditors on your behalf. Attorneys have three years of law school, years of practice, and extensive knowledge of consumer protection laws. They are more adept at negotiating with creditors and more likely to find success doing so. Attorneys with experience in debt relief know what to say to get your creditors to work collaboratively for an agreeable path forward.

2. Attorneys Must Act Ethically

Unlike debt settlement companies that are out for themselves, your attorney works for you. Attorneys are required to uphold stringent ethical standards associated with their profession. This includes always acting in the best interests of their clients. So many debt settlement companies are actually scammers who take what little you have left for themselves through fees without paying back your creditors. The Federal Trade Commission has sued hundreds of these companies for fraudulent activities. Instead of rolling the dice and hoping you find an honest debt settlement firm, you can work with a well-known debt relief attorney you can trust.

3. Attorneys Understand All Your Options

A debt settlement company will give you one solution, no matter what your specific problem is. An attorney will help you investigate all of your options. These options include debt settlement, negotiation, loan modification, or bankruptcy. A good attorney can guide you toward the solution that will fit best with your circumstances. Not everyone is an ideal applicant for debt settlement. The best way to successfully solve your debt issues is to explore all your options before planning to move forward. A debt settlement company will box you into a one-solution-fits-all formula for success that doesn't always work.

4. Attorneys Can Represent You Legally

If you work with a debt settlement company and end up getting sued by a creditor, you're on your own. Not all creditors will agree to settle your debt. When this happens, it is likely they will sue you directly to recoup their losses. Debt settlement companies cannot offer legal services or represent you in court—but a debt relief attorney can. If you have creditors threatening legal action against you, it is likely that you need to work with an experienced attorney to avoid the most dire consequences of unmanageable debt. An attorney can represent your case in court and ensure that creditors are not ignoring your legal rights.

5. Secured Debts Are Not Included In Debt Settlement

If your debt issues go beyond unsecured debts like credit cards and personal loans and extend to secured debts like your mortgage or car payment, a debt settlement company will be unhelpful. Most debt settlement companies will not deal with secured debts. Working with an attorney is your best option when you need to save your home, car, or other important possessions.

6. Debt Settlement is a Big Gamble

Debt settlement companies will offer you the world. They boast about low monthly payments and quick settlement, but they tend to leave out that your debt is likely to grow and your credit will take a major hit. They may also choose not to disclose their high fees or how your money will be distributed once they receive it. Unless you know the exact right questions to ask or what to look for in a contract, it can be easy to get duped by a dishonest company running a scam.

Working with an attorney makes you more likely to get results with compassion, honesty, and skilled representation. Veitengruber Law has years of success helping struggling individuals get back on their feet. We offer proven solutions for debt relief. If you are worried about your debt, reach out to us today for a free consultation.

NJ Will Lawyer Explains: What is an Executor?

Fri, 10 Jan 2025 03:38:47 GMT

When you create a customized estate plan, you will make a will, a power of attorney, healthcare directives, and appoint an executor of the estate. The executor of an estate, or executor of a will, is the person that will be responsible for carrying out your wishes as detailed in your estate plan. Choosing an executor is a big decision. This person needs to be reliable, willing, and have the capacity to carry out your directives.

Here, we look at what an executor does and how you should choose your executor.

What is an executor of a will?

The executor of estate is a trusted person in your life that will resolve the logistical, financial, and personal issues after you are deceased. Their primary duty is to distribute the assets in your estate as intended to your beneficiaries. Inheritance is not always automatic. The executor is there to ensure that things go smoothly for those who stand to inherit your assets. They act in the best interest of you, your estate, and your beneficiaries.

Who can be an executor of a will?

Almost anyone can be an executor. Who becomes the executor of an estate is primarily up to the personal preferences of the individual who creates the will. You can designate a family member, close friend, lawyer, accountant, financial advisor, or even an entity to be the executor of your will. You can name one of your beneficiaries as your executor. You can also designate multiple executors that will work together as co-executors. If you never designated an executor, the court will appoint one.

Most importantly, you choose someone to be your executor who is reliable and willing to take on the responsibility. It is crucial that you trust this person implicitly. You are, essentially, leaving your entire legacy in their hands. Choose someone who is organized and level-headed in case disputes or conflicts arise. It can take months or even years to administer an estate, so choose someone with the time and resources to get through this process.

What does an executor do?

An executor has many functions, including:

Obtain the death certificate: Typically, an executor gets a copy of the death certificate from the funeral home. They use this certificate to settle affairs with banks, credit agencies, insurance firms, or other entities.
File a copy of the will: The executor will provide a copy of the will to the local court and follow the court procedures for the probate process. The executor is also tasked with keeping beneficiaries informed of court proceedings.
Settle debts and taxes: Before assets are distributed to beneficiaries of the estate, executors must settle debts. They will pay ongoing bills (like mortgage or utilities) as well as any outstanding debts. The executor will also file the final tax return for the year the decedent passed. The executor does not need to determine how to settle debts if the money in the estate does not cover the full amount owed. Instead, the court will decide how to prioritize repayment.
Supervise the distribution of assets: The executor's primary job is to ensure that the assets of an estate end up with the correct beneficiaries. If there is no will, the court-appointed executor will distribute assets based on NJ intestacy laws.

Working with an estate planning attorney while you are creating your will can help you set up your estate plan in a way that simplifies things for your executor and your beneficiaries. Named executors may also want to seek the expert advice of an experienced attorney as they go through the probate process. It can be overwhelming to deal with the complexities of an estate in the aftermath of a loved one's death. Veitengruber Law is an experienced estate planning attorney in New Jersey. We can help you make the process as smooth as possible.

Is it Possible to Leave an HOA?

Thu, 05 Dec 2024 19:10:40 GMT

A homeowner's association (HOA) is an organization intended to hold a specific neighborhood of homes to a certain standard of care. HOAs will collect fees from homes in their designated neighborhood to fund things like road upkeep and community spaces. Members of HOAs often have access to shared common areas within the community, like a community fitness center, pool, garden, playground, or clubhouse. While HOAs can help keep property values stable and offer a sense of community, there are some downsides to belonging to an HOA.

It can be expensive to belong to an HOA, with monthly fees for membership. HOAs also impose many restrictions and rules on residents that can impact the appearance of their homes and how they may utilize their property. If you cannot pay your HOA dues on time, you can also risk eviction or foreclosure.

So, what happens if you decide to leave your HOA?

While it is possible to leave an HOA, it can be challenging to do so. Veitengruber Law is a real estate attorney in NJ. We understand the laws and regulations surrounding HOAs. Here is our expert advice on leaving your HOA:

1. Reduce Your Fees

If your main reason for leaving the HOA is the cost of membership, but you otherwise enjoy the benefits of belonging to your HOA, then negotiating your HOA fees may be the best path. You can offer to stop using certain HOA-offered services (like snow removal or the community gym) in exchange for lower monthly fees. Your HOA fees should go towards maintaining community standards and conveniences. If you do not feel that the high fees are worth the benefits provided, approach your board about lowering fees. Regardless of the outcome, do not stop paying your HOA fees just because you want to opt-out. Unpaid fees can damage your credit score or even lead to eviction.

2. Utilize Your De-Annexation Clause

Look to the covenants, conditions, and restrictions (CC&Rs) you signed when you purchased a home with an HOA. If a de-annexation clause is included, you may be able to leave your HOA if you meet specific requirements. You can petition for the home to be removed from the HOA through this clause. However, this typically requires legal action and an attorney's help.

3. Wait for Membership Expiration

Some HOAs will have periodic membership renewals. It may be possible that you could leave the HOA by simply not renewing your membership when the time comes.

4. Grandfather Out

If there was no HOA in your neighborhood when you purchased your home, you may not be obligated to join a new HOA. You should carefully review your homeowner documents to ensure you never agreed to join any future HOAs in your neighborhood. If you never agreed to join a future HOA, you may be able to fight pressure to join a new HOA with legal help.

5. Organize to Dissolve the HOA

Check the bylaws of your HOA. Often, the bylaws will include stipulations about what percentage of the HOA members are needed to dissolve the HOA. In most cases, this is 80%. If you think that many of your fellow HOA members are also dissatisfied with the HOA, you could campaign to hold a vote on dissolving the HOA.

6. Relocate

It is very difficult to leave an HOA. In many cases, members must sell their homes and move to opt out of the HOA.

Leaving your HOA is challenging and will likely require you to take legal action if you want to fight to keep your property. Veitengruber Law is a full-service real estate attorney in New Jersey. We can work with you to help you leave your HOA while keeping your home. Reach out to us today for a consultation!

NJ Full-Service Debt Relief at Veitengruber Law

Thu, 05 Dec 2024 19:02:04 GMT

In 2023, New Jersey bankruptcy filings increased by 18% to 445,186 total filings. Increased interest rates, inflation prices, and growing debt have all contributed to unsettled finances for many NJ residents. In these difficult financial times, it can be challenging to determine what kind of debt relief options to turn to. The prevalence of scams, misinformation, and taboos surrounding debt relief can confuse matters worse and result in inaction. But we are here to tell you that being proactive about your debt doesn't have to be scary or stressful.

Veitengruber Law offers full-service debt relief services including bankruptcy, foreclosure defense, debt negotiation, and credit repair. We can help you find financial and legal solutions for your specific circumstances. Our team can provide knowledgeable, practical, and compassionate guidance to get you out of unmanageable debt and on the path to financial security.

Here, we explain some of our solutions and how they can help you.

1. Bankruptcy

Bankruptcy is a powerful financial tool, but because of the misinformation surrounding bankruptcy, many think of it as a kind of taboo. While it is true that there will be some negative impacts of filing for bankruptcy, for many people, the benefits will vastly outweigh the costs. When you are struggling with unmanageable debt, bankruptcy can be a lifeline to a brighter future. Not only can bankruptcy help you get out of debt faster than other debt relief solutions, but it is also a legal tool to delay or prevent foreclosure, repossession, wage garnishment, and other negative consequences associated with debt.

Veitengruber Law utilizes a holistic approach to debt relief and bankruptcy. We know bankruptcy is not the right path for all our clients, but we have also seen how transformative a successful bankruptcy case can be for their financial health. We will look at the specifics of your circumstances to determine if you are a good candidate for Chapter 7 or Chapter 13 bankruptcy. Our office can work with you to file correctly and present a winning case.

2. Foreclosure Defense

Your home is likely to be the most significant investment you will ever make. When you face the potential loss of your home, you are not just looking at the loss of property—you're facing a deeply personal loss. If you are on the brink of foreclosure, or even if you have received a notice of foreclosure, Veitengruber Law can help. There are many different solutions we can utilize to defend against foreclosure, including:

Loan Modification: Modifying the terms of your mortgage can decrease your monthly payments and give you the financial break you need to get back on track with your mortgage company. Veitengruber Law has an established track record of successfully negotiating with mortgage companies and lenders for better terms and lower monthly payments.
Short Sales: If you cannot save your home or just want out of your mortgage, we can also help you get the most out of your investment through a short sale. As a full-service real estate attorney, we are equipped with the knowledge of real estate law to guide our clients through the short sale process.
Bankruptcy: Chapter 13 bankruptcy is a fantastic way to get out of arrears on your mortgage and save your home. Filing for bankruptcy will also immediately freeze the foreclosure process, giving you time to come up with a solution that works best for you.

3. Debt Negotiation

Even if bankruptcy and foreclosure are not the right solutions for your circumstances, we can help you work towards negotiating your debt with your creditors. With our debt relief counseling and representation, we can create an individualized plan to match your needs and get you back on budget. Our in-depth knowledge of creditors and experience negotiating with them successfully gives you an edge. Debt negotiations can include debt settlement, repayment plans, and modifications to terms on loans and credit cards that decrease your monthly payments.

4. Credit Repair

When everything is said and done, regardless of which debt mamagement solution works best for you, it is likely that you will need credit repair services. Credit repair can help you boost your credit score faster so you can enjoy more financial opportunities. Low credit can prevent you from accessing loans, housing, credit cards, and other essential financial services. No matter how low your credit score is, Veitengruber Law can help you improve your score and gain increased access to the financial benefits of good credit.

Do not let the complexities of debt relief stall your progress toward financial freedom. Veitengruber Law can help you find the right path out of debt. We work closely with our clients to demystify the debt relief process and empower them to find financial peace.

Our NJ Bankruptcy Attorney Can Help You Keep Your Home

Thu, 05 Dec 2024 18:53:34 GMT

Once the foreclosure process starts, you have a very short period to decide the best path moving forward. Regardless of whether you want to fight to keep your home or move on from an investment you can no longer afford, it is critical that you work with an experienced attorney. The legal support of a trustworthy attorney can make a significant difference in the result of your foreclosure case. An attorney can buy you the time to save your home or assess the best options for your future. Quality legal support can give you invaluable advice for a better legal and financial outcome.

Veitengruber Law is an NJ bankruptcy attorney with experience in foreclosure defense. Here are some of our tips on how to keep your home when you are facing bankruptcy or foreclosure:

What is foreclosure?

Foreclosure is the process by which a mortgaged home is repossessed by the lender. It typically happens after a homeowner falls behind on their monthly mortgage payments. When a foreclosure is successful, the homeowner loses ownership of the property, and the lender can then sell the property to recoup any losses.

The foreclosure process typically begins when your lender notifies you that your account is delinquent, and that foreclosure is possible. At this point, it is in your best interest to contact your lender and attempt to get your account current. If a solution that works for you and your lender cannot be reached, your lender will likely initiate foreclosure after the account is 120 days delinquent.

NJ is a mandatory judicial foreclosure state, meaning the lender must file a lawsuit against the homeowner in court. In order to repossess a property in a judicial foreclosure state, the lender must follow all the rules surrounding foreclosure in NJ. For instance, once notified, the homeowner has 30 days to respond to the lawsuit. If the homeowner does respond, the case will go to court, and a judge will decide if a settlement can be reached, or the foreclosure will proceed.

In New Jersey, there are many requirements for lenders intended to keep the homeowners informed and protect their rights as property owners. Any misstep against these requirements from the lender or mortgage company can result in the foreclosure case being rejected. An attorney can ensure you know your rights and advocate for a fair process.

How can bankruptcy stop foreclosure?

There are many ways to stall foreclosure or eliminate the need for foreclosure. Your lender may be willing to work with you to get your account current or change the terms of your loan to make payments more realistic for your budget. Foreclosures can be very expensive and time-consuming for lenders, who may seek to avoid going through the foreclosure process if possible. Loan modifications, debt negotiation, loss mitigation, short sale, forbearance—there are many options to consider before foreclosure. Communicate with your lender as soon as you know there is an issue, and you will likely have a better outcome.

However, if you cannot reach an agreement with your lender and they are still pursuing foreclosure, bankruptcy can be a powerful tool to stall proceedings or eliminate the need for foreclosure. From the moment you file for bankruptcy, foreclosure proceedings halt. The court will issue the automatic stay order that will prevent your lender from pursuing debt collection efforts, including foreclosure.

How bankruptcy can help your specific case will depend on whether you file Chapter 13 or Chapter 7, which we explore in depth below.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a great way to reorganize your debts by agreeing to a court-approved repayment plan. This plan will allow you to pay off some or all of your debts over three to five years. Any unpaid mortgage arrears can be included in this repayment plan. At the end of the plan, you will be caught up on your mortgage, and foreclosure will no longer be necessary. Any unpaid debt at the end of the repayment plan will be discharged. This is a great way to get back on track financially if you can realistically afford the monthly payments agreed to in our repayment plan.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the better choice if you can no longer afford your home. Chapter 7 will give you the time to stay in the house throughout your bankruptcy case without having to make mortgage payments. At the end of Chapter 7, any debt related to your mortgage will be discharged, making you no longer responsible for paying it back. The court will include your home in your bankruptcy estate and use the proceeds of the sale of your home to pay back your mortgage lender.

What are bankruptcy exemptions?

If you meet specific requirements, it is still possible to save your home even when you file Chapter 7 bankruptcy. Keeping your home during Chapter 7 typically involves getting current on your mortgage and proving to the court that you can continue making regular payments. There are also federal and state exemptions that can help you protect your home. You have the right to utilize either state or federal exemptions, but you cannot use both. The federal homestead exemption allows you to save up to $27,900 in equity per individual and $55,800 in equity per household. Depending on how much you still owe on your mortgage, these exemption amounts can make it unrealistic for the bankruptcy trustee to make any money to pay back creditors with the sale of your home. In this case, they will likely leave your home untouched.

How will my credit score be affected?

Bankruptcy and foreclosure will both negatively impact your credit score. Chapter 13 will stay on your credit report for seven years, and Chapter 7 bankruptcy will remain on your credit report for up to ten years. A foreclosure will stay on your credit report for seven years from the date of the first missed payment. These negative marks on your report can make it challenging to buy a home, get a loan, or get approved for new lines of credit.

When determining which path will have the least impact on your credit report, foreclosure or bankruptcy, you should keep a few things in mind. Bankruptcy essentially starts you over at zero. Yes, your credit score will take a hit, but once bankruptcy is over, you can begin rebuilding your credit without the burden of unmanageable debt. With foreclosure, however, not only will you be dealing with the black mark of a foreclosure on your credit report, but you will also still be responsible for your other debts. For this reason, it may be easier to rebuild your credit after bankruptcy than foreclosure.

We understand how much pressure and stress folks facing foreclosure are under. With over a decade of experience helping NJ homeowners fight foreclosures, we have the knowledge and skills to help you save your home. The quicker you contact an attorney, the quicker you can get through this difficult time. Call us today for your free consultation!

Can I DIY Debt Negotiation or Do I Need an Attorney?

Thu, 05 Dec 2024 18:44:16 GMT

Debt negotiation is the process of working with your lenders and creditors to reduce your monthly payments or the total payment owed. Individuals struggling with unmanageable debt often utilize debt negotiation to reduce their expenses and get back on a better financial footing. When you type "debt negotiation" into Google, you are inundated with thousands of articles and websites filled with advice, success stories, cautionary tales, and misinformation. There are also plenty of companies out there making too-good-to-be-true promises and offering their services to settle your debts—for a fee, of course.

It can be challenging for the typical consumer to determine which debt negotiation options will benefit their specific circumstances. Many folks attempt to DIY their debt negotiation. This makes sense: if you're so short on financial resources that you have to negotiate your debt, you likely do not have much money to hire someone to do this on your behalf. For some folks, the DIY method will work. However, it is vital to understand when hiring a debt negotiation attorney is in your best interest.

As an experienced debt negotiation attorney in New Jersey, Veitengruber Law has helped hundreds of NJ residents escape unmanageable debt. Here are our tips for successful debt negotiation:

1. Avoid Scams

Scammers understand how desperate high debt can make a person. There are thousands of scams out there targeting those seeking relief from debt. Chances are, if a company or organization offers a solution that seems too good to be true, it is. With so many scams out there, it is critical that you do your due diligence before speaking to or offering any personal information to so-called "experts" in debt negotiation or debt settlement. Many of these companies seem perfectly legitimate, but you should always research the legitimacy and effectiveness of a company before reaching out to them. If you feel you are being scammed by one of these predatory schemes, it is crucial to get the help of an attorney as soon as possible.

2. Get Ahead of Lawsuits

If you have received court papers in the mail informing you that a debt collector is suing you, it is time to call an attorney. Once the issue enters the realm of the court system, you will need an experienced attorney to represent your best interests in the matter. Finding an attorney experienced with consumer law or debt collection defense will give you the best advantage in court. An attorney can not only negotiate on your behalf, but they can also ensure you understand your rights and advocate for them through the court system. Do not try to face debt collectors in the court system alone. An attorney can give you the legal support you need to face the legal consequences of unmanageable debt.

3. Understand NJ Consumer Law

If you live in NJ, many laws are already in place to protect consumers from predatory lenders and debt collectors. Understanding these protections and being informed about your rights can make a massive difference in the success of your debt negotiations. The best way to understand your rights as a consumer is to work with an attorney experienced in consumer laws for your area.

A lawyer can help you determine if the statute of limitations in place for your state prevents creditors from attempting to collect on unpaid debt. An attorney can also help you determine if your circumstances meet any of the requirements legally exempting you from paying specific debts. New Jersey also has state-specific protections in place to give consumers options when debt collectors come calling. A local lawyer can help you navigate these legalities and make the law work in your favor.

4. Know Your Terms

To negotiate, you need to be confident. To be confident, you need to have a clear understanding of what exactly you are negotiating. With debt negotiation, you typically negotiate two specific terms: how much you can pay and how your creditors will report to credit agencies.

You need to figure out how much of the debt owed you can realistically pay. Be sensible about this option, but do not try to undersell your offer. Comb through your budget and determine where you could make some cuts or redirect funds toward paying off your debts. Your creditors may be more inclined to negotiate if they feel you are honest and fair in assessing what you can pay.

The second thing you must negotiate is how the settled part of the debt will appear on your credit report. Your goal here is to salvage your credit as much as possible. Often, creditors or lenders will report settled debts as "Settled" or "Paid Settled," which will negatively affect your credit score and stay on your report for up to seven years. Instead of these terms, try to get your creditor to report the settled debt as "Paid as agreed," which will minimize the impact on your score.

Remember that some creditors and lenders will be amenable to negotiations, while others will not. If you do not have the knowledge or confidence to present a solid argument for your creditors, working with an experienced expert can give you a better chance of success.

5. Work with an Attorney

Debt negotiations are high stakes. Your credit score, budget, and financial well-being hang in the balance. While it might be tempting to DIY your credit negotiations, working with an attorney will give you the best chance of an ideal outcome. When you work with a debt negotiation attorney, you know an experienced professional is in your corner. This can provide a much-needed sense of reassurance and support. Instead of facing an uphill battle alone, you will have the support you need to get through this process with as little stress as possible.

Choosing the correct attorney is critical to the success of your settlement. A trustworthy attorney should be licensed to practice in your state and in good standing with the state bar. They should also have verifiable experience with debt collection defense or consumer law. If you cannot meet face-to-face with an attorney, that is a major red flag, and you should likely look elsewhere for legal advice. You also want to ensure they are not affiliated with a debt settlement company.

Veitengruber Law is an experienced debt negotiation attorney in New Jersey. We have years of experience helping NJ consumers fight back against predatory lenders, debt collectors, and lawsuits over debt. We offer compassionate, knowledgeable advice based on hard-earned experience with a proven record of success. We offer personalized and effective solutions that can alleviate financial stress, improve your bottom line, and get you back on the path to a brighter future.

With our holistic approach to debt management, we can identify the best plan for you and help you execute a personalized debt negotiation plan. Reach out to Veitengruber Law today for a free consultation on your customized debt solution.

Tips from a Bordentown Bankruptcy Attorney; How to Successfully Discharge Your Debts

Mon, 04 Nov 2024 15:24:33 GMT

Filing for bankruptcy is a huge decision. The complex nature of the bankruptcy process often means folks refrain from filing long after their debt has become unmanageable. The stigma surrounding bankruptcy causes many who would benefit from it to delay filing, often making the situation worse. Veitengruber Law is an experienced bankruptcy attorney serving the Bordentown and Burlington County area. We have assisted hundreds of clients in New Jersey file for Chapter 7 bankruptcy and successfully discharge their debts. We understand how to secure a discharge and what steps you need to take to ensure success.

Here are some of our best tips for a successful Chapter 7 bankruptcy:

1. Avoid Incorrect Filing

Chapter 7 bankruptcy filing involves a substantial amount of paperwork and documentation. One of the most common reasons for court dismissal or denial of a case is incorrect or incomplete paperwork and missing or inaccurate documentation. It's crucial to note that only individuals, not corporations, businesses, or entities, can file for Chapter 7 bankruptcy. Even an honest mistake can lead to the court dismissing your case or denying your discharge.

Be thorough as you review your paperwork and documentation. Read all instructions carefully to ensure you are filing correctly the first time and avoid refiling.

2. Abide by Filing Limits

There are specific filing limits on the timeline of when you can file for bankruptcy. If you received a successful Chapter 7 discharge previously, you must wait eight years before filing for discharge again. If you previously filed Chapter 13 bankruptcy and received a discharge at the end of your repayment period, you will need to wait 6 years before filing again. Even if you have not received a previous discharge but your bankruptcy case was dismissed or withdrawn, you will have to wait 180 days before filing for Chapter 7 bankruptcy again. Filing within these time limits will result in the automatic dismissal of your case.

3. Take the Means Test

Individuals seeking qualification for Chapter 7 bankruptcy must take the means test. This state-specific test is intended to prove to the court that you do not have the financial means to pay back your debts. The means test is two parts. First, you determine your gross household income for the six months before your filing. If this income falls below the median income for NJ, you automatically pass the means test. If your income is above this threshold, you can advance to step two.

Step two compares your income and assets to your expenses and debts to determine if you could realistically pay back some or all of your debt. This complex calculation will provide a very detailed picture of your financial profile and takes into consideration exempt necessities. An experienced bankruptcy attorney can help you determine this calculation.

If you can pass the means test, you will be eligible for Chapter 7 bankruptcy. If not, you may still be able to file for Chapter 13 bankruptcy.

4. Pay All Fees on Time

You must pay some fees when you file for Chapter 7 bankruptcy. In NJ, the 2024 fees include a $245 filing fee, a $78 administrative fee, and a $15 trustee fee. All fees are paid directly to the court clerk upon submission of your petition. Your local court may have payment plans or fee waivers available if it is not possible for you to pay the fees all at once. If you fail to pay the total upfront or make your agreed-upon payments, your case will not move forward in court.

5. Honesty is the Best Policy

It may be uncomfortable for your entire financial life to be laid bare before strangers. Still, it is critical that you are totally honest with the court throughout your bankruptcy petition. We get it: filing for bankruptcy can make you feel vulnerable. It is human to want to cover up some of your choices or fudge some numbers—but it is crucial that you tell the truth. Honesty is the best way to get your debts discharged. If the court discovers any attempt at dishonesty or fraud during its thorough investigation of your finances, your case will be dismissed, and you could face potential criminal charges or fines.

Be honest. Do not hide your assets or attempt to outsmart the court. Provide all requested documentation promptly and ensure that all paperwork reflects the truth.

6. Get Credit Counseling

Credit counseling is part of the bankruptcy process. In the 180 days prior to filing for bankruptcy, you must take an approved credit counseling course. Once the course is completed, you must file a certificate of completion with the court. Your case will not proceed if you do not complete the credit counseling course.

After your case is heard in court, you will also have to take and complete a debt management course. You will not be able to receive a discharge without proof of completion of this course. Credit counseling and debt management courses will require you to pay a fee, which must also be paid to receive a discharge.

7. Hire a Bankruptcy Attorney

Filing for bankruptcy is a complex, nerve-wracking process. The average consumer is not an expert in bankruptcy law. Misconceptions and misinterpretations of the law can lead to dismissed cases and unsuccessful filings. Many who choose to attempt to file alone find their case thrown out or denied because of honest mistakes or from taking misguided risks.

What is the one thing most successful Chapter 7 bankruptcies have in common?

A good bankruptcy attorney.

When you work with a professional bankruptcy attorney like Veitengruber Law, you get to take advantage of years of knowledge and experience. Gaining the help of a trusted attorney is the best way to secure a Chapter 7 discharge. Attorneys can ensure your case goes smoothly so you can get back on a better financial footing quickly. An attorney will make sure you file on time with all the correct paperwork and all the required documentation. We can help you avoid an improper filing and protect important assets from debt collectors.

When you need quick relief from unmanageable financial responsibilities, an attorney can get the job done quickly and efficiently. The highest chance you can give yourself for a successful Chapter 7 discharge is to work with a trustworthy and reliable bankruptcy attorney. While some may try to avoid the cost of hiring an attorney by filing themselves, this is often a waste of valuable time and money. If your filing fails, you will likely find yourself seeking the help of an attorney anyway—only now you have wasted your resources on court fees, course fees, and other expenses.

Working with a Bordentown bankruptcy attorney is th number one way to achieve the most beneficial outcome for you and your future.

Almost 99% of Chapter 7 bankruptcy cases will result in the discharge of some or all debt. However, a large portion of those who file for Chapter 7 never make it past their initial filing because their case is dismissed. When you work with an experienced attorney like Veitengruber Law, you have the best chance of achieving a successful discharge. Reach out to us today for a free consultation!

Real Estate Lawyer in Metuchen NJ Answers FAQ About the NJ Housing Market

Mon, 04 Nov 2024 15:06:37 GMT

Veitengruber Law has an extensive history of working with clients in New Jersey to achieve their real estate goals. Our real estate lawyer can identify potential legal issues and help you protect your investment. With a deep understanding of property laws, local ordinances, and contract law, we can offer expert guidance on the real estate process, whether you are buying or selling. While working with a real estate attorney is not a requirement for buying or selling property in NJ, investing in the expertise of a real estate attorney can help you manage complex issues with efficiency and professionalism.

Over our many years working in real estate law, we have seen similar questions over and over from clients. Here are some common questions and our knowledgeable answers:

NJ Bankruptcy Attorney Explains Chapter 7 vs Chapter 13

Mon, 04 Nov 2024 14:53:29 GMT

Deciding whether or not to file for bankruptcy can often be stressful, emotional, or confusing. Finally deciding to file for bankruptcy can feel like a relief. But your decisions don't end when you choose to file. Your next big decision will be deciding which kind of bankruptcy is the correct option for you: Chapter 7 or Chapter 13. How do you know which kind of bankruptcy is right for you? Veitengruber Law has been working with individuals in New Jersey to file bankruptcy for over a decade. Here, we break down the differences between Chapter 7 and Chapter 13 bankruptcy.

What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy is frequently called a liquidation bankruptcy. Under Chapter 7, a bankruptcy court will determine how to liquidate your assets to pay back creditors and cover your debts. You can utilize federal or state exemption laws to protect specific property from liquidation. This can often include your home, personal possessions, and a car. Once your nonexempt assets are liquidated to pay back your creditors, the remainder of your debt is discharged, meaning it is no longer your responsibility to pay it back.

Who should file Chapter 7 bankruptcy?

Chapter 7 is for folks who cannot afford to repay their debts after putting money towards reasonable expenses required to support themselves or their families. It is generally a good option for individuals carrying unsecured debt, like credit card or medical debt, that is no longer manageable to pay back with their income. To file for Chapter 7 bankruptcy, you must take the bankruptcy means test. This test determines if your income is below the state limit to qualify for Chapter 7 bankruptcy. While the means test will typically qualify low-income filers, you can also pass the means test if you have a large family or expensive assets and high expenses like a high mortgage, car loan, or even taxes.

Chapter 7 bankruptcy can also be a beneficial option if you are trying to walk away from assets that have become too expensive to maintain, like a home or a car. Liquidating those assets can help you pay back your debts so you can start fresh with a new lifestyle that better fits your financial reality.

What is Chapter 13 bankruptcy?

Chapter 13 bankruptcy is often referred to as reorganization bankruptcy. In a Chapter 13 bankruptcy, the court compiles a comprehensive financial picture that includes all your assets, debts, and income. They will then determine if you can repay your creditors fully or partially. This repayment plan lasts between three and five years. At the end of the repayment period, any remaining debts are discharged. Only folks with the income to make realistic payments towards their outstanding debt will qualify for Chapter 13 bankruptcy. This can help people experiencing temporary financial setbacks get current on loans, a mortgage, or even taxes or child support payments.

Who Should File Chapter 13 Bankruptcy?

Chapter 13 is a great option for those who need debt relief but have the funds and income needed to enter a more realistic repayment plan for their finances. It can also be a great option for folks who are trying to save their home or another secured asset from foreclosure, sheriff's sale, repossession, or forfeiture. Individuals who are not eligible for Chapter 7 bankruptcy will often file for Chapter 13 instead.

Which Bankruptcy is Right for Me?

Some folks may qualify for either Chapter 13 or Chapter 7, but others may uniquely be eligible for both. In this case, which do you choose? The answer will be different depending on your specific set of circumstances. For instance, if you are in arrears on your home but have a lot of equity you wish to protect, you could potentially lose your house or equity if you file Chapter 7 bankruptcy. In this case, if you want to save your home, filing for Chapter 13 can get you current and allow you to keep your home.

On the other hand, perhaps you have experienced a significant income reduction due to job loss or divorce. You have fallen behind on your mortgage and are beginning to realize you can no longer keep your property. In this case, it could be beneficial to file Chapter 7 bankruptcy to get out of your mortgage and find a new residence that can accommodate your new financial circumstances.

Determining which kind of bankruptcy is right for you will come down to the nitty gritty specifics of your unique situation. Working with an experienced bankruptcy attorney and team like Veitengruber Law can help you make the right choice. We have been helping NJ residents escape unmanageable debt for over a decade. Reach out for a free consultation today!

Monmouth County Estate Planning; It's More than Just a Will

Mon, 04 Nov 2024 14:46:20 GMT

When you think about end-of-life planning, you no doubt think of a will. A will is an important legal document that includes your intentions for your assets and inheritances after you are gone. A will can also advise your loved ones about guardianship over children or pets, how to carry out your funeral arrangements, and your final wishes for your legacy. Your will is an essential part of your estate plan—but it is just one aspect of a larger plan to help protect you and your loved ones legally and financially.

Here are a few reasons why you need more than just a will:

1. Comprehensive Protection

Yes, a will can cover many essential details about your final wishes. Still, it cannot encompass the complex legal needs that an estate plan covers. A good estate plan will outline your desires concerning everything you own, those you care about, and all the things you have an interest in (like a business or nonprofit). In order to cover all of the critical aspects of your life, an estate plan should include at least:

A will
A healthcare power of attorney
A durable power of attorney
Designations of beneficiaries and guardianship

The intention of an estate plan is to support your desires concerning family and friends and allow you to maintain control over your assets and responsibilities even after you are gone. While a will is essential in this process, it cannot cover all your estate planning needs.

2. Establish Healthcare Directives

While many consider an estate plan for after they are gone, a big part of establishing an estate plan is determining end-of-life care. If you ever become incapacitated in your ability to make healthcare decisions, it is critical that you have established a person you trust to make these choices on your behalf. A will alone typically cannot cover these vital healthcare directives or empower loved ones in critical, time-sensitive moments. Establishing an estate plan with a healthcare power of attorney can give your trusted loved one legal control over these choices when it matters.

3. Establish A Durable Power of Attorney

Like establishing who can control your healthcare decisions, you must also establish who can make financial decisions on your behalf. Just like a medical power of attorney, a durable power of attorney can help you and your loved ones not just in the event of your passing but if you are in any way unable to make your own financial decisions. Temporary or long-term disability can impact your ability to pay bills and leave you or your loved one with a giant financial headache. Designating a trusted loved one to make legal and financial decisions for you can empower your loved one to make decisions that reflect your wants and needs.

4. Minimize Tax Problems

Relying on a will to cover the entirety of your estate plan leaves your loved ones vulnerable to estate taxes. New Jersey estate taxes can take a big chunk out of your heirs' inheritance, minimizing the impact of your hard-earned assets. An effective estate plan can help you establish trusts and utilize other legal solutions to reduce the effect of estate taxes on your heirs. An estate planning attorney can guide you toward the best legal solutions for you, your assets, and your loved ones.

At Veitengruber Law, we know that a robust estate plan is way more than just a will. We help our clients protect themselves, their loved ones, and their legacy. Reach out to us today for a consultation!

Monmouth County Will Lawyer Advises What NOT to Include in Your Will

Wed, 02 Oct 2024 05:51:35 GMT

George Veitengruber of Veitengruber Law is a Monmouth County will lawyer with years of experience serving our area. Our team works with our clients to draft custom estate plans that are particular to their specific needs. Every individual will have different needs and goals with their estate plan. For this reason, no two wills should ever look the same. Determining what to include in your will is a critical part of the estate planning process. But what a lot of clients don't know is that what you choose to omit from your will is just as important as what you put in your will. Adding superfluous, conflicting, or complicated directives to your will can cause a big headache for your surviving loved ones—or even negate your directives entirely.

With our years of experience crafting estate plans, we understand what is crucial to leave out of your will. Here are some examples of things we suggest you don't include in your will:

1. Confidential Information

You do not want to include sensitive details about your accounts, finances, credentials, or data in your will. Once a will is probated in New Jersey, it will be entered into the public record. As such, it will be possible for anyone to access a copy of your will from the Surrogate's Office. For this reason, keeping confidential information out of your will is important. Instead, you can name an authorized executor to take over the management of your accounts. You can also utilize HIPAA releases and medical POAs for sensitive medical information.

You should also avoid using your will to reveal any sensitive personal information that may upset loved ones or cause issues among heirs. We have all seen dramatic will reveals in the movies, but those dramas are best saved for the silver screen. Keep your will focused on actual directives and logistical wishes.

2. Overly Detailed Funeral Instructions

It is normally very important to loved ones experiencing loss that the final wishes of the recently deceased are carried out exactly as instructed. But when the funeral or burial arrangements laid out in the will are overly particular or simply unrealistic, it can lead to guilt and stress. Funerals are expensive. Even a standard funeral can cost thousands of dollars. Keep the budget of your loved ones in mind as you detail your desires for a service and burial. While your estate may eventually pay your loved ones back for the expense of your funeral, these costs typically come out of pocket initially.

You should also keep your instructions simple. It's fine to include general desires indicating your preferred burial plot, style of service, or any readings or music that are important to you. But leave the details about party size, catering, decorations, and such to the living. Most people who are grieving will not have the emotional or mental bandwidth to plan an overly extravagant affair. Keep it simple in your will and talk about your expectations with your family and friends while you still can.

3. Property With Existing Beneficiary Designations

Non-probate items that already have beneficiary designations do not need to be included in your will, and in fact, most estate planning attorneys recommend that you leave these items out of your will. These non-probate items typically include life insurance policies, 401(k) plans, IRAs, and pensions. These accounts require you to designate an heir at the start of your policy. The designations you file with the account paperwork will override anything you put in your will.

For example, even if you put in your will that you want your life insurance proceeds to benefit your children, if your ex-wife is the beneficiary on file with your life insurance company, that is who the proceeds will go to. Account-specific beneficiary designations will bypass any designations in your will for these accounts.

4. Joint Property

New Jersey is a community property state, meaning that marital assets are owned jointly regardless of whose name appears on the account, title, deed, etc. Because you cannot distribute an asset that already belongs to your surviving spouse, you do not need to include these assets in your will. You can give this person your HALF of any shared assets in your will, making them the sole owner of that property, if you choose. However, you cannot give jointly owned property to a third party through your will.

If you intend to split joint assets to children from another relationship after both parents pass, this must be artfully detailed through a living trust, not just your will. A New Jersey estate planning lawyer should always handle this kind of complex inheritance to ensure that you are protecting your assets and your loved ones. Otherwise, you could put your assets in jeopardy.

5. Unusual or Overly Complicated Conditions on Gifts

Most wills include requests for personal property and gifts to go to family, friends, or even beloved organizations that champion causes close to the deceased's heart. However, you should take care when applying conditions to these gifts. Rigid requirements surrounding inheritances can put your loved ones in a tough legal position and even negate your will directives.

For example, you would be advised against including a clause that your grandson must use 80% of his inheritance for college tuition. If your grandson chooses not to attend college or gets a scholarship that covers tuition, he will be unable to access the vast majority of his inheritance. Conditional gifts can also open the legal floodgates as different heirs may interpret specific instructions differently. This can lead to probate disputes and heartache for all involved. Instead, discuss your expectations with your heirs while you are living to motivate the use of your assets in ways you approve of once you are gone.

6. Direct Pet Bequests

Many folks are shocked to find that while they consider their animal companion part of the family, the state does not. In New Jersey, pets are legally considered personal property, not legal beneficiaries that can inherit property. Therefore, naming a pet the beneficiary of your accounts will not hold up legally and can lead to major battles over your assets.

Instead, you can work with an attorney to develop an estate plan that includes a pet trust. This will allow your funds to flow into the trust so that the guardians you choose for your beloved pet can financially cover the cost of their care. If you include a named guardian for your pet in your will, you should discuss this responsibility with them beforehand.

7. Business Interests

While you can indicate in your personal will what you want to happen to your business when you are gone, you should not rely on your will alone to outline ownership succession. Your business needs to have operating agreements or business trusts to organize the structure of ownership if a founder or owner unexpectedly passes.

Business enterprises can become vulnerable to litigation in the probate process when they are included in personal wills. Hiring a skilled estate planning attorney with business understanding is critical to help protect your life's work and ensure your business continues after you do.

Veitengruber Law has the experience and legal knowledge to safeguard your assets and help you secure a lasting legacy. We can help protect your loved ones and fulfill your wishes.

For more information about this, contact us at Veitengruber Law.

The Real Estate Attorney Monmouth County Residents Trust

Wed, 02 Oct 2024 05:48:32 GMT

A real estate attorney Monmouth County residents have trusted for over a decade is George Veitengruber of Veitengruber Law. With robust industry connections, a deep knowledge of NJ real estate law, and our dedication to our clients, we have established a reputation for being a trustworthy partner in achieving your real estate goals. Whether you are buying or selling a home in New Jersey, these transactions involve a complex legal process with detailed paperwork, contracts, and research. New Jersey does not require you to retain an attorney for real estate transactions—but that doesn't mean you shouldn’t.

Working with an experienced real estate attorney is the best way to ensure that you are protecting yourself and your investment financially and legally. When you work with a real estate attorney from early in the process, you can get the most out of your experience.

Do I really need a real estate attorney?

The short answer is no, but—

And that can be a big "but" if you run into any of the many issues that can arise in a real estate transaction. Again, New Jersey does not require you to work with a real estate attorney, and many folks choose not to work with an attorney to buy or sell a property. NJ has an automatic three-day attorney review period built into processing every real estate contract. While you are not obligated to utilize the attorney review period to actually have an attorney review your contract, you should seriously consider doing so.

Buying or selling a house is one of the most important financial, legal, and personal decisions an individual will ever make. An attorney can help you better understand the contract you are signing and determine if it is adequate to protect you and your big investment. Without the expert advice of a lawyer, you can leave yourself vulnerable to legal issues and financial setbacks.

What are the risks?

A lot can go wrong in a real estate transaction. Hidden defects, title defects, financial issues, or even outright fraud can plague a seemingly straightforward transaction. Working with real estate professionals with a lot of experience in your geographic area can help you avoid fake listings, shady deals, and other legal issues. If you find yourself caught up in a bad real estate deal, it could be difficult to back out of the contract without significantly impacting you personally and financially. A real estate attorney can advise you on how to protect your investment throughout the transaction.

What does a real estate attorney do?

We discussed the New Jersey attorney review period above, but a real estate attorney does a lot more than one review. Here are some of the ways an attorney can help you achieve your real estate goals:

1. Negotiation

The average person does not spend their daily lives reading over contracts and negotiating over terms—but lawyers do. Negotiating is a huge aspect of any real estate deal. You negotiate on price, terms, dates, and more. Every aspect of a real estate contract can be negotiated in your favor if you understand the language to use to get all parties to agree. An attorney's negotiating skills can make a huge difference in your favor financially, helping you save hundreds if not thousands of dollars at closing and throughout the course of your homeownership. If you want specific terms included in your contract, getting an attorney involved early in the process is wise.

2. Drafting, Reviewing, and Finalizing Contracts

Ask anyone who has purchased or sold a home: the paperwork is seemingly endless. You will have a sales contract, an appraisal, a home inspection report, HOA documents, and other paperwork specific to your situation. Real estate agents, lenders, and other industry professionals have valuable experience with these documents and can likely provide good feedback, but they are not real estate or contract law experts. The boilerplate contract you will get from your real estate agent will not be specific to you and your needs like a contract drafted by an attorney will be.

A real estate attorney will provide a deal-specific contract that includes every unique aspect of your sale in the terms. Your investment of time in seeking out a detail-specific contract will be worth it. Your real estate lawyer will know how to capture even the tiniest minutiae and ensure that everything is legally binding.

If your contract needs to include more complex legal issues, like a trust, you should be sure to enlist an attorney's help. Boilerplate contracts work sometimes, but nearly every real estate transaction can benefit from a more deal-specific contract.

3. Title and Liens Research

Every real estate transaction requires a title and lien search on the property prior to closing. This protects the buyer and seller in the transaction and ensures no other individuals or entities have a claim on the property. As a seller, you need to confirm you have the right to sell the home. As a buyer, you must be sure that the property is "free and clear" of any financial entanglements that could cause legal issues for you down the road. A real estate attorney can perform a title and lien search on your property and help you resolve any problems that come up. For many title or lien issues, a solution can be reached so the situation is resolved before the transaction closes. But an attorney can also advise if it is time to walk away from the deal after the discovery of unmanageable title or lien issues. These research abilities can save you time and money now and prevent stressful surprises in the future.

4. Reviewing Inspection Disclosures

While home inspections are highly recommended as a critical part of the home buying process, inspections are not required in New Jersey. While the vast majority of people selling a home in NJ are not attempting to deceive buyers, it still happens. Some creative language in a disclosure can make it falsely appear there are no issues with a home. As a homebuyer, you must do your due diligence to inspect these documents for accuracy. But what are you looking for? A real estate attorney can point out these red flags and loopholes and tell you how to explain your concerns to relevant parties.

5. Filings and Closing

Whether submitting a deed or compiling closing documents, an attorney can help you stay organized, on track, and legally protected. A small mistake on a deed can eventually lead to major legal issues. Closing is when you resolve any last-minute disputes and review and sign the closing document. This document goes over all the financial transactions included in the sale. Working with an attorney for closing can help the process proceed efficiently.

If you are buying or selling a house in Monmouth County, Veitengruber Law can help. We have worked with homeowners in our area for years, protecting their investments. We look forward to helping you achieve your real estate dreams!

For more information about this, contact us at Veitengruber Law.

WANTED - Will Attorney in Monmouth County

Wed, 02 Oct 2024 05:28:07 GMT

“Wanted: Trustworthy will attorney in Monmouth County. Must be a qualified and knowledgeable professional with experience in estate planning in NJ. Looking to finally move my will from my To-Do list to my DONE list. The right attorney should be able to offer valuable advice on the best ways to protect assets and safeguard loved ones. Seeking a compassionate, seasoned professional who can provide peace of mind while creating a will.”

We get it. It isn't easy to think about planning for the end of your life. So many folks put off estate planning because they don't feel like dealing with the headache of getting their affairs in order. But when you avoid creating a will when you are capable of dealing with it, you simply pass the headache onto your loved ones once you are gone or no longer capable.

If the faux newspaper ad at the start of this blog post caught your eye because you could’ve written it yourself, you’re right where you need to be. George Veitengruber, Esq., is an experienced estate planning attorney in Monmouth County. Veitengruber Law has years of experience working with clients to ensure peace of mind that their affairs are in order.

Here are some excellent reasons you should work with Monmouth County will attorney George Veitengruber and Veitengruber Law:

1. We understand state and federal laws.

There are tons of laws—federal, state, and local—that can impact your estate planning. Probate, tax, and real estate laws can affect how you should approach estate planning based on your specific circumstances. An estate attorney who stays up-to-date on the latest legal changes can help you and your loved ones avoid penalties, tax liabilities, and other obstacles to inheritance.

2. We can create a custom estate plan.

Sure—there are a million will templates online that you can use to generate a will. But these boilerplate formats cannot possibly cover all the intimate details of your life. A will should be as specific to your life as possible to give you and your assets the most protection. Veitengruber Law has years of experience working with many different individuals and families. We understand what strategies work best for specific situations.

3. We can help you avoid costly mistakes.

There is a lot of room for error when it comes to estate planning. Ignoring the tax consequences, failing to include important assets, leaving out dear loved ones, and failing to update your will are common mistakes we see in estate planning. When you work with an experienced New Jersey estate planning attorney, they can help you avoid these common issues. It is our job to ensure you have everyone and everything covered by your will.

4. We can be objective about your plan.

Perhaps the most crucial reason to work with a professional Monmouth County will lawyer is that they can be objective about your circumstances. It can be emotional to consider the end of your life and how life will look for your loved ones if you are no longer around. In fact, the emotional aspect of estate planning is one of the biggest reasons people avoid it. An experienced attorney will be able to provide compassionate but objective advice about how to plan for the end of life. They can focus on the details and ensure all of the proper paperwork is in place so you can find peace in your plan.

George Veitengruber, Esq. of Veitengruber Law, is an experienced estate planning attorney with over a decade of experience working with NJ residents to get a will in place. We can help ensure your affairs are settled and your loved ones are cared for.

For more information about this, contact us at Veitengruber Law.

What NOT to do When Writing Your Will - Lawyer in Monmouth County Weighs In

Wed, 02 Oct 2024 05:19:41 GMT

A will is an essential part of your overall estate plan. It sets out directives to follow after your death and designates your wishes for your assets, possessions, and other important aspects of your life. With so many Hollywood depictions of wills scribbled on napkins, it is no wonder that most folks think they can handle creating a will themselves. But a will requires much more detail, thought, and research than depicted in movies and TV shows. When individuals attempt to make a will on their own, they often make mistakes that cause major issues down the road. As an experienced estate planning lawyer in Monmouth County, here are some of the more common mistakes we see:

1. Ignoring Legal Requirements

New Jersey has legal requirements that outline what makes a will legitimate. If you do not follow the estate planning laws for your will, it could be invalid. Your will needs to be in writing, signed by you, and witnessed by at least two individuals who are not beneficiaries of your estate. Your will also must be notarized correctly to meet NJ's standards. The requirements for each state differ, so a will that is recognized in one state may not meet NJ requirements or vice versa.

2. Ambiguous Instructions

Vague directives and generalized terms may seem straightforward enough to you, but the more wiggle room there is for interpretation, the more you can leave yourself open to legal issues. Leaving your assets to your "children" may seem clear, but it becomes murkier if you have estranged children, adopted children, step-children, or children who live in your home to whom you are not legally a guardian. You need to be clear and specific when writing your will to avoid legal battles among your heirs. An attorney can help you minimize the risk of disputes and misinterpretations.

3. Poor Choice of Executor

When you list an executor in your will, you give someone in your life a lot of control and responsibility over your assets and wishes. The executor will be responsible for carrying out the terms of your will, distributing assets, settling debts, and even filing your taxes for the last time. It is critical that you name an executor who is capable and trustworthy with strong organizational skills. An unfit executor can mismanage the settlement of your estate, causing delays and potentially even legal disputes. You should also consider the age and mental or physical health of the executor you choose. While naming a spouse as the executor of your will in your 40s may be acceptable, your spouse is less likely to have the ability to serve as your executor in their 80s. A NJ estate planning attorney can help you determine the best executor for your will.

4. Disregarding Guardian Distinctions

Guardian designations for underaged children are frequently overlooked when individuals draft their own will. While the guardianship of your children may seem obvious to you, it is crucial that you spell these details out in your will. If you are married to the other biological parent of your children, your spouse will become the sole guardian of your children. If, however, you are divorced, re-married, or your spouse is also deceased, this complicates things. You’ll need to specifically name the person or persons you want to raise your children if you are no longer alive. It is also important to have a conversation with this person ahead of time so they understand your wishes.

5. Failure to Update Your Will

The will you created when you were 35 and freshly married will likely not cover all of your assets, wishes, and heir designations when you are 85. Your will should evolve and change as your life happens. Marriage, divorce, the birth or adoption of children, death, major changes in financial situation—all of these events can deeply impact the validity of your will. As these events happen, you must update your will to reflect these changes and ensure your will reflects your current desires.

6. No Tax Considerations

New Jersey estate tax can significantly impact the distribution of your assets. While anyone can download a will template online and fill in the blanks, most average people do not know the ins and outs of NJ inheritance tax laws. Neglecting to include these laws in your planning can reduce the inheritance of your beneficiaries. Your will is only one part of an estate plan. When you use your will in partnership with other legal protections, you can implement an estate plan strategy that maximizes beneficiary inheritance and minimizes tax burdens.

Veitengruber Law has over a decade of experience working with individuals to create an estate plan that will ease your mind and solidify your legacy. We can help you avoid these major mistakes and maximize your legal protections.

For more information about this, contact us at Veitengruber Law.

Monmouth County Chapter 7 Bankruptcy Attorney's Tips for a Successful Discharge

Tue, 03 Sep 2024 21:12:27 GMT

Chapter 7 bankruptcy promises a fresh start for people struggling with unmanageable debt. Whether you experienced financial hardship, a major life-altering event, or simply had to learn some difficult financial lessons, bankruptcy is a powerful economic tool that can help you get back on a secure financial footing. However, bankruptcy is also a complex legal process with a lot of barriers to success. Your case can be dismissed if you miss just one form or fail to meet a simple requirement. Chapter 7 bankruptcy cases get denied every day for simple mistakes or misunderstandings. At Veitengruber Law, we have helped hundreds of clients successfully file Chapter 7 bankruptcy and receive a discharge of some or all of their debts. We understand how to secure a discharge and what steps you need to take to ensure success.

Here are some things we have learned in over a decade as a bankruptcy firm:

1. First Time Right

There are many reasons your initial filing could be dismissed or denied in court. The most common reasons are filing as a corporation, business, or entity OR mistakes or omissions in your filing documents. Only individuals can file for Chapter 7 bankruptcy and receive a discharge of debts.

Your case can also be dismissed if you fail to file the required documents, make any mistakes in the paperwork, or omit documentation. The court will dismiss your case even if you accidentally fail to file your documents correctly. Be thorough as you review the filing instructions and double-check your paperwork to determine it is accurate the first time you file.

2. Pay Attention to Filing Limits

There are several limitations on the timeline of when you can file for bankruptcy. If you have previously had debts discharged in a Chapter 7 bankruptcy, you have to wait eight years before filing to have your debts discharged again. You must also wait six years before filing after a Chapter 13 discharge. If a previous bankruptcy filing was dismissed or withdrawn, you will also have to wait 180 days before filing for Chapter 7 again. Filing within these time limits will automatically result in the dismissal of your case. Pay attention to these important dates to ensure you are filing within the correct time frame.

3. Take the Means Test

To qualify for discharge under Chapter 7 bankruptcy, you need to pass the means test for your state. The means test proves to the court that you do not have the financial means to pay back your debts. The means test is in two parts. First, you must determine if your gross household income for the six months preceding your filing falls below the median income for your state. If it does, you pass the means test and can proceed with your Chapter 7 bankruptcy. If not, you can proceed to step two.

Step two calculates your household income, assets, expenses, and debts to determine the feasibility of you paying back your debts. This calculation is complex and involves a lot of moving parts, like what expenses are exempt due to being a necessity. The best way to determine if you truly pass the means test is to work with an experienced attorney who understands the rules.

If you do not pass the means test and are therefore not eligible for Chapter 7, you are still eligible to file for Chapter 13 bankruptcy.

4. Pay Court Fees On Time

Filing for bankruptcy is not free. The fee for filing a Chapter 7 petition includes a $245 filing fee, a $78 administrative fee, and a $15 trustee fee. All fees must be paid to the court clerk upon filing your petition. You can check with your local court to determine what kind of payment plans they have if you cannot pay the full amount up front. You could also qualify for a fee waiver under specific circumstances. If you cannot pay upfront or make your payments on time, your case will not go forward.

5. Be Honest

When you file for bankruptcy, your entire financial life is laid bare for the court to see. It can be embarrassing and stressful to be so transparent with your finances. The urge to fudge the numbers can be understandable, but honesty is the best way to secure the discharge you need. The court will be thorough in its investigation of your finances and will not take any attempts at dishonesty or fraud lightly. Not only can your case get dismissed, but you can also potentially face criminal charges or fines.

Be honest, and do not attempt to hide your assets or outsmart the court. Divulge all requested financial information, including all assets and income, disclose any previous bankruptcy cases, and stick to the truth. Fraud is a surefire way to have your case denied and your discharge withheld.

6. Attend Credit Counseling

Within 180 days prior to filing for Chapter 7, you must complete an approved credit counseling course and then file a certificate of completion with the court. After the court has heard your case, you will also need to complete a debt management course. Your debts cannot be discharged without completing this course, and the court must receive a copy of your certificate of completion. Both of these courses will require a fee, which must be paid in order for your bankruptcy case to proceed.

7. Hire a Bankruptcy Attorney

Filing for bankruptcy is difficult. The laws surrounding bankruptcy can be complicated and overwhelming for the average consumer. Many folks who try to file alone find their case dismissed or denied due to honest mistakes or from taking misguided risks in the filing process. The vast majority of folks who experience a successful Chapter 7 discharge have one thing in common: a good bankruptcy attorney.

Working with an experienced bankruptcy attorney like Veitengruber Law is one of the best ways to ensure your case goes smoothly. An attorney can ensure that you file correctly and on time and that you continue to meet all other requirements for a successful discharge. An attorney can guide you through the process, help you protect important assets from debt collectors, and assist you in finding relief from financial responsibilities that have become an unmanageable burden.

The highest chance any individual has for a successful bankruptcy is with the advice of an experienced and reliable attorney. While some individuals may try to avoid the cost of hiring an attorney, those folks often waste time and money attempting to file on their own and only have to hire an attorney anyway when their case is dismissed, or their discharge is denied. When you work with an attorney, you stand the best chance of achieving the most beneficial outcome for you and your future.

Nearly 99% of Chapter 7 bankruptcy cases result in the discharge of some or all debt—but a significant number of people who file for Chapter 7 never make it to that point because their case is dismissed. Veitengruber Law can work with you to file a successful Chapter 7 so you can receive the full benefits of a discharge. Reach out to us today for a consultation!

What NOT to do When Filing for Chapter 7 Bankruptcy in Monmouth County

Tue, 27 Aug 2024 17:53:52 GMT

When you file Chapter 7 bankruptcy in New Jersey, there is no guarantee that your case will end with a discharge. A discharge is when the court releases you from any personal liability for specific kinds of debt. Getting a discharge through Chapter 7 bankruptcy is a great way to wipe the slate clean on your finances to build a stronger foundation for your future. However, many folks who try to file for Chapter 7 bankruptcy without the advice of an experienced attorney end up seeing their case denied. When you work with Veitengruber Law, we can help you understand bankruptcy law and prepare a successful filing to avoid denial in your bankruptcy.

Why do discharges get denied?

The bankruptcy court can deny a Chapter 7 discharge for several reasons. In most cases, the court has determined that fraudulent activity is associated with your case. Hiding assets, lying about your financial situation, or generally misleading the court can result in the denial of your discharge. This means that you will remain liable for your debts.

Here are the circumstances under which the court can deny your discharge:

You are not an individual (businesses cannot receive Chapter 7 discharge)
You have received Chapter 7 discharge within the previous eight years
You have hidden or destroyed records of your finances
You have lied to the court or attempted to defraud the court or your creditors
You cannot explain the loss of assets
You are disorderly in the court
You have not completed

Who can request a denial of discharge?

Your bankruptcy trustee—or the court-appointed person who oversees your case—or any of your creditors can request the denial. Creditors or the trustee can bring a lawsuit against you. They must have evidence to support their lawsuit. In return, you will have the chance to respond to any allegations and even take the case to trial. If these claims are found to be false, your bankruptcy will proceed as usual.

What happens after my Chapter 7 discharge is denied?

The denial of your Chapter 7 discharge will not end your case. The trustee appointed to your case will continue liquidating your non-exempt assets to repay creditors. You can still potentially lose any unexempt assets. You will still be liable for any debts you still owe once your case is resolved. Even if you file Chapter 7 again in the future, the debts included in this bankruptcy claim will not be wiped out through discharge.

How can I prevent denial of discharge?

The bankruptcy process can be overwhelming, stressful, and confusing at times. Even if you do not intend to defraud the court, you can accidentally do so by leaving out assets or filling out paperwork incorrectly. An experienced bankruptcy attorney like Veitengruber Law can help you stay organized and guide you through the process. We will help you present a meticulous record of your finances and ensure you follow court rules and procedures. With our assistance, you can navigate the bankruptcy process with confidence.

Avoid a Bankruptcy Denial with an Experienced Chapter 7 Attorney in Monmouth County

Tue, 27 Aug 2024 17:52:01 GMT

Why do discharges get denied?

Here are the circumstances under which the court can deny your discharge:

You are not an individual (businesses cannot receive Chapter 7 discharge)
You have received Chapter 7 discharge within the previous eight years
You have hidden or destroyed records of your finances
You have lied to the court or attempted to defraud the court or your creditors
You cannot explain the loss of assets
You are disorderly in the court
You have not completed

Who can request a denial of discharge?

What happens after my Chapter 7 discharge is denied?

How can I prevent denial of discharge?

Understanding How Chapter 7 Bankruptcy Works

Fri, 02 Aug 2024 16:44:07 GMT

Chapter 7 bankruptcy, often referred to as "liquidation bankruptcy," is a legal process designed to help individuals who are struggling with overwhelming debt. Understanding its intricacies can be essential for those considering this step. This blog aims to clarify the key aspects of Chapter 7 bankruptcy, providing a comprehensive guide to its benefits, eligibility criteria, and procedural steps.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy, a provision within the U.S. Bankruptcy Code, offers individuals the opportunity to clear most of their unsecured debts. By filing for Chapter 7, individuals can effectively eliminate various debts, paving the way for a renewed financial beginning.

In contrast to Chapter 13 bankruptcy's repayment plan, Chapter 7 prioritizes liquidating non-exempt assets to settle debts with creditors. Exempt assets, determined by state regulations, typically comprise primary residences, vehicles within a specified value threshold, and essential household items.

Benefits of Chapter 7 Bankruptcy

One of the primary benefits of Chapter 7 bankruptcy is the immediate relief from debt collection activities. Once the bankruptcy petition is filed, an automatic stay goes into effect, halting most collection efforts, including phone calls, wage garnishments, and lawsuits.

Additionally, Chapter 7 bankruptcy provides a relatively quick resolution to debt problems. The process typically takes three to six months from filing to discharge, allowing individuals to move forward without the burden of unsustainable debt.

Eligibility Criteria

Not all individuals meet the qualifications for Chapter 7 bankruptcy. To be eligible, one must pass the "means test," which evaluates income, expenses, and family size to assess one's capacity to repay debts. Even if a debtor fails the means test, they may still qualify for Chapter 13 bankruptcy.

Additionally, individuals must undergo credit counseling from an approved agency a number of days before filing. This counseling session aims to explore alternatives to bankruptcy and ensure that individuals are making informed decisions.

The Filing Process

Filing for Chapter 7 bankruptcy involves several crucial steps:

1. Gather Financial Documents

Start by collecting all relevant financial documents, including income statements, tax returns, lists of debts, and records of all assets and liabilities. This information is essential for accurately completing the bankruptcy forms.

2. Complete the Bankruptcy Forms

Filing requires detailed paperwork, which includes the official bankruptcy forms and schedules. These forms provide the bankruptcy court with a comprehensive overview of your financial situation.

3. File the Petition

The finalized forms must be formally submitted to the bankruptcy court within your jurisdiction. An automatic stay is initiated once the petition is filed, granting prompt respite from most collection endeavors.

4. Trustee Appointment

A bankruptcy trustee is assigned to manage your case after the filing process. Their responsibilities involve examining your documents, pinpointing assets that are not protected, and managing the sale of these assets to settle debts with creditors.

5. Meeting of Creditors

Approximately a month post-filing, you will participate in a creditors' meeting, commonly referred to as a 341 hearing. Here, the trustee and any present creditors can inquire about your financial status and the details provided in your bankruptcy documentation.

6. Financial Management Course

Before your debts are discharged, you must complete a financial management course with an approved provider. This course offers valuable budgeting and financial planning insights to help you avoid future financial difficulties.

7. Discharge of Debts

If there are no objections from creditors or the trustee, the court will issue a discharge order, eliminating your eligible debts. This discharge marks the successful completion of the Chapter 7 process.

What Debts Are Discharged?

Chapter 7 bankruptcy has the power to eliminate various unsecured debts, including:

Personal loans
Medical bills
Credit card debt
Utility bills

However, certain debts are typically non-dischargeable under Chapter 7, such as:

Recent tax debts
Student loans (except in cases of undue hardship)
Court fines and penalties
Child support and alimony

Understanding which debts can and cannot be discharged is crucial when considering Chapter 7 bankruptcy.

Impact on Credit and Future Financial Health

Filing for Chapter 7 bankruptcy will negatively impact your credit score and will remain on your credit report for ten years. However, many individuals find that their credit begins to improve soon after discharge, especially with responsible financial behavior.

Rebuilding credit post-bankruptcy involves steps like:

Obtaining a secured credit card
Making timely payments on all bills
Monitoring your credit report for accuracy

While the short-term impact on credit is substantial, the long-term benefits of eliminating unmanageable debt often outweigh the initial drawbacks.

Alternatives to Chapter 7 Bankruptcy

Before committing to Chapter 7 bankruptcy, it's worth exploring alternatives:

Debt Settlement: Negotiating with creditors to reduce the total amount owed
Debt Management Plan: Working with a credit counseling agency to create a repayment plan
Chapter 13 Bankruptcy: A reorganization bankruptcy that allows for repayment over three to five years

Each option has its pros and cons, and the best choice depends on individual circumstances.

Chapter 7 bankruptcy offers a viable path for those overwhelmed by debt to achieve a fresh financial start. By understanding the process, eligibility requirements, and potential impacts, individuals can make informed decisions about whether this form of bankruptcy is the right choice for their financial situation.

Contact us for personalized advice. We can guide you through the complexities of the Chapter 7 process. Although taking the first step toward financial freedom may be daunting, it opens the door to a brighter, debt-free future.

The Benefits of Legal Representation for Foreclosure Defense

Mon, 29 Jul 2024 14:58:23 GMT

Foreclosure is a distressing and complex process that can leave homeowners feeling overwhelmed and uncertain about their future. At times like these, the value of professional legal representation cannot be overstated. Legal experts skilled in foreclosure defense can provide critical support, guidance, and advocacy to help homeowners navigate this challenging period effectively.

Understanding Foreclosure

Before delving into the benefits of legal representation, it's crucial to understand what foreclosure entails. When a homeowner defaults on their mortgage payments, the lender may initiate foreclosure proceedings to recoup the outstanding loan amount. This process involves the lender taking legal action to repossess the property, often resulting in the homeowner losing their home. Foreclosure laws and procedures vary by state, making it essential for homeowners to have knowledgeable legal counsel to guide them through the complexities.

Expert Knowledge of the Law

One of the most significant advantages of hiring a foreclosure defense attorney is their expertise in real estate and foreclosure law. These legal professionals possess an in-depth understanding of the intricacies involved in foreclosure proceedings, including the various laws and regulations that govern the process. With their specialized knowledge, attorneys can identify potential legal defenses and procedural errors that may work in the homeowner's favor. This expertise can make a substantial difference in the outcome of the case.

Personalized Legal Strategies

Each foreclosure case is unique, requiring a tailored approach to address the specific circumstances and challenges faced by the homeowner. A skilled foreclosure defense attorney will take the time to analyze the details of the case, review relevant documents, and develop a personalized legal strategy. This strategy may include negotiating with the lender, exploring loan modification options, or identifying legal defenses that can halt or delay the foreclosure process. By providing individualized attention, attorneys ensure that homeowners receive the best possible representation.

Negotiation and Mediation

Foreclosure defense attorneys are adept at negotiation and mediation, which can play a pivotal role in resolving foreclosure disputes. These legal professionals can engage with lenders on behalf of the homeowner to explore alternatives to foreclosure, such as loan modifications, repayment plans, or short sales. Through effective negotiation, attorneys can help homeowners reach mutually beneficial agreements with lenders, potentially allowing them to retain their homes or minimize financial losses.

Legal Advocacy and Representation

During foreclosure proceedings, having a dedicated legal advocate can significantly impact the outcome of the case. Attorneys represent homeowners in court, ensuring that their rights are protected and that the legal process is followed correctly. They prepare and file necessary legal documents, present arguments, and challenge any inaccuracies or unfair practices by the lender. With an attorney by their side, homeowners can feel more confident and empowered throughout the foreclosure process.

Identifying Procedural Errors

Foreclosure proceedings involve a multitude of legal steps and documentation requirements. Any procedural errors made by the lender can work in favor of the homeowner. Foreclosure defense attorneys are skilled at scrutinizing the foreclosure process for potential mistakes, such as improper service of foreclosure notices, incorrect loan documentation, or violations of consumer protection laws. Identifying and leveraging these errors can provide homeowners with valuable leverage in their defense.

Protecting Homeowner Rights

Homeowners facing foreclosure often feel vulnerable and uncertain about their rights. Legal representation ensures that their rights are safeguarded throughout the process. Attorneys educate homeowners about their legal rights and options, empowering them to make informed decisions. This knowledge can help homeowners take proactive steps to protect their interests and explore all available avenues to avoid foreclosure.

Access to Resources and Expertise

Foreclosure defense attorneys have access to a network of resources and expertise that can benefit homeowners. They collaborate with financial advisors, real estate professionals, and other experts to provide comprehensive support. This multidisciplinary approach ensures that homeowners receive well-rounded advice and solutions tailored to their unique circumstances. Additionally, attorneys stay updated on changes in foreclosure laws and regulations, allowing them to offer the most relevant and effective strategies.

Emotional Support and Guidance

Facing foreclosure can be an emotionally taxing experience for homeowners and their families. Legal representation provides more than just legal assistance; it offers emotional support and reassurance during a difficult time. Attorneys understand the stress and anxiety associated with foreclosure and provide compassionate guidance to help homeowners stay focused and hopeful. This emotional support can make a significant difference in the homeowner's ability to cope with the challenges they face.

Enhancing the Chances of a Favorable Outcome

Ultimately, the goal of hiring a foreclosure defense attorney is to achieve a favorable outcome for the homeowner. Whether it's preventing foreclosure, negotiating a loan modification, or securing more time to explore alternative solutions, legal representation enhances the likelihood of a positive resolution. Attorneys work diligently to protect the homeowner's interests and explore all possible avenues to achieve the best possible result.

The benefits of legal representation for foreclosure defense are manifold. From expert knowledge of the law and personalized legal strategies to negotiation skills and emotional support, foreclosure defense attorneys provide invaluable assistance to homeowners facing foreclosure. Our dedication to protecting homeowner rights and our ability to identify procedural errors can significantly impact the outcome of foreclosure proceedings.

If you or someone you know is facing foreclosure, contact us today. Seeking the guidance of a skilled foreclosure defense attorney is a crucial step toward safeguarding your home and securing your financial future. The investment in legal representation can make all the difference in navigating the complexities of foreclosure and achieving a favorable resolution.

Estate Planning Mistakes Your Monmouth County Lawyer Can Help You Avoid

Fri, 26 Jul 2024 02:49:58 GMT

Estate planning is a great way to get peace of mind that your assets, interests, and loved ones will be secure when you are gone. Everyone should have an estate plan in place, regardless of their situation. Still, many folks do not have an estate plan in place. Even individuals with an estate plan make the big mistake of not working with an attorney throughout the process. Creating an estate plan without the advice of an attorney can lead to oversights, poor planning, and costly mistakes. Here are three ways an estate planning attorney can help you avoid some of the most common mistakes.

1. Outdated Documents

Outdated documents can lead to significant issues after your death. The will you create when you are 35 will likely not cover all of the relevant aspects of your life when you are 75. Your will needs to change every time there is a major change in your financial or personal circumstances. Buying or selling a business, a change in family status, birth, marriage, divorce, death, relocation—all of these life changes can impact your estate planning needs. The best practice is to update your will every five to seven years and update your healthcare and financial power of attorney every three years. An attorney can help you stay on top of adjusting your estate plan to life changes and remind you when it is time to revisit your plan.

2. Uncoordinated Beneficiaries

Many folks will make the mistake of adjusting their will when life changes occur but leave beneficiary forms unchanged. This can lead to expensive legal issues for your loved ones. Beneficiary forms are legally binding documents. Regardless of what is stated in your will, the beneficiary listed on that form will take priority. So, if you listed your first spouse as the beneficiary on your retirement account, even if you get a divorce and remarry unless you change the beneficiary form, your first spouse will still get the payout from that account. An attorney can help you coordinate your beneficiary information across all assets.

3. Forgetting About Taxes

An estate planning attorney is specifically knowledgeable of inheritance tax laws. You need to think about how your estate will pay taxes owed as well as minimize the impact of inheritance tax on individual heirs. While any attorney can draw up a will, only a skilled estate planning attorney can help you navigate the sometimes confusing tax laws surrounding probate and inheritance. Determining the best way to utilize all your estate planning options to secure your assets and limit tax impacts can save your loved ones money and ensure that more of your assets go to those you care about.

These are only some of the many mistakes individuals can make with an estate plan. Veitengruber Law is an experienced New Jersey estate planning attorney. We can help you determine the best way to protect your assets and establish a legacy that will live on after you are gone.

How Our Chapter 13 Lawyer Can Help You Avoid Foreclosure

Fri, 26 Jul 2024 00:25:02 GMT

As of January of this year, New Jersey is tied with Illinois for having the highest foreclosure rate in the country. With a foreclosure filing rate of one in every 2,647 housing units, foreclosure is an unfortunate reality many NJ residents face every year. Veitengruber Law has worked with clients facing foreclosure in NJ for over a decade. We understand the uncertainty and anxiety of facing foreclosure. We offer proven legal solutions with compassionate support. Veitengruber Law's foreclosure defense methods can help you escape debt and save your home.

We utilize a number of legal strategies and robust foreclosure defense action plans. Mortgage modification, debt consolidation, short sales, and bankruptcy are just some of the successful legal solutions we offer our clients facing foreclosure. One of the most effective ways to stop foreclosure is Chapter 13 bankruptcy.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is commonly known as personal reorganization. When filing a petition for Chapter 13 bankruptcy, you agree with the bankruptcy court to repay some or all of your debts over three to five years. This repayment plan will set you up to make interest-free payments that are dispersed to your creditors. Chapter 13 bankruptcy is a great way to keep your home while catching up on mortgage arrears.

Eligibility for Chapter 13 bankruptcy is contingent on your income and your debts. Only individuals and sole proprietors can file Chapter 13, not corporations or small businesses. You must also have regular income to file Chapter 13 bankruptcy, including wages, social security, pension, alimony, or any other kind of regular income. While Chapter 7 bankruptcy has income limits for eligibility, there are no income limits for Chapter 13. However, Chapter 13 does have debt limits in place. You are ineligible for Chapter 13 bankruptcy if your debts are more than $2.75 million.

How Can I Sign-up for Chapter 13 Bankruptcy?

To file a Chapter 13 bankruptcy petition, you must complete a required credit counseling course within 180 days prior to filing. Proof of completion of this course must be filed with your petition. A bankruptcy or foreclosure defense attorney can help you file your petition with the court. The petition should include an accounting of all of your debts, assets, income, and expenses. You will also need to submit a statement of financial affairs. When you submit your petition, you will be required to pay a fee of $313.

In addition to the credit counseling and the bankruptcy petition, you must submit a proposal for your Chapter 13 bankruptcy plan. This plan will propose how you intend to pay creditors and how much debt you will pay back. These payments must be paid monthly over the course of three to five years. While the court may change or amend this plan as your bankruptcy proceeding goes forward, you must submit a proposal with your bankruptcy petition.

How Can Chapter 13 Bankruptcy Stop Foreclosure?

Here are some of the ways we help our clients utilize Chapter 13 bankruptcy to avoid foreclosure:

1. The Automatic Stay Period

Once you file for bankruptcy, you enter into the "automatic stay" period. The automatic stay prevents most collection activity. Your creditors will no longer be able to harass you by mail or phone, bring forward a lawsuit, utilize wage garnishment, repossess your property, or begin a Sheriff sale. This alone can be a great relief to clients who are facing an endless deluge of harassing calls from creditors. The automatic stay means that your mortgage lender cannot begin or move forward with foreclosure. Even if they have already filed for foreclosure, any legal proceedings must pause while the automatic stay is in effect. Under Chapter 13 bankruptcy, the automatic stay will remain in effect until you complete your repayment plan.

The only collection or legal action that will not stop during the automatic stay is for child or spousal support, tax proceedings, criminal proceedings, or payments toward loans from a pension.

2. The Opportunity to Cure Your Mortgage

One of the greatest advantages Chapter 13 offers is the opportunity to cure your mortgage default and save your home. Your Chapter 13 repayment plan will likely prioritize paying back secured debts first. This will allow you to catch up on any missed mortgage payments. With a three- or five-year repayment plan, paying back debts can be more affordable under Chapter 13. As long as you continue to make regular payments on your mortgage, you can end your repayment plan debt-free and in good standing with your mortgage company. This will eliminate the need for foreclosure.

3. The Gift of Time

Even if you choose not to stay in your home, filing for Chapter 13 can give you the time you need to come up with a solution that benefits you more than foreclosure. Selling your house the traditional way or through the short sale process may be more beneficial to your specific situation. A bankruptcy and foreclosure defense attorney can help you determine the solution that will work best for you. Either way, Chapter 13 slows down the process and gives you time and space to make these difficult decisions.

What If I Default on My Chapter 12 Payments?

You will risk losing your home if you cannot keep up with your Chapter 13 repayment plan. Once you, the court, and your creditors agree, your repayment plan must be followed. If you default on your plan, you will still owe all the debt that you did not pay back under your plan. If that includes mortgage payments or arrears, you are putting your home at risk.

The automatic stay will end if you stop making your agreed-upon payments. The court will notify your lenders that they have permission to proceed with any legal or collection actions against you. At this point, foreclosure on your home is likely.

If you are ever concerned that you may default on your bankruptcy repayment plan, it is critical to communicate quickly and effectively with your court-appointed bankruptcy trustee. There are some circumstances in which the court may allow you to defer payment or temporarily suspend them. An attorney can help you work with the court if changes in income or sudden life events make your bankruptcy repayment plan no longer feasible.

We Can Help You File Today!

Chapter 13 bankruptcy is an effective tool to stop foreclosure, prevent sheriff's sales, end creditor harassment, avoid repossession, halt utility shut-offs, and eliminate debt. If you are struggling to pay your bills or facing the loss of your home, Veitengruber Law can help. We are experienced with Chapter 13 bankruptcy cases. Our legal team can help you save your home and get out under the weight of unmanageable debt. Reach out to us for a free consultation today!

Writing Your Will isn't Fun, but Dying Without One Can be Disastrous

Fri, 26 Jul 2024 00:17:29 GMT

Let's face it: thinking about mortality can be difficult. Most people find it uncomfortable or distressing to consider what they want to happen to their assets after death. Because of this, around half of adults do not have a will in place. While planning for the end can be difficult, it is an essential task everyone must do. If you are looking for a will lawyer in Monmouth County, Veitengruber Law is an experienced estate planning attorney with years of experience. Here are a few reasons we urge our clients to have a will in place.

1. If You Don't Have a Plan, NJ Has One For You

Just because you do not have a will does not mean there are no laws or guidelines to settle your estate. Without a will in place, your assets will be considered "intestate," meaning they will be distributed based on NJ law. The issue is that the laws and guidelines established to deal with intestate assets may not align with your wishes.

If you have only been married once, have never been divorced, and only have children within that marriage, your spouse will inherit your assets if you die without a will. But the rules surrounding those who have had multiple marriages, children from different relationships, or those who have never had children become increasingly complex under state law—and you may disagree with how the state chooses to distribute your assets.

If you want to control how your assets are distributed after your death, you need a will.

2. You Need an Executor You Trust

One of the things you will outline in your will is your nomination for the executor of your estate. This person will be responsible for carrying out your final wishes, including locating and collecting assets, paying debts, filing taxes, distributing assets, and generally closing out your affairs. You want to choose someone that you trust and someone who can tackle the responsibility of this position. Without a will in place, the court will choose an executor. While the surviving spouse will typically be given first choice for this position, things can become complicated if you pass without a spouse, have multiple children, or have multiple marriages.

Family members and loved ones can wind up fighting for this position in court, which can turn ugly quickly. It is easier for everyone involved if you name a clear executor in your will.

3. Guardianship for Minor Children

It is crucial to have a will if you still have minor children. When a parent dies without a will, a judge will appoint someone to raise any minor children. If you are married and have only had children in that marriage, full parental rights will simply transfer to your surviving spouse. However, more complex situations can lead to custody disputes. Most parents have very specific opinions and wishes about the care of their children. Without a will, you are leaving these decisions up to others. Indicating your preferred guardian in your will can help ease the stress and pain of your children and loved ones at an already difficult time.

4. Understand that a Will is Just the Start

Having a will in place is critical to protecting your assets, loved ones, and wishes—but a will is just the beginning of the estate planning process. Assets like life insurance payouts, bank accounts, retirement accounts, and living trusts will always pass to the designated beneficiary for those accounts, regardless of what your will says. It is important to ensure these designations are current and reflect your true desires. You will also need to consider having a power of attorney and medical directives in place to help your loved ones make important financial and health decisions if you are incapacitated.

Estate planning goes well beyond your will, but creating a will is a great place to start. Veitengruber Law can work with you to determine how to protect your assets best. An estate plan can offer peace of mind that your affairs are in order and your wishes will be fulfilled. If you need a will, reach out to us for a consultation today!

NJ Estate Planning Mistake: "I Don't Need a Will Because I'm Married"

Fri, 28 Jun 2024 05:52:53 GMT

Creating a will can be an incredibly difficult task for most people. No one likes to think about their death or what will happen after they are gone. It can be even more challenging to help a spouse create their will. Many married folks believe that the legal rights and privileges offered by their marriage certificate will be enough to protect their spouse after they are gone, but this isn't the case. Each spouse needs their own will to protect their assets and loved ones.

Here are five important reasons you and your spouse should have separate wills:

1. Forgotten Assets

Many married couples argue that because they own everything jointly, they should not require a will. If you actually own everything jointly, then it is true that all assets will pass entirely into the ownership of the surviving spouse—but that is a big "IF."

Most couples do not own every single asset in joint names. There are typically some assets acquired throughout a long marriage that are owned individually. Whether it is a neglected bank account, a lot of land inherited by one spouse, a forgotten 401k, or some other small asset, chances are you do not actually jointly own every single asset you possess. The surviving spouse can potentially end up paying more in probate fees to get the assets transferred than what the assets are worth.

Creating a will that explicitly lists your spouse to inherit these assets can save them money and time working through the court system.

2. Complex Family Lines

Let's pretend that you and your spouse own every single asset jointly. Joint ownership only affects the initial transfer of ownership from the deceased spouse to the surviving spouse. This joint ownership does not cover the transfer of ownership after the second spouse has died. Moreover, without a will, once ownership passes entirely to one spouse, the deceased spouse's family no longer has any claim to their assets.

If you have only shared children, neither of you have children from a previous marriage, and you intend to split assets evenly between surviving children, this could work in theory. Without a will in place, the court has more say over the probate process, but inheritance laws would likely favor and protect the rights of your shared children. However, the reality is that most people have slightly more complex family situations. Multiple marriages, children from previous relationships, children with disabilities or unique circumstances, divorce, adoption, and more can result in a complicated inheritance situation.

The best way to protect your loved ones is to have individualized wills for each spouse.

3. End of Life Capability

You also need to consider the mental and physical health of the surviving spouse. If you plan to wait for the surviving spouse to do all the estate planning at the end of their life, you could be setting your spouse up for a major headache. There is no way to tell what kind of physical or mental health the surviving spouse will be experiencing at the time assets are transferred. If the surviving spouse is not capable of estate planning on their own, they could fall victim to undue influence or simply lack the capacity to go through the arduous process of estate planning.

This is why both spouses should create a will when each is mentally and physically capable. The sooner you establish your individual wills, the more likely your true wishes will be carried out when you are gone.

4. Joint Wills Are Problematic

Some married couples will create a joint will in which they intend to cover both of their wishes for their assets. There are a few issues with this. First, it is improbable that both spouses will die at the same time. Circumstances and assets can change drastically between the death of one spouse and the other. A joint will is unlikely to cover the needs of both spouses. Secondly, joint wills are easier to contest in court. This can create a chaotic situation in the aftermath of either spouse's death and cause unnecessary pain to remaining loved ones. No one wants their legacy to be decided over a lengthy and costly court battle between family members.

5. You Need to Name an Executor

When a person dies without a will, the court must determine who will serve as the "executor" or personal representative of the estate. In most cases, the surviving spouse is automatically nominated as the representative. However, if the surviving spouse does not want to serve or cannot serve as a representative, the subsequent heirs in line will have the next preference to serve as the representative. This can get tricky. If you have multiple children, each will have the same chance of being named the representative of the estate. If the children cannot agree on one representative (or agree to serve as co-executors), or if an heir cannot be located, there will be issues.

Creating a will and explicitly naming an executor takes the guesswork out of your wishes. You can choose who would best serve your interests and protect your estate. You can choose your spouse and also list alternatives in the event they predecease you or are unable to serve at the time of your death.

Veitengruber Law has experience working with married couples to protect their assets as a couple and as individuals. We can help you develop a NJ estate plan that covers your needs and allows you to determine your legacy.

How to Choose an Executor for Your NJ Will

Fri, 28 Jun 2024 05:48:02 GMT

Deciding who will control your estate when you are gone is crucial. After you pass away, the executor of your will or estate plan will make decisions based on your instructions. They will be legally responsible for selling any property, paying off debts, dealing with any legal issues during the probate process, and distributing assets to your beneficiaries. This vital job needs to be handled by someone you trust. This person must be capable and willing to do the job.

If you are considering who to name as the executor of your estate, here are some things to keep in mind:

1. Choose Someone Responsible

A high sense of responsibility is the number one quality you should be looking for in a potential executor. Knowledge of legal or financial issues is not necessarily going to mean anything during the probate process—but the ability to address problems quickly and effectively is essential. You want an executor who is willing to communicate with experts to ensure your estate is settled correctly, can stay organized, and can meet important deadlines. The ability to make decisions that may sometimes be difficult is also crucial. Your executor will be paid for their services from your estate. Therefore, you should choose someone who will treat the position like a job.

If you do not have anyone you trust to be responsible for your estate once you are gone, you can appoint an attorney, financial advisor, or other professional representative. Remember that these professionals will likely charge more for their services than a family member or friend would.

2. Choose Someone Good with Finances

Ideally, your executor will be someone who has their personal finances in check. Even if you trust the person to do right by your will and follow your wishes, it can be difficult for those in shaky financial situations to act as executors. Someone with many creditors, a poor credit history, liens against them, or has filed bankruptcy may struggle to get bonded. "Bonding" is a kind of insurance that is required during the probate process. This insurance is intended to protect the estate's creditors and heirs. If the bonding insurance company feels the executor is a risk, they may not extend a bond, and the court will likely choose a new executor.

3. Choose Someone Who Will Outlive You

You can name multiple executors in your will. With that in mind, it is a good idea to name a younger executor as an alternative if your first executor predeceases you or is no longer capable of acting on your behalf. You can explicitly list the circumstances in which this younger person will act as your executor. For example, if your wife is the executor of your will, you could name your oldest child to act as the executor if your wife cannot serve.

4. Choose Someone Who isn’t into Drama

Relationships are complicated. It is possible that one or more of your beneficiaries does not get along. Even if you do not anticipate that there will be issues surrounding the settling of your estate, you need to choose an executor who will stay out of the drama, stick to your expressed wishes, and make fair decisions on your behalf.

For example, let's say you have two children. They do not get along or speak to each other. If you name one of your children the executor, they could use this position to cause hardship to the non-executor sibling. The best way to deal with this is to grant both children co-executorship OR to simply name a non-biased third party as your executor. The latter option is typically the least difficult of the two.

Either way, your executor needs to make decisions on your behalf with your wishes in mind first. Someone who can keep personal options and preferences out of the probate process is the best choice for an executor.

5. Communicate Your Choice

Once you decide who to name as your executor, you must talk to the person about your expectations. They should know they are listed as your executor, understand your wishes, and have the contact information for relevant professionals involved in your estate plan. Ask this person if they are willing to be the executor of your will and ensure that they understand this position's responsibilities. If they are unable or unwilling to serve as your executor, it is better to know now than when it is too late.

George Veitengruber is a full-service estate planning attorney in New Jersey. Veitengruber Law has worked with clients for years to protect their assets and gain peace of mind about the legacy they will leave when they are gone. We can help you determine the best estate plan for your circumstances.

If You Don't Have an Estate Plan, the State has One for You

Fri, 28 Jun 2024 01:43:56 GMT

Estate planning is an important but often neglected task. It can be challenging for many folks to focus on what will happen when they are gone, but it is necessary to do so anyway. When you do not have an estate plan, your assets and property are left vulnerable, which can put your loved ones in an untenable position. In New Jersey, if you don’t have an estate plan, your wishes will not hold weight against state laws about inheritance and probate.

It’s important, so we’ll say it again: If you do not have an estate plan, NJ will make one for you, which may go against your desires.

Here, we will explore the NJ probate process and what happens if you die without an estate plan.

What is probate?

Probate is a court-supervised process in which the state will settle and distribute your assets and property after your death. The average time frame for the probate process in NJ is one year, but it can take longer. Without a will in place, your belongings and assets will be distributed in compliance with NJ's intestacy laws during the probate process. These laws outline a hierarchy of heirs for those who pass without an estate plan or will in place. This hierarchy typically starts with spouses and children and then goes to parents, siblings, grandparents, and so on. When you have no living heirs, the state of NJ will assume control of your assets.

Who will be the executor of my estate if I don't have a will?

The probate process always begins by attempting to locate a will or estate plan. If one cannot be found, the court will seek to appoint a representative of the estate. Similar to an executor, this person will have the power to influence how assets and property are distributed. They will also be responsible for paying back the estate's debts, filing a tax return for the deceased, and paying any due taxes from the estate.

With an estate plan, you can determine who controls your estate when you are gone. This can help ensure that the person you trust the most is acting on your behalf. Without an estate plan, relatives can be blindsided by end-of-life responsibilities or end up in a legal battle over control of your estate.

How does estate planning impact taxes?

When you do not have an estate plan, you may have to pay higher estate taxes to NJ. In New Jersey, the estate tax exemption is only $675,000. If your estate is worth more than this amount, it is subject to estate taxes. These taxes can be as high as 16%, significantly reducing assets passed down to your heirs.

With estate planning, however, an attorney and financial planner can work with you to determine the best ways to avoid estate tax. There are legal ways you can establish your estate plan to reduce or even totally eliminate estate taxes.

How can an estate plan protect me?

When you have an estate plan, you have more control over what happens to the life you built after you are gone. You get to determine your legacy. You can designate beneficiaries, guardians for younger children, successors of your business, and create a peaceful, easy transition for your loved ones after your death.

Do I have to work with a New Jersey estate planning attorney?

Some folks do not work with an attorney to prepare their will. That being said, an attorney can help you protect your assets and support loved ones with the full power of the law. Not only can they help you avoid common estate planning mistakes, but they can also ensure that all of your documentation is in order and help you save money on taxes. An attorney can also help you establish a plan for any unique circumstances.

It is critical that you have a thought-out estate plan in order to protect yourself, your loved ones, and your legacy. Veitengruber Law is an experienced estate planning firm in New Jersey. We can help you create a plan that upholds your wishes.

Understanding Essential Legal Documents in Estate Planning

Wed, 26 Jun 2024 21:45:42 GMT

Estate planning ensures your assets are distributed according to your wishes after you pass on. To effectively plan for the future, it is important to understand the various legal documents that are typically included in estate planning. In this article, we will explore the key documents such as a last will and testament, living trust, power of attorney, and designation of beneficiaries.

Last Will and Testament

A last will and testament is a crucial legal document that outlines how you want your assets to be distributed upon your death. In this document, you can specify your wishes in detail, ensuring that your estate is handled according to your preferences. It allows you to designate beneficiaries for specific assets, such as property, investments, or personal belongings, ensuring that treasured possessions go to the people you choose. Additionally, you can appoint guardians for minor children, providing peace of mind that they will be cared for by someone you trust. Moreover, you can name an executor to handle the administration of your estate, ensuring that your instructions are accurately followed. If you have no will in place, state laws will step in and determine how your assets are distributed. The state's distribution of your assets may not align with your wishes, so leaving a will is important if you have specific goals for your wealth.

Living Trust

A living trust is another essential document in estate planning that allows you to transfer ownership of your assets into the trust during your lifetime. This enables your assets to bypass probate, which can save time and money for your beneficiaries. By avoiding the lengthy and often costly probate process, your loved ones can gain quicker access to your estate. Additionally, a living trust provides privacy, as opposed to a will, which becomes public record after probate, ensuring your financial matters remain confidential. Moreover, a living trust can include specific instructions for how you wish your assets to be managed and distributed, offering greater control and flexibility over your estate even after your passing.

Power of Attorney

A power of attorney is a legal document that designates one person to make financial or healthcare decisions for you if you become incapacitated. It ensures that your preferences and interests are upheld even when you cannot communicate them yourself. There are two main types of power of attorney: one for financial matters, which includes managing your bank accounts, investments, and properties, and another for healthcare decisions, which encompasses medical treatments, living arrangements, and end-of-life care. It is important to choose someone you trust deeply and who understands your values and wishes to act in your best interests.

Designation of Beneficiaries

Designating beneficiaries on accounts such as retirement funds, life insurance policies, and bank accounts is crucial in estate planning. By naming beneficiaries directly on these accounts, the assets can be passed directly to them without going through probate. This legal process can be lengthy and costly, often delaying the distribution of assets for months or even years. Naming beneficiaries helps streamline this process, ensuring that assets go to the intended recipients efficiently and without unnecessary legal hurdles. Additionally, it provides peace of mind that your loved ones will receive their inheritance promptly and according to your wishes. This simple step can significantly ease the administrative burden on your family during a challenging time.

Benefits of Estate Planning

Estate planning offers numerous benefits that can provide peace of mind for you and your loved ones. It helps ensure that your assets are distributed according to your wishes, which can prevent potential conflicts among family members. Additionally, estate planning can minimize the tax burden on your heirs, preserving more of your wealth for future generations. With a clear plan in place, you can also provide for the care of minor children and dependents, which is especially important if you have specific wishes for their upbringing.

Why You Should Work with a Legal Professional

Working with a legal professional in estate planning is highly recommended to ensure that all your documents are correctly drafted and legally binding. An experienced attorney can provide valuable guidance tailored to your situation, helping you navigate complex laws and regulations. They can assist in creating a comprehensive estate plan that addresses all potential issues, including probate avoidance and tax minimization strategies. By collaborating with a legal expert, you can have confidence that your estate plan will stand up to legal scrutiny and effectively protect your legacy.

Estate planning is an essential process that ensures your assets are managed and distributed according to your wishes, providing peace of mind for you and your loved ones. By understanding and utilizing key documents such as the last will and testament, living trust, power of attorney, and beneficiary designations, you can create a comprehensive plan that addresses your unique needs. Additionally, working with a legal professional can help navigate the complexities of estate planning, ensuring that your plan is thorough and legally sound. Taking these steps now can prevent future conflicts, minimize taxes, and ensure that your legacy is preserved for the benefit of future generations.

For more information about this, contact us.

A Top Estate Planning Attorney in Monmouth County Weighs in

Mon, 17 Jun 2024 17:54:22 GMT

For most, creating a will is not a once-in-a-lifetime event. As different aspects of your life change, you must reflect these changes in your estate planning. Marriage, divorce, a new child, a new home, or the death of a loved one can alter your wishes and require an amendment or change to your will. Because having an estate plan at all stages of your life is essential, you will likely change this plan many times throughout your life. Keeping your will up to date can protect your interests and offer security for your loved ones after your death. Veitengruber Law is an estate planning attorney in Monmouth County, and here are our tips:

1. Make Prompt Changes

Life can change rapidly. If you create an estate plan when you are a thirty-year-old newlywed renting an apartment and working on growing a retirement fund, that same plan will likely not cover your wishes as a retired divorcee with three kids and a healthy 401(k). Updating your will as your life changes is the best way to ensure you protect your assets. Anytime a big life event happens, you should be amending your will and revising the rest of your estate plan. This proactive approach can bring you peace of mind, knowing that your wishes are always up to date.

2. Keep Clean Records

Once your will is updated, you need to ensure that you are keeping clean, organized records of your estate plan. Maintaining multiple, undated copies of your will can create confusion and even cause legal battles in the future. Make sure that you keep the most updated copy of your will in a location where relevant parties can access it if needed. Old copies should be destroyed to prevent issues. An estate plan is intended to offer ease and peace of mind—not instigate a family feud. Not updating your will could leave your loved ones in a difficult and potentially contentious situation.

3. Modify Correctly

If you are modifying your will, you need to make sure you are taking the proper steps to modify your will. New Jersey law is clear in the legal ways you can modify your will. You can:

Execute a new will that is signed and witnessed
Execute a codicil of the existing will
Add an addendum that is signed and witnessed

Essentially, you must ensure that any changes are captured and executed fully by being signed and witnessed. Making handwritten alterations or mark-ups will likely not hold up in court. Similarly, attaching an addendum to a will that has yet to be signed or witnessed can be challenging to prove in a legal dispute.

4. Work With an Attorney

The best way to ensure your New Jersey will is up-to-date, executed properly, and legally enforceable is to work with an experienced estate planning attorney. They can keep records of your estate plan and offer insight into your wishes while utilizing the law to work to your advantage. The truth is, you should not rely on a will alone for your estate planning needs. There are many other aspects of estate planning that can better protect you, your loved ones, and your assets. An experienced attorney can work with you to devise the best plan for your specific circumstances and goals, providing you with the support and guidance you need during this process.

Veitengruber Law offers full-service estate planning in Monmouth County, New Jersey. We can tailor our legal solutions to best protect you and your assets. We are pleased to collaborate with financial advisors, accountants, and other professionals to ensure your estate plan covers everything important to you.

I Need Help Backing out of a NJ Real Estate Deal

Fri, 31 May 2024 08:42:34 GMT

Getting caught up in the excitement of purchasing a home is easy. Envisioning your new home and all the possibilities of a move can sometimes blind homebuyers to hard realities. Maybe you can't secure financing, maybe the property you thought was your dream home turns out to be a nightmare of issues, or maybe life has simply taken a turn in another direction. Whatever the situation, you need out—but you already signed the real estate contract. What are your options? If you find yourself saying, "I need help backing out of a NJ real estate deal," Veitengruber Law can provide the professional assistance you need, offering a sense of relief in a potentially stressful situation.

Here are some tips for getting out of a NJ real estate contract:

1. Don't Wait!

As soon as you realize you need to terminate the contract, it is critical to act quickly. You should immediately contact an attorney and contact the other parties involved. The sooner after signing, the better since backing out too late in the process increases your chances of being found in breach of the contract. Being in breach of your real estate agreement can lead to costly and time-consuming litigation and other issues. An attorney can help you find an out of the contract quickly and ensure you make all the required steps to inform the other parties.

2. Hire a Real Estate Lawyer

While you are not required to work with a real estate lawyer in New Jersey, it is highly recommended. Working with a real estate lawyer from the beginning can help protect your interests while buying or selling property. An experienced real estate attorney can draft contracts with specific legal protections for you. They can even include particular clauses allowing you to back out of the contract if certain conditions are not met—like the inability to secure financing or the discovery of significant issues with the property. When you work with a lawyer from the beginning, your chances of being able to back out of a contract without legal or financial consequences increase.

3. Utilize the Attorney Review Period

After a real estate contract is signed in NJ, both parties enter into the attorney review period. This lasts for the three days immediately following the signing of the contract and is intended to allow both parties adequate time to have an attorney review the contract and come back with any concerns, additions, or amendments. At any point during the attorney review period, you can back out of the contract for any reason. Once the attorney review is over, the contract is legally binding. If you have concerns in the very beginning, this is a great way to get out of the contract.

4. Unfulfilled Obligations and Contingencies

Once the attorney review period ends, your best bet for backing out of an NJ real estate contract is unfulfilled contingencies or obligations. Every contract has deadlines and commitments that the buyer and the seller must meet. Failure to meet these deadlines can mean a breach of contract and would allow the other party to back out of the contract. Real estate contracts also often include contingencies or specific, often unique conditions that have been agreed upon. Contingencies can consist of common contingencies like financing or inspections, but they can also include contingencies more specific to your interests. If these contingencies are not met, it can give you the ability to back out of the contract.

The best way to find out if you can get out of a real estate contract is to work with a real estate attorney from the beginning of your real estate journey. Veitengruber Law is an experienced NJ real estate attorney and team with years of experience working with residents purchasing and selling property. We can help you protect your investment and reach your real estate goals.

Do I Need a Bankruptcy Lawyer to File Bankruptcy in Monmouth County?

Thu, 23 May 2024 22:09:18 GMT

It is possible to file for bankruptcy without an attorney. This is called filing "pro se," and some folks who file for bankruptcy choose to take this route. However, seeking the advice of a qualified and experienced attorney is strongly recommended when filing for bankruptcy. Because of the long-lasting financial and legal outcomes of filing for bankruptcy, you must ensure your best interests are protected. As an experienced bankruptcy lawyer in Monmouth County, Veitengruber Law can help you do that!

Here are just some reasons why working with a bankruptcy attorney is recommended:

1. First-Time Correct Filing

During bankruptcy, you must provide a ton of documentation and complete lengthy, complex paperwork. Bankruptcy attorneys are familiar with the process and can ensure that you file correctly and on time the first time, avoiding costly mistakes and shortening the overall process. They can also guide you towards filing the correct kind of bankruptcy, giving you the best chance for an agreeable outcome based on your unique circumstances. The more efficient your filing, the sooner you can breathe a sigh of relief.

2. Avoid Fraud or Perjury

While it may not be your intention to commit fraud or perjury, it is possible to do so accidentally during bankruptcy proceedings. An attorney can help you ensure you make all required disclosures to the court, your creditors, and the bankruptcy trustee. They can also ensure you perform all the necessary actions to complete your filing. By keeping you on course, an attorney can help you avoid costly or legally damaging problems.

3. Protect Yourself and Your Assets

An experienced attorney understands bankruptcy law completely. We know the ins and outs of what property you can protect and how to protect your valuable assets. When you choose not to work with an attorney, you leave yourself vulnerable to losing cherished valuables that could have otherwise been protected. Especially if you are attempting to protect your home, business, or other assets, you need to work with an attorney.

If you make enough mistakes during a bankruptcy filing, you could lose your ability to file another case or even lose your bankruptcy discharge, which is what wipes out your debts. Working with an experienced attorney is the best way to protect yourself during a legally, financially, and emotionally vulnerable time.

Veitengruber Law has years of experience with NJ bankruptcy cases. We can help you file today, but our assistance doesn’t have to stop with bankruptcy. We can assist you through the case and after your debt is discharged, we’ll set you on the path to financial success in the future. Click to learn more !

Best Bang for Your Buck: New Construction or Existing Property?

Wed, 15 May 2024 01:13:39 GMT

When purchasing a new home, it can be challenging to determine what kind of home would be best for you. Homes generally fall into two overarching categories: new construction or an existing home. Choosing between a new build or an existing home can be a matter of preference, cost, or simply what is available in the market you are looking to buy. Here are some things to consider when deciding if you should purchase a new construction or an existing home in New Jersey.

1. Cost

In previous years, building a new home was much more expensive than purchasing an existing home. However, the recent market has narrowed the gap in expense between the two options. In most areas of NJ, the cost of a newly built home is slightly higher or roughly the same as an existing home. If you are personally building a new home to your specifications, then the loan, interest rate, and closing costs will be higher on a new home than on an existing home. But if you are simply purchasing a new build, the rates and fees should be relatively the same as buying an existing home.

2. Time

It typically takes longer to move in when purchasing a new construction home than an existing home. Move-in when it comes to new construction will be dependent on the builder's timeline. If they hit snags with permitting, inspection, material delays, or any other issues, it will automatically delay your move-in day. While there certainly can be delays with an existing home, you can likely move in much faster. If you need to move in ASAP, an existing home is likely your better option.

3. Location, Location, Location!

Existing homes tend to be in established neighborhoods closer to town centers. Because there is typically less space in these areas for new development, new-build homes are usually located on the outskirts of a town or city. You may prefer either of these options depending on your preferences regarding privacy, community, and proximity to public spaces. You should consider the distances to the local schools, grocery stores, and other services, as well as the commute time to your job.

4. Landscaping

With existing homes, you get mature landscaping. Most homeowners put some time and effort into enhancing their home's curb appeal while selling, although some homes will need a bit of work. With a new construction home, you will almost certainly be doing all the work to create an appealing landscape. Recently built homes or homes being constructed will be surrounded by dirt, cleared land, and not much else. You will need to grow grass, plant trees, and do other yard work to get your entire property manicured. This means cashing in some sweat equity or paying a professional landscaper—which can drastically increase the costs of purchasing a new home. Existing homes also tend to have bigger yards than new-construction homes. If a big, established yard is important to you, a new build may pose some disadvantages.

5. Customization and Modernization

An existing home may have some advantages, but a new construction home will shine most when considering the amenities. Homeowners had different needs and priorities 50 or 100 years ago than they do now. Modern-designed homes are more likely to appeal to buyers today. You can expect a modern floor plan, larger windows, and more storage space. Some new homes will even have smart features designed to make your life easier. New homes often offer a blank slate that you can customize any way you see fit, allowing you to create a space that is uniquely your own.

6. Repairs and Upgrades

You may love an old home for its charm, history, or vintage architecture—but that charm may wear off in the face of other signs of age. Popcorn ceilings and wall-to-wall carpets can detract from other desirable features. Existing homes may need upgraded appliances and other amenities to bring the home into the 21st century. You also have to consider potential repairs to an existing home. Lived-in homes are bound to have some necessary repairs before or quickly after move-in. While some homebuyers love a fixer-upper, it's not for everyone. With a new construction home, you are less likely to need to spend money on costly repairs or upgrades.

7. Resale Value

New construction homes are likely to have a higher resale value than existing homes because they are newer. They will come with all the amenities modern homebuyers look for when purchasing a home. That said, a well-maintained or lovingly updated older home can also hold its value over time and attract a different kind of homebuyer.

Veitengruber Law is a full-service real estate attorney in New Jersey. We work with industry professionals, homebuyers, and sellers. Reach out to us today so we can help you achieve your real estate goals!

The Benefits of Having a Legal Rep Negotiate With Creditors

Fri, 10 May 2024 18:54:46 GMT

Dealing with creditors can be a stressful and overwhelming experience, especially if you are facing financial difficulties. However, having legal representation negotiate with your creditors on your behalf can provide numerous benefits that can help alleviate some of the burden. In this blog post, we will discuss key advantages of hiring legal professionals to handle negotiations with creditors.

Expertise and Experience

Legal professionals specializing in debt negotiation have the knowledge and expertise to navigate complex financial situations. They understand the intricacies of creditor laws and regulations, allowing them to negotiate effectively on your behalf. Their experience in dealing with creditors can also help ensure that you receive the best possible outcome.

Protection from Harassment

One of the most significant benefits of having legal representation negotiate with creditors is protection from harassment. Creditors can be aggressive in their collection efforts, often resorting to harassing phone calls and letters. By hiring a lawyer to represent you, you can put an end to these harassing tactics and communicate with creditors through a professional intermediary.

Reduced Stress and Anxiety

Financial difficulties can take a toll on your mental health, leading to increased stress and anxiety. By entrusting a legal professional to handle negotiations with creditors, you can focus on improving your financial situation without the added pressure of dealing directly with aggressive creditors.

Improved Communication

Effective communication is key when negotiating with creditors. Legal representation can act as a mediator between you and your creditors, facilitating open and transparent communication that is essential for reaching mutually beneficial agreements. This improved communication can lead to more favorable terms for repayment or settlement.

Peace of Mind

Having a professional lawyer handle your debt negotiations can provide a sense of peace and security. You no longer have to constantly worry about handling calls from creditors or navigating complex legal jargon. With a legal professional by your side, you can trust that your case is being handled with expertise and care.

Tracking Progress

Keeping track of all the details involved in debt negotiations can be overwhelming and time-consuming. A dedicated lawyer will keep detailed records of communications, agreements, and progress made toward resolving your debts. This allows you to stay informed and have a clear understanding of where things stand at any given time.

Debt Settlement Options

Legal professionals specializing in debt negotiation are well-versed in various debt settlement options that may not be available to individuals negotiating on their own. They can explore alternatives such as debt consolidation, debt management plans, or negotiated settlements that could help you achieve financial stability faster.

Customized Solutions

Every individual's financial situation is unique, requiring customized solutions tailored to their specific needs and circumstances. Legal professionals negotiating on your behalf will assess your situation thoroughly and develop personalized strategies that align with your goals for resolving debt issues.

Save Time and Effort

Negotiating with creditors can be time-consuming and labor-intensive, especially if you are unfamiliar with the process or lack experience in handling such matters. Hiring legal representation frees up your time and effort so that you can focus on other important aspects of your life while professionals handle negotiations on your behalf. This allows for a faster and more efficient resolution to your debt issues.

Access to Resources

When facing debt issues, it's essential to have access to resources that can help you achieve your goals effectively. By hiring legal representation, you gain access to a network of resources that can aid in the negotiation process. These resources may include industry connections, specialized tools and technologies, and valuable insights into creditor tactics.

Better Terms for Repayment

Legal professionals have the skills necessary to negotiate better repayment terms than individuals negotiating independently would likely achieve. They can leverage their expertise in creditor relations to secure lower interest rates, reduced principal amounts, or extended repayment periods that make it easier for you to manage your debts effectively.

Long-Term Financial Stability

Ultimately, having legal representation negotiate with creditors offers long-term benefits by helping you achieve financial stability and peace of mind. You can lay the foundation for a brighter financial future free from overwhelming debt burdens by resolving debt issues efficiently and effectively through professional negotiation services.

Hiring legal representation to negotiate with creditors offers numerous advantages that can significantly benefit individuals facing financial difficulties or struggling to manage debts effectively. From expert knowledge and experience to protection from harassment and improved communication, legal professionals bring valuable skills to the table when navigating complex creditor relationships.

If you find yourself overwhelmed by debt-related challenges or seeking ways to improve your financial situation, contact our office to enlist the help of legal experts who specialize in debt negotiation services. By leveraging our expertise and resources on your behalf, you can work towards achieving long-term financial stability while minimizing the stress and anxiety associated with dealing directly with aggressive creditors.

I Need a Real Estate Lawyer: Monmouth County NJ

Thu, 02 May 2024 04:43:49 GMT

Buying or selling a home in New Jersey involves a complex legal process with tons of paperwork, contracts, and research. For the average homebuyer—or even a real estate pro—the intricate ins and outs of NJ real estate law can be overwhelming. While you are not legally required to obtain an attorney for a real estate transaction in NJ, doing so is the best way to ensure you are not leaving yourself vulnerable to legal trouble. Real estate attorneys work for you to ensure you are getting the most out of your investment. Veitengruber Law is a real estate lawyer in Monmouth County, NJ. We have years of experience and knowledge in real estate law and a robust network of local real estate professionals.

Do I need a real estate lawyer?

Technically speaking, no. New Jersey law does not require individuals to retain a real estate attorney while buying or selling a home. While New Jersey does have the three-day attorney review period automatically built into the processing of the real estate contract, you are not obligated to utilize this period for the attorney review. Many folks buy or sell property in New Jersey without the help of an attorney.

But there are a multitude of reasons why enlisting the service of an experienced real estate attorney is in your best interest and will result in a smoother experience. Real estate transactions are some of the most significant financial transactions the average person will likely make in their lifetime. This is a huge investment that impacts your life in major ways financially, legally, and personally. With so much at stake, working with an attorney can give you the best shot at protecting your investment.

What are the risks of buying or selling without an attorney?

So much can go wrong during a real estate transaction. Hidden defects with the home, title defects, financial troubles, intentional misrepresentations, and many other scenarios can threaten your investment. A knowledgeable attorney can work through these challenges while utilizing the law to protect your interests.

When you go through a real estate transaction without the help of an attorney, you expose yourself to potential legal troubles and even fraud. Practiced real estate attorneys familiar with the local area can also help you steer clear of fraud, fake property listings, and shady deals. This can prevent significant personal and financial losses and help you avoid major legal headaches.

What can a real estate attorney do?

At Veitengruber Law, our clients utilize our real estate services for a multitude of things,

including: Drafting, Reviewing, and Negotiating Contracts

Typically, real estate agents provide a boilerplate contract for most real estate transactions. This contract is not specific to you, your needs, or the property. This standardized contract can leave buyers or sellers unprotected. It may not include particular clauses or additions unique to your situation and can better protect each party. Utilizing the three-day attorney review period allowed under NJ law to review the contract thoroughly is critical. Just because it is standardized does not mean you have to accept everything in the contract.

An attorney can review the contract, make important changes, and help you negotiate an agreement that is more favorable. An attorney can help you add specific conditions to the contract that protect key aspects of the sale that are important to you. Keep in mind that real estate contracts are legally binding. You do not want to sign a contract that has not been reviewed by an attorney first.

Some things a real estate attorney can negotiate to be added to a customized contract include:

Inspection: Specifications concerning the inspection period and how defects will be handled
Financing: Adding a financing contingency so buyers can back out if they do not have funds
Appraisal: Including a provision allowing buyers to back out or re-negotiate in the event the home appraises for less than the list price
Title: Making the contract contingent upon a clear title and protecting the buyer from any title issues
Extras: Whatever items you want to be included or excluded from the sale can be listed explicitly in the contract

Your real estate contract should be customized to protect you. A real estate lawyer can help you do that!

Reduce the Risk of Lawsuits

By working with a real estate attorney, buyers and sellers can limit their risk of a lawsuit. Sellers, especially, are legally required to disclose issues with the property. Failure to properly do so can result in a lawsuit down the road. A real estate attorney can identify areas in the contract where you may leave yourself vulnerable to these kinds of lawsuits. They will ensure you follow all disclosure rules and regulations to help you avoid making honest mistakes and limit liability.

Negotiate Following Inspection

It happens—the home you thought looked defect-free upon viewing is actually plagued by several expensive issues. This is why getting an inspection is such an important part of the home-buying process. Buyers who uncover issues during inspection will have a lot of big choices to make about how to proceed.

An attorney can review the inspection report and help the buyer negotiate how to handle these defects with the seller and their agent. An experienced attorney can negotiate for concessions based on the defects uncovered. This can include lowering the price or negotiating with the seller to make repairs. Because sellers are not obligated to make repairs, a real estate attorney can give you the edge you need to save yourself a major headache and often a significant sum of money.

Closing

When you work with a real estate attorney, they can guide you through the often lengthy closing process. An attorney can make the experience stress-free and ensure all required documentation is in order and ready to go. If your closing needs to be delayed for any reason, a real estate attorney can help. If, upon your final walkthrough, you notice some significant issues, an attorney can defend your rights as a homebuyer and postpone closing until the issue is resolved.

What instances may require a real estate attorney?

Many real estate transactions happen without a real estate attorney—and many result in major legal issues. Working with a real estate attorney is always in your best interest, but more so in some more complex situations. Those dealing with divorce, bankruptcy, foreclosure, estate planning, marriage, loss of a spouse, or any other major life change may have more of a pressing need for the knowledgeable advice of a real estate attorney.

Veitengruber Law is an experienced attorney with intricate knowledge of real estate law, foreclosure defense, and bankruptcy law. However, we also work in collaboration with some of the best real estate and legal professionals in the area. This collaborative relationship allows us to share our knowledge with other local pros and utilize their knowledge to protect our client's interests. No matter what circumstances you find yourself in, we can help you reach the finish line on your real estate goals, protect your investment, and get the most out of any real estate transaction.

If you are looking for a real estate lawyer in Monmouth County, NJ, look no further—Veitengruber Law has you covered!

Getting Divorced During a NJ Chapter 13 Bankruptcy

Tue, 23 Apr 2024 20:34:02 GMT

Can you file for divorce while in the middle of a Chapter 13 Bankruptcy?

The short answer is yes, but the complete answer is a bit more complex.

Chapter 13 is one of the most common types of bankruptcy, especially for individuals or couples. During Chapter 13 bankruptcy, you will pay back a portion of your debt over 3- to 5-years. But a lot can happen in 3 or 5 years. If your marriage unravels during that period and divorce is looming, you will need to devise a plan to continue your Chapter 13 payments. However, your Chapter 13 plan was created with your specific circumstances in mind, including your combined income, expenses, and assets as a married couple. After divorce, those specifics are likely to change.

How can you manage your Chapter 13 bankruptcy plan while going through a divorce? Here are a few tips:

Work Together
The first option is to work with your spouse to continue making regular payments together. If you can attempt to view your relationship as a business partnership, you will both be better off financially when the marriage is officially terminated. However, we recognize that not all individuals in this situation will have a cooperative relationship with their soon-to-be ex-spouse. Consider asking your mediator, attorney, or accountant to sit down with you both to express how important it is to make the Chapter 13 payments. When the debt is repaid, you will both be better off financially as you start your new lives.
Modify Your Payment Plan
A Chapter 13 modification will require you and your spouse to return to bankruptcy court. You will file a motion to modify your plan based on your new individual circumstances. Especially if your financial situation has drastically changed, you should be able to get your monthly payments lowered to account for your new circumstances. Keep in mind that the judge will only be able to adjust payments owed to unsecured creditors, like credit cards, medical bills, and personal loans.
Convert to Chapter 7
If you could not qualify for Chapter 7 bankruptcy as a couple, you may qualify as an individual now that your combined income is effectively going towards maintaining two households. However, filing for Chapter 7 bankruptcy can further complicate your divorce in many ways. Discussing this option with an experienced bankruptcy attorney before making any decisions is a must.
Bifurcate the Bankruptcy
It is possible to petition the court to split the bankruptcy into two separate bankruptcies. This will free you from having to make joint decisions concerning the debt so you can make choices that best suit your financial circumstances. Bifurcating the loan can look like lowering monthly payments for one individual, converting to Chapter 7 for one individual, or another modification that only impacts one of the parties involved.

If you are going through bankruptcy and considering divorce, it is critical to talk to legal experts who can guide you toward the best path forward. Veitengruber Law is a skilled New Jersey bankruptcy firm with years of experience helping clients simultaneously deal with divorce and bankruptcy. Our attorney can work with you to explore your options and determine your best choice.

Understanding the Rules of Chapter 13 Bankruptcy

Tue, 16 Apr 2024 23:30:34 GMT

In the labyrinth of financial despair, amidst the shadows of mounting debts, Chapter 13 bankruptcy shines as a beacon of hope for individuals and families struggling with their fiscal burdens. But what does it really entail, and how can it be the pathway to a stable financial future?

Navigating the complexity of bankruptcy law is no small feat, which is why demystifying Chapter 13's rules is paramount for those considering, or already committed to, this significant financial rehabilitation. It's a chapter of the legal code that offers a unique narrative of you taking charge of your financial narrative.

The Foundation of Chapter 13

At its core, Chapter 13 bankruptcy is a reorganization plan that allows you to propose a schedule to repay all your debts over a period of three to five years. It's designed for individuals with a regular income who can see a light at the end of their debt tunnel with a structured plan.

An Active Participant in Your Debt's Destiny

Unlike Chapter 7, where assets may be liquidated, Chapter 13 allows you to keep your property and instead, structures a repayment plan that fits your income and expenses. You become an active participant in repaying your debts under the umbrella of the Bankruptcy Court.

The Power of the Automatic Stay

Once you've filed for Chapter 13, an 'automatic stay' goes into effect. This temporary respite puts a pause on creditors' collection actions, such as debt collection calls and home foreclosures. This breathing room can allow you to work on crafting your repayment plan.

Crafting Your Plan Under Chapter 13

Your plan is the heart of Chapter 13 bankruptcy. It must be filed with the court and set out how you intend to repay your creditors. The success of your plan lies in its intricate design.

Determining Disposable Income

A fundamental step is calculating your disposable income — what's left after necessary living expenses. This income determines the amount you'll pay to creditors each month during the payback period.

The Alphabet Soup of Debt Classes

Not all debts are created equal in Chapter 13. They're categorized into 'secured,' 'priority unsecured,' and 'non-priority unsecured.' Your plan must show how you're paying each class of creditor — for secured debts, like mortgages or car loans, you may have to pay the full amount, just like a regular monthly bill. For unsecured debts, the amount may vary.

Realistic and Feasible Repayment Schedules

Your plan must be more than a wish; it must be a realistic expectation of what you can afford. This involves careful negotiations with your attorney to create a plan that is accepted by the court and feasible within your means.

Interacting With Creditors and the Trustee

Transparency and communication are key when it comes to creditors and the court-appointed trustee in a Chapter 13 case. It's not a solitary process—it's a collaborative effort to get your finances back on track.

The Importance of Full Disclosure

You are legally required to provide all necessary financial information to the court and your trustee. Withholding information could result in the dismissal of your case.

Attendance at the Meeting of Creditors

Shortly after you file for Chapter 13, you must attend the 'meeting of creditors.' This is a chance for creditors to ask questions about your proposed plan, though it's often more procedural than adversarial.

Making Plan Payments Promptly

Consistency is your ally. Missing plan payments can lead to the dismissal of your case, leaving you vulnerable to the full weight of your creditors' collection efforts.

The Endgame of Chapter 13

Reaching the finish line of a Chapter 13 bankruptcy is both liberating and a testament to your financial discipline. It's a controlled demolition of debt that paves the way for financial healing.

The Chapter 13 Discharge

Upon successfully completing your repayment plan—meeting all financial obligations during the payback period—you’ll receive a discharge for most remaining debts, providing a fresh financial start.

Dismissal — The Unfortunate Outcome

If, for some reason, you cannot complete your Chapter 13 plan, your case will be dismissed, and creditors can resume collection activities. However, you may be able to file again or convert to Chapter 7, depending on your circumstances.

Rebuilding Credit After Chapter 13

Rebuilding credit post-bankruptcy is not immediate, but it's an essential continuation of your responsibility toward a solid financial future. Each action to rebuild credit is a step toward restoring your financial health.

The rules of Chapter 13 bankruptcy form a structured framework through which those buried in debts can rise and reclaim financial control. It is a story of reorganization, commitment, and redemption. For those considering this legal avenue, meticulous understanding and preparation are the tools that will render the desired outcome — a future unshackled from the burdens of the past. To learn more about Chapter 13 bankruptcy, contact our office today. Remember, Chapter 13 is not the end; it's the gateway to a new beginning.

Backing out of a New Jersey real estate contract: Lawyer needed

Sat, 30 Mar 2024 21:31:24 GMT

Real estate contracts are fully binding legal documents intended to protect both parties throughout a real estate transaction. For a good reason, these contracts are difficult to get out of. Real estate transactions are typically some of the most high-stakes financial and legal processes most of us will ever go through. Having a contract establishes rules and expectations for the transaction to ensure things go smoothly and everyone follows the law. So, if you want to get out of a New Jersey real estate contract, you will need to work with an experienced lawyer who understands contract law as well as local real estate laws.

Breaching a real estate contract can have serious, far-reaching financial and legal consequences. You do not want to break the contract without legal cause to do so. That said, an experienced attorney can help you find legitimate ways to get out of a real estate contract. Here are some of the ways an attorney can help you out of your contract after it is signed:

1. Attorney Review

All real estate contracts in New Jersey are subject to the attorney review period. This begins once both parties have signed the contract and lasts three days. The intention of this review period is for both parties to have the chance to give the contact to their lawyer for review. Your real estate attorney may find issues with this contract upfront or advise you to add specific clauses and conditions to protect your interests throughout the transaction.

It is possible to back out of the contract at any point during the attorney review period, which makes it one of the easiest ways to get out of a real estate contract. While you are not obligated to have an attorney review your contract during this time, it is advisable. Once the attorney review period is over, you must abide by whatever terms are laid out in the contract.

2. Breach of Terms

Every real estate contract includes terms and conditions that must be met for the transaction to progress. The buyer and seller will have to meet specific requirements laid out in the contract. If one of the parties fails to uphold their end of the agreement, they could be considered in breach of the terms. This would allow the other party to get out of the contract through no legal fault of their own. Many of these terms come with due dates, which, if missed, can give you options to terminate a contract.

For example, your contract states that the seller must perform a mold inspection by a certain date. The date comes and goes, and the seller has not performed the inspection. This could give the buyer the opportunity to back out of the contract completely. Typically, being behind on dates by a few days is not a deal breaker for either party, and the sale continues to progress without incident. But if you are looking for an out, these dates could be your key.

3. Unfulfilled Contingencies

Some contingencies are added to most real estate contracts. These are items on top of the typical boilerplate terms and conditions that must be addressed for a real estate transaction to go through. Buyers and sellers can establish their own contingencies. While you can dispute contingencies prior to signing the contract, once a contract is signed, these contingencies must be met for the sale to go through.

If one party is unable to or unwilling to hold up their end of the contingency agreement, they could be considered in breach of contract. So, for example, the buyer can include a contingency that if a home inspection uncovers any significant issues, the deal is off. If the home inspection reveals major repairs, structural damage, or other costly maintenance that was not previously disclosed, the buyer can back out.

Typical contingencies include financing, inspections, and even the timing of purchasing or selling other property. Whatever the contingency is, once agreed to, it is legally binding for both parties. Failure to uphold the contingency is an opportunity to end the contract. A good attorney will be able to review the contingencies in your contract to determine if you have any grounds for backing out based on unfulfilled contingencies.

Once a contract has been signed, both parties are legally bound to its terms. If you have already signed a real estate contract and need to get out, a real estate attorney can help. Veitengruber Law has an experienced real estate attorney on staff with a deep knowledge of NJ real estate laws. We can help you work through the complexities of getting out of your NJ real estate contract.

Do You Need a Real Estate Niche?

Sat, 30 Mar 2024 21:31:20 GMT

Do you need a real estate niche to become a successful New Jersey realtor?

Many real estate agents avoid narrowing down to a specific niche. New agents starting out often take any work that comes their way and attempt to become a jack of all trades. They fear boxing themselves in, missing out on some opportunities, and making their client base too narrow. However, finding and perfecting a niche as a real estate agent is actually a fantastic way to ensure your success in the industry.

A niche is what sets you apart from other real estate agents. Developing a niche is necessary to define your brand and choose a marketing direction. What kind of real estate experience are you offering? Who is your ideal client? What can you do that no other real estate agent can? When you define your niche, you are better able to offer a memorable message about your offerings that will stay fresh in the minds of potential clients. Deciding on a unique niche will help you streamline your marketing so you can reach the right audience.

Here are six categories you should consider while developing your real estate brand:

1. Local Areas or Neighborhoods

Deciding to focus on one geographic area is one way to develop a strong niche. Depending on the population density or geographic scope of the area, you may find it makes sense to specialize in one county, town, or even a single neighborhood. To be an expert in one geographic area means you will spend time developing deep connections with other industry professionals in that area. You may want to consider an area or community close to where you live to ensure easier networking.

There are some things to consider when choosing this niche. For one, if you do not plan to live near your focus area for long, it may be a waste of time to develop such deep ties to one location only to cease business there. You will also be more vulnerable to competition from other real estate agents specializing in your chosen geographic area. To combat this, you should focus on other aspects of your work that set you apart.

2. Customer Type

Developing a specialty for a specific clientele is another way to set yourself apart as a real estate agent. There are so many unique groups of people looking for real estate professionals that you can really make your customer type as general or specific as you want. Some examples include seniors looking to downsize, Spanish-speaking clients, LGBTQ+ clients, first-time homeowners, luxury real estate, etc. Targeting one of these client groups will help you grow your business in a direction that interests you.

Just because you choose one demographic to focus on does not mean you will never take on clients outside of that demographic again. You will, of course, likely still work with plenty of other clients. However, you can focus your marketing and branding efforts on attracting the attention of your niche clientele. This not only gives your business direction, but makes you an expert in providing an excellent experience of service for your clients.

3. Property Type

Specializing in a property type will likely depend on the kind of clients you want to serve and the location in which you do business. You can specialize in more general property types like condos or multi-family properties, or you can specialize in more specific property types like waterfront homes or luxury homes. Clients looking for a particular property will feel that they are in good hands if they work with an expert with demonstrated experience in those properties.

You can run into issues with this niche, however. Markets change and some property types may be trending more popular than others for various different reasons. A big enough market change could force you to abandon your property-type niche to remain in business. Combining this niche with another is another great way to ensure you are developing a lasting brand.

4. Experience Level

Real estate is a career filled with a lot of ups and downs. Market volatility, housing crises, home value shifts, price fluctuations, interest rate hikes—the experienced real estate agent has survived it all. Seasoned agents should absolutely be marketing themselves as the expert real estate professionals they are. You don't just want to show potential clients how many years you have been in business; you want to portray the depth of your knowledge and why you have been so successful in your area specifically.

Sharing your story with your clients gives them insight into your history, experience, success, and how your specific service can help them achieve their real estate goals. Even if you are relatively early in your real estate career, showcasing your triumphs can help clients see the quality of service you provide.

5. Individual Skills

So, what if you're a new real estate agent without the years of experience to market yourself to potential clients? Then, defining the unique personal qualities you possess that set you apart from other agents will be very important in your marketing. Even if other agents have the knowledge and experience, they do not have the unique characteristics that make you stand out. Make sure you choose characteristics that appeal to the type of client you are interested in attracting.

For example, you can say you are driven and persistent to convey that you get the job done efficiently and promptly. Whatever characteristics you emphasize in your marketing, ensure you are authentic. The clients that connect with you will appreciate the skills and characteristics you emphasize in your branding.

6. Specific Industry Expertise

Real estate transactions are so complex and varied that there is an extensive list of areas in which you could develop expertise. Specific industry expertise goes beyond the individual characteristics you possess or the region, community, customer, or property you specialize in. Your industry expertise could be in negotiations, home staging, contracts, financing options, construction, and local maintenance/remodeling regulations. Whatever specific aspect of the real estate deal you have a special knack for, you need to advertise that.

If you are entering the real estate industry from another career, think about how the skills and knowledge you learned in your previous job can make you a more powerful real estate agent. Especially if you are from an industry with close ties with real estate, like banking, you can advertise these skills to set yourself apart from the competition. Make sure you choose skills, knowledge, and experience that will represent you well to your target audience.

Veitengruber Law is a full-service real estate law firm with years of experience working closely with successful real estate professionals in New Jersey. We understand what it takes for a real estate agent to thrive in our area and are always looking to build partnerships with other industry professionals. Veitengruber Law specializes in property laws, local regulations, contracts, short sale negotiations, mortgage modifications, and foreclosure defense. Reach out to us today to discuss your goals as a New Jersey realtor; let’s work together to help our clients achieve the dream!

5 at 55: The Estate Planning Documents You Need

Wed, 20 Mar 2024 05:51:09 GMT

No matter how old you are, planning for old age right now is the best way to ensure you are prepared for retirement and beyond. But by the time you are 55, you should have five essential legal documents in place. Ensuring these documents are in place can help you avoid end-of-life issues and legal headaches in your golden years. As an estate planning attorney, Veitengruber Law recommends following the five by 55 rule. Having these five documents in place by the time you are 55 will cover most of your estate planning. The five documents include:

1. Healthcare Advance Directive

A healthcare advance directive will give your chosen loved ones the power to make healthcare decisions on your behalf if you are unable to make those decisions yourself. The person designated in your healthcare directive will be able to choose what kind of medical treatment you receive if you are unconscious, incapable, or otherwise incapacitated. This can help you ensure your healthcare wishes are respected. Having this kind of directive in place can ease the burden of these situations when they happen and ensure your trusted loved one is legally empowered to make the right medical choices when necessary.

2. Living Will

A living will is a comprehensive legal document indicating what kind of medical interventions you want if you cannot vocalize your wishes. Many living wills include personal preferences concerning pain management, organ donation, the use of CPR, mechanical ventilation, tube feeding, or other life-sustaining treatments. Living wills can also include information on medical interventions you do not wish to have based on religious or personal beliefs, like vaccines, antibiotics, or blood transfusions. A living will let your doctors, loved ones, and legal professionals know without a doubt what your wishes are concerning your healthcare.

3. Power of Attorney

A power of attorney is an important legal document that allows someone else to act on your behalf legally if you cannot do so. This substitute decision-maker will have the ability to make financial and legal choices for you if you are incapacitated. A power of attorney is a great tool to protect yourself and your loved ones in the event of a coma, traumatic brain injury, long-term mental health crises, dementia, Alzheimer's, and other unfortunately common scenarios.

4. Last Will and Testament

When people think of estate planning, they usually think of a last will and testament. This legal document is meant to convey your wishes for your assets and possessions in the

event of your death. A will can spell out exactly how you want your assets distributed after death. It can also detail your desires regarding any dependents, your business, or other financial matters. This gives you some control over what happens to your assets after your death.

5. Authorization for Electronic Records and Social Media Sites

Technological modernization has pushed so much of our lives online. Most people manage the vast majority of their lives through the internet or apps. Banking, paying bills, managing utilities, socializing, retirement planning—all of these things have moved in some way to an online platform. And most of these platforms have enacted strict privacy and security protocols to limit identity theft. This means that if someone needs to access these sites to cancel services or disable profiles after your death, they will need legal authority. Authorization to access these crucial accounts can ensure they can keep your life in order during a temporary setback or terminate/monitor these accounts after you are gone.

The five at 55 estate planning rule will help you prepare for an easy, stress-free life post-retirement. Everyone says they will eventually get to it, but life happens quickly. Veitengruber Law can help you create these essential legal documents and ensure you avoid costly and emotionally draining surprises later in life.

The Ripple Effect of Bad Credit: How it Impacts More Than Just Your Finances

Fri, 15 Mar 2024 16:38:40 GMT

Having bad credit can impact many aspects of your life beyond just your financial situation. Your credit score significantly impacts your financial life, from securing a job to buying a home. Read on to explore how bad credit can make it harder to get a job or buy a home and what steps you can take to improve your credit. You will learn whether hiring an attorney for credit repair is necessary and how to keep your credit strong in the future. The sooner you protect your financial future with credit repair, the better you'll be able to protect your assets.

What is Bad Credit?

Bad credit can happen when debts exceed income or take up a high percentage of your total credit, also called high credit utilization. You can have bad credit from unpaid or ample medical bills, credit cards that are over their limit or maxed out, or high-interest loans. Even if you pay your debts off, you may need to spend some time rebuilding your score to overcome bad credit. It's wise to consider credit repair when your score is very low, and you want to expand your financial options.

What's the Impact of Bad Credit?

Bad credit can have far-reaching consequences, impacting more than just your ability to secure loans or credit cards. Bad credit can cause higher interest rates, higher insurance premiums, and difficulty securing certain services. Bad credit can even create problems for job seekers. Many employers perform credit checks on potential candidates as part of their screening process.

A poor credit score can potentially raise red flags for employers, who could view bad credit as a reflection of your reliability, responsibility, and trustworthiness. This could hinder your chances of landing a job, especially in roles that involve handling money or sensitive information. Good personal finance skills are imperative if you want to work in banking, finance, or any field where handling and working with money is essential. If your personal finances are a mess, focus on improving your credit score. Once you understand why your credit is poor, you can take measures to improve this score over time.

What About Buying a Home with Bad Credit?

Another milestone that can be affected by bad credit is your ability to purchase property or finance a home loan. Lenders utilize your credit score to assess your creditworthiness and financial stability when applying for a mortgage. A bad credit score can eventually lead to higher interest rates, larger down payments, or even being denied a mortgage altogether.

A low credit score often indicates debt that exceeds your income, suggesting that you may be unable to reliably afford your monthly payments. A high debt-to-income ratio may make it challenging to achieve the dream of homeownership or, at the very least, impact “how much” home you can buy or the type of loan you can get. By improving your credit, you can increase your chances of being approved for a mortgage. Making on-time payments, reducing debt, and disputing errors or inaccuracies on your credit report are all steps you can take today to improve bad credit.

Should You Explore Credit Repair?

If you are struggling with low, fair, or downright bad credit, you may wonder whether hiring an attorney for credit repair is necessary. While there are reputable credit repair companies that can assist you in improving your credit, it is crucial to be cautious of scams. Signs that you may need legal assistance for credit repair include inaccurate information on your credit report, identity theft, or being harassed by debt collectors. If banks or creditors threaten you with repossession of a vehicle or home, an attorney can help you better understand credit repair laws and advocate on your behalf to ensure fair treatment.

Can You Protect Your Credit for the Future?

To keep your credit strong in the future, you must practice good financial habits now. This includes on-time and in-full payments, maintaining low credit card balances, and resisting the urge to open new accounts unnecessarily. Regular monitoring of your credit report for errors and fraudulent activity can also help protect your credit score. By being proactive and responsible with your financial decisions, you can maintain a healthy credit profile and avoid the pitfalls of bad credit.

A low credit score can significantly impact various aspects of your life, including your ability to get a job or buy a home. By understanding how bad credit can affect you and taking meaningful steps to improve your credit, you can overcome money challenges and work towards a brighter financial future. Whether you choose to hire an attorney for credit repair or take matters into your own hands, it is crucial to be proactive in managing your credit. By practicing good financial habits and staying vigilant about your credit score, you can keep your credit strong and secure a promising future. Call Veitengruber Law to discuss your legal or financial issues today.

Can I File for NJ Bankruptcy if I'm not a US Citizen?

Fri, 01 Mar 2024 14:53:34 GMT

Non-citizens or those in the process of becoming citizens can absolutely file for bankruptcy in the United States. The US bankruptcy code requires those who file to have residence, business property, or own some US property. Established status as a US citizen or a permanent resident is not a prerequisite for a successful NJ bankruptcy filing. There is generally a lot of confusion over immigrant rights, and when you combine that with the complexities surrounding bankruptcy law, many folks are intimidated by the process. But Veitengruber Law can help! Here, we will lay out what your rights are as a non-citizen when it comes to seeking debt relief in New Jersey and across the US.

Can non-citizens file for bankruptcy in the US?

While you do not have to be a citizen or a permanent resident to file for bankruptcy in the US, you will need to present a social security number or an individual taxpayer identification number in order to file. These items are meant to confirm your identity. As long as you have one of those identifiers, you will be able to file for bankruptcy in the US regardless of citizenship status.

If you do not have a Social Security Number (SSN) or an individual taxpayer identification number (ITIN), you will need to acquire one or the other. The IRS can issue ITINs for people who are not eligible for a Social Security Number. An ITIN can be issued regardless of immigration status.

Can filing for bankruptcy prevent citizenship approval?

There are no legal precedents in either immigration law or bankruptcy law that would automatically disqualify an individual from citizenship because of a bankruptcy filing. However, that doesn't mean that aspects of your financial and personal life that are brought to the attention of the court during bankruptcy won’t influence your citizenship application. During the bankruptcy process, the court will take into account the "good moral character" of the filer. This test is meant to determine if the filer accrued their debts with the prior intention to file for bankruptcy, which, if proven, can disqualify you from bankruptcy.

Of course, what constitutes "good moral character" is subject to the interpretation of the specific court in which you are filing. If you racked up thousands of dollars in debt for a destination wedding you couldn't afford only to file for bankruptcy immediately—this may be a red flag to the court. Similarly, using bankruptcy law to avoid paying alimony or child support despite having the income to cover these expenses could result in the court dismissing your bankruptcy case.

Since your application for citizenship will also consider your moral character, the information uncovered in bankruptcy court information could be used to reject your citizenship application. However, those filing for bankruptcy for legitimate reasons should not be concerned that their bankruptcy case will impact their citizenship, visa, or green card status. The vast majority of those who file for bankruptcy are honest, hardworking people, and we at Veitengruber Law know that.

It may be beneficial to discuss your intention to file bankruptcy with an experienced immigration attorney in your local area. Bankruptcy is a matter of public record, meaning anyone can access it. An immigration attorney will be able to help you determine if filing for bankruptcy is a smart move in your specific situation.

How could bankruptcy affect my citizenship case?

The only time bankruptcy would impact your citizenship case is if, through the bankruptcy process, it is found that a crime was committed. For instance, if you provide false financial statements, are found to lie under oath, or omit key information or assets from your application, your bankruptcy petition may be denied. This could lead to criminal prosecution. You could even be removed from the US and barred re-entry. This is why it is essential to be completely honest on all bankruptcy documentation.

Will my bankruptcy case increase my risk of deportation?

Bankruptcy judges, court workers, and attorneys are unconcerned with your immigration status. None of these individuals are required to report to immigration services if they suspect you are undocumented. Again, the only way a bankruptcy filing may impact your status is if you are not truthful with the bankruptcy court. This includes any attempt to defraud the court, perjury concerning your status, or the use of illegally acquired identifying information.

Otherwise, filing for bankruptcy is no more likely to lead to your deportation than a speeding ticket.

How will bankruptcy affect my employment?

As with all bankruptcies, yours will be reported to credit reporting agencies and will have an effect on your credit score. Regardless of your citizenship status, your credit score will take a hit. Depending on your credit score before filing, your score can decrease a lot or a little, but it will decrease. Bankruptcy w ill also remain on your credit report for ten years if you file Chapter 7 and seven years if you file Chapter 13. The good news is that it's possible to start repairing your credit score right after your bankruptcy discharge, but it will take some time.

As long as your bankruptcy remains on your credit report, it may limit your future financing opportunities as well as prohibit some employment offers. However, continuing to hold on to unmanageable debt could have a similar negative effect on your credit score and credit report. Even if filing for bankruptcy initially prohibits you from some financial or employment opportunities, it will open the door to a fresh path moving forward.

Should I file for bankruptcy if I am sponsoring someone trying to get a visa or citizenship?

If you are sponsoring a spouse or significant other's visa, filing could impact their application, although not always. The federal employee who reviews immigration cases will consider your financial situation when they are examining your significant other's case. If they believe that you have a precarious financial situation, this can impact how they view the application. However, a previous or current bankruptcy case is not an automatic reason for a visa to be rejected. Discussing your options with a bankruptcy attorney and an immigration attorney will help you determine if filing for bankruptcy is right for you.

Can I file for bankruptcy if I do not read or speak English?

Yes! You are not obligated to read or speak English with any fluency to file for bankruptcy in the US. An experienced bankruptcy lawyer and their legal team will work with you to complete paperwork, provide documentation, and ensure you understand the process.

Bankruptcy is a legally viable debt relief option for non-US citizens. As long as you can provide proper documentation, your citizenship status will not impact your bankruptcy case. Similarly, your bankruptcy case will not prevent you from keeping or obtaining citizenship, a visa, or a green card. If you are considering bankruptcy as a non-citizen, please reach out to Veitengruber Law today. We can help you navigate bankruptcy law and get on a better financial path.

Can I File for Bankruptcy If I Am Unemployed?

Tue, 27 Feb 2024 02:06:23 GMT

In today's gig economy, self-employment, freelancing, and contract work are increasingly common ways of generating income. If you are self-employed and experiencing unmanageable debt, you may be unsure of your debt relief options. Whether you are self-employed as a gig worker, sole proprietor, or independent contractor, you will qualify for personal bankruptcy with either Chapter 7 or Chapter 13—even if your debts are associated with your business. If you operate under a separate business entity like a corporation or an LLC, you will also have the choice to place your business into bankruptcy. Here, we will go over your options for bankruptcy while being self-employed.

What is considered "Business Income"?

Even if you do not consider yourself a business owner, some of your income may still qualify as business income under bankruptcy law. There are three categories of income:

1. Employment Income

This money is earned by working as someone's employee and includes wages, tips, bonuses, and commissions. If you receive a regular paycheck, taxes are withheld on your payment, and you receive a yearly W-2 for your taxes, you are likely classified as an employee with employment income.

2. Business Income

This is any money that you earn through working. If you do gig work, freelance, or receive a 1099 tax form, you are likely considered an independent contractor. All money gained from this work is considered business income.

3. Other income

This includes all other sources of income that are not generated through work, such as Social Security, alimony or child support, pension or retirement income, disability income, lottery or gambling winnings, etc.

During bankruptcy, you must disclose all income you've earned from any of the above sources, even if it is not your primary income source.

What is your business structure?

If you have business income, you must disclose how your business is structured. This can help determine which kind of bankruptcy you can file. For instance, if your business income is earned under a corporation, LLC, LLP, PA, or PC, it is deemed a distinct legal entity from you as an individual. These business entities can file their own bankruptcy, separate from the individual tied to the business.

If your business is not structured as an entity, you are considered a sole proprietor.

How does business structure affect bankruptcy?

Because sole proprietors are legally considered personally responsible for any debts incurred under the business's name, they will file bankruptcy as individuals. This means that the bankruptcy case must include all business assets and debts as well as all personal assets and debts. A sole proprietorship cannot file business bankruptcy. If you are a sole proprietor with little business assets or debts, your side hustle is not likely to have much of an impact on your bankruptcy. However, if your side business does have a lot of assets and debts, it can make things complicated when determining exemptions. An experienced bankruptcy attorney can advise on your exemption options.

If your business is officially registered as a separate legal entity, then you can file a business bankruptcy. This kind of bankruptcy will only consider the assets and debts associated with the business entity, not your personal assets or debts. Conversely, you can file personal bankruptcy without your business being included.

Regardless of your self-employed status, you have bankruptcy options available. However, determining how to file for bankruptcy when you are self-employed can be complex. Veitengruber Law can help you find the best path forward for you and your business.

Making Divorce and Bankruptcy a Win Win Situation

Tue, 27 Feb 2024 01:54:55 GMT

Many divorcees cite financial problems as the pivotal issue that leads to divorce. Similarly, many who file for bankruptcy point to their divorce as the major financial setback that led to their bankruptcy. With these two legal issues frequently going hand in hand, it is common to see folks who file for divorce also file for bankruptcy. However, how you file for bankruptcy amidst your divorce can significantly impact your overall financial well-being. Filing for bankruptcy with your spouse before divorce may benefit some while waiting to file alone after divorce will work out better for others. Your unique position will determine what kind of bankruptcy is best for you and if it is better to file alone or with your soon-to-be ex-spouse.

Below, we will explore some of your options.

Option #1: File a joint Chapter 7 bankruptcy before divorce.

Filing bankruptcy with your spouse before divorce will save you and your former spouse money on attorney and court fees. Because you are liable for debts incurred during the marriage—even if you did not incur the debt yourself—taking care of your debt issues before exiting the marriage can make sense. Chapter 7 bankruptcy will let you discharge some or all of your marital debt, giving you a clean financial slate before you exit the marriage. It can also make dividing assets (and debts) more straightforward during the divorce. It is also possible that you will be able to protect more property using bankruptcy exemptions when you file Chapter 7 together.

However, filing Chapter 7 before divorce can be difficult if you cannot work well with your spouse. Bankruptcy requires a lot of paperwork, patience, and teamwork. If a joint bankruptcy would lead to more stress than it is worth, you may want to consider filing after your divorce. Filing for bankruptcy will also permit you to enter the automatic stay period, which stalls all court proceedings. The automatic stay is excellent if you want to stall a foreclosure or wage garnishment, but it is not so great if you are in the middle of a divorce. This is another reason you should file for bankruptcy before or after divorce, but not during.

Option #2: File an individual Chapter 7 bankruptcy after divorce.

If you and your spouse are not on decent enough terms to file Chapter 7 jointly, it is possible to file after divorce. Especially if you are escaping a difficult situation with your spouse, getting the marriage behind you as quickly as possible is likely in your best interest. Because bankruptcy can stall other court proceedings, you will want to ensure your divorce is finalized before filing Chapter 7 as an individual.

It may also be in your favor to file Chapter 7 individually after the divorce if you can only file Chapter 7 with your individual income as a separate household. Your spouse's income could disqualify you from eligibility for Chapter 7, and divorcing them can reduce your household income enough to ensure your eligibility. Filing as an individual will also allow you to use more bankruptcy exemptions to protect your personal property instead of jointly owned marital property.

However, waiting until after the divorce to file bankruptcy individually can become complicated when you consider debts you and your ex-spouse are jointly responsible for. If one spouse files bankruptcy post-divorce, the spouse who does not file can still be liable for the joint debt even if the debts are discharged during the bankruptcy. This can create a very complicated legal situation and lead to more time in court with your ex-spouse.

Option #3: File a joint Chapter 13 bankruptcy before divorce.

Chapter 13 bankruptcy cases are generally more complex, time-consuming, and expensive than Chapter 7 bankruptcy cases. The biggest thing to note about filing a joint Chapter 13 bankruptcy case is that it takes 3-5 years for a Chapter 13 bankruptcy case to be completed. This is due to the payment plan you and your spouse will set up to repay your debts. Filing for divorce while in the middle of a court-ordered Chapter 13 repayment plan can be a convoluted legal headache. So, if you are on the brink of divorce, filing Chapter 13 jointly with your spouse may not be the best plan.

That being said, if you and your spouse are amenable and can work together for 3-5 years on a Chapter 13 repayment plan, there are some significant benefits to filing Chapter 13 with your spouse. Bankruptcy can help you tackle some or all of your marital debt. Chapter 13 could also allow you both to walk away from jointly-owned property that neither of you want.

Option #4: File an individual Chapter 13 bankruptcy before divorce.

Filing Chapter 13 bankruptcy alone before or during divorce is not impossible, but it can unnecessarily complicate an already stressful time. Not only will it stall your divorce proceedings, but you will also have to include your spouse's income and expenses in your bankruptcy paperwork. This can set you up for an unrealistic repayment plan that does not accommodate your circumstances after separation. You also cannot sell any assets or incur further debts during Chapter 13 bankruptcy, which can be difficult, if not impossible, while you are going through a divorce.

Option #5: File an individual Chapter 13 bankruptcy after your divorce.

Filing for Chapter 13 bankruptcy after your divorce is finalized will make the most sense in most situations. This way, you will not need to work with your ex as you make decisions about your financial future. You also will not have to include their income or expenses in your bankruptcy paperwork, giving the court a more accurate picture of your financial situation. Chapter 13 will also enable you to eliminate any legal responsibility for shared debts or debts incurred due to the divorce.

If you are considering bankruptcy and are either going through a divorce or plan to divorce, Veitengruber Law can help. We understand NJ bankruptcy laws and can help you make the best decisions to give yourself a fresh start.

Can a NJ Chapter 7 Bankruptcy Help if I'm Drowning in Debt?

Sat, 03 Feb 2024 22:26:39 GMT

If you are struggling with major debt, Chapter 7 bankruptcy is one of the most effective yet formidable financial tools available to US citizens. Many who have experienced financial hardship or unmanageable debt have benefited from bankruptcy. The most common form of bankruptcy for individual consumers is Chapter 7 bankruptcy. It is sometimes referred to as "liquidation" bankruptcy because it can involve liquidating or selling off your assets in order to pay off creditors. However, most folks do not lose any property through Chapter 7. If you are considering an NJ Chapter 7 bankruptcy, Veitengruber Law can help. Here are some benefits and drawbacks of Chapter 7 bankruptcy. We hope these facts can help you determine if this is the right choice for you.

Benefit #1: Hit instant pause on collections attempts and foreclosure proceedings.

One of the most significant benefits of bankruptcy, including Chapter 7, is that it stops the clock on other legal proceedings like collections or foreclosure. The moment your case is filed, collections efforts must cease. Collections agencies and creditors must pause all collections actions. This will pause phone calls, letters, and wage garnishments. Similarly, you will enter the automatic stay period on foreclosure, repossession, or eviction. These legal processes cannot proceed until the bankruptcy case has been resolved or dismissed. Often, this allows enough time to come up with a more agreeable path out of these situations if they are not resolved via bankruptcy.

Con #1: Your income can exceed the eligibility requirements.

Those eligible for Chapter 7 must pass the means test. The means test determines if your household makes more or less than the NJ state average. If your household makes less than the average, you qualify for Chapter 7 bankruptcy. If your household makes more than the average, you must examine your expenses to determine if you have "disposable" income. This is income above your total expenses. If you are determined to have too much disposable income, you will not be eligible for discharge under Chapter 7 bankruptcy. In that case, you could be eligible for Chapter 13 bankruptcy instead.

Benefit #2: Bankruptcy discharge is permanent debt relief.

Chapter 7 bankruptcy is the total discharge of all eligible debts. Credit cards, personal loans, medical bills and other debts will be eliminated. You will no longer be obligated to pay these debts, instantly freeing up your income to go towards other expenses. You also cannot be contacted by collections for these debts in the future.

Con #2: Not all debts can be discharged under Chapter 7 bankruptcy.

Some types of debts cannot be discharged through Chapter 7 bankruptcy. Alimony, child support, tax debts, and most student loans are often exempt from being discharged during bankruptcy. In some circumstances, bankruptcy courts will allow student loans to be discharged if you prove that paying back student loan debts would cause undue hardship. If your debt issues center around any of these kinds of debts, Chapter 7 bankruptcy will likely be unable to help.

Benefit #3: You are likely to keep most—if not all—of your property.

The myth that you will lose your house, your car, and other valuable property through bankruptcy is one of the top concerns listed by those afraid to file for bankruptcy. But even under Chapter 7 bankruptcy, 95% of those who file will keep all of their belongings. Federal and state property exemptions allow Chapter 7 filers to exempt specific property from entering into the bankruptcy estate. In New Jersey, filers can choose federal or state exemptions based on which set of exemptions will benefit them the most, but you cannot mix and match exemptions from both.

Federal and state exemptions include protections for your personal property, including your home, car, qualifying personal items, and investments or savings up to a certain amount. However, if you choose to protect your home or car, you still owe money on these items. You will resume regular payments on this property after the bankruptcy case. However, you often do not need to sacrifice these possessions to get your debt discharged.

Con #4: You can lose nonexempt property.

There will be property not covered under bankruptcy exemptions. The bankruptcy trustee can utilize high-dollar items to be sold to pay down debts. This is typically not the case with most Chapter 7 bankruptcy filings, as most people who qualify for Chapter 7 do not have the disposable income to purchase such items. Some nonexempt property can include secondary properties like vacation homes, secondary vehicles, valuable collections, savings and investments not covered under exemptions, and even expensive musical, sporting, or other equipment unrelated to the individual's profession. The ultimate purpose of Chapter 7 bankruptcy is to give creditors some return on their investments while giving the filer a fresh financial slate—not to leave them utterly destitute with no possessions.

Sometimes, it is not in the individual's financial best interest to exempt these possessions even if they qualify. In that case, these things can be liquidated to pay down debts.

Benefit #5: Quick processing for reasonable fees.

The process from initial filing to discharge can take between four and six months on average. This quick processing means you get rid of your debts and begin working towards rebuilding your credit as soon as possible. You must pay a case filing fee of $245, a $75 administrative fee, and a $15 trustee surcharge. You must also pay attorney fees if you work with a NJ bankruptcy attorney. However, working with an attorney makes it more likely that your filing will proceed quickly and smoothly, giving you a better chance of discharge.

Con #5: Your credit report will take a temporary hit.

Your credit will take a dip after getting a Chapter 7 bankruptcy discharge. If you were able to maintain your monthly payments and keep your credit score relatively high before filing for bankruptcy, you would likely notice a much bigger dip than those who were already losing points on their score due to late payments and default. You may also notice your interest rates rise in the initial years after bankruptcy. But while a Chapter 7 bankruptcy will stay on your credit report for up to ten years, filing for bankruptcy is often better for your credit score in the long run than languishing under years of unmanageable debt.

As soon as your debt is discharged, you can begin working to improve your credit score immediately. A secured credit card is a great way to do this. Bankruptcy filers who focus on rebuilding their credit are often able to get a loan or even a mortgage within a few years of discharge.

Veitengruber Law is an experienced New Jersey bankruptcy law firm. We can work with you to determine if Chapter 7 bankruptcy is the correct choice for you. Do not spend another day stressed out over your financial future. Call us today for your free consultation.

What To Know About Chapter 7 Bankruptcy

Wed, 31 Jan 2024 21:12:52 GMT

Declaring bankruptcy is a difficult decision, but sometimes it is the best option to get out of a difficult financial situation. If you are considering bankruptcy as an option, Chapter 7 may be the most suitable. Chapter 7 bankruptcy is also known as liquidation bankruptcy, and under it, most or all of the debtor's assets are sold to pay off their debts. Afterward, the remaining qualifying debts are discharged.

If you want to know more about this type of bankruptcy and its advantages, then this post is for you. Learn more about Chapter 7 bankruptcy and its benefits.

1. Qualifications for Chapter 7 Bankruptcy

Before filing for Chapter 7 bankruptcy, you must meet specific criteria to ensure that your petition is approved. To qualify, you must pass the means test, which is a calculation of your income and expenses to determine whether you can repay your debts. Your income must be lower than the median income for your state or pass a series of calculations that consider the number of people in your household.

2. Advantages of Chapter 7 Bankruptcy

One of the biggest benefits of Chapter 7 is that certain types of debt are completely discharged, including credit card debt, medical bills, and personal loans. Even if you still owe some of the debt after liquidation, such as secured debt or loans that are exempt, you will have a clean slate to start rebuilding your finances.

Additionally, filing for bankruptcy grants an automatic stay, which halts all collections and legal actions taken against you by creditors. This gives you time to work out a payment plan or come up with the funds to discharge the debts without continued undue pressure.

3. Property Exemptions of Chapter 7 Bankruptcy

Another advantage of Chapter 7 bankruptcy is property exemptions. In most states, you can protect necessary property, such as your home, car, and personal possessions, which are exempt from being sold to pay off your debts. This means you could come out of the liquidation with most or all of your required property still intact.

4. Credit Impact of Chapter 7 Bankruptcy

Chapter 7 bankruptcy will remain on your credit report for several years, which will temporarily hurt your credit score. Thus, for a while, it may be more difficult to get loans or credit after filing for bankruptcy. However, in the long run, bankruptcy can help you rebuild your credit and achieve better financial success.

5. Filing of Chapter 7 Bankruptcy

To file for Chapter 7 bankruptcy, you will need to complete a petition and a series of schedules that outline your assets, debts, income, and expenses. You will also need to pay a filing fee, attend credit counseling, and attend a meeting of creditors.

While you can file for Chapter 7 bankruptcy on your own, hire a bankruptcy attorney to help you through the process. They can answer your questions and help ensure that you are correctly filing the right forms.

Declaring bankruptcy is not an easy decision, but if Chapter 7 is right for you, it can be a great way to start anew after a difficult financial situation. If you are considering filing for Chapter 7, make sure you meet the necessary qualifications and take advantage of its many benefits.

Contact our office to discuss all of your options with a qualified bankruptcy attorney. Meanwhile, do not be discouraged by your current financial state. By taking the right steps, it can improve dramatically. Also, after a bankruptcy, prioritize post-bankruptcy work, such as rebuilding credit, learning to budget, and reworking your personal finance plans. We look forward to assisting you.

We are a Full-Service Debt Relief Law Firm in Monmouth County NJ

Tue, 30 Jan 2024 04:54:49 GMT

Living with debt has become an unfortunate trend for US consumers in recent years. Household consumer debt rose to $17.06 trillion in the first half of 2023. And with consistent spikes in the cost of living, inflation, income loss, and other financial difficulties, that debt is only expected to increase. Most of this reported debt comes from credit cards, mortgages, student loans, personal loans, and medical debts. So, if you are struggling with significant debt, you're not alone—even if it feels like it. Veitengruber Law is a full-service debt relief law firm in Monmouth County, NJ. We can work with you to tackle unmanageable debt. We offer proven solutions for even the most complex financial cases.

Here are just some ways Veitengruber Law helps our clients get on top of debt:

1. Bankruptcy

Bankruptcy is not always the best solution for those struggling with major debt—but you shouldn't write it off either. Many folks fear the consequences of bankruptcy and worry about the stigma attached to it. This stigma can prevent people who can genuinely benefit from bankruptcy from filing—delaying help and landing them in deeper debt. Veitengruber Law is here to demystify and destigmatize the bankruptcy process. Bankruptcy can be a powerful financial tool that can get you out of debt faster than other debt relief methods.

We utilize a holistic approach to debt relief, which includes an analysis of how bankruptcy can help your specific case. We offer a customized approach to bankruptcy because we know every case is different. If you are a prime candidate for Chapter 7 or Chapter 13 bankruptcy, we can work with you to file correctly and on time. We also work with clients to rebuild a more solid financial foundation after bankruptcy.

2. Foreclosure Defense (loan mods, bankruptcy)

Becoming a homeowner is one of the most high-stakes financial decisions you are likely to ever make. There are many financial setbacks that can threaten your investment in your home and lead to foreclosure. If you are concerned about the possibility of foreclosure or even if you have received a notice of foreclosure, Veitengruber Law can help. We are experienced in utilizing a number of legal strategies to defend against foreclosure.

Chapter 13 bankruptcy is a great way to make up mortgage arrears and save your home. We can work with the court to negotiate your debt and develop a payment plan that fits your financial circumstances. Mortgage modification is another great way to avoid foreclosure. We have an outstanding track record of negotiating with lenders to lower monthly payments. Veitengruber Law also provides short sale guidance and real estate closing services if you are unable to save your home.

Whether your goal is to save your home or simply get out of your mortgage with as little debt as possible, we can work with you to discover the best path forward.

3. Debt Negotiation

Bankruptcy is not the only solution for unmanageable debt. There are actually some circumstances where bankruptcy is not the best option. Because we look at debt relief holistically, we explore all options before coming up with a solution. We offer comprehensive debt relief counseling and representation. We can create an individualized plan to get your household or business back on a realistic budget.

We understand how creditors operate. We use our insider knowledge to develop appropriate solutions that benefit you and your financial health. Our debt negotiation solutions include the following:

Debt settlement
Negotiating with creditors or utility companies to establish a realistic payment plan
Negotiating a loan modification to reduce your monthly payments
Working with creditors to come to better terms on burdensome bills

We can help you find financial stability.

4. Credit Repair

After struggling with major debt for a long time, it is common for individuals to have low credit scores. Bankruptcy, debt settlement, and other debt relief solutions can also adversely impact your credit score and result in negative marks on your credit report. Low credit can make it challenging to get approved for loans, mortgages, credit cards, rental housing, and other essential financial things. But even the worst credit scores can be improved. Once your debt is taken care of, Veitengruber Law can offer credit repair solutions to improve your score and ensure you get to enjoy the full benefits of your new financial freedom.

We believe that bankruptcy and other debt relief solutions should not be considered the end of the line but the start of a brighter financial future. We follow through on this belief by offering personalized credit repair services. We provide detailed counseling on improving your credit. We can even provide representation to help you remove damaging errors or inaccurate information from your credit report. As your credit improves, so will your chances of securing loans, additional credit, and better terms on your lines of credit.

You do not have to deal with the stress and anxiety of unmanageable debt alone. Veitengruber Law can help you devise a solution that works for your specific situation. Please do not struggle alone. Call us today for your free consultation.

Do You Need a Monmouth Co Bankruptcy Attorney

Wed, 24 Jan 2024 14:19:13 GMT

If you are looking for a bankruptcy attorney in Monmouth County, NJ, look no further—Veitengruber Law has you covered! We are a full-service bankruptcy attorney with over a decade of experience working with clients to file bankruptcy in New Jersey. Part of the work we do with clients is to help them determine the best solution to their debt problems. For some, solutions outside of bankruptcy may be enough to solve their issues. But for many clients, bankruptcy is the right choice to get out of significant debt. When considering bankruptcy, here are some things we look at with our clients:

1. Do you only pay the minimum payment on your credit cards?

If you consistently only pay the minimum on your credit card, you carry around high-interest debt on your open balance. This can cause your balance to increase quickly. Eventually, your interest can increase faster than your ability to pay down the balance. If you struggle to pay down your debts with just minimum payments, it may be time to consider filing for bankruptcy.

2. Do you get calls from bill collectors?

Getting calls from collections can be stressful and annoying. But it is also a sign that your debt situation has exceeded your control, and it is time to consider debt management alternatives—like bankruptcy.

3. Do you frequently use credit cards to pay for basic necessities?

If you use credit cards to pay for the basics—like groceries, utilities, or rent/mortgage—you also pay high interest on those goods. You should always try to pay for these items with cash or your checking account. If you cannot, bankruptcy may help you reduce your debts so you can afford to pay for these basic needs without major interest.

4. Are you considering selling possessions to pay down debt?

Downsizing, getting rid of a car, or selling off other valuable possessions is one way to pay down some of your debt. These actions may be difficult, but they could help you avoid a bankruptcy filing. If you have already sold off possessions and downsized and are still struggling with debt payments, it could be time to file for bankruptcy.

5. Do you owe more than you pay?

A healthy budget will have all your expenses covered by your income, WITH some extra left over for emergencies and savings. If your monthly payments begin to exceed your monthly income, you can quickly lose control of your debt. The more debt you carry monthly, the more difficult it is to eliminate that debt.

6. Will bankruptcy resolve your debts?

Some debts cannot be considered during bankruptcy proceedings. Back taxes, student loans, debt from alimony or child support, and some other debts cannot be discharged through bankruptcy. If these are the most concerning debts for you, looking into bankruptcy alternatives will be a better solution. Speaking with these creditors directly to develop a different payment plan or lower your balance can help you resolve these debts without bankruptcy.

If you answered "yes" to any of the above questions, bankruptcy might be your best path forward. There are many debt relief strategies available, and bankruptcy is just one of them. Veitengruber Law can help you determine if bankruptcy is right for you.

NJ Mortgages FHA vs VA loan

Wed, 03 Jan 2024 05:33:58 GMT

Deciding which kind of loan to use to finance your home purchase is one of the many complex decisions you must make as a homebuyer. Every kind of home loan has specific benefits and drawbacks that will uniquely impact your situation. Two kinds of government-backed loans to consider are FHA loans and VA loans. If you qualify for both loans, you may be confused about which would best serve you. Here, we look at the specifics of each loan to help you determine which is best for you.

Who backs the loans?

FHA and VA loans are government-backed, making them generally more affordable than conventional loans for first-time homebuyers, low-income buyers, or those with a rocky credit history. The Federal Housing Administration backs FHA loans. While the government does not directly provide the loan to the borrower, the FHA agrees to insure the loan and pay off the balance if you default. This agreement makes these loans less risky for banks and mortgage lenders, allowing them to offer loans with better rates and less strict credit requirements. Government-backed loans are intended to help those who would not otherwise be approved get financing to purchase a home.

The US Department of Veterans Affairs supports VA loans. VA loans are available as a benefit for those who have served the country through military service.

Who is eligible for FHA and VA loans?

VA loans are only for those who have served in the US, like active servicemembers, National Guard and reservists, veterans, and some qualifying spouses. VA applicants will need to meet all of the VA loan qualifications as well as their lender's credit and financial requirements.

FHA loans are available to the general public, but you must meet specific requirements. Typically, lenders establish an income cap. Borrowers should also be prepared to meet specific financial and credit requirements established by their lender.

What are the big differences between FHA and VA loans?

Here are some of the most significant differences between each loan:

Mortgage Insurance

VA loans will not require the borrower to get mortgage insurance, while FHA loans do. Mortgage Insurance can either be paid upfront at closing or over the life of the loan, meaning your closing costs will be higher or your monthly mortgage payments will be higher.

2. Closing Cost Fee

VA loans will require a VA funding fee. This fee is collected at closing and helps pay for the VA loan program. Some applicants will qualify for an exemption from this fee, including those with a service-related disability, Purple Heart recipients, and some eligible spouses. The fee can be added to the loan if the borrower can't pay it upfront.

FHA loans do not have any specific fees to be paid at closing.

3. Down Payments

FHA loans require a base down payment of at least 3.5%. VA loans don't require a down payment.

4. Credit Score

FHA loans require a minimum credit score of 580 to qualify for a loan, but applicants with the funds to pay 10% or more as a down payment may be able to get approved with lower scores. VA loans do not typically have a minimum credit score requirement, although different lenders may have their own requirements.

5. Interest Rates

FHA and VA loans tend to have lower interest rates than other loans. While your rate will largely depend on your specific financial situation, VA loans tend to have lower interest rates than FHA loans.

FHA and VA loans have incredible benefits, but only one kind of loan will be best for your situation. In most cases, a VA loan will be the better option, but this isn't the case 100% of the time. It is essential to shop around and compare terms before you sign a mortgage loan agreement.

If you are working towards purchasing a home in 2024, Veitengruber Law can help. We are an experienced real estate law firm with a keen knowledge of NJ real estate law.

2024 NJ Mortgage Types

Wed, 03 Jan 2024 05:28:40 GMT

Homebuyers have been on a wild rollercoaster ride over the last four years with major historical shifts in the market. Rising inflation, increased interest rates, skyrocketing home prices—all of these fluctuations have made it difficult to plan for financing a home purchase. But folks looking to purchase a home in New Jersey in 2024 have many options. If one method of financing does not work for your circumstances, it may be time to try another method. Here are seven different kinds of mortgages to consider in 2024:

1. Conventional Mortgage

A conventional mortgage loan is when a homebuyer finances the purchase of a property through a private lender like banks and credit unions or mortgage companies. These loans are not offered by or secured by a government entity, but Frannie Mae or Freddie Mac can sometimes guarantee these loans. Interest rates for conventional loans are, on average, higher than government-backed mortgage loans. However, with a good credit score, an applicant can still lock in a lower-than-average rate with a conventional mortgage.

Those with a fair or better credit score, acceptable debt-to-income (DTI) ratio, and the money for at least a 20% downpayment will be more likely to get approval for a conventional mortgage. If you cannot provide 20% as a downpayment, the mortgage company can still approve your loan but may require you to acquire private mortgage insurance until you have accumulated at least 20% equity in the property.

2. Fixed-Rate Mortgage (FRM)

Fixed-rate mortgages (FRM) are the most common loan option available to homebuyers today. Available in a 15-year or 30-year term, an FRM has a static interest rate that will not change over the life of the loan unless you refinance or modify your terms. FRMs are commonly sought after because of the stability they provide. No matter what is going on economically, those with an FRM can rest assured their interest rate will not fluctuate. Stable rates mean predictable payments that make it easy to plan for. It is also easier to compare FRM loans since the payments are easy to determine and will not change.

The most significant disadvantage of a FRM loan is that you cannot take advantage of falling interest rates if they occur. If you get your loan while interest rates are high, your interest rate will remain fixed even if the average interest rates begin to drop. However, the stability FRMs offer makes this loan option an excellent choice for those who intend to stay in their home for a long time.

3. Adjustable-Rate Mortgage (ARM)

Adjustable-rate mortgages (ARM) are the opposite of FRMs. With an ARM, your interest rate will fluctuate based on the rise and fall of average interest rates. This fluctuation can make it difficult to predict your mortgage payments in the future. Most ARM loan terms will establish a predetermined time at which your interest rate will be re-evaluated and changed if necessary, typically once a year. You will always get advanced notice that your rate is changing.

The terms of the ARM loan will indicate what caps are on your interest rate changes, whether yearly, over the life of the loan, or the total in dollars you will be expected to pay back. ARMs often come with a low introductory interest rate, meaning more affordable payments initially. For this reason, ARMs are often an excellent choice for homebuyers who intend to stay in a home for a short time or refinance before the introductory rate period has ended. It is generally easier to get an ARM than an FRM with a lower credit score or higher DTI ratio.

4. Interest-Only Mortgage

This is a type of loan in which the borrower only pays the interest—the actual cost of borrowing the money—during the first few years of the loan. After the interest-only period, the borrower must refinance, pay off the loan, or make monthly principal and interest payments. These payments will be much higher than if you had been paying the principal and the interest from the start of the loan. You also will not grow any equity in your home during the first few years of payments.

To qualify for this loan will require higher down payments, excellent credit scores, and low DTI ratios. Most lenders will only approve this kind of loan for an applicant with a high monthly cash flow, a rising income, and proof of considerable cash savings. Interest-only mortgages are ideal for property investors or those who do not intend to own the property long-term.

5. Jumbo Mortgage

A jumbo mortgage loan is called for when financing for a property exceeds the limits set by the Federal Housing Finance Agency (FHFA). The FHFA limit in New Jersey varies by county. A jumbo loan is a common choice for those purchasing a home of half a million dollars or more. The downpayment for a jumbo loan has fallen to 10-15% in recent years, but the requirements to qualify for a jumbo loan are stringent. Jumbo loan interest rates used to be higher than conventional mortgages, but the gap has closed in recent years. Now, you can get a jumbo loan for less than the average rate.

You will need to prove you have cash on hand to cover payments for the first year of the mortgage and prove you meet specific income requirements by providing W-2s going back two years. You will also need an exceptional credit score, 700 or above, with a very low DTI ratio. Those who make $250,000 to $500,000 a year are the likely candidates for a jumbo loan. But just because you qualify for a loan of this size does not necessarily mean you should take it. There is a lot of risk associated with jumbo loans because they cannot be guaranteed by the government and due to the high value of the loan.

6. Balloon Mortgage

This loan begins with a period of no or low payments. Balloon mortgages will be structured differently depending on the terms of your specific loan, with some requiring no payments until the final due date and others requiring some monthly payments before the final due date. The benefits of a balloon mortgage are low payments for borrowers who do not plan to stay in a home for a long time or who plan to refinance shortly.

However, there are significant drawbacks to a balloon mortgage. If you are not making payments, or even if you are making interest-only payments, you will not be building equity in your home. It can also be complicated to change the terms of a balloon mortgage or refinance it later. If you cannot get the funds to pay off the lump sum payment at the end, you are financially at risk.

Many who opt for a balloon mortgage plan on selling the home to accumulate the cash needed to pay off the lump sum. But if you cannot sell your property or sell for a high enough price to cover the loan, you could default on your loan.

7. Government-Insured Mortgage

These loans are just what they sound like: loans that the government insures. The US government does not directly provide the loan, but they agree to insure the loan. This allows borrowers who otherwise would not be able to secure a loan the opportunity to finance the purchase of a property. Because the government has agreed to cover the loan if the borrower defaults, mortgage companies are likelier to approve a candidate that is otherwise not ideal. Government-insured mortgages tend to offer lower down payments, lower interest rates, and less stringent financial requirements.

There are, however, particular requirements that must be met to qualify for a government-insured mortgage. For example, one of the most common government loans, an FHA loan, is typically reserved for first-time homeowners with low credit scores or a difficult/limited credit history.

Veitengruber Law is a full-service real estate law firm with years of experience navigating NJ real estate and contract law. We can help NJ homeowner hopefuls reach their real estate goals in 2024.

How does a NJ Chap 13 bankruptcy work

Tue, 28 Nov 2023 21:25:08 GMT

If you are considering filing for bankruptcy, you will likely compare the differences available to you between Chapter 7 and Chapter 13 bankruptcy. Each has its benefits and drawbacks. It is possible to qualify for Chapter 7 and not for Chapter 13 and vice versa. Determining which chapter of bankruptcy is right for you will depend on your specific circumstances. Veitegruber Law can help you determine if Chapter 13 bankruptcy is the correct choice for you. Today, we’ll jump into the topic here on the blog to help you get started thinking about your options.

Individuals in New Jersey are eligible to file for Chapter 13 bankruptcy only if they can prove they have the income to repay all or a significant portion of their debts over a three-to-five-year period. Chapter 13 functions a bit like a debt consolidation plan. The court determines how much debt you owe and how much income you can realistically spend on debt per month. The court will then establish a repayment plan through which you will make one monthly payment. The bankruptcy trustee assigned to your case then disperses your monthly payment to your various creditors.

Will all of my creditors be paid equally?

Some of your creditors may only be repaid a small portion of the total debt owed through this repayment plan. Typically, secured debt is repaid before unsecured debt. So, your mortgage company will be compensated before credit cards or medical debts. Regardless of how much debt you can pay off through the repayment plan, any remaining debt will be discharged at the end of the three or five years. During the repayment process, creditors cannot start or continue any attempts to collect overdue debts.

Why choose Chapter 13 bankruptcy over Chapter 7 bankruptcy?

In Chapter 7 bankruptcy, the court can discharge all your debts in a few months instead of at the end of a repayment period. However, Chapter 7 is not suitable for everyone. In order to qualify for Chapter 7, you need to satisfy specific income requirements. If you earn more than the income maximum, you will (likely) not be eligible for Chapter 7. There are exceptions, but they are few and far between. If you have significant equity in your home, you may not want to lose that equity through the asset liquidation process of Chapter 7. Similarly, if you want to protect other property like a vehicle or other real estate, Chapter 7 may not be right for you.

You also cannot discharge any debt owed to the IRS. So, if your debts include payments to the IRS, you will need to settle this debt under a Chapter 13 repayment plan.

In New Jersey, you file a petition for Chapter 13 bankruptcy with the federal judicial district in which you reside. With your petition, you must submit a plan explaining how you intend to repay your debts. You must include the following details:

How much you plan to pay the trustee every month
Details of any property to be surrendered
The length of the repayment plan (three or five years)
Whether you plan to "cure" debt with your mortgage provider
If you plan to restructure any loans through the bankruptcy process
How much any unsecured creditors will receive from the payments

After filing the petition, you will be appointed a trustee to oversee your case. This trustee will organize a meeting with you and your creditors to review the proposed repayment plan. During this meeting, the trustee will attempt to determine if the proposed plan is fair to the debtor and the creditors. The trustee will also verify that all financial information is accurate, and you are presenting an honest perspective of your situation. If no creditors object to the plan, it will be filed with the court. Once confirmed by the court, debtors will have 30 days to make payments to the trustee, who will disburse the payments to the creditors based on the approved plan.

Over the life of the plan, as long as you (the debtor) makes on-time and in-full payments, you will be entitled to discharge any remaining debts. Alimony, child support, taxes, student loans, and some debts related to criminal convictions cannot be included in the bankruptcy estate and will never be eligible for discharge.

Determining whether Chapter 13 bankruptcy is right for you can be confusing and overwhelming. Veitengruber Law has years of experience helping NJ residents file for Chapter 13 bankruptcy. We can help you determine if this is the right choice for you. Give us a call for a free phone consultation today.

Where is a Bankruptcy filed

Tue, 28 Nov 2023 21:22:34 GMT

The process of filing for bankruptcy can seem daunting. At Veitengruber Law, we find that second only to the unnecessary taboo surrounding bankruptcy, confusion over the complicated process of filing for bankruptcy is a top deterrent. Because we know bankruptcy is a valuable tool for getting individuals out of unmanageable debt and on better financial footing, Veitengruber Law strives to demystify the laws and procedures surrounding bankruptcy. One of the most frequent questions we get about bankruptcy is, "Where will my bankruptcy case be filed?" Here, we will look at the answer to this question.

Bankruptcy cases are covered under the Federal Bankruptcy Code, which means they must be heard and processed by Federal Courts. While bankruptcy courts fall under federal jurisdiction, the venue at which your bankruptcy needs to be filed will vary by state. The Bankruptcy Code dictates that any bankruptcy case must be filed in the district in which the filer resides. For individuals, this would be your primary residence. For businesses, this is your principal place of business. This location must be your primary location for the 180 days preceding a bankruptcy filing. While there are some provisions in the Bankruptcy Code for exceptional circumstances where a bankruptcy case may be filed outside of the primary residence or place of business, the above is typically the case for most individuals and businesses.

In New Jersey, all bankruptcy cases are processed by the U.S. Bankruptcy Court for the District of New Jersey. The New Jersey Bankruptcy Courts have three locations at federal courthouses in Newark, Trenton, and Camden. These courts preside over vicinages that divide the state into three areas:

The Newark vicinage: Bergen, part of Burlington (excluding the townships of Cinnaminson, Delran, Edgewater Park, Evesham, Maple Shade, Marlton, Moorestown, Mount Laurel, Palmyra, Riverside, and Riverton) Essex, Hudson, Morris, Passaic, Sussex, and Union counties
The Trenton vicinage: Hunterdon, Mercer, Middlesex, Monmouth, Ocean, Somerset, and Warren counties
The Camden vicinage: Atlantic, part of Burlington (including the townships of Cinnaminson, Delran, Edgewater Park, Evesham, Maple Shade, Marlton, Moorestown, Mount Laurel, Palmyra, Riverside, and Riverton), Camden, Cape May, Cumberland, Gloucester, and Salem counties

Local NJ bankruptcy rules and regulations guide the assignment of cases to courts in specific vicinages. A debtor can file for NJ bankruptcy with any court, but upon review by the court, the case can be transferred to a different bankruptcy court in New Jersey. if it is determined that the case belongs to another court's jurisdiction. Again, this is generally considered to be the county or town where the debtor has their principal residence or primary place of business.

It may not always be clear which vicinage your residence or business falls under. For example, suppose you are filing for bankruptcy jointly with a spouse who currently does not share your primary residence. In that case, it may be challenging to determine where to file. Other individuals may live in a different vicinage than their business, which can complicate the filing location. It is helpful to work with a trustworthy attorney with experience in NJ bankruptcy for any case, specifically if there is a question of where the case should be filed.

Veitengruber Law is an experienced New Jersey bankruptcy legal team. We understand how overwhelming it can be when you make the decision to file for bankruptcy. We can help you determine the best place to file your bankruptcy petition and help you navigate the legal process.

Renting After Bankruptcy

Tue, 28 Nov 2023 21:15:46 GMT

Filing for bankruptcy is definitely a big decision, and one that should never be made carelessly. With that being said, Veitengruber Law wants to remove some of the stigma surrounding bankruptcy. Some folks can get so engrossed in the consequences of bankruptcy that they ignore its many benefits. Yes—filing for bankruptcy will remain on your credit report for up to ten years. It can be challenging to finance a home or get approved to rent a home during this time. But that does not mean it is impossible. Today we’re exploring your options for renting in New Jersey after bankruptcy.

Some landlords and property managers may indeed be wary about renting to someone with a history of bankruptcy on their credit report. However, they would be equally, if not more, concerned about renting to someone with significant debt and judgments against them. The entire purpose of bankruptcy is to offer individuals a fresh financial start.

Most property owners can be persuaded to rent to those who previously filed for bankruptcy as long as the applicant can prove that they no longer have debt . You can do some other things to strengthen your application when you try to rent after bankruptcy.

1. Be Honest on Your Application

Being proactive about disclosing your bankruptcy shows a potential future landlord that you have nothing to hide. Provide the details you feel comfortable disclosing upfront about the circumstances behind your bankruptcy. Prepare documents to support your claims so that the property manager can verify the accuracy of your account.

2. Offer a Larger Security Deposit

Offering to pay a larger than requested security deposit can show a potential landlord that you have the financial security to rent. Not only will this show the landlord how serious you are about the rental, but also that you have the financial position to make on-time monthly rent payments. A landlord who is reassured of your financial standing may be more likely to rent to you.

3. Find a Co-Signer

Working with a co-signer with a more robust financial history can improve your chances of getting approved for a rental. Because someone else guarantees that they will pay your monthly rent if you do not, a landlord may be more likely to rent to you. A good co-signer is a trusted family member or close friend who has a strong credit score.

4. Work on Your Credit Score

You should try everything you can to repair your credit score from the moment your bankruptcy goes through. Yes, bankruptcy will impact your credit report and score for ten years. However, that doesn't mean that there’s nothing you can do to improve the score in the meantime. Making timely payments every month, keeping your credit card balances low, and keeping an eye on your credit report can help you improve your credit score over time. Even with a history of bankruptcy, a landlord is more likely to accept your application if your credit score is decent.

Filing for bankruptcy can sometimes impact your ability to rent—but it doesn't mean it is impossible to rent after bankruptcy. Transparency and financial diligence after your bankruptcy petition can go a long way to helping you secure housing in the renter’s market. Veitengruber Law can help you with your bankruptcy and work on repairing your credit afterward, which can make it easier to get approved for a rental (or even home purchase) in the future.

How Can a NJ Foreclosure Attorney Help You

Tue, 14 Nov 2023 02:31:54 GMT

One in every 2,585 New Jersey homes are foreclosed on every year. These numbers mean that NJ homeowners are more likely to face foreclosure or the threat of foreclosure than homeowners in neighboring states. If you are an NJ homeowner concerned about foreclosure, working with an NJ foreclosure defense attorney can help. Foreclosure defense attorneys are knowledgeable of NJ foreclosure law and the options available to NJ homeowners as they navigate a foreclosure. Yes—it is possible to go through foreclosure without an attorney. But an NJ foreclosure defense attorney can be an incredible resource if you want to protect your homeowner rights, save your home, or find the best possible solution for you. Here are just a few things a foreclosure defense attorney can do for you:

1. Assistance with a Loan Modification

Acquiring a loan modification ensures you can keep ownership of your home while avoiding foreclosure. By working with your lender to change the terms of your loan, your monthly payments may become more manageable. You can acquire a lower monthly payment by extending the life of your loan, decreasing the rate, or even decreasing the loan's original amount. While there are no costs to modify your loan, getting a loan modification application approved can be challenging. An experienced foreclosure defense attorney will offer expert negotiation tactics and a deep understanding of the law regarding loan modifications. Your attorney's experience working with lenders can also give you an edge as you negotiate the terms of your loan.

2. Notice of Appearance (NOA)

One thing that is always true about foreclosure is the immensity of paperwork and correspondence that needs to be properly organized and responded to. By filing a notice of appearance with the court, your attorney will become the person who receives and responds to any letters, forms, applications, or other correspondence from your lender or the court. The NOA lets your attorney handle your legal matters during a foreclosure case. This will help ensure that all correspondence is dealt with professionally and promptly while decreasing stress throughout the proceedings.

3. Filing a Contesting Answer

Your attorney can help you dispute your lender's right to foreclose your property. An attorney will be able to review your case to determine any legal missteps on the part of your lender. For example, if your lender misses a step in the foreclosure notification process, this could buy you more time to avoid foreclosure.

4. Filing for Bankruptcy

When you file for bankruptcy in NJ, you enter the automatic stay period in which lenders or other creditors cannot bring forth any legal actions against you or attempt to collect on your debts. This powerful tool can be used to stop foreclosure in its tracks. Bankruptcy is not a solution for every case, but it can be an excellent solution for many facing foreclosure. Filing for bankruptcy does not automatically mean you must lose your home. Many who file for bankruptcy keep their home and either get rid of their debts or enter into a more manageable repayment plan through the courts.

5. Short Sale

If you decide to leave your home, you may find yourself facing a short sale. A short sale is when you sell your home for less than what you owe your lender for the home. Some lenders may agree to a short sale in order to avoid costly and time-consuming foreclosure proceedings. An experienced real estate or foreclosure attorney can help you negotiate mutually agreeable terms of a short sale with your lender so they are more likely to accept the sale. An attorney can also help you and your lender agree on terms for the balance you owe the lender.

These complex negotiations can go smoother and more successfully with the adept guidance of an experienced attorney. Whether you are looking for an attorney to help you avoid foreclosure or to help throughout foreclosure proceedings, Veitengruber Law can help. We are a full-service foreclosure defense and bankruptcy attorney with years of experience in NJ foreclosure law. We understand how stressful it can be to face the loss of your home. We offer compassionate and professional legal solutions to help you work towards the best outcome for your situation.

Foreclosure in Retirement

Tue, 14 Nov 2023 02:10:52 GMT

Most Americans envision their golden years as a time of peace, relaxation, and comfort. Life after retirement is not always so stable, though, as many Americans are finding out. According to Census data for 2020, 2 in 5 baby boomers are entering retirement with no retirement savings. Only 58% of Americans aged 55-64 have a retirement account. Many believe that Social Security will be enough to sustain them throughout retirement, but this is rarely the case. The average Social Security check is about $1,800 a month, while the average household expenditure for 65+ households is more than $4000 a month . Simply put, most boomers reaching retirement age do not have the savings to sustain a comfortable lifestyle through retirement.

To add to this problem, more boomers are carrying mortgage debt into their retirement years. Those aged 55-75 are now less likely than previous generations to own their home at retirement. During the housing bubble collapse of 2008, many retirees were forced to leverage the equity they had in their home as a bank to make ends meet through some challenging financial years. Many boomers reverse-mortgage their homes, taking out loans for much more than the actual value of their home to increase their cash-in-hand and cover basic necessities. Most of these folks believed they would just work a little longer and postpone retirement for a few years to account for a bigger mortgage.

But, of course, life happens. Illness, disability, layoffs, and any number of setbacks can force workers into retirement before they are financially ready. Many elderly folks in these situations now find themselves over their head in debt on their home, unable to keep up with high monthly payments on a limited income. The lenders for these reverse mortgage loans now expect their money back. These lenders are also reluctant to negotiate payment terms with elderly borrowers, like extending the term of the loan, out of fear that the borrower may pass away before the completion of their payments.

So what does this mean? For many folks in their golden years, this means foreclosure.

The good news is you have options when facing foreclosure in your golden years. Veitengruber Law has worked with many retirees to help them keep their homes and finally find peace in their golden years. Here are a few ways we can help you save your home while on a fixed income in retirement.

1. Loan Modification

Just because lenders are less likely to negotiate with elderly borrowers doesn't mean it is impossible. Refusing to work with older borrowers simply because they are older is against the law, as well as a profoundly irresponsible business practice. Veitengruber Law can help you negotiate with lenders so they are aware of the law and take your rights seriously. We have experience working with discriminatory lenders and can help you secure a loan modification with more manageable monthly payments. Even if you have not had success getting approved for a loan modification on your own, we can help you submit an application that is more likely to get the results you need.

2. Assistance Programs

While some lenders may be reluctant to work with older borrowers, that doesn't mean all of them will be. At the first sign of trouble paying your mortgage, you should reach out to your lender to see if you qualify for any assistance programs they may have. Some mortgage lenders have special programs for elderly or retired borrowers facing financial difficulties. These programs can vary from lender to lender, so reach out to your lender for specifics and to determine how to apply.

3. Short Sale

If you have exhausted all your other options, a short sale may be the best choice to get you through the rest of your retirement. The Home Affordable Foreclosure Alternatives (HAFA) program is a federal program intended to help those who can not afford their monthly mortgage payments move on from their home without facing major financial consequences. This program allows you to sell your property for less than the balance on your mortgage without paying back the remaining debt to your lender. Many who use the HAFA program are also provided a relocation assistance stipend of at least $3,000 to aid in finding new housing. Even outside the HAFA program, Veitengruber Law can help you work out a short sale agreement with your lender.

Your senior years should be spent enjoying the life you have built for yourself and your family. If you are facing foreclosure during retirement, Veitengruber Law can help. We have helped many retirees keep their homes and escape unmanageable debt. Reach out to us today for a free consultation!

How to Save Your Home from NJ Foreclosure

Wed, 01 Nov 2023 08:18:15 GMT

New Jersey has one of the highest rates of foreclosure in the country. If you are a New Jersey homeowner having trouble paying your monthly mortgage payments, you are not alone. The anxiety and dread missed mortgage payments can cause may make you feel like there are no solutions to your problem and that losing your home is inevitable. But that isn't true. Even after you receive a notice of foreclosure, there are a few ways you can save your home. Here are some solutions you may want to explore:

1. Cure the Debt

One way to stop a foreclosure in NJ is to cure the default on your mortgage. A default happens when you are over 30 days late on your monthly mortgage payments. NJ law states that a lender can only notify you of default or send a notice of intent to foreclose once you are more than 120 days delinquent on your account.

Once this notice of default or intent to foreclose has been delivered, you will have 30 days to cure the default before final judgment. However, before your lender can apply for final judgment, they must send you a letter 14 days in advance notifying you of their intention to file a final judgment. If you respond within this time that you intend to cure the default, you will be granted an additional 45 days to do so. You could also provide valid legal defenses against the foreclosure suit at any time during this process.

After the final judgment has been issued, your home will go up for sheriff's sale. But even then, homeowners have the right to delay the sale for 28 days two different times. You can cure the debt at any time throughout the above process. By utilizing the full timeframe afforded to NJ homeowners during foreclosure, it may be possible to secure the funds to save your home. An attorney can work with you to ensure you do not miss deadlines while maximizing the time you need to secure your funds.

2. Loan Modification

Loan modification is a great way to stop foreclosure and keep your home. Once you submit an application for a loan modification, your lender cannot proceed with foreclosure because it is prohibited by law. You cannot lose your home while the lender is considering other options for your loan. You do, however, need to make sure that you submit all of the required paperwork and documentation for the loan modification application. Any missing information could be reason enough for them to reject your application and continue with foreclosure. Lenders are also not required to review multiple applications.

Working with an experienced foreclosure attorney can ensure that you complete the paperwork correctly the first time and that your lender properly reviews your application.

3. Forbearance

Many lenders offer options for forbearance in light of financial difficulties. This is a good option for those who are experiencing temporary income loss resulting in some missed mortgage payments. A forbearance plan would allow you to make reduced monthly payments or pause payments for a set timeframe. You agree to a repayment plan, and your lender agrees not to foreclose on your mortgage as long as you make continued payments. You will not owe less money in the long run, but a forbearance plan may give you the financial break you need to get back on your feet and avoid foreclosure in the meantime.

4. Bankruptcy

The automatic stay period during bankruptcy is also a legal tactic that can stall foreclosure proceedings. When you file for bankruptcy, you enter the automatic stay period, during which creditors and lenders cannot bring any other legal actions against you or your property. The automatic stay will also stop any debt collection efforts. Filing for Chapter 13 bankruptcy in NJ will allow you to pay back your debts on a repayment plan so you can keep your home. But even those who file under Chapter 7 are not guaranteed to lose their homes. Your income level, assets, and debts will determine which bankruptcy filing option is the best for you.

Once you receive a notice of foreclosure, you have 35 days to respond. If you want to keep your home, you must be proactive about developing a plan before the end of those 35 days. Working with an experienced NJ foreclosure attorney can help you protect your rights as a homeowner and find best-case solutions for a difficult situation. Veitengruber Law is an experienced NJ foreclosure law firm. We offer free consultations to help you understand your options. You do not have to face NJ foreclosure alone; we are here to help!

Overcoming Challenges as a New Jersey Renter in 2023

Fri, 22 Sep 2023 19:46:10 GMT

In August, rent prices across the US fell for the first time in months. But this stroke of good luck does not indicate a larger trend. In New Jersey, experts predict rent prices will continue to increase throughout the end of the year and into 2024. Real estate experts expect rent growth to slow but do not believe prices will return to pre-pandemic levels for quite some time. Here, we will take a look at why rent prices continue to rise, as well as what NJ renters can expect in the coming months.

Above Average Rent Price Increases in 2023 and 2024

So far this year, we have seen above-average rent increases, and most experts agree that this trend will carry into the first quarter of 2024. There are a few reasons why rent prices are still increasing:

1. Strong Demand

Many would-be homeowners are currently disqualified from the housing market because of high mortgage expenses and high-interest rates. Renters who are ready to purchase a home are running into difficulty securing financing or saving up the money needed for a realistic downpayment. Unable to qualify for financing, these would-be buyers are compelled to remain in the rental market. This increased pool of renters creates high demand.

2. Housing Shortage

Another cause of high demand is an ongoing housing shortage. One estimate indicates the US is more than 3 million homes short of current demand. Would-be homebuyers are again forced to remain in the rental market because finding a home to purchase is too difficult in the current market. The housing shortage problem can be traced back to the 2008 housing bubble collapse, but building material delays and shipping issues during the pandemic still plague the homebuilding industry. Materials that once took a week to receive can now take months.

Due to the high rental demand, prices will continue to increase. How much prices increase will depend significantly on the housing market in your part of the Garden State. If housing prices stagnate or begin to decrease, rental prices could also drop. But if housing prices increase in your area, you can expect a similar increase in rental prices. Similarly, if the federal government cuts down on interest rate increases, more would-be homebuyers may be able to catch up to income and savings requirements to qualify for a mortgage. If more people enter the housing market and leave the rental market, the rental demand will decrease.

How Can NJ Renters Manage Price Increases?

If you are a New Jersey renter, you may wonder how to manage these rental price increases. Here is some advice if you are struggling to keep up with rising rents:

Consider Moving
Rentals in more populated areas are likely to be more expensive than those in the suburbs or rural areas. If you can no longer afford the rental prices in your town, consider a move to a more affordable area. Even going 15 or 20 minutes out of your current area could make a huge difference in your monthly rental payments.
Extend Your Lease
If your current lease is affordable, consider extending it. If your landlord is willing to work with you to extend your lease at your current terms, this could be a great way to stay in your area and avoid the rent increases in months to come.
Get a Roommate
Studio and one-bedroom apartments have outpaced the rent growth of two- and three-bedroom apartments. This means the choice to live alone is going to be a costly one. Sharing a multi-bedroom rental with roommates and splitting the costs can be a great way to save money while rental prices are so high.

Will Rental Rates Get Better?

As we move into 2024, housing experts predict a leveling out and potentially a slight decrease in rent prices. More people are putting their homes on the market, decreasing housing supply issues. With more homes on the market, housing prices are expected to decrease. This will allow more potential homebuyers to qualify for financing, allowing them to enter the market.

Simultaneously, more multi-family housing units are hitting the market this year. 2023 has seen the highest increase in multi-family units since the 1980s. This major increase in units will create an increase in rental vacancy rates. This will decrease rental rates and increase the opportunities for renters to live in newer housing.

Veitengruber Law is a full-service real estate firm. Our team has experience working with those who want to own a home in New Jersey in the near future. We can help you transition from renting to owning by taking a close look at your credit score, savings, and other financial information. Consult with us today free of charge!

NJ Short Sale: Is it Right for You?

Tue, 19 Sep 2023 19:52:10 GMT

A short sale is when a homeowner sells a property at a price below what they still owe on the mortgage for the home. When your mortgage costs more than the value of your home, it can create a dire financial situation. Is a short sale right for you?

A short sale is when a homeowner sells a property at a price below what they still owe on the mortgage for the home. When your mortgage costs more than the value of your home, it can create a dire financial situation. Many homeowners in this situation have taken out second or third mortgages. They are unable to keep up with the new monthly payments. When a homeowner gets behind on the mortgage, their credit can be affected, along with other negative consequences. A short sale can allow you to move forward with less debt and no mortgage. Here, we will look at New Jersey's short sale process.

1. Do I qualify for a short sale in New Jersey?

In New Jersey, you may qualify for a short sale if you currently owe more on your home than your home is worth AND you can no longer afford the payments. To determine if you owe more on your home than it is worth, you can work with a real estate agent to determine the value of your home. You can also compare your home with similar listings in the area to estimate how much you could get for your home on the real estate market. If the estimated sale price of your home is less than what you owe on the house, it could count as a short sale.

Every situation that will qualify for a short sale is unique. Qualifying for a short sale is determined on a case-by-case basis by the individuals and organizations involved in the short sale. You may be eligible for a short sale if:

You need to sell your home or want to sell your home because of the financial burden.
You owe more on your mortgage than the home is worth or is likely to sell for on the real estate market.
You can prove that you are experiencing a financial hardship that makes it impossible to keep up with your mortgage payments. This hardship could be divorce, medical issues, unemployment or income loss, or the death of a spouse.

Working with an experienced New Jersey real estate agent can help you determine if you are a good candidate for a short sale and if a short sale is your best option.

2. What happens in a short sale?

Step One: Find a Short Sale Specialist

To pursue a short sale, you should find an NJ short sale specialist or a real estate agent experienced with NJ short sales. These professionals will not only treat your case with compassion and understanding, but they will also have expert insights into the short sale process. They can help you evaluate your financial situation, negotiate with your lender, and compile necessary documentation.

Step Two: Gather Paperwork

While your short sale team preparing your property for a short sale application, they will ask you to gather some essential documents to help you prove your short sale qualifications. The documents you need for a short sale application include:

A mortgage statement
Two or three months of bank statements
A month of pay stubs
Two years of tax returns

Step Three: Accept an Offer

Getting an offer on a short sale home can take days, weeks, or even months. Depending on the property and the state of the local market, this variable can determine how long the short sale process takes. Your short sale specialist will help you determine what offers to accept.

Step Four: Negotiating with the Bank

Your short sale professional will help you submit all the required paperwork to your lender to begin negotiating a short sale. Your lender or bank will send an appraiser to the house to assess the property and determine if the short sale offer is acceptable. If the bank determines the offer is fair, they will send the homeowner a short sale approval letter, including the amount they agree to settle for. The approval letter will also indicate if your remaining debt is forgiven or how much you still owe the lender.

3. Can I sell my home "as is" in a short sale?

Yes. In fact, most properties sold in a short sale are expected to be sold in as-is condition. The reality is that most people who sell with a short sale are experiencing financial trouble that prevents them from making any repairs or improvements before selling the home. There are also typically time constraints involved with a short sale that prevent any major renovations from occurring. If you know you cannot make repairs, listing the home "as-is" should convey to potential buyers that they will be responsible for repairs.

4. What are the benefits of a short sale?

The biggest benefit—and most common reason for a short sale—is to avoid foreclosure. A short sale can be a more appealing alternative to foreclosure. While your lender does not have to agree to a short sale, it is typically in their best interest. Foreclosure can be costly and time-consuming. In most circumstances, lenders understand that they can get more for their investment by agreeing to a short sale. An experienced short sale specialist will know how to present a short sale as a mutually agreeable alternative to foreclosure.

If you are considering a short sale for your home, Veitengruber Law can help. Our experienced team offers legal advice and guidance on the New Jersey short sale process.

Can I Still Back Out of My NJ Real Estate Contract?

Thu, 07 Sep 2023 20:02:44 GMT

For good reason, it is challenging to get out of a NJ real estate contract, but it's not impossible. Here, we will look at several legitimate reasons to end a legally binding real estate contract.

Real estate transactions involve highly complex legal and financial maneuvering on behalf of the buyer and the seller. Because of this intricacy, almost all real estate transactions involve a real estate contract. The contract is a binding legal agreement signed by both parties indicating the specific terms of the transaction. A valid contract is required to ensure that both individuals are aware of their responsibilities and rights throughout the transaction.

Most real estate contracts will include the following:

Identification of involved parties
A description of the property and its location
The agreed-upon price of sale
Essential terms, rights, and obligations of the parties in the contract
Contingencies
An up-to-date description of the condition of the property
A list of fixtures, appliances, or furniture included in the sale of the property
The amount for the earnest money deposit
Itemized closing costs for the buyer and seller
Estimated date of closing
Terms of possession (when the keys will transfer)
Signatures of each party

Once a contract has been signed, it is legally binding, and both parties will be held to the terms of the agreement. Breaching this contract can have serious legal repercussions for the party in breach. Going against a contract is rarely in your best interest. On the other hand, it is challenging to get out of a contract. The law backs up these legally binding agreements. There are a few ways to get out of a real estate contract after it has been signed - but be sure you have an experienced New Jersey real estate attorney to help you.

1. Attorney Review Period

In New Jersey, once both parties sign the real estate contract, the clock starts on the three-day attorney review period. During this time, a real estate attorney can review the document and advise their client of potential problems or additions that could help protect their client throughout the transaction. Even if your real estate contract looks standard and correct, getting the second opinion of an experienced real estate attorney is still worth it.

If the attorney advises some changes to be made to the contract, the changes must be accepted by both parties to move forward. If an attorney suggests that the agreement contains significant flaws, it is within the right of the client to cancel the contract before the end of the attorney review period. Once the attorney review period is over, the contract is solidified, and you lose the opportunity to back out of the contract through the attorney review period. If you've passed this time period and still need to back out, keep reading.

2. Failure to Fulfill Obligations

Most real estate contracts will include deadlines and commitments that have to be met by the buyer or seller throughout the real estate transaction process. These dates and conditions must be completed for the contract to remain valid. In most cases, a seller or buyer will not cancel a contract over a commitment that is a few days late. But if you are looking for a way out of a contract, this is one way to do so. For example, the contract states that the buyer must secure funding by a specified date. The date comes and goes with no proof of funding. The seller is then within their rights to end the contract. This can apply to any terms with deadlines in the contract.

3. Unfulfilled Contingencies

Contingencies are the more nuanced items in a real estate contract that are not standardly included but have been added because of their significance to one or both parties. These conditions must be agreed upon and met during the transaction for the sale to go through. Most real estate professionals will include the common contingencies in their boilerplate contract templates. Still, if the listed contingencies do not cover something that is important to you, you should insist on the inclusion of these terms before signing.

Once a contract is signed and the contingencies listed are agreed upon, they are legally binding. So, for example, if the seller added the contingency that they needed to successfully purchase a new home in order for the sale of their old home to go through, this contingency would need to be met for the deal to continue. Any contingency that is not met can mean the dissolution of the contract.

Another common contingency involves the home inspection. Home inspections are a critical aspect of purchasing a home. If a home inspection uncovers major issues with the property that were not previously disclosed, the buyer has the right to back out of the deal as long as there is a home inspection contingency in place.

4. Scams

Very rarely, you may need to back out of a real estate contract because you have discovered the transaction is actually a scam. Although rare, real estate scams can unfortunately occur. Working with experienced real estate professionals, like an experienced local agent or a trustworthy real estate attorney, can help prevent you from entering into binding contracts with scammers. But, if this happens, you have the right to break this contract without legal repercussions. If the seller or buyer entered into the agreement with nefarious intentions, you can withdraw from the contract legally. You will need to provide proof of the scam to protect yourself legally, but an attorney can help you with that. Even if the scammer tries to threaten legal repercussions for breaking the contract, as long as you have proof, they will not have the law on their side.

While backing out of a real estate contract can be difficult, it is not uncommon. Many things can happen that would require the buyer, seller, or both to regret making a deal. Unexpected life events, a concerning home inspection, or even an emotional attachment to a property can all be valid sources of indecision when it comes to a real estate transaction. Veitengruber Law is a full-service New Jersey real estate firm with the experience and knowledge to help you protect your investment.

Buying a Home in NJ: Do I Need Title Insurance?

Thu, 17 Aug 2023 20:08:18 GMT

As the title is transferred in a NJ real estate transaction, the ownership rights for the property also transfer. Many title companies and mortgage servicers will encourage or even require property owners to get title insurance for this crucial document. But do you really need it?

In real estate, a title is a document that gives the owner of a property the right to possess and use said property. Titles can come in many different forms depending on how the ownership of a property is divided. A title can indicate single ownership, tenants in common, joint tenants, life tenants, and other specific forms of property ownership. Each type of title will provide the individuals listed on the title with different ownership rights. As the title is transferred in a sale, the ownership rights for the property also transfer. Many title companies and mortgage servicers will encourage or even require property owners to get title insurance for this crucial document. But do you really need it?

Here we will look at the purpose of a real estate title and the importance of title insurance.

Who Has Ownership Rights for a Property?

The individual or individuals listed on the title of a property have specific ownership rights indicated by the type of title. Titles can also indicate the designated use for a particular parcel of land. The rights of the owner(s) of the property will differ depending on the designated use of the land. Different owners can also have different property rights for the same property based on the use of their title. For example, one owner can have mineral rights while another has utility rights.

Parties other than the owners listed on a title can have interest and rights to a property. A mortgage lender can have a financial interest in a property. Any construction companies, builders, or contractors who have done work on the property also have an interest and could file a lien on the property if they are not compensated for their work. The government can file a lien for unpaid taxes.

Some properties can include easements, which grant specific use of a portion of the property to neighbors or others who do not have rights to the property. This is common in beach towns where access to the beach goes through an individual's property or where neighbors share a driveway.

What Happens During a Title Search?

Before officially transferring a title to a new owner, hiring a real estate professional to perform a title search is highly recommended. Searching title records can help you find any issues hindering your ownership rights, like judgments or liens. A title company or a real estate attorney can perform a title search to ensure the title for the property is clear. Many mortgage lenders require a title search before loan approval. A title search will provide a complete understanding of your ownership rights to the property and any limitations to those rights due to outstanding liens, judgments, or financial obligations.

What is Title Insurance?

When you get title insurance, the title insurance company will thoroughly investigate the title's history. Any issues they find before the title transfer will be the title company's responsibility to fix. The title company will insist that the seller of the property correct any defects with the title prior to closing. Issues can include:

Improper vesting via wills, deeds, or trusts
Mortgage, judgment, or tax liens
Undisclosed easements
Inaccurate notary acknowledgments

Most of these issues can be resolved before the transfer of the title. If the problem cannot be resolved prior to closing, the title agency will then list the problem as an exemption on the title's insurance policy. At this point, the buyer has the right to back out of the contract.

Do I Really Need Title Insurance?

Many homeowners ask: If I perform a thorough title search and it comes up clean, do I still need title insurance?

Veitengruber Law's answer is YES!

While a thorough title search should reveal any issues with the title of a property, a search is not absolutely certain. Even the best title researchers can miss a judgment, lien, or other hindrance on the property. While the person performing the search may be the one to overlook the issue, you, as the new owner, will be the one responsible for correcting the problem. Obtaining title insurance is the only way to ensure that you will not be left holding the bill if you discover your property is encumbered by prior issues.

Even if the title insurance company's search does not reveal any problems and one arises later, the issue will be covered under your title insurance policy for the property. In this instance, the title insurance provider will work through the problems with the property for you even if the issue is discovered after closing.

Remember that your title insurance does not cover anything that happens to the title or the property after purchase and the transfer of the title to your ownership.

So while paying for title insurance seems redundant, it is the best way to legally and financially protect yourself from any problems related to your property prior to your ownership. Veitengruber Law recommends a thorough title search as well as good title insurance. We are an experienced real estate firm in New Jersey. We can help you protect your investment now and for years to come.

Can I Refuse to Join an HOA in New Jersey?

Thu, 10 Aug 2023 20:37:17 GMT

If you are a prospective homeowner considering purchasing within a neighborhood governed by an HOA, you should know your legal rights under their governance.

Homeowners Associations are more prevalent with every new housing development, and homeowners continue to chafe against HOA rules and regulations. If you are a prospective homeowner considering purchasing within a neighborhood governed by an HOA , you should know what your legal rights are under their governance.

Can you say no to joining an HOA? Perhaps, but you also have other options that may well be worth pursuing. Whatever your situation, Veitengruber Law will exhaust every avenue to help you gain autonomy over your home.

HOA Rules

HOAs create their own charters that detail how homes within their boundaries should be maintained, how homeowners should behave, and whether or not additional construction (e.g. sheds and granny units) shall be permitted. While there are certainly homeowners who prefer the security and predictability of buying under an HOA, there are downsides to consider.

Voluntary HOAs

As the name suggests, there are HOAs that are structured to be voluntary. While you’ll be able to easily decline membership in the HOA, you will be relinquishing your claim to the membership benefits as well. Before you decide whether or not to join, we can assist you in analyzing the specifics of the HOA to determine whether or not their rules will be a good fit.

Mandatory HOAs

Mandatory HOAs are by far the most common type, under which membership is non-negotiable. If you are sure you will be unhappy as an HOA member, we recommend finding a home that is located elsewhere.

New HOA Formation

If you have purchased a home within a growing community and an HOA is forming in your neighborhood, you will almost invariably be permitted to opt out. This likewise applies if your home is currently governed by a voluntary HOA that converts into a mandatory structure in the future.

However, you will hit a snag if you purchase a home that was originally under a voluntary HOA that has since converted into a mandatory HOA. You will be required to join the HOA to close on your desired property.

HOA Powers in New Jersey

In New Jersey, we do not have specific statutes that oversee and regulate their activity, but HOAs are bound to the rules contained in the New Jersey Planned Real Estate Development Full Disclosure Act (PREDFDA).

While each HOA is potentially unique, they often contain Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions, and further rules and regulations.

However, HOAs are still subject to federal laws, including the ADA and the Fair Housing Act.

In New Jersey, an HOA can:

Collect assessments for common expenses
Regulate common areas
Dictate exterior paint colors, fencing, and parking arrangements
Collect charges for late payments of assessments
Levy reasonable fines
Foreclose on a house for unpaid liens

Can My HOA Impose Fines on Me?

According to their charter, an HOA can fine any member for violating their rules. Fees will vary wildly from HOA to HOA and by severity of infraction, but $20 to $500 is within the expected range.

How We Can Help

As your attorneys, we at Veitengruber Law will evaluate all HOA rules that apply to your current or prospective home. Additionally, we can help you file complaints against your HOA, petition to leave the HOA, or even work to have the HOA dissolved.

How to Dissolve an HOA

Make no mistake: this is the nuclear option. It is a tremendous amount of work, but we will toil alongside you if you decide you’re up to the challenge.

An HOA will likely include a detailed process that must be followed to dissolve the association within its governing documents. If your HOA does not, the board members will have to decide to propose disbanding the HOA to all members.

In order to pass the resolution, you’ll have to gain support from more than two-thirds of voters. If you wish to throw your efforts into ensuring the motion passes, we recommend first joining the board, and then gradually speaking with homeowners to determine whether or not you can depend on them when it’s time for the vote.

Because the dissolution of an HOA must be overseen by a NJ real estate attorney, the cost of retaining our services may be divided between all homeowners who wish to see the HOA disbanded.

The Detail-Oriented Approach

As outlined above, the process of overturning an HOA is complicated, time-consuming, and costly. Before we recommend this avenue, consider whether there are specific rules of the HOA that you find untenable.

If your neighbors aren’t happy with the way the management is operating the HOA, or your unhappiness does come down to specific rules, there may be an alternate approach that will work: change from within.

Like disbandment, this method requires intensive effort, long months or years of work, and may not be successful. You will have to join the HOA, attend all board meetings, and continually advocate for the changes you desire.

If all else fails, become a board member. With enough time and political acumen, an HOA can be transformed from within.

The Takeaway

Before you search for a new home, determine your stance on HOAs. If you do wish to analyze the rules, regulations, and covenants to which you would be agreeing, please engage our services. Failing to do so may ultimately lead you to regret your decision to purchase within HOA boundaries.

Whether you are considering joining an HOA, are already an unhappy member, or are searching for a new home, it is always wise to have a reliable real estate attorney by your side. After all, HOA complexities are only one of a great number of situations through which Veitengruber Law can work on your behalf.

Can My Brother Force the Sale of Our Deceased Mother's Home?

Sun, 30 Jul 2023 20:42:02 GMT

Parents often pass property to their children as part of their estate plan, not only to protect their investment but also to pass wealth down to the next generation. But many fail to include directives in their estate plan that indicate what should be done with the property. This can create a highly complex situation.

When real estate is inherited, ownership typically passes to multiple people. Parents often pass property to their children as part of their estate plan, not only to protect their investment but also to pass wealth down to the next generation. But many fail to include directives in their estate plan that indicate what should be done with the property. This can create a highly complex situation, especially if the new owners cannot agree on the future of the property. If one owner wants to sell and one owner wants to keep the property, conflict can ensue. As an experienced real estate attorney, George Veitengruber, Esq, is uniquely positioned to offer advice on these difficult situations. Here are some tips for getting through co-owner property disputes.

There are certainly ways that this situation can be solved outside of legal action. The owner or owners that want to keep the property as a primary residence or secondary property have the option to buy out the owners that do want to sell. By offering to pay the other owners their portion of the fair market value of the home in exchange for sole property rights, everyone wins. Another solution is for the co-owner residing on the property to pay rent to the non-resident co-owners at a fair market price. However, if the sibling or owner that wants to keep the home cannot afford the house, cannot qualify for a mortgage, or cannot buy out the other owners, turmoil can persist.

In New Jersey estate law , something called partition action can be used to resolve the dispute. When a co-owner of a shared property refuses to sell the property or provide compensation for the other co-owners interests, a partition action can be used to separate the interests of one co-owner from the other co-owners. A partition action cannot be used when the co-owners are spouses.

To initiate a partition action, the action must be filed in the Superior Court of New Jersey in the county where the disputed property is located. The Court will then review the action and determine the best course of action to satisfy the ownership interests of each co-owner. The Court does have the authority to physically divide the property and distribute the split ownership rights amongst the co-owners. A commissioner will oversee the division of the property to ensure that everyone gets as even a split as possible. Typically, this option only happens when the property in question is vacant land instead of a property with a structure.

When a property contains a structure, like a home, it is not realistic or possible to physically divide a property in this way. If physically dividing the property is not possible due to size, configuration, special features, or structures on the property, the Court does have the right to order that the property as a whole be sold. The proceeds of the property sale will then be split evenly between the co-owners. The Court will authorize the sale of a property if and only if it is determined that a division of the property cannot be made without infringing on the equal property rights of the other co-owners.

If any of the co-owners paid to cover repairs, maintenance, taxes, insurance, or other ownership obligations, the Court will consider these costs when determining how to divide the proceeds of the sale. The Court will adjust the credits to account for co-owners that have invested more into the property. Directives in an estate plan that account for different levels of ownership rights will also be considered when determining the fair distribution of proceeds from the sale of the property.

Veitengruber Law has worked with many families to settle co-owner disputes. We emphasize to our clients that while partition action is a legal recourse when no other solution can be found, it should never be the first course of action. Negotiating between co-owners to find a solution everyone is happy with is typically the best course of action. Especially with inherited property, sentiment, and heightened feelings can make it difficult for those involved to make practical decisions. An attorney like Veitengruber Law can assist with these negotiations to find an agreeable solution for everyone involved. And if a solution cannot be agreed upon, we can also assist clients in bringing about a partition action.

Real estate law and estate law each have vast complexities that make it difficult for the average person to navigate. Veitengruber Law is experienced in both. We can help you traverse these difficult situations to find a solution that is acceptable to everyone involved.

Top Mistakes NJ Homebuyers Make: How to Avoid Buyer's Remorse

Sun, 16 Jul 2023 16:55:01 GMT

The best way to avoid buyer's remorse is to work closely with experienced real estate professionals. Here are five ways working with a real estate attorney can lessen your homebuying anxiety and help you make the best decision for your real estate goals.

Buying a home comes with a lot of anxiety. For most people, buying a home is the largest purchase they will make in a lifetime. Homebuying anxiety trips up many would-be homeowners in their real estate search. People worry about affordability, making a good investment, location, size, missing out on "the deal"—the list goes on. The best way to avoid buyer's remorse is to work closely with experienced real estate professionals. Here are five ways working with a real estate attorney can lessen your homebuying anxiety and help you make the best decision for your real estate goals.

1. Understand Mortgage Types

Before you agree to any mortgage, it is vital to understand your options and what each means for you. There are several kinds of home and mortgage loans, each with different pros and cons. The first lender you talk to may offer something other than the type of loan you are looking for. This is why shopping around for a mortgage that works best for you is essential. A real estate professional can explain each type of mortgage , which would likely work best for your situation, and tips on negotiating with a lender to secure the best loan for you.

2. Examine Closing Costs

As a homebuyer, you likely have a specific amount saved to cover the costs of purchasing a home. Closing costs, however, still tend to be a big shock for many homebuyers who were prepared for the downpayment but not the fees and expenses that go along with closing. In New Jersey, closing costs tend to be between 3% and 6% of the home's purchase price. Especially for first-time buyers, this can add a hefty price tag to the upfront costs of purchasing a home. Homebuyers with funding issues do have options, though. An experienced NJ real estate attorney can help you negotiate closing cost responsibilities in the home sale contract. It is common for buyers to ask sellers to cover some of the closing costs to decrease the buyer's closing cost burden. Ultimately, sellers may be more willing to cover some closing costs to sell quickly or in exchange for other buyer concessions.

3. Investigate the History of the Home

Before you purchase a home, it is very important to do your due diligence in researching the history of the house. Doing this can alert you to any physical or legal problems with the property. A capable real estate agent can help you discover how long a home has been for sale, how many times and how frequently the house has been on the market, and any previous failed sales that could signal issues with the home. A real estate attorney can help you dig through the records surrounding the property. This will tell you if there are any liens or encumbrances on the property that could tangle you in legal troubles later. An attorney has the research capabilities and legal insight to help you protect your investment before you even purchase the property.

4. Utilize the Attorney Review Period

New Jersey requires a three-day review period during which the respective attorneys of the buyer and seller are allowed to review the sales contract. The contract becomes binding at the end of the third day unless an attorney has raised a concern. This review period cannot be waived in New Jersey, and buyers and sellers can cancel the contract at any time during the review period. If any changes are made during the attorney review period, the review window is extended until all parties are in agreement. Having an attorney review the real estate contract can help protect your rights throughout the homebuying process and ensure that you can back out of the contract if the property is found to be lacking.

5. Hire a Real Estate Attorney

Many people talk about the importance of working with a real estate agent when purchasing a home. But few discuss the critical importance of working with a real estate attorney. An experienced real estate attorney offers a multitude of beneficial services intended to protect you and your investment. Every real estate transaction includes navigating your state and town's many complex real estate laws. Form contracts and documents can hardly cover all the complex, town-specific laws surrounding real estate transactions, which is why hiring an attorney is so essential. Working with a trustworthy real estate attorney can help you protect your best interest and avoid buyer's remorse.

Veitengruber Law is an experienced real estate law firm with years of success helping NJ homebuyers achieve their real estate goals. If you are considering purchasing a home in the near future or need an attorney to review a real estate contract, get in touch with us today.

NJ Real Estate Market Outlook for Buyers, Sellers, and Investors

Thu, 06 Jul 2023 17:58:59 GMT

As an experienced real estate law firm in NJ, Veitengruber Law is looking toward the major trends in NJ real estate. Here are some of the predictions the experts are making for the NJ real estate market throughout the rest of 2023.

First-time homebuyers, real estate veterans, and investors alike are all looking towards the future of the New Jersey real estate market. The market is experiencing a big shift right now. Whereas sellers had a tight grip on the market from mid-2020 until late last year, buyers are gaining more power in the current market. This shift can mean big things for anyone looking to make a real estate transaction in 2023. As an experienced real estate law firm in NJ , Veitengruber Law is looking toward the major trends in NJ real estate. Here are some of the predictions the experts are making for the NJ real estate market throughout the rest of 2023.

1. New Listings Are Slow but Improving

Compared to the end of last year and the first quarter of 2023, more homes are being listed on the market. The NJ home listings increased by over 96% in the first half of 2023. As economic uncertainty troubles many families across the US, some homeowners will look to downsize or move for financial reasons. These sellers may also feel less intimidated by entering the market now that things have slowed down a bit from post-pandemic highs. More homes on the market means more options for discerning buyers and investors. The more options, the better chance of finding a great deal within your budget. As more homes enter the market, sellers may also need to make concessions to make their listings more attractive compared to the competition.

2. Houses Stay on the Market Longer

The market has certainly slowed since last year. The average home in NJ stayed on the market for 41 days in the first half of 2023, 7 days longer than the average for 2022. Again, this is good news for buyers and investors. The longer a home remains on the market, the more likely a motivated seller will be willing to cut the price or accept concessions to secure the sale. Sellers may need to work with an experienced real estate agent to ensure they are pricing their property to sell. The high home prices of the last few years will begin to fall as homes remain on the market longer.

3. Mortgage Rates are Stabilizing

Mortgage rates have continued to rise in 2023, but the increases have slowed significantly. The average mortgage rate in NJ in the first half of 2023 was 6.79%. The staggering increases from 2022 appear to be tapering off to more incremental changes this year. While we are not likely to see the low mortgage rates of 2020 return anytime soon, a slow increase generally contributes to the market's overall stability. This stability in mortgage rates may entice more buyers to enter the market. However, as these rates continue to increase, buyers must understand how these interest rates impact their bottom line and set the budget maximum for their home search accordingly.

4. Home Prices Expected to Drop

As the market continues to slow, experts expect a dramatic decrease in home prices, with some predicting a price drop of as much as 20%. This will allow many buyers and investors who were previously priced out of the market to enter the market for a new home or investment property. Sellers and homeowners can generally expect the value of their homes to depreciate a bit over the next year or so. Sellers will likely see less profit as the year goes on. Because of these decreasing home prices, it is crucial for sellers to work with an experienced real estate expert to ensure their home is priced to sell in the current market.

5. Home Equity Borrowers Will Have Fewer Options

As home values skyrocketed in 2022, the equity homeowners had in their homes increased dramatically as well. The average American gained $60,000 in equity in 2022. As home prices decrease, so too will the value of property and homeowner equity along with it. This means that homeowners looking to borrow against their home equity will have fewer options available. It also means that homeowners looking to borrow should do so knowing that their home's value may soon decrease.

6. Upside Down Mortgages

One of the most significant risks for current homeowners is the possibility of going upside down on a mortgage . As home prices and values decrease, it becomes increasingly possible for homeowners to owe more on their mortgage than the home is worth. If a homeowner needed to sell the property during this time of low value, they likely would not be able to sell the house for as much as they owe, resulting in a short sale or even foreclosure. Homeowners who purchased a home recently or who have borrowed significantly from their home will be more at risk of this over the next year.

Real estate market conditions are ever-changing and evolving based on many shifting factors. Understanding the trends can help you make an informed decision about your real estate goals. Working with real estate experts like Veitengruber Law can also ensure that your investment is protected.

Intro to NJ Real Estate Contingencies

Thu, 29 Jun 2023 18:05:46 GMT

Contingencies in a real estate contract are more specific items not covered by the general purchase contract. Here, we take a look at some contingencies buyers and sellers should consider as they review the purchase contract.

In every real estate transaction, there is a purchase contract. This contract determines the terms of the transaction, including the responsibilities of all parties involved. This legal document will fully dictate exactly what and how you purchase or sell a property, so this document must be detailed, accurate, and thorough. When you receive this document, you will want to go through it line by line to make sure you agree with everything in the document before you sign . One section of this document is called contingencies.

Contingencies in a real estate contract are more specific items not covered by the general purchase contract. These are conditions that must be met for the sale to proceed. Buyers and sellers can submit contingencies. If an aspect of the sale is essential to your proceeding with the sale, it must be included in writing as a contingency in the purchase contract. Otherwise, it cannot be upheld in the deal.

There are common contingencies that appear in many real estate contracts and also situation-specific contingencies for more nuanced circumstances. Here are some contingencies buyers and sellers should consider as they review the purchase contract:

1. Financing Terms

For buyers financing the purchase of a home, including a financing contingency is a great idea. This kind of contingency will protect the buyer if they cannot secure the financing they need to purchase the home. If a buyer needs a specific type of loan or interest rate in order to afford the property, these kinds of specifications need to be spelled out in the contract. A real estate attorney can advise you on financing terms to include in the agreement.

2. Closing Costs Responsibilities

Buyers and sellers are responsible for different closing costs depending on what kind of real estate transaction occurs. It is also possible for the buyer or seller to negotiate closing cost responsibilities based on their needs. For example, buyers can offer to pay a higher home price to the seller if the seller agrees to help cover some closing costs. Sellers can negotiate with buyers on home repairs by offering to cover additional closing costs. However it is agreed upon, the contract will need to specifically indicate who is responsible for escrow fees, title search fees, title insurance, notary fees, recording fees, transfer tax, and any other closing costs.

3. Home Inspection

Home inspections are an essential part of any real estate transaction. Unless the buyer plans to completely tear down the structure on the property, a home inspection contingency should be included in the contract. A home inspection will uncover any problems with the home, from chipping paint to major structural damage. A home inspection report will help you determine the cost of repairs now or in the near future. A home inspection contingency will allow the buyer to back out of the deal if the home inspection uncovers any significant damage or major issues that cannot be resolved prior to closing. The inspection clause should detail how negative inspection findings will be dealt with between buyer and seller.

4. Fixtures and Appliances

All fixtures, appliances, furniture, or other home features that are or are not included in the sale and transfer of the property need to be listed in the purchase agreement. Verbally agreeing to what will stay or go in the property is insufficient. These understandings need to be spelled out in the contract. Sellers can often work with buyers to allow them to maintain specific fixtures or items in exchange for a higher sales price.

5. Closing Date

Buyers and sellers both have different needs when it comes to the closing date. Sellers may need time to find a new place to live. Buyers may need the funds from selling their old property to purchase the new property. Whatever the reasons, the closing date needs to be clearly stated in the contract. Standard closing time frames are 30, 45, or 60 days. But, if there are extenuating circumstances, these time frames can be lengthened as long as both parties agree. You can even include specific contingencies around when the buyer can move in or when the seller needs to be moved out.

The above are common contingencies that are included in most purchase contracts. But as any real estate professional will tell you, contingencies can get very specific and out of the box. If you want the favorable opinion of a feng shui specialist before going through with a home purchase, you can add that to the purchase agreement. Remember that for the contract to be finalized, the other party must agree to your contingencies, and some out-of-the-box requests may result in a rejected contract. However, if something is important to you, discussing with a real estate attorney how to best include these terms in the agreement is a good idea.

In New Jersey, you are allowed a three-day attorney review period during which a real estate attorney can go over the purchase contract with you, and you can present any concerns or propose contingencies. Veitengruber Law is an experienced NJ real estate law firm. We can help you understand what contingencies mean for you and how you can use them to maximize your investment.

What a NJ Real Estate Attorney Can Do For You

Thu, 22 Jun 2023 18:16:28 GMT

Real estate transactions include huge investments for all parties involved. There are significant benefits to working with a real estate attorney from early on in the process, whether you are a buyer or seller.

Whether you plan to purchase a home for the first time, buy a second home, sell a home, get a vacation property, or purchase an investment property—hiring a real estate attorney is the best way to protect your investment and your interests. Real estate transactions include huge investments for all parties involved. There are significant benefits to working with a real estate attorney from early on in the process, whether you are a buyer or seller. Here are some ways an experienced real estate attorney like Veitengruber Law can help you better achieve your real estate goals.

1. Negotiation

Attorneys are often considered professional negotiators and for good reason. While the average person does not spend much time in their daily lives negotiating terms, an attorney spends much of their career doing just that. This means that a real estate attorney will be far better positioned to negotiate a contract that is equitable or even in your favor. This can be useful, especially in today's real estate climate, where genuine property bargains are few and far between. Working towards terms that benefit you can mean the difference of hundreds and sometimes thousands of dollars over the course of your homeownership.

2. Drafting, Reviewing, and Finalizing Contracts

In any real estate transaction, there is a ton of paperwork. Purchasing or selling a home will require standard documents like sales contracts, appraisals, HOA documents, disclosures, home inspection reports, and other documents specific to your situation. While real estate agents, lenders, and other real estate professionals have a lot of experience with these transactions and the documents accompanying them, those professionals are not experts in real estate law or contract law. Without a real estate attorney, most transactions proceed with a generalized, pre-written contract with places to fill in the blanks with information pertinent to that sale.

When you work with a real estate attorney, they can develop a deal-specific contract that ensures every aspect of the sale is included. This is the best way to ensure that all the tiny details of an agreement are legally binding. Instead of a contract filled with boilerplate clauses that may or may not pertain to the real estate transaction at hand, you can come to the negotiation table with a detailed, specific contract that benefits everyone. And if your transaction goes beyond the typical real estate transaction—like if it includes a trust or a sizeable legal entity—an experienced real estate attorney will be able to draft the kind of complex contract you need to ensure the transaction goes smoothly.

3. Title and Liens Research

A lien and title search must occur before closing in every real estate transaction. Searching for titles and liens protects all parties and ensures no one has a financial claim on the property. This is good for the seller, as they will receive confirmation that they can legally sell the property. It is also good for the buyer, who will want to know that the property is free and clear of any financial entanglements. A real estate attorney can perform the lien and title search for you. If they discover that there is an outstanding lien on the property, they will be able to help you resolve the problem and keep the deal moving forward. Title issues can also be resolved or negotiated with the help of a real estate attorney. And if an issue cannot be resolved or indicates a bad deal, a real estate attorney can also advise when it is time to walk away from a real estate deal. These services can save you crucial time, money, and stress.

4. Proper Filings

Whenever a property changes owners, a new deed must be filed with the county in which the property resides. Often, a bank or mortgage lender will handle the process of filing the new deed. But a deed is an important, legally binding document. Even a tiny mistake can cause significant issues in the future. A real estate attorney is versed in the legal requirements of a deed and can ensure that the document submitted checks all the boxes. An attorney can often complete the filing process faster than your mortgage lender or bank.

5. Reviewing Home Inspection Documents or Disclosures

Most real estate transactions occur between two honest parties where the buyer and the seller negotiate in good faith. It is rare that one party is trying to enter into a contract through deceit, but it does happen. Because of this, it is essential to do your due diligence when reviewing documents pertaining to the property. All property sales come with some mandatory disclosures and inspections. This does not mean, however, that a desperate seller couldn't use creative language and loopholes to avoid telling the truth about a property. An experienced real estate attorney can spot the red flags of a shady disclosure statement or insufficient home inspection. If an attorney can sense that there are issues hidden within the creative jargon, they will be able to help you articulate the concerns.

6. Closing

People often think of closing as the meeting at which you sign all the paperwork and make the sale official. But closing is actually a multi-step process that can extend to before and after the in-person closing meeting. Closing includes filing the deed, resolving any last-minute disputes, and reviewing and signing a closing document. The closing document is an accounting of all the relevant financial transactions that pertain to the sale of the property, including earnest deposit, escrow, and final payment amount.

Other real estate professionals can handle many of the above aspects of a real estate transaction, but not with the legal expertise of an experienced real estate attorney. Working with a real estate attorney like Veitengruber Law can give you the peace of mind that your big investment is fully legally protected.

What is a Second Mortgage?

Thu, 08 Jun 2023 18:22:39 GMT

As a homeowner, your home is likely your most significant asset. A second mortgage will enable you to leverage the value of your home and the equity you have grown to get cash. Let's take a look at the pros and cons of a second mortgage so you can determine if it is the right choice for you.

A second mortgage is a type of loan that enables homeowners to borrow against the value of their home. As a homeowner, your home is likely your most significant asset. A second mortgage will enable you to leverage the value of your home and the equity you have grown to get cash. If approved, your lender will loan you a percentage of the equity you have in the home. You can use this money to pay off high-interest debt, return to school, or renovate your home. But because taking out a second mortgage requires you to use your home as collateral against your loan, you must consider your options carefully. Here, we explore the pros and cons of a second mortgage so you can determine if it is the right choice for you.

How does a second mortgage work?

A second mortgage allows you to take out a loan using your home as collateral. It is called a second mortgage because it is secondary to the purchase loan for your home. For example, if the worst-case scenario occurs and you lose your home in foreclosure, the funds raised by your lender in selling your home would first go towards paying off your first mortgage. Any remaining funds would be used towards your second mortgage. So while they are similar loans, your first mortgage gets precedent.

A second mortgage will utilize your home equity to allow you to pursue your financial goals without selling your house. Equity is the estimated market value of your property minus the balance of your loan. For example, if your home is worth $220,000 and you still owe $140,000 on your loan, your equity is worth $80,000. Your equity increases as you pay off your loan or if the value of your home increases. Your equity decreases when it loses value on the market or if you borrow against your home.

Second mortgages are sometimes called home equity lines of credit (HELOCs) or home equity loans. A HELOC is a pool of money you can choose to withdraw from if the need arises. You are not required to take the money, but it is there for you if you want it. Lenders will establish a maximum borrowing limit; you can borrow as many times as you want until you reach that limit. You can pay down the loan and borrow similarly to a credit card. A home equity loan is one deposit of money taken at one time. You will repay this loan gradually over time with interest.

What are the pros of a second mortgage?

High Loan Amount: If you need to borrow a significant amount of money, a second mortgage can help you do so. Because the loan is secured by your home, which is probably worth a lot of money, you can access loans for higher dollar amounts than a personal loan or other unsecured loans. Some lenders will approve you to borrow up to 80% of your home's value.
Lower Interest Rates: Lenders tend to give more favorable terms to second mortgage loans, including lower interest rates. Securing the loan with your home lowers the risk for your lender, and they are, therefore, more inclined to give you a lower rate. This is one of the reasons people commonly use second mortgages to pay off high-interest debts.
Tax Benefits: Using your second mortgage for home renovations can mean a tax deduction. Using the money from your second mortgage to build, purchase, or renovate your home can qualify you for a tax break.

What are the cons of a second mortgage?

Foreclosure: One of the most significant risks of taking a second mortgage is the risk of foreclosure. When you use your home as collateral, you risk losing your home in foreclosure. If you stop making payments, your lender could pursue foreclosure. For example, using a second mortgage to consolidate credit card debts may seem like a good idea upfront because you can secure a lower interest rate for your debts. But if you cannot make the payments, you are risking more than bankruptcy or a hit to your credit score. You could end up losing your home.
Costs and Fees: Second mortgages can be expensive. Even just to get approved, you must pay for credit checks, appraisals, origination fees, and even closing costs. If you are working with a different lender than your first mortgage, you will also need to pay an additional fee for the lender to be in a second lien position. All of these costs and fees can add up to thousands of dollars.
More Interest: Whenever you borrow money from a lender, you have to pay interest. And while second mortgage rates are typically lower than credit card rates or even personal loan rates, they're typically higher than your first mortgage rate. A second mortgage is more debt and more interest that you will have to repay.

Is a second mortgage right for me?

Second mortgages can be a great financial opportunity to use your investment to pursue other goals you wouldn't otherwise be able to pursue. If you thoroughly assess your finances and determine that you can afford the extra payments towards a second mortgage, go for it. But putting your home on the line isn't worth it if you are borrowing money to pay off other debts with no clue how you will make up the difference.

In addition to determining how to afford the second mortgage, you must consider what you intend to use the funds for. Using that money to improve your net worth or your home's value are worthwhile reasons to take out a second mortgage.

If you are considering taking out a second mortgage or have already done so and are worried about your payments, Veitengruber Law can help. We can help you get the most out of your home value.

NJ Foreclosure Rates Update and How Veitengruber Law Can Help

Tue, 30 May 2023 18:27:36 GMT

Several factors have led to the increased foreclosure rate across the country, and New Jersey is not immune to this trend. If you are a New Jersey homeowner, it is important to understand the factors leading to an increased rate of foreclosure in NJ as well as what steps to take if you find yourself facing foreclosure.

The foreclosure data for the first quarter of the year are in, and Americans are losing their homes in foreclosure at a faster rate in 2023. Several factors have led to the increased foreclosure rate across the country, and New Jersey is not immune to this trend. For years, NJ has ranked in the top five states with the highest rate of foreclosure. If you are an NJ homeowner, it is important to understand the factors leading to an increased rate of foreclosure in NJ as well as what steps to take if you find yourself facing foreclosure.

What is the rate of foreclosure in New Jersey?

During the first quarter of 2023, the US average of foreclosures was one in every 1,459 households. In New Jersey, the average was one in 824 households. NJ has the third highest foreclosure rate, behind only Illinois and Delaware. NJ's foreclosure rates are also impacted by the foreclosure rates of the major metropolitan areas around it. Much of NJ is strongly tied to either Philadelphia or New York City. In Q1 of 2023, NYC saw 4,674 properties enter foreclosure, and Philadelphia saw 1,985 properties enter foreclosure.

Why are foreclosure rates increasing?

Last year, real estate and finance experts predicted a return to pre-pandemic foreclosure rates and their predictions are coming true. During the COVID-19 pandemic, the federal and state governments put many protections in place to stop foreclosures from happening and keep homeowners in their homes. They did this to prevent an avalanche of foreclosures during a time when people were experiencing job and income loss, quarantine, and medical crises. During the pandemic, the rate of foreclosure plummeted. Since the foreclosure moratorium was lifted, banks and lenders can again pursue foreclosure.

As banks and lenders try to make up for lost time, other factors also contribute to the increase in foreclosures. Those include:

Inflation: Across the US, consumers are struggling with inflation. 2023 has seen the worst inflation since 1981. Put simply, consumers are paying more for less. Homeowners are spending more on essential goods and services and increased interest rates. The effects of inflation can make it impossible fo homeowners to keep up with their mortgages, leading to foreclosure.
Unemployment: NJ ranks 15th in the country for unemployment. While the NJ unemployment rate has steadily dropped since early in the pandemic, this number does not paint a complete picture of the reality of NJ workers and homeowners. Because NJ has one of the highest costs of living in the US, even those employed can struggle to keep up with the financial demands of homeownership in NJ.
Housing Market Vulnerability: Because of NJ's high cost of living, housing can be unaffordable even in ideal economic conditions. Given the current bumpy economy, purchasing a home in NJ can be difficult for the average person. NJ's most vulnerable housing markets will be the NYC and Philadelphia suburbs.

Should NJ homeowners be concerned?

Yes and no. While the economy, in general, is a bit precarious right now, homeowners with solid financial footing should not fear foreclosure just because foreclosure rates are rising. However, homeowners everywhere should be aware of the foreclosure trends in their area.

One big reason for the high foreclosure rate in NJ specifically is that NJ has one of the most prolonged foreclosure processes in the country. As a judicial foreclosure state, foreclosures must be processed within the court system. Court proceedings can take much longer than the process in non-judicial states. The foreclosure backlog built up in the NJ court system has also been impacted by many foreclosures put on hold during the pandemic. Many of the loans entering the foreclosure process this year are old and have been in trouble for years but are just now entering the court system. Not to say that the rising foreclosure rate in NJ is inflated, but this backlog is a contributing factor to the high rates.

NJ foreclosure rates are increasing for many reasons, but the average homeowner should not be overly concerned about these rates. Foreclosure levels are reaching pre-pandemic levels, but the recent increase in foreclosures is more of a return to "normal" levels instead of indicating that the state's economy is poor or that there is weakness in NJ's housing market. However, it is crucial to be proactive if you worry you may lose your home to foreclosure by contacting a foreclosure attorney.

What can a foreclosure attorney do for me?

An experienced foreclosure attorney can help you prevent foreclosure from happening and help you keep your house when it does. Here is some of the legal help you can expect:

Decrease the original amount of the loan. A foreclosure attorney experienced with negotiations may be able to convince your bank to decrease the overall amount of the loan to make payments more manageable.
Assist with a loan modification. A loan modification can adapt the terms of your loan to make monthly payments more manageable. A foreclosure attorney can help you submit an application mortgage providers should accept.
Apply foreclosure defense techniques. In court, a foreclosure attorney can use the law in your favor to defend your homeowner's rights.
Extend time in the home. Whether you are working towards retaining homeownership or just trying to buy more time to figure out your next step, a foreclosure attorney can help you stay in your home longer.

Foreclosure is stressful and can be a daunting, long, complex legal process in NJ. Working with an experienced and professional foreclosure defense attorney can help ease some of this anxiety. Veitengruber Law is here to help. We have experience in New Jersey foreclosure law. We can provide the compassionate support and legal advice you need to save your home.

10 Things You Didn't Know About NJ Foreclosure

Wed, 17 May 2023 18:31:22 GMT

While working with NJ homeowners, we have come to understand some of the biggest misconceptions people have about the foreclosure process. Here we answer some of our client's most frequently asked questions.

Facing foreclosure can be a stressful and confusing time. New Jersey homeowners face one of the country's highest foreclosure rates . As a New Jersey foreclosure defense law firm, Veitengruber Law has helped hundreds of NJ homeowners keep their homes. While working with NJ homeowners, we have come to understand some of the biggest questions and misconceptions people have about the foreclosure process. Here we answer some of our client's most frequent questions.

1. Do I need to leave when I get the foreclosure notice?

No. A notice that your lender has filed a foreclosure lawsuit against you differs from a notice that you are being evicted. The foreclosure process can take 3-4 months or longer, from the initial filing of the lawsuit to when you must leave your home. Just because you are served with a notice of foreclosure does not mean you have to leave your home or even that you will ultimately lose your home.

If your home is foreclosed on and your lender wins the right to take the property back, you will receive a notice from the Court or the Sheriff's office that you are being evicted with a date you must leave by. Once the Sheriff's sale goes through, the new owner will acquire a Writ of Possession. This will allow them to begin the eviction process. The new homeowner will be required to give you some time to get your things from the property and leave.

2. Can bankruptcy save my home?

Yes! As a bankruptcy and foreclosure attorney, we have often worked with clients to use bankruptcy as a tool to stall foreclosure and even save our client's homes. Until the home is sold at a Sheriff's sale, you can file for bankruptcy to enter the automatic stay. During the automatic stay period, any court proceedings will automatically stop. Lawsuits filed by your lenders will go on hold until the bankruptcy has been settled. Chapter 7 bankruptcy will eliminate many of your debts, while Chapter 13 bankruptcy will set you up with a payment plan to cure outstanding debts and create a path for you to keep your home. The kind of bankruptcy you file depends on your specific situation and goals.

3. Can my lender take my other assets in a foreclosure?

A foreclosure lawsuit does not allow your lender to seek money or other assets from your estate. The only property in the foreclosure proceedings is the specified real estate. On rare occasions, a lender can file a separate lawsuit to get a judgment for a specific dollar amount. At this point, the lender could try to go after some of your other assets.

4. Will I lose the equity in my home during a foreclosure?

There are a few scenarios to consider that determine what happens to the equity in your home. If the real estate sells for less than you owe at the Sheriff's Sale, you will not get any money back. The bank or lender will take any equity you have in the home in the sale. Selling your house before a Sheriff's Sale can be a smart move if you think you can get more than what you owe in a regular sale.

If your property sells for more than what it is worth at the Sheriff's Sale, it is possible to regain some of the excess profit. These surplus funds will be deposited with the Court. The former homeowner will then have the option to file a motion requesting the Court turns over the excess funds. However, anyone with a lien on the property can also file a motion for these funds. The Court will determine whom the funds should go to.

5. Will I owe my lender money after a Sheriff Sale?

After a Sheriff Sale, the lender can ask the former owner to make up the remaining funds if the home has sold for less than the foreclosure judgment. This involves a new lawsuit, is often very time-consuming, and is not a typical result of a foreclosure in NJ.

6. Can I get my home back after it is sold at a Sheriff's Sale?

After a Sheriff Sale, the owner has ten days to redeem the property. To redeem, you must pay back the entirety of the amount owed for the foreclosure judgment. Filing for bankruptcy at this point can also grant you an additional 60 days to acquire the necessary funds to redeem the property.

7. When can I cancel the insurance on my property?

You must insure your property until ten days after the Sheriff Sale or until the deed has officially transferred out of your name. If you cancel your insurance, you will still be responsible for any liability claims until the deed transfers. Any injuries or damage to others' property will fall on your shoulders.

8. What can I remove from the home after it sells at a Sheriff's Sale?

As the homeowner, you can take any personal property in the home. This excludes permanent fixtures like plumbing, toilets, built-in appliances, and mechanical fixtures. You essentially cannot remove any items that would cause damage to the property to remove.

9. What condition must the home be in upon moving out?

You are not obligated to leave the home empty or clean before moving out of a foreclosed home.

10. What happens to possessions left behind in a foreclosed home?

If you leave items behind after the eviction date, the Sheriff will come to remove any personal property remaining in the home. The belongings will then go to a storage facility. Because it can be challenging to get these belongings back, it is advisable to remove all your personal property from the home before eviction.

If you are currently going through the NJ foreclosure process—or fear you may soon be— Veitengruber Law can help. We can help you understand the NJ foreclosure process and assert your rights throughout the foreclosure proceedings.

Chapter 13 Bankruptcy and the Cramdown

Wed, 10 May 2023 18:36:47 GMT

Chapter 13 bankruptcy is a common way to pay down debts while spending less money overall on those debts. Chapter 13 bankruptcy also allows you to "cram down" some of your debts.

Chapter 13 bankruptcy can be a great tool to help you pay off unmanageable debt. Under Chapter 13 bankruptcy, your eligible debts will enter into a new repayment plan for 3-5 years, depending on the terms applied by the court. During that time, you will make one monthly payment toward these debts. Any persisting unsecured debt will (usually) be discharged after your repayment plan term is completed. Chapter 13 repayment plans often allow for smaller monthly payments and better interest rates than the original terms of the debts. For this reason, Chapter 13 bankruptcy is a common way to pay down debts while spending less money overall on those debts.

Chapter 13 bankruptcy also allows you to "cram down" some of your debts. A cramdown can help you keep your car, investment property, or other properties. A cramdown will enable you to lower the principal balance of a secured debt to the estimated value of the property the debt is secured by. Here is how a cramdown in Chapter 13 bankruptcy can help you.

How Does a Cramdown Work?

A cramdown is most often used in Chapter 13 bankruptcy with car loans, so here is an example of how that can work:

The car loan balance on your car is $15,000. However, in an analysis of the fair market value, your vehicle is only worth $7,000. Chapter 13 bankruptcy will allow you to cram down your loan to the car's value, $7,000. The remaining balance, $8,000, will be added to your other unsecured debts (credit cards, personal loans, etc.). Any persisting unsecured debt will typically be discharged at the end of the repayment plan term. This means you will only pay a fraction of the unsecured debt. And because you will have paid down the $7,000 of the car's value, you will also own the vehicle free and clear when the bankruptcy is over.

What Debts Are Eligible?

Not all debts are eligible for a cramdown . You can only cram down specific secured debts. Secured debts are debts in which your lender has a security interest, like a car loan or mortgage. If you default on those loans, your lender can recoup their losses by repossessing those assets. You cannot get a cramdown for all secured debts, however. For example, you cannot cram down your mortgage on your primary residence. But you can cram down car loans, investment property mortgages, and personal property loans for non-real estate items (like household furnishings).

What are the Advantages of a Cramdown?

You can use a cramdown to reduce your interest rate and extend your payments over a longer term. This will reduce the monthly amount you have to pay towards that debt. When you enter bankruptcy, the court will determine the interest rate you pay to secured creditors. The interest rate in bankruptcy is often much lower than the already established interest rate on your original loan. With interest rates trending upward right now, this alone can be the difference between debt you can reasonably pay back and debt that is unrealistic for your budget.

Because the Chapter 13 repayment plan is stretched out over three to five years, you can often stretch out payments to create a lower, more manageable monthly payment. Again, once you finish the bankruptcy repayment plan at the conclusion of the 3-5 year term, you will own the secured property outright.

Are There Any Cramdown Restrictions?

There are federal restrictions concerning the situations in which you can use a cramdown. These restrictions are intended to prevent people from cramming down on recent expensive purchases. There are three main restrictions:

910-Day Rule on Car Loans

You are only eligible to cram down your car loan if you purchased the car over 910 days before filing for bankruptcy. This is around 2 ½ years. The 910-day rule is intended to prevent people from using the cramdown to purchase a new car and then instantly pay less on the loan by filing for bankruptcy. This rule applies only to auto loans.

1-Year Rule on Other Personal Property Loans

Like the above 910-day rule, the 1-year rule applies to other personal property like household appliances, furniture, or other items. You must purchase these items at least one year before filing for bankruptcy for that debt to be eligible for a cramdown.

Rules on Investment Property Mortgages

The vast majority of courts will expect you to pay off the entirety of the value of secured property by the end of your bankruptcy repayment plan. Because these repayment plans are three or five years, paying back debt from investment properties can be challenging. Even a crammed-down mortgage can be tens of thousands of dollars. Paying back that kind of money in three or five years can be unrealistic. This will result in one of two issues:

1. You will end with a balloon payment for the loan balance at the end of the repayment plan. Especially coming out of bankruptcy, this can be an unmanageable financial burden. Many bankruptcy courts will not even allow you to end up with this option unless you can prove you can pay off the balloon payment, like by selling other investment properties.

2. Your monthly payments will be very high in order to pay back the entirety of the debt in the three to five-year term for the bankruptcy repayment plan. Since most folks going through bankruptcy are already struggling with monthly payments, this can be an unrealistic option.

For this reason, many going through bankruptcy choose not to cram down investment property mortgages.

However, if your specific situation allows for it, there are benefits to a mortgage cramdown, including:

1. A Lower Interest Rate:

Because the court determines your interest rate during a cramdown in bankruptcy, you can avoid paying high-interest rates on your mortgage. The bankruptcy courts will typically approve a rate that is the prime rate plus a few points—which is often lower than the interest rate on the original loan.

2. No Deficiency:

Many people file for bankruptcy to avoid foreclosure. During foreclosure, the lender will sell your real estate property for whatever they can get. You may then owe the lender the difference between the balance still owed on the mortgage and the profit generation by the sale of the property. This amount is called the deficiency. However, after a mortgage cramdown, you will no longer be liable for the amount of debt that is not secured if your lender ends up foreclosing on the property. This unsecured amount of the loan is typically about the same as the deficiency, canceling out your responsibility for it.

Not all debt is eligible to be crammed down, and a cramdown doesn't make sense for everyone going through bankruptcy. But the benefits are worth looking into. If you are trying to decide if Chapter 13 bankruptcy is right for you, Veitengruber Law can help.

NJ Real Estate Market: Will it Crash in 2023?

Sat, 29 Apr 2023 18:40:55 GMT

Sellers are dropping their list prices as homes linger on slow markets to entice potential buyers. While this is giving NJ homebuyers more power in a market that has favored sellers for the last three years, many homeowners are worried about these price decreases and asking the age-old real estate question: when will the market crash?

The latest real estate data indicates a big shift in the New Jersey housing market. While the median sale price of a New Jersey home was still up in the first quarter of 2023, the number of homes sold decreased by over 30%, according to data from Redfin. This is likely due to 20-year high mortgage rates scaring would-be buyers away from the market. Sellers are dropping their list prices as homes linger on slow markets to entice potential buyers. While this is giving NJ homebuyers more power in a market that has favored sellers for the last three years, many homeowners are worried about these price decreases and asking the age-old real estate question: when will the market crash?

Most real estate experts would agree that the housing market in New Jersey is currently forming a housing market bubble. A housing market bubble is a real estate term that describes a scenario in which housing prices drastically rise while there is an increasing demand for a limited supply of homes. The bubble expands until home prices reach precarious levels, making the purchase of a home unobtainable for the average buyer. Housing market bubbles can be caused by times of economic prosperity, low mortgage rates, and easier access to financing for homebuyers. When these factors work together, a bubble grows. When these factors begin to falter, the bubble can burst.

A housing market crash typically refers to the moment a housing market bubble bursts. Housing bubbles can burst when there is a sharp increase in interest rates, as we have seen over the last year. A crash can also occur during economic downturns and times of increased layoffs, income loss, and inflation—which we have also seen over the last year. Another contributing factor to a bubble burst is high credit standards. If mortgage lenders make it more challenging to secure financing, home affordability will become more difficult for the average buyer.

Because we have seen such a significant increase in interest rates and economic strife as inflation causes prices to rise, it is no wonder folks are asking when we can expect the real estate market to crash. However, many real estate experts expect the market to cool off but not crash anytime soon. So while prices will begin to fall a bit, homeowners should not expect the worth of their home to drop significantly.

Some of the factors buoying the market are:

1. Low Inventory

Despite recent high list prices, a limited number of homes are still on the market. This scarcity has forced homebuyers to compete over a limited supply, often bidding for higher than the list price on desirable properties. Over the last three years, low-balling a real estate offer has become unheard of. If buyers want to stay competitive against other buyers, they must continue to offer the list price or more. For this reason alone, folks should not expect home prices to crash anytime soon.

2. Few New Builds Available

The new construction market is slow right now. Supply chain issues and inflation have made it difficult for the average buyer to consider building new. When there is an influx of new builds, buyers have more home options and can be less generous with their offers. Less buyer competition often means home price decreases. And while new builds are trending upward again, putting new builds on the market takes time. A housing crash due to increased inventory via new builds is very unlikely in the near future.

3. New Buyers

Various demographics are entering their prime home-buying years. Millennials finally edged out Baby Boomers as the generation buying the most homes in 2022. With the youngest Millennials only in their mid-20s, this trend is expected to continue for years to come. According to statistics, 24% of younger Millennials moved directly from their childhood family home into a home they purchased.

The Latino population has also seen an uptick in homeownership across NJ. Some experts predict they will account for nearly 70% of homeownership growth over the next two decades. Much of this growth overlaps with Millennials, as educated second or third-generation Millennial Latinos look to become first-time homeowners.

These two big demographics are expected to keep bids for houses competitive as inventory remains low. Savvy real estate professionals will no doubt begin actively working towards attracting these demographics to the NJ housing market with the promise of jobs and proximity to big cities.

4. Stricter Lending Practices

Lenders learned a lot from the 2008 housing crash caused by borrowers defaulting on subprime mortgages, many of which were predatory in origin. Now, buyers must go through a stringent financial background check before getting approval for a mortgage. Buyers must have excellent credit, stable income, proof of down payment, and more to qualify for a mortgage. Getting the best rates on a mortgage loan is even more challenging. These prerequisites automatically disqualify many folks from homeownership due to their inability to secure financing.

With interest rates as elevated as they are now, many hopeful buyers spend much more time building a credit history, increasing their credit score, and saving funds for a larger down payment before beginning their home search. Because of this, fewer homeowners are defaulting on their mortgages.

5. Decrease in Foreclosures

While New Jersey still has one of the highest foreclosure rates in the country, we have seen a slight drop in foreclosure rates over the last fifteen years. This is likely because most NJ homeowners have significant equity in their homes. This makes their position as a homeowner stronger and more durable than in previous years. When financial troubles arise, and the economy takes a downturn, these homeowners are more equipped to weather the storm without resorting to foreclosure. The more financially robust NJ homeowners are, the less likely there will be a housing market crash anytime soon.

The NJ housing market is constantly changing. Many factors contribute to the stabilization of the housing market, and a shift in any of those factors can drastically change the reality of real estate in the Garden State. But current trends do not suggest that a housing market crash is imminent. The difficult lessons many learned in the 2008 housing market crash still haunt the minds of those worried about it today. But for that exact reason, a crash likely won't happen anytime soon. Many real estate professionals learned big lessons then that are informing better choices today.

Veitengruber Law is a New Jersey real estate law firm that can help you achieve your goals. Regardless of the market, we can help you protect your interests as you make what is probably the most significant investment of your life.