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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.

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.

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.

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.

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.