Wolfenson & Ashkenazi, P.C.Union NJ Bankruptcy & Family Law Attorney | Wolfenson & Ashkenazi, P.C.2024-03-18T19:31:28Zhttps://www.wolfensonlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1302330/2022/01/cropped-siti-32x32.pngOn Behalf of Wolfenson & Ashkenazi, P.C.https://www.wolfensonlaw.com/?p=497142024-03-15T19:32:28Z2024-03-18T19:31:28ZFinancial disclosure
The main purpose of the Case Information Statement is to provide full and accurate financial disclosure to the court. Both spouses must complete a CIS and provide supporting documentation. This might include pay stubs, tax returns, bank statements and asset valuations. This information allows the court to assess each spouse's financial situation and make fair and equitable decisions regarding financial matters.
Basis for negotiation
The information in the CIS serves as the basis for negotiation between the spouses. By reviewing each other's CIS, spouses can identify areas of agreement and disagreement regarding financial issues. Negotiations may involve discussions about alimony, child support, equitable distribution of assets and other financial matters.
Court consideration
In contested divorces, the judge reviews the CIS during hearings or trials. The judge considers the information provided in the CIS and other evidence and testimony when making decisions about financial issues. The accuracy and completeness of the CIS are key, as any discrepancies or inaccuracies could impact the court's rulings.
Understanding the purpose and significance of the CIS is helpful for anyone navigating divorce proceedings in New Jersey. Divorcing parties must sign the agreement under oath, ensuring the accuracy and truthfulness of the information given.]]>On Behalf of Wolfenson & Ashkenazi, P.C.https://www.wolfensonlaw.com/?p=496922024-03-04T22:43:13Z2024-03-04T22:43:13ZHow a bankruptcy filing can help
The point of bankruptcy is to provide an individual with relief from untenable financial circumstances, including stressful collection efforts. Some of that relief comes from a discharge at the end of the process. The courts can absolve someone of their legal obligation to pay off certain qualifying debts.
As a discharge often takes months to secure in a Chapter 7 filing or years if someone files a Chapter 13 bankruptcy, creditors could take aggressive action in the interim were it not for the protection of the automatic stay. As soon as someone files for bankruptcy, the courts send out notice to reporting authorities, including the credit bureaus. Most companies engaged in financing or debt collection subscribe to services that provide them with same-day notice of bankruptcy filings. That way, the company can automatically cease making phone calls and sending letters about past-due accounts.
If a creditor has already initiated a lawsuit against someone, a timely bankruptcy filing could result in the dismissal of the pending lawsuit. The filer then has an opportunity to rework their budget and could possibly even negotiate with lenders about their arrangements for repaying their debt.
A creditor lawsuit could very easily take a difficult financial situation and make it far worse. Securing an automatic stay by filing for personal bankruptcy might put someone in a position to regain control over their chaotic financial circumstances in the wake of a creditor lawsuit.]]>On Behalf of Wolfenson & Ashkenazi, P.C.https://www.wolfensonlaw.com/?p=496852024-02-27T21:49:05Z2024-03-04T21:47:46ZMonthly income calculation
The means test begins by calculating your average monthly income over the six months before bankruptcy. The court considers all sources of income, such as wages, rental income and other forms of financial support.
Median income comparison
Next, the means test compares your calculated income to the median income for a Maryland household of the same size. You pass the means tests and qualify to file Chapter 7 if your income falls below the median. However, you do not immediately fail the means test if your income exceeds the median.
Disposable income determination
The court will adjust your income by the amount of allowable expenses. Examples include housing, utilities and other necessities. You may still qualify for Chapter 7 if your adjusted income falls below the median amount. If your income still exceeds the median after these adjustments, you can seek a repayment plan through Chapter 13 bankruptcy.
The means test limits the availability of Chapter 7 bankruptcy to individuals who do not have the financial means to pay their debts. More than 5,900 Maryland residents filed for Chapter 7 bankruptcy in 2023 alone. If you cannot keep up with your bills, understanding and taking the means test can help determine your path out of a difficult financial situation.]]>On Behalf of Wolfenson & Ashkenazi, P.C.https://www.wolfensonlaw.com/?p=496842024-02-15T22:21:54Z2024-02-20T22:21:45ZDuration of the marriage
The length of the marriage is an important factor in determining spousal support. Short-term marriages may result in limited alimony, while long-term marriages often lead to more substantial support.
Income disparities
The income of each spouse plays a pivotal role. New Jersey courts consider the earning capacity, skills, education and employability of both parties. A significant income gap may lead to higher alimony payments.
Standard of living
The lifestyle maintained during the marriage is another influential factor. The court aims to ensure that both spouses can sustain a similar standard of living post-divorce, which may impact the amount of support.
Custody arrangements
Child custody arrangements can impact alimony calculations. The custodial parent may receive additional support to meet the children's needs.
Health and age
In considering spousal support, the court takes into account the health and age of each spouse. If a spouse has health issues or is of advanced age and has a limited ability to earn a living, they may receive higher alimony.
Financial contributions
In alimony determinations, the court weighs the financial contributions each spouse made to the marriage, including homemaking and childcare.
By considering various factors, the court strives to reach a fair and impartial outcome in alimony cases.]]>On Behalf of Wolfenson & Ashkenazi, P.C.https://www.wolfensonlaw.com/?p=496832024-02-06T19:26:29Z2024-02-06T19:26:29ZConventional loans
In New Jersey, if you secure a conventional mortgage and make a down payment of less than 20%, mortgage insurance is generally required. This insurance, known as Private Mortgage Insurance, becomes a safeguard for the lender, mitigating the risk associated with lower down payments.
Federal Housing Administration loans
For those opting for an FHA loan, mortgage insurance is mandatory regardless of the down payment amount. These loans are popular among first-time homebuyers due to their lenient credit requirements and lower down payment options. However, borrowers must pay an upfront premium at closing as well as an annual premium, which gets divided into monthly payments.
USDA and VA loans
Home loans through the U.S. Department of Agriculture or the Department of Veterans Affairs typically do not require you to get mortgage insurance. However, eligibility criteria and property requirements apply, and it is essential to fulfill them for these specialized loans.
The impact on homebuyers
The requirement for mortgage insurance can impact the overall cost of homeownership. Monthly premiums can add a substantial amount to your mortgage payment, affecting your budget. On the other hand, a larger down payment to surpass the 20% threshold can potentially exempt you from this additional expense.
Understanding these factors can help you make informed decisions when navigating the homebuying process.]]>On Behalf of Wolfenson & Ashkenazi, P.C.https://www.wolfensonlaw.com/?p=496822024-01-19T20:12:59Z2024-01-23T20:12:53ZStable income
The foundation of Chapter 13 eligibility rests on having a stable income. This ensures the debtor can meet the proposed repayment plan. Those with irregular or insufficient income may find Chapter 7 more suitable.
Secured and unsecured debt limits
Chapter 13 imposes limits on the amount of debt an individual can carry. In 2023, the government required total secured and unsecured debts to be less than $2.75 million These limits act as guardrails, determining who can benefit from the tailored debt restructuring offered by Chapter 13.
Regular income tax filings
Prospective filers must showcase a track record of regularly filing income tax returns. This reflects financial transparency and aids in formulating a feasible repayment plan. It is not just about the income amount but also about the consistency and responsibility demonstrated through tax compliance.
No discharge within two years
To maintain the integrity of the bankruptcy process, individuals are ineligible for Chapter 13 if they received a discharge in a previous case within the last two years. This safeguard prevents misuse of the bankruptcy system and encourages responsible financial behavior.
Adequate disposable income
Chapter 13 requires debtors to have adequate disposable income after covering essential living expenses. This surplus income becomes the foundation for the proposed repayment plan. Calculating disposable income involves deducting necessary expenses from total income, ensuring a reasonable allocation towards debt repayment.
In FY 2023, U.S. courts had 178,214 Chapter 13 filings. While any kind of bankruptcy requires significant consideration, Chapter 13 is a debt restructuring option that many use for a more stable and secure financial future.]]>On Behalf of Wolfenson & Ashkenazi, P.C.https://www.wolfensonlaw.com/?p=496812024-01-10T16:26:41Z2024-01-10T16:26:41ZUnderstanding separation agreements
A separation agreement is a legally binding document that outlines the terms and conditions of a couple's separation. It covers various aspects, including the division of assets and child custody arrangements. This agreement allows both parties to have a clear understanding of their rights and responsibilities during the separation period.
Benefits of signing a separation agreement
By signing a separation agreement, both spouses gain clarity regarding the division of assets and responsibilities. The agreement can also provide a sense of financial security by specifying the terms of spousal support or child maintenance. This helps both parties plan for their financial future with more certainty. Having a separation agreement in place may even expedite the divorce process. It can serve as a roadmap for the legal proceedings, potentially reducing the time and resources spent on negotiations.
Considerations before signing
The effectiveness of a separation agreement lies in the mutual agreement of both parties. It should be a product of open communication and compromise. For the sake of fairness and good faith, you should also ensure the separation agreement allows for modifications if needed. C potential changes in income, living arrangements and other relevant factors.
The CDC reports that the divorce rate in New Jersey is 2.2 divorces per every 1,000 population. Out of these New Jersey divorces, it is statistically likely that some of them will be highly contentious. A mutually agreeable separation agreement can alleviate many possible conflicts that might arise during the process.]]>On Behalf of Wolfenson & Ashkenazi, P.C.https://www.wolfensonlaw.com/?p=496802024-01-04T15:30:00Z2024-01-04T15:30:00ZBuyers can protect themselves
Those planning to buy real property in New Jersey typically integrate protective terms into their offers. For example, they include contingencies that allow them to cancel the closing in specific circumstances. They also set a specific possession date so they can plan their move.
If there is any question about the seller's timeline for moving out of the property, buyers may also propose terms for a post-closing occupancy agreement. This is essentially a rental arrangement where the seller pays a per diem fee to remain in the home after the closing. The buyers can therefore recover any expenses they might incur if the seller does not leave on time. They can include those per diem costs in any legal action they need to take against the seller.
If the per diem rate is high enough, the seller may have extra incentive to leave the property as soon as possible. Sometimes, possibly because of the lack of a post-closing occupancy agreement, sellers stay with little consideration for how their choice inconveniences the party buying their home. In these situations, buyers might need to actually evict a seller if they refuse to leave the property at the scheduled time.
Buyers who understand the risks inherent in real estate transactions may have an easier time protecting their interests. Including the right terms in real estate offers and enforcing contractual agreements can take some of the risk out of buying real property in New Jersey.]]>On Behalf of Wolfenson & Ashkenazi, P.C.https://www.wolfensonlaw.com/?p=496792023-12-27T19:29:45Z2023-12-27T19:29:45ZChapter 7 bankruptcy
Chapter 7 bankruptcy is a "liquidation bankruptcy." It involves the sale of non-exempt assets to discharge outstanding debts. This form of bankruptcy is suitable for those with limited income and significant unsecured debts, such as credit card balances or medical bills. The process is relatively swift. It takes between three to six months, providing filers with a fresh start by wiping away qualifying debts entirely.
Chapter 13 bankruptcy
In contrast, Chapter 13 bankruptcy focuses on reorganizing and repaying debts over a span of three to five years. This option is suitable for those with a steady income who can create a viable repayment plan. Under Chapter 13, filers can keep their assets, such as homes or cars, while adhering to a court-approved repayment plan. This approach allows individuals to catch up on missed payments while settling outstanding debts over time.
Per the Motley Fool, about 70% of consumers who file for personal bankruptcy end up filing for Chapter 7. Whether seeking a swift discharge through liquidation or opting for a structured repayment plan, the choice between these bankruptcy chapters depends on one's financial circumstances and long-term goals.]]>On Behalf of Wolfenson & Ashkenazi, P.C.https://www.wolfensonlaw.com/?p=496782023-12-12T19:02:52Z2023-12-12T19:02:52ZPersonal property
Personal property encompasses material goods like clothing, furniture, artwork, jewelry and vehicles. Even if you think an item has little monetary value, you should still list it to avoid accusations of hiding assets. Your trustee will determine what assets to liquidate.
Real property
Real property involves land and permanent structures like houses, condos, commercial buildings and barns. Bankruptcy exemptions may come into play, though. As of 2023, Federal law allows bankruptcy filers to exempt a primary residence with equity up to $27,900.
Intangible property
Intangible property lacks physical form but still holds financial value. This includes money owed to you through your accounts receivable, patents, copyrights, customer lists, licenses, insurance payments or claims, retirement accounts and stocks. Disclose all intangible assets even if you think they are exempt.
Business assets
If you own a business, you must list all associated assets, such as equipment, inventory, supplies, licenses, customer records and operating agreements. Failure to disclose even a seemingly insignificant business asset could have serious legal consequences.
When preparing your Chapter 7 bankruptcy petition and schedules, err on the side of over-disclosure. This is also a good time to familiarize yourself with federal and state exemption laws to find out which assets you can cover with an exemption and hold on to once your bankruptcy is complete.]]>