After the bankruptcy petition is filed with the Bankruptcy Court, every debtor, regardless of the chapter, must make one appearance in the case. This is not a “court” appearance, since the judge is not present.

The court schedules the meeting of creditors in each case, usually about 30 days after the filing. The meeting is called the “341 meeting” or “creditor’s meeting” after the section of the bankruptcy code that requires it.

The meeting is not conducted by the Court. The trustee assigned to the case presides and asks questions about the contents of the bankruptcy petition. The debtor must appear at the meeting and answer questions under oath about his assets and liabilities.

Depending on the District where you filed your bankruptcy petition, the U.S. Trustee has arranged for meetings to be conducted at the following locations:

U.S. Bankruptcy Court, Eastern District of New York, 341 Meeting Locations

Brooklyn Cases

Chapter 7 and Chapter 13:
271 Cadman Plaza East, Rooms 2579
Brooklyn, New York

Chapter 11:
271 Cadman Plaza East, Room 4529
Brooklyn, New York

Central Islip Cases

Office of the U.S. Trustee
Long Island Federal Courthouse
Federal Plaza, Rooms 561, 562 and 563
Central Islip, New York

U.S. Bankruptcy Court, Southern District of New York, 341 Meeting Locations

Manhattan Cases

Office of the United States Trustee
80 Broad Street
4th Floor
New York, New York 10004-1408

White Plains Cases

United States Bankruptcy Court, SDNY
300 Quarropas Street
Room 243A
White Plains, New York 10601-5008

Poughkeepsie Cases

Office of the United States Trustee
355 Main Street
Poughkeepsie, NY 12601

U.S. Bankruptcy Court, District of New Jersey, 341 Meeting Locations

Newark Location

One Newark Center
1085 Raymond Boulevard
Suite 1401 (Chapter 7)
Suite 1400 (Chapter 11)
Newark, NJ 07102
Link to Map

Camden Location

Bridge View Building
800-840 Cooper Street
Suite 102
Camden, NJ 08102
Link to Map

Trenton Location

U.S. Bankruptcy Court
402 East State Street
Trenton, NJ 08608
(Directly across from Clerk’s office, 1st floor)
Link to Map

Atlantic City Area Location

1423 Tilton Road
Suite 5
Northfield, NJ 08225
Link to Map

Well, you can stop worrying about barrel chafing because there are many legal protections that allow you to keep household property during bankruptcy. These protections are generally limited to “common sense” amounts and typically apply to clothing, household furniture, musical instruments, books, electronics, appliances, etc.

One stated goal of bankruptcy is to give the debtor a “fresh start,” so Congress and state legislators attempt to balance the requirement of the debtor to have basic necessities against your creditors’ interests in receiving payment for your debts. The idea is to permit the debtor the things he needs for day-to-day living while prohibiting the debtor from living a lavish lifestyle at the expense of his creditors. For instance, if you have a
Steinway grand piano worth $50,000 in your living room, it will likely be taken and sold to pay creditors. If you have a family piano worth $2,000, you can likely keep it.

The truth is that only around four percent of Chapter 7 bankruptcy cases are “asset cases,” meaning the bankruptcy trustee receives money or an asset from the debtor. In the vast majority of these “asset cases” the debtor loses a car or real estate in which he has too much equity. It is very rare to see a debtor lose any household item during a Chapter 7 bankruptcy. Debtors in Chapter 13 keep their property.

Determining whether a household item is at risk is a simple arithmetic calculation. First, start with the liquidation value of the item. Often this value can be determined by looking at yard sales or internet auction sites like Ebay. Next subtract the applicable state or federal exemption amount for that item. Any remaining sum is unprotected equity. Your bankruptcy attorney can discuss your options for protecting and keeping items with unprotected equity.

It is important to correctly describe, value and apply the proper exemptions to household items in your bankruptcy schedules. Once you have provided an adequate description and value of your household items, your attorney can apply the proper exemptions and protect your property from turn-over to the bankruptcy trustee. Discuss any high-dollar household item with your attorney to ensure that you obtain full legal protection for your property.

Administrative claims must be paid 100% and include your filing fee, the trustee’s compensation (3% to 10% of each monthly payment), and your attorney’s fees. Other debts must be paid 100% during the debtor’s bankruptcy including alimony and child support, most tax debts, and mortgage arrears if you intend to keep you home.

The lowest category of debt repayment is unsecured creditors. The amount paid to unsecured creditors (e.g. medical bills, credit cards, and unsecured personal loans) is determined by several factors including (1) the amount of your nonexempt assets; (2) your disposable income; and (3) the length of your plan.

The length of your plan and amount of your disposable income are largely determined by the Bankruptcy Means Test. The Means Test was the subject of a recent United States Supreme Court case: Hamilton, Chapter 13 Trustee v. Lanning. The issue in Hamilton is how a bankruptcy court calculates your ability to pay creditors during the bankruptcy case.

The 2005 changes to the Bankruptcy Code included a requirement that Chapter 13 debtors commit all “projected disposable income” to the repayment plan. Confusion arose over whether Congress meant to determine this amount through a mechanical approach, by averaging the debtor’s income for the past six months, or whether the determination is “forward looking” and should consider the debtor’s future ability to pay.

Justice Samuel Alito, writing for an 8-1 majority, said the “forward looking” approach is correct. The forward-looking approach starts with the debtor’s average monthly disposable income for the past six months multiplied by the number of months in a debtor’s plan. This figure is ordinarily the debtor’s projected disposable income. However, in some cases, the Court has authority to review the debtor’s actual and present monthly income in order to calculate the debtor’s ability to pay debts during the plan period.

The Hamilton case will have great impact on Chapter 13 bankruptcy cases and places the power to determine a fair and affordable Chapter 13 payment plan in the hands of the bankruptcy court judges. If you are in need of bankruptcy relief, but fear that you will be forced to pay a monthly sum you can’t afford, get the facts from an experienced bankruptcy attorney. Bankruptcy is not a debtor’s prison and has helped millions get a fresh financial start.

Examining your options is important for anyone experiencing debt problems.  If you are considering bankruptcy or debt settlement to resolve your financial difficulties, investigate the consequences of each process before making your decision.  Below is some information about debt settlement companies and bankruptcy that you may not know:

Debt Settlement: The debt settlement process will harm your credit for years.  Creditors will report your delinquent account until it is paid.  Your report may identify settled accounts as paid less than 100%, which also adversely affects your credit score.

Bankruptcy: Any debt included in a bankruptcy appears on your credit report as discharged with a zero balance from the date you filed your bankruptcy case.  Bankruptcy stops adverse reporting so your credit report can improve.

Debt Settlement: The typical debt settlement account will resolve your debt with a lump sum payment of between 20% and 80% of the debt.

Bankruptcy: In most bankruptcy cases you pay nothing to unsecured creditors.

Debt Settlement: Any settled debt will have tax consequences and you may have to pay the IRS.

Bankruptcy: There is no tax liability for a debt discharged in bankruptcy.

Debt Settlement: You may be sued while you or your representative is attempting to settle your debt.

Bankruptcy: All lawsuits are prohibited during your bankruptcy case.

Debt Settlement: Some debt settlement companies have bad reputation.

Bankruptcy: The bankruptcy process is authorized by the United States Constitution and its laws are written by Congress.  Only licensed attorneys admitted to practice in the federal courts are able to represent bankruptcy debtors.

Debt Settlement: The debt settlement process can take more than a year.  The general rule is: the longer you don’t pay, the better the settlement.  Creditors are reluctant to accept less than full payment unless they believe that you may file bankruptcy.

Bankruptcy: The typical chapter 7 bankruptcy case takes less than five months.

If you are struggling with debt, investigate your options and speak with an experienced bankruptcy attorney.  The federal bankruptcy law is a powerful tool to eliminate your debt problem and put you on the road to financial recovery.

We offer a Free Consultation to discuss your situation and have three office locations for your convenience.

Years ago it was unheard of for a debtor in an active bankruptcy to obtain an auto loan. Several years ago two companies, 722 Redemption Funding, and Fresh Start Loan Corporation, began making auto loans to debtors in bankruptcy, and now many banks have lending programs for debtors. The attitude towards bankruptcy has changed and many debtors are evaluated more on their future ability to pay the loan rather than their past financial trouble.

Obtaining an auto loan during bankruptcy is a matter of showing stable income, a good debt-to-income ratio, and some assurance that your current financial trouble is unusual and not likely to reoccur. All lenders require a loan application and the criteria for approval can vary significantly. Some lenders will not approve a loan if you have had a prior repossession. Other lenders want a substantial down payment. New auto loans often want the bankruptcy discharged before approving the loan. In all cases your vehicle choice will be restricted to a newer vehicle with low miles.

During a Chapter 7 bankruptcy the debtor and the lender are free to negotiate terms outside of the bankruptcy case. The loan is not a part of the case and is not affected by the bankruptcy discharge. For Chapter 13 debtors, any new indebtedness must be approved by the trustee and the court. In most cases the Chapter 13 debtor can obtain approval after a showing of need and ability to pay.

If you are considering bankruptcy and need to buy a different vehicle, consult with an experienced attorney. There are many different options during bankruptcy for retaining, refinancing, or purchasing a different vehicle. Call today and get the information you need to drive your financial future.