Practice Areas and Legal Definitions

New Jersey New Bankruptcy Laws:

Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a claimant files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapter 13), a claimant files a plan with the bankruptcy court proposing how to repay creditors.

As of October 17, 2005, the requirements under which a debtor could file Chapter 7 bankruptcy changed under the Bankruptcy Abuse Prevention and Consumer Protection Act. Debtors are now required to seek budget and credit counseling six months prior to filing, financial "testing" is required to determine the debtor's capacity for debt repayment, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who were previously eligible to file under Chapter 7 will now have to file under Chapter 13 bankruptcy instead, in which individuals and creditors agree to a court-imposed plan that requires some or all debts to be repaid over five years, with an appointed trustee assigned to monitor the repayment process. Bankruptcy filings will continue to be recorded on an individual's credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7. For additional information related to New Bankruptcy Laws, contact New Jersey bankruptcy Attorney Ralph A. Ferro, Jr. today.

Chapter 7:

Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation or a partnership. Under Chapter 7, the debtor is allowed to claim certain property exempt. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts.

Chapter 13:

Chapter 13 permits individuals to keep their property by repaying creditors out of their future income. It is not available to corporations or partnerships. Each chapter 13 debtor proposes a repayment plan that must be approved by the court. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

Chapter 11:

Chapter 11 is the reorganization chapter available to businesses and individuals who have substantial assets and/or income to restructure and repay their debts. Chapter 11 allows flexibility in structuring the reorganization, and there is no debt limit. However, only a debtor who qualifies as a small business may request expedited treatment under Chapter 11. To qualify as a small business, the debtor must be engaged in commercial or business activities, other than the ownership of real property, and the total of its secured plus unsecured debts must be less than $200,000. Due to the expense and complexity of Chapter 11, the decision to file a Chapter 11 petition should be made in consultation with an attorney. In addition to the filing fee paid to the Clerk, a quarterly fee must be paid to the U.S. Trustee in all Chapter 11 cases.

New Jersey Debt Consolidation:

Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest.

Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, it is best to contact Attorney Ralph A. Ferro, Jr., to discuss your debt consolidation options:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

New Jersey Bankruptcy Fraud:

Bankruptcy fraud is a bankruptcy filed with criminal intent; i.e., the intention of evading payment for goods or services although the consumer has funds for repayment, or accepting payment for goods or services but not supplying such services. Common types of bankruptcy fraud include petition mills, false oath, concealment of assets and fraudulent conveyance.

If you or someone you know in Ridgewood, Hackensack, Paramus, Paterson, Newark, or Bergen County, New Jersey needs debt consolidation legal counsel or the assistance of an experienced consumer protection lawyer, call Attorney Ralph Ferro today at 866-607-7556, or use the contact form provided on this site to schedule your initial consultation.

Frequently Asked Questions

The following information includes frequently asked bankruptcy questions. The answers stated are general in nature and are not intended to apply to every bankruptcy and/or debt consolidation situation. Each case is different and carries its own set of circumstances which must be taken into consideration by competent legal counsel. By contacting Attorney Ralph A. Ferro, Jr., you can receive a personal consultation regarding your specific legal claim.

Will I be able to rent an apartment or house after I file for bankruptcy?

A landlord can legally refuse to rent you an apartment because of a prior bankruptcy in your credit report. However, if you are presently renting a home or an apartment, your present landlord will typically renew your lease without running an updated credit report, and will probably not know that you filed for bankruptcy. If you are applying for a new lease, you may encounter some difficulties that can be overcome. Offering to make a larger security deposit may be enough for a potential landlord to overcome his/her concerns.

Will bankruptcy stop a lawsuit against me?

If you are being sued, we strongly urge you to speak with Attorney Ralph A. Ferro, Jr. about filing for bankruptcy. A bankruptcy filing will stop a lawsuit immediately and prevent your creditors from placing a lien against your house or garnishing your wages.

Will bankruptcy stop my home from being foreclosed and/or my car from being repossessed?

Bankruptcy can prevent a foreclosure of your house or a repossession of your car. An "automatic stay" arises by law the instant a bankruptcy is filed. The automatic stay stops the foreclosure process and prevents any collection actions, such as repossessions or garnishments. Bankruptcy may also allow you to consolidate your mortgage arrears or automobile balance, and make payments on those debts over time through a repayment plan designed by Attorney Ralph A. Ferro, Jr.

How do I rebuild my credit after filing for bankruptcy?

Although bankruptcy may be legally reported on your credit report for up to 10 years, you can begin to reestablish your credit immediately after your bankruptcy discharge. Lenders will consider many factors while determining whether to extend credit to you, but the most important of all factors that they will consider is your debt-to-income ratio. Based on the credit scoring models currently used by the credit reporting agencies, a debtor's credit score often actually improves upon the filing of a bankruptcy because of the elimination of debt.

Who will know about my bankruptcy?

Parties that receive notice of a bankruptcy are your creditors, the Bankruptcy Court, the IRS and the New Jersey Department of Revenue. Bankruptcy is a public record, so anyone who wants to try to find out about your bankruptcy could find out about it. Many people believe that notices of all bankruptcies are printed in the newspapers, but this is not true.

I only want to file bankruptcy on certain creditors, but not on others. Is this possible?

No. You are required by law to list all of your creditors, including friends and family members who have loaned you money. Intentional failure to list a debt is a serious matter and could result in a denial of your entire bankruptcy discharge. However, you are not prohibited from voluntarily paying selected debts after you file for bankruptcy. Attorney Ralph A. Ferro, Jr. can explain how you can legally repay any debt you want, after your bankruptcy is over, on a purely voluntary basis without a reaffirmation agreement.

What documents do I need to bring for my bankruptcy appointment?

In order to prepare consumer bankruptcy papers, a client must bring the following documents when meeting with their bankruptcy attorney:

• A list of all creditors, including addresses, account / loan numbers, and the amounts and description of each debt.
• For each secured debt, such as a car loan or home mortgage:
  • copy of the latest statement showing the balance due on the debt
  • copy of the DMV registration or recorded trust deed for each secured debt
• Income tax returns for the last two years, including W-2, 1099 and K-1 information.
• Copies of the last two pay stubs or copies of bank statements for the last 90 days showing the amount and frequency of the client's income.
• A detailed list of the debtor's monthly living expenses; i.e., food, clothing, housing, utilities, taxes, transportation, medicine, etc.
• If self-employed, copies of monthly profit-and-loss statements for the past six months.
• Copies of any lawsuits or judgments, regardless of whether the client is a plaintiff or defendant.
• Copies of any family trusts or prenuptial agreements.

Do I have to go to court?

You must attend a first meeting of creditors. Your Attorney, Ralph Ferro, will be with you at this meeting. This meeting is held in a hearing room used by the bankruptcy trustees, not in court. The trustee will ask you questions regarding your bankruptcy filing. If any of your creditors are present, they can also ask you questions. However, creditors rarely attend this hearing, and if they do, they rarely ask questions. Your attendance at this hearing is mandatory, and failure to appear can result in dismissal of your case.

Will bankruptcy get me out of child support or spousal support payments?

No. Under both old and new bankruptcy laws, child support payments and spousal support payments are not dischargeable in a New Jersey bankruptcy proceeding.

If you or someone you know in Ridgewood, Hackensack, Paramus, Paterson, Newark, or Bergen County, New Jersey needs debt consolidation legal counsel or the assistance of an experienced consumer protection lawyer, call Attorney Ralph Ferro today at 866-607-7556, or use the contact form provided on this site to schedule your initial consultation.

Professional Biography

Attorney Ralph A. Ferro, Jr. understands that the process of bankruptcy can be a stressful and frustrating experience. The Law Offices of Ralph A. Ferro, Jr. provides a comfortable yet professional atmosphere, where Attorney Ferro meets personally with each client and strives to make the bankruptcy and/or debt consolidation process as smooth and as stress-free as possible. Each client is important to Ralph Ferro, and is provided with respectful and effective legal advice and representation.

Please call the Law Offices of Ralph A. Ferro, Jr. today at 866-607-7556 to schedule your initial consultation with a trusted New Jersey bankruptcy lawyer.

Law Offices of Ralph A. Ferro Jr.

245 Paterson Avenue
Little Falls, NJ 07424
Telephone: 866-607-7556
After hours appointments are available.

Ralph A. Ferro, Jr., Attorney

Courts Admitted:

• New Jersey, 1993
• District of Columbia, 2002

Law School:

• University of Mississippi, J.D., 1992

College:

• University of Mississippi, B.A., 1990

Professional Affiliations:

• Golden Key Society
• Member of National Association of Consumer Bankruptcy Attorneys
• Member of American Bankruptcy Institute
• Member of Bankruptcy Inn of Court, 1996-1997
• Member American Trial Lawyers Association
• Member of American Trial Lawyers Association-New Jersey

Experience:

• Pool attorney for the Office of Public Defender, Bergen and Passaic Regions, 1995-2001

Community Activity:

• Municipal Court Issues Lecturer