Creative Chapter 13 Bankruptcy Plans To Save Your Home Are An Option In New Jersey

Bankruptcy attorneys sometimes get used to doing things the same way.  These habits can prevent them from thinking outside the box.  You may want and need an attorney who is willing to be creative in developing a Chapter 13 Plan that requires the attorney to think outside the box.  The bankruptcy petition and schedules are quite formalistic.  That is it requires you to file a monthly budget of income and expenses.

But, what happens when you are not paid all of your income on a monthly basis?  The best example of this, is when someone is paid quarterly or annual bonuses or commissions.  I often have client who are paid this way and so I do not have them propose a plan to pay one of these payments out on a monthly basis because they do not receive the income on a monthly basis.  Instead, my clients propose quarterly or annual lump sum payments to be paid in addition to their monthly payments during the months bonuses or commissions are received.

You should consult with a local bankruptcy attorney in your area to see if this sort of plan is acceptable in your district.  Just because it is acceptable in the US Bankruptcy Court for the District of NJ does not mean it will be acceptable in your district.  Also keep in mind secured creditors can object to plan payments which are not “equal monthly payments.”

Some attorneys dared to be different hear in NJ and proposed plans which gave their clients time in the bankruptcy to apply for a loan modification while make a reduced monthly mortgage payment.  The Court adopted a form plan which now allows for this option which many attorneys did not think would be acceptable a year ago.

Remember if you do not ask the answer is no.

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To leave your psychological comfort zone and explore “solutions in the unknown world on the outside requires large measures of mental agility, boldness, and creativity – and/or an inspirational leader who makes life in the old box so uncomfortable that getting out is the only option.   The future rests in those willing and able to do so.”  

Thinking Outside the Comfort Zone, Jerry Sentell

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