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New Jersey Bankruptcy Questions & Answers
3 Answers | Asked in Bankruptcy, Banking, Business Law and Collections for New Jersey on
Q: Am I personally liable for an EIDL loan of $130k taken out by my S Corp if I close the business?

I have a small business set up as an S Corp in NJ. Took out a $130k EIDL loan as well as a $30k loan from my bank. Business is dying. Will the SBA be able to go after my personal assets if I close the business? No personal guarantee, only against collateral/inventory which is hard to sell right... View More

Michael David Siegel
Michael David Siegel
answered on Jan 26, 2024

This is actually an evolving area of the law. If you have no guarantee, the answer should be no. But, the SBA has been investigating whether proceeds were properly used. If you took the money for improper purposes, the US Attorney could come after you. But, there are so many of these loans, it... View More

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3 Answers | Asked in Bankruptcy, Banking, Business Law and Collections for New Jersey on
Q: Am I personally liable for an EIDL loan of $130k taken out by my S Corp if I close the business?

I have a small business set up as an S Corp in NJ. Took out a $130k EIDL loan as well as a $30k loan from my bank. Business is dying. Will the SBA be able to go after my personal assets if I close the business? No personal guarantee, only against collateral/inventory which is hard to sell right... View More

James L. Arrasmith
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answered on Jan 26, 2024

In New Jersey, as with other states, the structure of an S Corporation typically provides a degree of separation between the business's debts and your personal assets. This means that in many cases, shareholders are not personally liable for the debts of the corporation.

Since you...
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3 Answers | Asked in Bankruptcy, Banking, Business Law and Collections for New Jersey on
Q: Am I personally liable for an EIDL loan of $130k taken out by my S Corp if I close the business?

I have a small business set up as an S Corp in NJ. Took out a $130k EIDL loan as well as a $30k loan from my bank. Business is dying. Will the SBA be able to go after my personal assets if I close the business? No personal guarantee, only against collateral/inventory which is hard to sell right... View More

Leonard R. Boyer
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answered on Jan 26, 2024

If your business closes next week, you're personally liable for the debt. EIDLs are not forgivable. You'll repay them over the 30-year term, though you can pay your loan off early with no prepayment penalties. Also, for future reference, a Sub-Chapter S corp is your worst nightmare and... View More

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2 Answers | Asked in Bankruptcy and Contracts for New Jersey on
Q: New jersey , Does anyone have any experience in motion for summmary judgement , I am the defedant

New jersey , Does anyone have any experience in motion for summmary judgement , I am the defedant my oral argument is soon what do i say during this what questions will be asked? I'm New Jersey its a special civil case against junk debt collector velocity investements llc my argument is all oral

Leonard R. Boyer
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answered on Dec 8, 2023

Since you filed legal pleadings you on your own, an attorney cannot just start an oral argument on a motion. You need to pay for an hour of attorney time to review everything that has been filed and the attorney may need to amend the pleadings that you filed. You are not a trained attorney. You do... View More

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2 Answers | Asked in Bankruptcy and Contracts for New Jersey on
Q: New jersey , Does anyone have any experience in motion for summmary judgement , I am the defedant

New jersey , Does anyone have any experience in motion for summmary judgement , I am the defedant my oral argument is soon what do i say during this what questions will be asked? I'm New Jersey its a special civil case against junk debt collector velocity investements llc my argument is all oral

James L. Arrasmith
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answered on Dec 8, 2023

In a motion for summary judgment in New Jersey, as the defendant, you should focus on demonstrating why the case should not be decided without a full trial. This typically involves showing that there are genuine disputes over key facts that require a trial to resolve. Against a junk debt collector... View More

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1 Answer | Asked in Bankruptcy and Contracts for New Jersey on
Q: New jersey , Does anyone have any experience in motion for summmary judgement , I am the defedant

New jersey , Does anyone have any experience in motion for summmary judgement , I am the defedant my oral argument is soon what do i say during this what questions will be asked? I'm New Jersey its a special civil case against junk debt collector velocity investements llc my argument is all... View More

James L. Arrasmith
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answered on Dec 8, 2023

In a motion for summary judgment in New Jersey, as the defendant, you should focus on demonstrating why the case should not be decided without a full trial. This typically involves showing that there are genuine disputes over key facts that require a trial to resolve. Against a junk debt collector... View More

2 Answers | Asked in Bankruptcy, Foreclosure, Real Estate Law and Business Law for New Jersey on
Q: Hello, I have 2 suites with levelset against the same person/ company in stage 3 deadline 1 yesterday 1 today HELP

i am lost the one yesterday i did mandoroty arbitration if you could please spare me a phone call I am a small one man copration with 1 employee and on the verge of bankruptsy there is 38,000.00 owed to me. i went after tthe customers homes with the leans she refused to sign for the cert mail. and... View More

James L. Arrasmith
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answered on Nov 10, 2023

In New Jersey, if you're dealing with multiple legal issues involving debt collection, foreclosure, and potential bankruptcy, it's important to seek legal advice promptly. Since you've already gone through mandatory arbitration and are considering placing liens against property, a... View More

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2 Answers | Asked in Bankruptcy, Foreclosure, Real Estate Law and Business Law for New Jersey on
Q: Hello, I have 2 suites with levelset against the same person/ company in stage 3 deadline 1 yesterday 1 today HELP

i am lost the one yesterday i did mandoroty arbitration if you could please spare me a phone call I am a small one man copration with 1 employee and on the verge of bankruptsy there is 38,000.00 owed to me. i went after tthe customers homes with the leans she refused to sign for the cert mail. and... View More

Leonard R. Boyer
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answered on Nov 9, 2023

You are going to need to retain an experienced civil litigation attorney. You are a corporate entity so you must retain counsel. In determining your choice of an attorney, there are many factors to consider, including but not limited to and you should look at how the attorney is you should also... View More

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4 Answers | Asked in Bankruptcy and Consumer Law for New Jersey on
Q: What are my options when sued by a credit card company for not paying my debt?

debt is $17k. It is my debt, but thought it was included in my debt modification loan with my other credit cards

W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Aug 16, 2023

To be frank, it strains credulity that you, and/or they, could have overlooked a $17K debt in your restructure.

And while I generally agree with my colleagues who have previously submitted answers that it's always wise to consult experienced counsel BEFORE you jump into something,...
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3 Answers | Asked in Bankruptcy and Social Security for New Jersey on
Q: I filed a chapter 7 a few years ago with social security being a creditor for overpayments.I checked with social

security and the NJ bankruptcy court and neither could tell if my debt was discharged.I read social security is usually discharged in a Chapter 7 but how can I confirm it was.Social security was listed as a creditor>

James L. Arrasmith
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answered on Sep 8, 2023

Determining whether a specific debt was discharged in a Chapter 7 bankruptcy proceeding generally involves reviewing the bankruptcy discharge order and the list of creditors you included in your bankruptcy filing. If the Social Security Administration (SSA) was listed as a creditor in your... View More

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3 Answers | Asked in Bankruptcy and Social Security for New Jersey on
Q: I filed a chapter 7 a few years ago with social security being a creditor for overpayments.I checked with social

security and the NJ bankruptcy court and neither could tell if my debt was discharged.I read social security is usually discharged in a Chapter 7 but how can I confirm it was.Social security was listed as a creditor>

W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Aug 12, 2023

Invariably, ime, bankruptcy courts enter an Order of general discharge that says little other than that the debtor is discharged from all "dischargeable claims". It will not specify whether any debt to the Social Security fund, or anyone else, has been discharged.

Use of Pacer...
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4 Answers | Asked in Bankruptcy for New Jersey on
Q: am i relieved of wage garnishment when i file for chapter 7 bankruptcy
W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Mar 7, 2023

While the automatic stay in bankruptcy, which bars all creditors from attempting to procure money or property from the estate after a bankruptcy is filed, is a powerful tool, it does not nullify all such efforts, as a secured claim is treated differently, and somewhat deferentially, in bankruptcy.... View More

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4 Answers | Asked in Bankruptcy for New Jersey on
Q: am i relieved of wage garnishment when i file for chapter 7 bankruptcy
Leonard R. Boyer
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answered on Mar 7, 2023

A Chapter 7 Bankruptcy will eliminate a wage garnishment unless it is for child or spousal support or if it was for something involving fraud or criminal conduct. With modern technology, you can be represented by any high-quality attorney in New Jersey irrespective of geography. Pick the best... View More

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3 Answers | Asked in Bankruptcy for New Jersey on
Q: Hi. Im halfway through filing for a chapter 7,can I use sezzle?I have an approval of $800 to use but dont want issues.TY

Edit: I did not apply for new credit. It’s available for me to use since I kept great payment history with them. I have an available 900$ to use. Not applying for new credit. I’ve hired my attorney but asked as he’s gone until next week. I am represented. Thanks!

I filed for... View More

James L. Arrasmith
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answered on Apr 11, 2024

In your situation, it's best to consult with your bankruptcy attorney before making any financial moves, including using Sezzle or other "buy now, pay later" services. While Sezzle may not report to credit agencies, using credit or taking on new debt during the bankruptcy process can... View More

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1 Answer | Asked in Bankruptcy for New Jersey on
Q: I want to file bankruptcy. But according to my lease, I would have to move. Is this legal im in NJ

It says If Tenant shall, (a) file for bankruptcy or for protection against Creditors under the laws of the United States or any state; (b) enter into an arrangement or composition amount creditors; or (c) have any insolvency or bankruptcy proceedings instituted against Tenant by a creditor; then... View More

Michael David Siegel
Michael David Siegel
answered on Jul 19, 2023

That is not how it works. You can assume your lease by agreeing to make payments going forward.

2 Answers | Asked in Bankruptcy and Contracts for New Jersey on
Q: If I'm month to month in an apartment complex. Can the landlord still charge me for attorney fees?

We are in a process of eviction right now. We have been to court 2 times already. We owe less than 5 thousand dollars and are willing to pay it because we have kids and can't afford any where else at the moment. We haven't sign the lease because of the money we owe. So my question is, can... View More

Timothy Denison
Timothy Denison
answered on Jul 13, 2023

Attorney fees for what? Your narrative is missing some important facts.

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4 Answers | Asked in Bankruptcy for New Jersey on
Q: I can’t find record of a consent judgment I have been making payments on when I do a judgment search. What can be reason

This judgment comes from a ch7 bankruptcy from 2 years ago which the creditor challenged in bankruptcy court and we agreed on a final number and payment plan which I have been making payments on. I did a search to see if my payments are recorded with court but the judgment isn’t even recorded it... View More

Stuart Nachbar
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Stuart Nachbar
answered on Jun 6, 2023

Your attorney should have a copy of same or it could be on the docket that the court maintains

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2 Answers | Asked in Bankruptcy for New Jersey on
Q: I included 3 judgements in my ch 7 which was discharged 2 years ago yet it still appears in judgment search. Why

I also am paying a separate judgment which doesn’t appear in any judgment search. Where can I find amount paid

Leonard R. Boyer
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answered on Jun 6, 2023

Bankruptcy removes the financial liability for the Judgment, but not the Judgment in State Court records, which requires a special state court procedure for each Judgment. With modern technology, you can be represented by any high-quality attorney in New Jersey irrespective of geography.

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2 Answers | Asked in Bankruptcy and Adoption for New Jersey on
Q: Will filing bankruptcy affect the chances of adopting our foster child in NJ?

Chapter 13

Timothy Denison
Timothy Denison
answered on Apr 30, 2023

Unfortunately, it could. I’m not saying it will, but one of the factors the court looks at is the potential adopters finances and ability to provide a home and care for the child. Check this out with your adoption attorney, who is in the best position to give an opinion on this question.

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2 Answers | Asked in Bankruptcy for New Jersey on
Q: I am an American AND Italian citizen looking for information about Chapter 7 bankruptcy in the US. I live in Italy

We used to live in New Jersey with my wife and son until 2020. During Covid, we both lost our jobs and we were priced out from the US. We moved to Italy, to be close to our family during this time of need. Unfortunately, we have not recovered financially and we are now unable to pay our credit... View More

Michael David Siegel
Michael David Siegel
answered on Apr 17, 2023

There is no way to collect an American debt in Italy. Eventually, judgments will be entered in the USA. If you are never returning, there is no worry. If you come back, you can file bankruptcy then. With no jurisdiction in any American district, you cannot file bankruptcy here.

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