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Camden NJ Bankruptcy Law Blog

Is high medical debt the main source of personal bankruptcy?

The most common type of debt that people seem to be trapped under involves home loans and credit card debt, but medical debt issue is a significantly growing concern. According to a recent survey, 1.7 million people in New Jersey and across the United States filed for personal bankruptcy because of unpaid medical bills in 2013. During the recession, many people earned less while the cost of healthcare steadily increased.

Part of the medical debt issue can be attributed to billing errors. As part of the survey, respondents noted that the bills they received were all higher than they had projected. An analysis completed by Medicare Compliance Reviews for 2013 found that nearly half of the claims that were audited had errors and that none of the hospitals were in complete compliance. The prices for services vary by region and by hospital. Hospitals in New Jersey and California reportedly have the highest prices.

Freefall Adventures files for Chapter 11 bankruptcy protection

After a troubled past, Freefall Adventures has made the decision to file for bankruptcy. The New Jersey-based skydiving business is going to be reorganizing, with court supervision, through the Chapter 11 bankruptcy process. The company's co-owner reported that the company does not plan on shutting its doors for good. In New Jersey, the Chapter 11 process generally allows businesses to continue operating as they go through the organizational process.

According to court records, the company has outstanding debts with Toyota and Ford Motor Credit as well as Fulton Bank. In the filing, Freefall Adventures also lists that it has unsecured funds with National Aerotech for $50,000. The co-owner also said there were some costly repairs that had to be made to an aircraft that would make it unusable for a year, along with another aircraft that is being repaired.

Trapped under debt? Filing for Chapter 7 bankruptcy may help

A person can feel an overwhelming sense of doom when he or she can't make financial ends meet. There comes a point when the debt may become so deep that one may need a helping hand to get out. If a New Jersey resident feels that he or she may never make it out of debt, filing for Chapter 7 bankruptcy could be the perfect solution to get one's financial life back on the right track.

Filing for Chapter 7 bankruptcy is a way to wipe out nearly all of the debt clean and start again, but there are some disadvantages. The person's credit score will drop significantly for up to 10 years, and he or she will have to wait quite a while before getting a good interest rate or qualifying for a loan. The good news is that an automatic stay will go into effect, which means that the creditors can no longer harass or threaten the debtor.

Munire Furniture files for Chapter 11 bankruptcy protection

Despite a tremendous effort, some businesses are simply not able to withstand the financial challenges of the current economy. Many New Jersey businesses have suffered from decreased revenue and have felt the pressure of rising costs and increased competition. Fortunately, many companies can still achieve a bright future by filing for Chapter 11 bankruptcy protection. This type of proceeding can allow the business to restructure, clean up business operations and prepare for a new buyer or otherwise continue development of the brand going forward.

Munire Furniture recently closed its nursery furniture plant in Echelon. The company decided to file for Chapter 11 bankruptcy protection due to large amounts of debt. According to court documentation, the company owes approximately $29.2 million in liabilities and retains $7.6 million in assets.

AWI finds a bidder as it enters into filing for Chapter 11

Even companies that are in the largest industries can fall prey to the recession. With stronger competition and people being more frugal with their money, a lot of companies have suffered from decreased sales and have fallen into debt with their creditors. Businesses in New Jersey can have hope for the future by filing for Chapter 11 as an opportunity to restructure and cut away some excess processes so that they may peek a new buyer's interest.

Associated Wholesalers Inc. (AWI) had made an announcement earlier this year that it would be interested in selling off its subsidiary, White Rose, but now it wants to sell the entire company. Recently, AWI agreed to have C&S Wholesale Grocers as the stalking horse bidder to set the bar for the upcoming sale. The company may receive better offers as the bidding process continues.

RadioShack may turn to Chapter 11 bankruptcy protection

Even companies that have been known as top leaders in their industry, have a chance to fall prey to a recession. As technology changes, some companies no longer have the stronghold that they once did and start to lose revenue. After a long string of losses, a New Jersey company may turn to Chapter 11 in an effort to reorganize and become more attractive to a suitable buyer.

RadioShack, once an electronics retail giant, has been enduring consistent quarterly losses since 2012. With technology changes, fierce competition and online shopping to deal with, the company's sales drastically dropped. The company reported in a regulatory finding that, without some sort of outside help, it would be unable to continue to pay to stay in business much longer.

Another New Jersey casino considers filing for Chapter 11

Many people have lost their means to discretionary income due to the recession, which equates to fewer people spending money on luxury items and gambling. The downturn of the economy has had a major impact on the New Jersey gambling scene, causing two casinos to file for Chapter 11 bankruptcy protection already this year. A third may be soon to follow in an attempt to restructure and become more attractive to a new buyer.

Trump Entertainment resorts -- which controls Trump Plaza and Trump Taj Mahal -- may be filing for bankruptcy due to its dropping revenue and mounting debt. Based on a recent filing with state regulators, the Trump subsidiary was more than $285 million in debt. The Trump Taj Mahal told regulators that it will have to indefinitely postpone payments on its property taxes. A casino analyst for Fitch Rating reported that the subsidiary went into forbearance because it was unable to continue making interest payments.

What are some of the pros and cons of personal bankruptcy?

It takes a lot of courage for a person to file for bankruptcy and realize that it may be time to get some help. Filing for personal bankruptcy can have a significant impact on one's future, so making the decision should not be taken lightly. Before a person makes the final decision to file in a federal Bankruptcy Court in New Jersey, there are some major advantages and disadvantages which should be looked at more in-depth.

Not all debt can be removed during bankruptcy, though most forms of debt can be discharged. Generally, student loan debt, taxes and child support obligations may not be discharged. Filing for bankruptcy does result in an automatic stay so that all of the calls from creditors cease immediately, which can provide a major sense of relief. A filer may lose all of their credit cards during the process but that may not be a negative result if they were part of the reason for the financial difficulties in the first place.

Can filing for personal bankruptcy help prevent foreclosure?

Due to the recession, many people have fallen into debt trying to make ends meet. Many New Jersey residents are in fear of losing their homes and being headed for foreclosure. Though many do not realize it, filing for personal bankruptcy may be a way for homeowners to protect their house and still find a way to deal with their debt.

According to a study by the University of North Carolina Center for Community Capital, homeowners have a 70 percent chance of hanging onto their home when they file for bankruptcy. According to the research director, homeowners have had the ability to try to save their homes by filing for protection for a long time. He continued to say that people retaining their homes is important, which is why the law has a means for people to keep their house out of foreclosure.

Revel Casino files a second time for Chapter 11 bankruptcy

Gambling is generally thought of as a time to have fun, but to others, a casino is no laughing matter. Revel AC Inc. in New Jersey has filed for bankruptcy twice since it opened in 2012. Much of the strain is being caused by patrons visiting nearby casinos in Pennsylvania, New York and Maryland. After a number of issues, the company made the decision to file for Chapter 11 bankruptcy protection for the second time.

Revel has had a number of issues since it first opened in April of 2012. The revenue for Atlantic City casinos has taken a huge hit and has gone down 40 percent from its high point back in 2006. Several months after the $2.4 billion casino opened, it was forced to close its doors for five days in light of Hurricane Sandy. One month later, the company filed for bankruptcy the first time, and then several months later it filed a second time.

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