Can my Landlord Evict me if I File for NJ Chapter 13 Bankruptcy?

Living paycheck-to-paycheck is the way of life for many Americans, and unfortunately, it doesn’t seem as though this has the potential to change any time soon. With the Mortgage Crisis of 2007 having lasting effects on the US real estate market, many former homeowners were forced to give up their underwater homes and downsize. Many of these people did not take on a new mortgage, but decided to become renters – at least until the real estate market righted itself.

The new renters brought on by the Mortgage Crisis (which had aftershock effects lasting well past 2010) plus those Americans who were already renting prior to 2007 combined to create a large population of US renters. While some renters have since been able to secure mortgages, a plethora of tenants feared losing yet another home to foreclosure and have continued to rent property in NJ.

The struggle of not knowing whether or not you’ll have enough money to cover your monthly living expenses is real. As of the end of 2016, nearly 11% of New Jersey residents were living at or below the poverty level, which is an excessively high number. For these New Jerseyans, figuring out how to stretch their low income to pay for food, housing and utilities is a daily burden that weighs on them constantly.

As a renter in New Jersey, filing for chapter 7 bankruptcy no longer prevents a landlord from initiating the eviction process. New legislature in 2005 protected homeowners but not tenants in chapter 7 cases. Those renters who need to file for bankruptcy to get out from under crushing debt cannot do so with a chapter 7 without risking eviction.

Although chapter 13 bankruptcy doesn’t completely wipe out debts like a chapter 7 discharge does, the good news for NJ renters is that it offers protection from eviction. All back rent that you owe your landlord can be included with your other debts when you file. A chapter 13 bankruptcy can save you from eviction by creating a payment plan wherein you will repay your landlord the arrears you owe over a set period of time that is considered reasonable.

As long as you continue to make all of your chapter 13 repayments (made through your bankruptcy trustee who then pays your creditors/landlord) along with your current rent payments, you cannot be evicted due to being behind on your rent. Your chapter 13 repayment plan will be structured in such a way that you can afford in comparison with your unsustainable living expense schedule prior to filing for bankruptcy.

It’s important to note that in order for you to avoid eviction via chapter 13 bankruptcy, you must be able to prove that you have enough income to afford your repayment plan with enough money left over every month to be able to make your current rent payments on time and in full. In addition, any landlord may evict a tenant who has endangered the property in question through illegal activities such as drug use, drug distribution or breaking the lease agreement in other dangerous ways, even if they have filed for a NJ chapter 13 bankruptcy.

 

Image: “Evicted” by Gideon – licensed under CC 2.0

New Jersey Title Insurance: Do I Really Need it?

Purchasing real property in New Jersey (or in any state, for that matter), is definitely not a time to take short cuts. While most home buyers acknowledge this fact, some may still question the necessity of some of the steps along the journey to home ownership. The process of buying a home involves a pretty long checklist – if you’re doing things the right way.

One standard task that you need to accomplish before the closing date is purchasing title insurance. Buyers who aren’t familiar with title searches and title insurance may be caught off-guard when they discover another fee that they are responsible for in their quest to own a home. Important questions you may have include:

What is the purpose of a title search?
The person or persons listed on a property’s title are the rightful owners of the home. When the title insurance company (or your NJ real estate attorney) performs a title search on your intended home, they are looking for anything in the history of the property’s ownership that suggests there may be a problem in transferring the ownership of the home. This preliminary examination combs through records surrounding the previous ownership of the home, i.e: deeds, trusts, wills, divorce agreements, judgments, bankruptcies, tax records and liens. Any minor encumbrances (a lien that needs to be paid off, missing signatures) can usually be cleared up, allowing the sale to proceed.

Why do I need to buy title insurance if the title search was clear?
The reason title insurance is necessary is because it is virtually impossible for any initial title search, no matter how thorough, to foresee a claim to ownership that was filed incorrectly and/or is long-buried in a pile of dusty paperwork. Misspelled names, long-lost relatives, estate planning snafus and other problems can pop up at any time in the future – after you’ve already closed on the property and have moved in.

If a title problem arises after I’ve moved in, how will title insurance help me?
Your title insurance lender’s policy will act as a safety net if a buried problem turns out to present a real claim to the property even after you’ve closed on it. If a long-lost co-owner turns up and wants to enforce his claim of ownership, he can take the matter to court, however, even if he wins and is granted ownership of the home, your title insurance lender’s policy will pay your lender the balance on your mortgage. If you also purchase an owner’s policy, that will kick in to reimburse some or all of the money you already paid, such as a down payment and any initial mortgage payments.

How much does title insurance cost?
Purchasing title insurance is going to cost you a one-time fee of around $1,000, give or take, for the lender’s policy, and less than $100 for an owner’s policy. This is money well spent even if you never make use of the coverage. That may sound strange, but here’s why it’s true: on the very small off-chance that a missed claim surfaces and you are without title insurance, you could lose your home and a significant amount of money.

Virtually all lenders will require you to acquire title insurance before they agree to approve your mortgage. In addition, most NJ real estate attorneys won’t represent you if you attempt to refuse title insurance because of the inherent risks involved in your future as a property owner. Title insurance may seem unnecessary, but it is absolutely, without a doubt, a crucial piece of any New Jersey real estate transaction.

 

Stripping a Second Mortgage in a Chapter 13 Bankruptcy

Many people have taken out a second mortgage on their home. These second mortgages are usually referred to as home equity loans, because they are based on the amount of equity you have in your home. Your original mortgage loan’s value vs what your home is worth, along with your credit score determines how much money you can borrow through a home equity loan.

Typically, these loans are paid to homeowners in one lump sum so they can do home renovations or repairs. Some people use home equity loans to pay off a large debt with a high interest rate or to buy a vacation home. A home equity loan can seem extremely advantageous if you’re in need of some fast money, however the danger is that if you fail to repay the loan, you could lose your house.

Getting in over your head with your mortgage has been a popular theme in the past decade, so if you’re finding that you can’t make both your first and second mortgage payments, you’re not alone. Luckily, you do have some options.

If you could eliminate your second mortgage, would that make your monthly living expenses doable? Wishing you never took out that home equity loan? Filing for a NJ chapter 13 bankruptcy might be right for you.

A process known as ‘lien stripping’ can essentially erase that second mortgage, but this process is only available to debtors who file for chapter 13 bankruptcy. Additionally, in order to qualify for a lien stripping, your first mortgage balance must be higher than the current value of your home.

For example, if your first mortgage balance is $300,000, but your home is currently worth $275,000, you have zero equity in the property. In fact, you’re said to be ‘upside-down’ or ‘under water’ in regards to your first mortgage.

A $25,000 second mortgage would qualify to be stripped via chapter 13 bankruptcy in New Jersey. Upon application for a chapter 13 bankruptcy, your debts will be reorganized so that you can afford your monthly payments on all of your secured debt. In a chapter 13 bankruptcy, a second mortgage is referred to as a junior lien, and will be lumped in with all of your unsecured debts.

Throughout your chapter 13 repayment plan, you only have to pay a percentage of the total lump sum of all of your unsecured debts because they are considered “non-priority” debts. Upon successful completion of your bankruptcy payment plan, you will be granted a discharge. A chapter 13 discharge will put the lien strip into motion, and you will no longer be responsible for any remaining balance on your home equity loan or second mortgage.

The same is true for homeowners who also have a third mortgage on their home. If you want to stay in your home and would be able to afford your mortgage plus monthly living expenses if only you could “get rid of” your second or third mortgage(s), ask George about filing for a NJ chapter 13 today. You only have debt to lose!

 

Practicing Bankruptcy Law: “Isn’t it Depressing?”

I frequently get asked why I decided to go in to bankruptcy law. Most of the time, the person asking the question does so with a perplexed facial expression and concerned body language.

“Isn’t it depressing?” they ask.

The truth about why I got into bankruptcy law is actually quite simple. To be completely honest, when I first graduated from law school, I worked on the other side of the equation for a debt collection law firm. Not to say that lenders and creditors don’t need and deserve quality representation, but it just wasn’t for me. I saw the debtors who were struggling and I felt drawn to wanting to help them. I knew that I could help them, but I needed to figure out the best way to do that.

In 2010, I took the leap and opened Veitengruber Law. We started out as a very small solo practitioner firm, but I knew from the very beginning that we would do great things for many people. I put together the very best team to work with me: a bankruptcy specialist paralegal, a foreclosure specialist paralegal, a marketing specialist, and the most qualified legal assistant I could find.

Since the year of our inception, we have not looked back. I knew instantly that making the move to own my own firm was the right decision. Every year the firm grows exponentially. I have put no less than my entire heart, soul, blood, sweat and tears into moulding Veitengruber Law into the kind of bankruptcy law practice that has a reputation for helping people.

To circle back to the original question that was posed at the opening of this post: “Isn’t bankruptcy law depressing?” The general consensus is that I must be crazy to want to spend all day every day with those less fortunate, or those who have made some poor financial choices.

The answer to that question is quite simple, actually. My “job” as a NJ bankruptcy attorney is hands-down the most rewarding thing I’ve ever done. You’ll often find me still working at 9pm – and happy about it! The bottom line: I’ve discovered that helping people is what I was destined to do, and I don’t say that boastfully. Showing my clients (who quickly become friends) that there is a light at the end of what they thought was a never-ending tunnel of debt makes all of my efforts worthwhile.

Upon first meeting me, my clients are almost always in emotional distress. They are almost never happy about filing for bankruptcy, and many of them have a very negative attitude:

“I don’t want to be here.”

“I can’t believe I’m really doing this.”

As we begin to talk and I make them aware of what bankruptcy can actually do for them, every single person visibly relaxes. It’s as if I have physically removed a 25 pound weight from around their shoulders. Smiles start to peek out, they begin to make more eye contact with me, and sighs of relief abound. Sometimes, tears spring from their eyes, taking them by surprise – simply because they are tears of joy.

Tell me, what could be more fulfilling than that?

NJ Senate Bill 1593: A Proposed 6 Month Foreclosure Stay

Because the number of New Jersey foreclosures continues to rise even as we are now reaching the mid-point of 2017, the NJ Senate and Assembly have proposed new legislation with the goal of generating positive change for underwater New Jersey homeowners.

Senate Bill 1593 proposes that a six month stay of foreclosure proceedings shall be implemented in New Jersey if such action is agreeable to the homeowner and lender. The bill also proposes that the court can impose the six month stay if it has been determined that it would be possible for credit counseling and/or negotiations to occur during the six months that would potentially eliminate the need for a foreclosure.

Homeowners who are offered a reasonable and feasible mortgage loan modification by their lenders prior to beginning foreclosure proceedings will not be eligible for the six month stay. If an acceptable loan modification agreement is reached between the parties during the six months, the forbearance will be lifted and mortgage payments will resume. Additionally, if at any time during the six month forbearance, the homeowner moves out of the residence or advises their lender in writing that they have no intention of participating in the formal foreclosure mediation program (required during the six month stay), the stay will be lifted immediately and foreclosure proceedings will commence.

This legislation is an attempt by the Senate Committee along with the Urban Affairs Committee to drastically reduce the overall number of NJ foreclosures that continue to plague the Garden State a full decade after the Mortgage Crisis that began in 2007. While most states’ real estate markets have bounced back, several states are still struggling with high foreclosure rates.

In addition to NJ, the following states still have excessively high foreclosure numbers as of May 2017: Florida, Nevada, Oklahoma, Illinois, Maryland and Delaware. New Jersey tops the list with a foreclosure rate of one in every 515 residential housing units. Delaware, in second place, has a foreclosure rate of one in every 753 housing units. As you can see, New Jersey is the clear “winner” by a landslide.

In fact, the country’s two most foreclosure-stricken cities are also in New Jersey, with #1 being Atlantic City and #2 being Trenton. Jersey’s neighbor across the bridge, Philadelphia isn’t far behind, coming in at #5 even though Pennsylvania’s overall foreclosure rates are down.

New Jersey’s continued inability to pull out of what can now only be described as a foreclosure emergency has led to damaging effects like neighborhood blight, which greatly reduces property values. This, in turn, leads to more homeowners who are ‘underwater’ (owing more money on their mortgage than their home is actually worth), which then leads to more foreclosures. The cycle seems unending in NJ, and drastic measures are needed to put a stop to the deleterious effects on the state’s economy. We have high hopes that New Jersey will be able to come out ahead of foreclosure, and this bill is one giant step in the right direction.

 

Are You Committing Financial Child Abuse?

Although it may be something you’ve never considered, there have been many reports of what is now being called “financial child abuse.” One of the easiest ways to commit financial child abuse is to use your child’s Social Security number instead of your own.

Why would anyone use their child’s Social Security number?

Typically, the perpetrator has found himself with a significant amount of debt that may include wage garnishment. What this means is that any time the adult in question attempts to get a job, his debts follow him and his creditors will be able to take a portion of his paycheck.

Because of this, the adult decides to use his child’s Social Security number when applying for a new job. Oftentimes, the father and the child in question have the same name, making this kind of activity slightly more difficult to detect by law enforcement.

Is it a crime to use your child’s Social Security number?

Not only is it illegal, but to do so would be committing a number of serious crimes including:

• Identity theft
• Fraud
• Tax fraud
• Social Security fraud
• Theft

These crimes will almost certainly prevent the adult in question from ever discharging any of his debts in a bankruptcy in the future, and in addition, he may face prison time and thousands of dollars in fines.

Why is it a crime? Who is it really hurting?

The reason it is a crime to use a child’s Social Security number to obtain employment or a loan, etc. is because regardless of whose Social Security number is being “borrowed,” it is illegal to do so. End of story. A Social Security number is not something that can be borrowed, shared, or changed.

It can affect the child in question by tacking on Social Security wages to his SSN that he may have to answer for later in life if the activity is not stopped and reversed. This can cause the child serious legal problems involving Social Security fraud, even though he had no knowledge of the crime being carried out.

What is a better solution to my debt-related problems?

It is always a good idea to avoid committing a crime in order to get out of paying your debts. The reasons? You’re going to end up getting in serious trouble, you may go to jail, you will owe more money in the end, you will cause conflict within your family, and most importantly: There is a better solution!

You can erase the debts that you have. You do not have to borrow someone else’s Social Security number to get around your creditors. It is understandable and admirable that you want to get a job to support your family. Just don’t resort to committing a crime that you will regret later in order to do so.

Filing for NJ bankruptcy will wipe out most or all of the debts that you have racked up (with some exclusions) – allowing you to have a relatively clean credit report and no debts that will be taken from your wages.

Will a bankruptcy appear on my credit report?

It is impossible to avoid a bankruptcy showing up on your credit history, however, taking the responsibility for your debts and doing the right thing is viewed much more favorably by employers and lenders. You will have a much easier time getting a job with a bankruptcy on your record than if you had been convicted of fraud and identity theft.

The bankruptcy will disappear off of your credit report within seven to ten years depending on which chapter you file. Committing a crime like identity theft or Social Security fraud will remain on your criminal history record for the rest of your life. Which sounds more desirable to you? Do the right thing – file for bankruptcy and get rid of your debts so that you can move forward with getting that job and supporting your family the right way.

Fixing Your Credit to be Pre-Approved for a Mortgage Loan

If your credit score is very low (under 500), you may feel like you’ll never be approved for a mortgage. Owning your own home is a life-long dream for so many people, and luckily, it’s not one that you have to give up. You will, however, have some work to do before you will be granted a mortgage loan.

Anyone who is looking to buy a house in the relatively near future should take a good look at their credit report(s). The higher your credit score is when you’re approved, the better your mortgage rate will be. This can save you hundreds of dollars on your monthly mortgage payment. First, request a copy of your most recent reports from each of the three main credit reporting bureaus: Equifax, Experian and TransUnion.

As an aside, it’s wise to take a look at your credit report once a year on a regular schedule even if you’re not in the home-buying market.

Once you have a copy of your credit reports, the first thing on your agenda should be scanning it with a fine-tooth comb to check for any errors. This is the easiest way to give your credit score a quick boost.

If you find any errors (debts that are being reported incorrectly, satisfied debts that continue to show up as unpaid, payments marked as late when you paid on time), filing a dispute with the agency whose report contains the error(s) is the next step. Working with a New Jersey credit repair attorney is a good idea if you have errors and a lot of negative marks on your credit report. Your attorney will negotiate with your creditors, requesting forgiveness for lesser offenses like late payments. This “goodwill letter” is frequently an effective approach to jump-starting your credit repair process.

Once you’re sure that any errors have been appropriately dealt with, the following behaviors will give your credit score further boosts to get it up to your “goal range.” Your NJ credit repair attorney will know how much your score needs to increase in order for you to get pre-approved for a mortgage loan.

Make your monthly bill payments early

Even better, if you can make an extra payment each month on your credit cards with the highest balances, you’ll be able to zap your debts faster.

Create a debt resolution plan

In addition to making more than one payment per month, create a plan to pay down all of your existing debt until it’s gone. The lower your credit utilization ratio, the better.

Raise your credit limits

Related to lowering your credit utilization ratio, you can also request a higher credit limit on one or two of your credit cards. Be careful with this tip, though, and only do this if you have the self-control to keep yourself from charging even more purchases.

Consolidate

If you have more than one card with the same lender, keeping your oldest card active and transferring balances from newer cards (and then closing the newer cards), the overall age of your debt will be older, which looks good to credit bureaus.

If you are diligent about reigning in your spending, paying all of your bills early or on time, and taking the steps listed above, it is possible to boost your credit score 50-100 points in six months to one year. Your results will be dependent on your starting credit score and the type and number of dings currently on your credit report.

Before you know it, you’ll be walking out of your lender’s office with a mortgage pre-approval letter!

Disclaiming Your NJ Inheritance to Avoid Creditors

The news that you have been named a beneficiary in someone’s will is generally considered a positive thing; although you (hopefully) aren’t looking forward to the passing of your loved one, it usually feels good to know that they cared enough to bequeath part of their estate to you. There are times, however, when you may not wish to receive your New Jersey inheritance. Do you have the ability to say “thanks but no thanks?”

In New Jersey, estate law says that you can refuse to accept a gift, which in this case is your inheritance. This right to refusal is known as a disclaimer.

While it may seem strange that someone would choose to turn away inheritance money or life insurance proceeds, there are a few reasons for doing so. One of these reasons is avoiding creditors.

Do you have a lot of debt? Are creditors constantly calling? If so, you may worry that all of your inheritance money will go directly to paying off your debts. This is a very valid worry, because that is precisely what would happen if you accepted any kind of windfall while swimming in debt.

If you are attempting to disclaim your inheritance so that your creditors don’t have access to it, you may be hoping to divert that money to your children or other beneficiaries. Unfortunately, in New Jersey, it is illegal to use a disclaimer to get out of paying your creditors. If you choose to disclaim your inheritance under these circumstances, it is highly likely that your creditors will still be able to access the funds due to the Uniform Fraudulent Transfer Act.

Discussing your situation ahead of time with your loved one will give them a chance to protect the money that you are hoping to avoid giving directly over to your creditors. One way to do this is to set up a protective trust or to simply leave you out of the will altogether and instead name your children or other family members as beneficiaries. Your creditors have zero claims to any money that is inherited directly by your children.

Going to these lengths to avoid paying your creditors signals that you are significantly deep in debt. While we understand the desire to keep from handing a large windfall directly to creditors, we also must note that there are steps you should take to get out of debt, and the sooner, the better.

Your options for debt relief in New Jersey depend a lot on the specific details of your situation.

• How much debt are you carrying in comparison to your income?
• Are you living beyond your means?
• What is your credit score?
• Do you own a home that you wish to keep?
• How many different kinds of debt are you carrying?

NJ debt negotiation and relief is available to you. Beyond refusing windfalls, disclaiming your inheritance and any other steps you’re taking to avoid paying your creditors, imagine if you didn’t have to worry about those creditors at all anymore. Ridding yourself of a large chunk (or potentially all) of your debt is very possible; your financial future can look anyway you want it to as long as you take the right steps, now.

 

 

Can I Close My Bank Account to Avoid Repaying a Payday Loan?

First, let’s be clear: Payday loans are illegal in the State of New Jersey. NJ state laws prohibit interest rates above 30% (which is exceptionally high already) and payday loan interest rates are much higher. Additionally, New Jersey banking laws prohibit the concept of advancing money based on a post-dated check.

What is a payday loan?

A payday loan is a very dangerous undertaking. It is process that is only entered into by those who find themselves in extremely dire financial straits.

The payday “lender” provides the borrower with a relatively small loan (usually less than $1,000). This cash loan is due to be paid back in full to the lender within a very short window of time – often when the borrower next receives a paycheck.

Those who are desperate for immediate money and don’t want to have their credit checked can often be fooled into thinking that a payday loan is the perfect solution to their problem. Borrowers who take out payday loans typically say that they don’t want to borrow money from friends or family, and their credit scores are usually already suffering, so taking out a proper bank loan isn’t on their radar.

Why do payday loans get such a bad rap?

In theory only, the concept of a payday loan is perfectly fine:

“You need rent money and your landlord is breathing down your neck about it. Due to unforeseen expenses this month, you’re short a few hundred dollars. If only you could simply borrow $400 to keep your landlord happy; you’ll have NO problem paying it back the next time you get paid.”

Sounds ok, right? The inherent problem with payday loans is this: if you are even a day late in repaying it, interest starts to accrue at an astronomical (up to 400%) rate. This, combined with the fact that by the time someone considers a payday loan, they are already having money trouble, leads the borrower down a path that can only end badly.

All payday loan borrowers talk themselves into believing that they’ll have the money to repay the loan on time. Most of them, however, arrive at their loan’s due date confounded and overwhelmed. Although they let themselves think their next paycheck would be enough to cover the cost of the loan plus their usual expenses, this is almost never the case.

Therefore, the average payday loan borrower ends up late in repaying their loan, either partially or in full. As soon as that interest starts building, their amount due climbs FAST. What started out as a $400 loan can end up as thousands of dollars in debt, leaving the borrower unable to even begin to make good on their promise to repay.

How can I get out from under a rapidly rising debt?

It can be an extremely scary feeling to know that your debt is rising higher and higher day by day at a rate that you can’t really even determine how much you owe. Drastic measures, like trying to close your bank account or moving away from the payday lender – will not solve your problem. Creditors can garnish your wages (up to a certain percent) until they get their money back, and unless you plan to leave the country and change your identity (not recommended) – they’ll go the distance needed to find you.

Although payday loans are illegal in New Jersey, that doesn’t mean that NJ borrowers aren’t taking out payday loans in neighboring states. If you’ve found yourself indebted to a payday lender, or if you are right now considering taking out a payday loan, you should consider filing for bankruptcy instead. Not only will this wipe out the money you owe to the payday lender, but many of your other debts can also discharged – giving you an opportunity to take stock of your money management with a clean(er) slate.

 

I Received a Bankruptcy Discharge – Why am I Being Sued?

Filing for bankruptcy can be a momentous decision for many people, and it usually isn’t a decision that is made lightly. Most people don’t want to have to file for bankruptcy and have genuinely tried in earnest to reduce their debts on their own.

Once you’ve decided to move forward with a bankruptcy filing, you’re likely to feel a certain sense of relief – especially as the case progresses and everything is going as planned. After your debts have been successfully discharged by your bankruptcy court judge, all of your dischargeable debts will be erased, lifting a heavy weight off your shoulders.

After a debtor receives a bankruptcy discharge, every creditor listed on their bankruptcy paperwork will receive notification of the bankruptcy. Creditors are no longer allowed to contact you to collect on debts that have been discharged. Just knowing that those aggressive phone calls are going to stop is a huge relief.

That being said, sometimes you may receive the unpleasant surprise of being sued by one of the creditors you thought you had seen the last of. This is a scary moment for anyone! Thinking that you’ve gotten out from under your debts only to discover that one of them is still after you for money is disheartening.

Can a creditor really sue me after my debts have been discharged?

Oftentimes, if a creditor is still trying to get you to repay a discharged debt, it means they didn’t receive proper notice of your bankruptcy. It’s also possible that your bankruptcy information was not shared through the right channels within the company – even if they did receive notice. Attempting to collect on a debt that has been discharged via bankruptcy is against the law.

Do I have to respond to a post-bankruptcy debt-related lawsuit?

This is where is gets kind of tricky. Even if you are no longer responsible for the debt in question, if a creditor has initiated a lawsuit against you, it cannot be ignored. Doing so will only prolong the lawsuit’s life.

Your bankruptcy attorney will be able to advise you on how to respond to any creditors who attempt to contact you after your discharge, including any that attempt to sue you for money you no longer owe. It is important to consult with your bankruptcy attorney to ensure that the debt(s) in question were actually discharged and you truly are no longer responsible for them.

An answer to any lawsuits should state the fact that you filed for bankruptcy, including a copy of your discharge and a list of all creditors. In doing so, virtually all lawsuits of this type will immediately dismissed by the court. Even if you inadvertently left a creditor off of your bankruptcy paperwork, generally all dischargeable debts will be forgiven as long as the creditor knows you’ve filed for bankruptcy.

Although you will almost never be responsible for any debt that was discharged, it is important to notify your lawyer if you are sued by one of your creditors after bankruptcy. Some debts are non-dischargeable, and you need to know what they are so that you continue making payments on them. However, chances are good that your NJ bankruptcy lawyer discussed any debts of this type with you prior to your filing date.