A short sale is when the sale price of a home isn't enough to satisfy its mortgage. Short sales require negotiation with the mortgage lender.

A promissory note is essentially an IOU that promises to repay a loan. Meanwhile, the mortgage - or deed of trust - is the document that establishes the home as security for the loan.

Equity is the difference between a home's market value and the amount still owed on the mortgage.

In the Toms River, New Jersey area, foreclosures take an average of 18 months from the first notice to the concluding sheriff's sale.

Regina L. Gelzer specializes in the three most common types of bankruptcy:

• Chapter 7 bankruptcy is used by businesses and individuals with little or no assets. It liquidates all debt.
• Chapter 11 bankruptcy is used by high-income and high-debt businesses and individuals. It reorganizes debt through a bankruptcy trustee. Creditors are paid back over the course of several years.
• Chapter 13, like Chapter 11, is a reorganization of debt. It's intended to protect a large asset such as a home. Eligibility for Chapter 13 is based solely on one's ability to pay.

Call 732-608-0560 to speak with our debt settlement attorney in the Toms River, New Jersey area.

Chapter 13 is appropriate if (a) your household income exceeds the median income for a household of the same size in the State of New Jersey; (b) you have non-dischargeable debts such as mortgage arrears, taxes, domestic support arrears, or criminal fines; and/or (c) you wish to protect equity in assets you own, such as your home.

 A standard Chapter 7 case usually takes about 6 months from the initial filing to final debt discharge.

Filing a bankruptcy petition triggers an automatic stay, which legally halts all lender collection activities, pending sheriff sales, and foreclosure proceedings immediately. This gives you essential time to reorganize your finances.

The automatic stay issued by the bankruptcy court immediately orders creditors and employers to cease all court-ordered payroll deductions and garnishments, restoring your regular take-home pay while your petition is actively processed.

Unfortunately, consultations and meetings at Regina L. Gelzer, Attorney-at-Law, LLC are available only by appointment during regular weekday operating hours. Please call for an appointment to ensure our availability.