If you’re a New Jersey homeowner facing a sheriff sale, you’re probably hearing a mix of panic and false hope. The truth is simpler: bankruptcy can stop a sheriff sale, but only if you file before the sale happens. Waiting too long, sometimes even a day, can eliminate that protection.

What a Sheriff Sale Is

A sheriff sale is the final stage of the foreclosure process. After the lender wins a foreclosure judgment, the county sheriff schedules an auction to sell the home and satisfy the debt. Once you receive a notice of sale, the countdown moves fast, usually with at least 30 days’ notice.

How Bankruptcy Stops a Sheriff Sale

When you file bankruptcy, federal law creates an automatic stay that immediately freezes most collection actions, including foreclosure and sheriff sales. The stay starts the moment the case is filed.

Two chapters are commonly used:

Chapter 13 (best for saving the home):

• Lets you repay missed mortgage payments over 3–5 years
• You keep the home if you stay current on the plan
• Works well for people with steady income and temporary hardship

Chapter 7 (more of a pause):

• Stops the sale temporarily
• You may still lose the home unless you’re current or reaffirm the mortgage
• Often used when you need time to relocate or stop other lawsuits

The Biggest Mistake: Filing Too Late

Bankruptcy can stop a sheriff sale only if filed before the auction occurs. Once the sale happens, bankruptcy generally can’t undo it—you may only have limited post-sale rights like redemption, but the property has still been sold.

Practically, filing at least 1–2 business days before the sale gives your attorney time to prepare the petition and notify the sheriff so the sale is actually paused.

Common Myths That Cost People Their Homes

• Myth: “I have 10 days after the sale to file bankruptcy and fix it.”
  Reality: NJ gives a short redemption/challenge window after sale, but bankruptcy doesn’t rewind the auction itself.
• Myth: “I’ll just request a postponement.”
  Reality: Homeowners may request two 30-day adjournments by written request to the sheriff (with a small fee), but you must act early.
• Myth: “My loan modification is pending, so the sale must be paused.”
  Reality: Not necessarily—sales can proceed without a bankruptcy stay or court order.

How Reinherz Law Can Help

Reinherz Law has helped South Jersey families stop foreclosure and regain stability for over 30 years. We can quickly review your sale date, explain whether Chapter 7 or 13 fits your goals, and move fast when timing is critical.

Final thought: Act before the sale, not after. Waiting to “see what happens” is the riskiest move.

Facing a sheriff sale? Contact Reinherz Law for a free, no-pressure bankruptcy evaluation.

(856) 302-3989 💻 reinherzlaw.com

If asked to list life’s most stressful challenges, divorce and bankruptcy would each be at the top of most people’s lists, so the thought of going through both at the same time is truly overwhelming. Still, despite the emotional and financial strain, handling bankruptcy and divorce simultaneously is sometimes necessary, and can be done — but it requires careful timing, a well-planned strategy, and strong organizational skills. More than anything, getting through the process and successfully protecting the best possible outcome requires the help of an experienced attorney.

The first thing you need to understand is that you can’t really do the two at the exact same time. Bankruptcy and divorce are handled in different courts, with divorce cases being heard in the state and county family courts and bankruptcy cases managed by a federal court. Still, one case can definitely have an impact on the other. For example, a bankruptcy filing can temporarily pause (or “stay”) the division of marital property in a divorce until the bankruptcy process has been completed. That’s why many couples — and especially those who have significant joint debt — opt for waiting to finalize their divorce until after they’ve filed for bankruptcy.

In the midst of a messy and challenging situation, filing for bankruptcy first can simplify the divorce process. When joint debts on credit cards, personal loans, or medical bills are discharged in a bankruptcy,  each spouse can start their new life with a clean financial slate. Approaching the situation this way also prevents one spouse from ending up responsible for the other’s debts later.

On the other hand, there are situations where filing for divorce first makes more sense. If a couple’s combined income is too high to qualify for Chapter 7 bankruptcy, separating first might make one or both parties eligible to file individually afterward. Similarly, if property issues are complicated by things like a jointly owned business or real estate, addressing those in divorce court first may be the smarter way to go.

In some cases, couples don’t have the luxury of putting off one process until the other is finished. When that happens, coordination between each partner’s family law and bankruptcy attorneys is essential. A skilled legal team can help anticipate and address overlapping issues such as child support, alimony, and property division—all of which are treated differently under bankruptcy law.

For more information on this and any other legal issues involving divorce, bankruptcy, or both, contact us today.

Filing for bankruptcy is an all-consuming, stressful experience. There are plenty of things that people going through the process worry about — some well-founded and others needlessly. It’s common for bankruptcy filers to worry about how going through the process could affect their job, with many people fearing that their employer will find out and fire them. In most cases, these fears aren’t justified because federal law prevents employers from discriminating against their employees simply because they filed for bankruptcy.

Under U.S. bankruptcy law, your boss can’t fire you solely because you filed for bankruptcy. This is true whether you work for a private company or you’re a government employee. The whole idea behind bankruptcy is to give people in debt a fresh financial start, and losing your job as a result of a filing would certainly work against that goal. Notably,  employers are also prohibited from reducing your pay, demoting you, or otherwise discriminating against you just because you filed.

While bankruptcy itself can’t be grounds for termination, it can play a role in certain job situations. Those include:

• Security clearance positions: If your job is in finance, law enforcement, or defense, it may lead your employer to review your bankruptcy filing during background checks.
• Future employment: Many potential employers run credit checks before hiring, and this is legally allowed. While they can’t reject you solely because of a bankruptcy filing, they are within their rights to consider overall financial history IF it is relevant to the job.
• Trust-related roles: If you’re applying for a job that involves handling money, your bankruptcy could raise questions about your financial judgment.

Bankruptcy filings are public record, but there’s no automatic notification to your employer unless they’re also one of your creditors. In most cases, your workplace won’t ever know about your bankruptcy unless your settlement involves payroll deductions or wage garnishments.

Filing for bankruptcy won’t cost you your job. The law protects you from being fired or treated unfairly because of it, though if you’re applying for a new position in an industry that depends on financial trust, your filing could be considered as part of your assessment. For most employees, bankruptcy remains a private matter that provides relief without putting their livelihood at risk. For more information on how a bankruptcy filing could impact your day-to-day life, contact us today to set up a time for us to speak.

People tend to view filing for bankruptcy as a reflection of poor financial decisions, but the truth is that medical debt is one of the top causes of relentless debt in the United States. No one is immune to illness or accident, and even families who think they have good health insurance can find themselves buried under bills after an unexpected surgery or emergency room visit. Rising deductibles, treatments that aren’t covered, and surprise charges often combine to create bills that are impossible to pay and trigger a cycle of late payments, damaged credit, and eventually lead to filing for bankruptcy.

Unlike other forms of debt, most medical bills aren’t optional. Families can’t avoid hospital stays, medications, or follow-up care. When cash flow and budgeting are disrupted by doctor and hospital bills, something has to give, and it’s often credit cards and other debts that feel less urgent. Medical providers are prone to turning unpaid balances over to collection agencies quickly, and the tactics used by these organizations add to the stress. While bankruptcy is a serious step, it sometimes is the only option for regaining your financial footing.

Still, before turning to bankruptcy, it’s a good idea to investigate other options. Hospitals and medical providers often offer financial assistance programs or charity care that can substantially reduce bills. Negotiating directly with billing departments or using a medical debt advocate can also lead to significant discounts or payment plans that feel more manageable and less disruptive to your budget. Nonprofit credit counseling services can help consolidate medical debt, and many states offer consumer protection programs designed to curb aggressive collection practices.

If your household is struggling with overwhelming medical debt and you see no path to repayment, bankruptcy can provide a fresh start. Under Chapter 7 bankruptcy, eligible debts—including medical bills—can often be discharged entirely, though some assets may need to be liquidated. Chapter 13 bankruptcy lets families keep their property and repay a portion of their debt through a structured court-approved plan that creates more attractive terms, and sometimes reduces the total owed. While bankruptcy can severely affect credit, it also stops collection calls and lawsuits, and sometimes that’s the best relief of all.

If your medical bills are impacting your financial well-being, start by gathering all your documentation and exploring the help that’s available to you. Speaking with an experienced bankruptcy attorney can clear up whether alternatives exist or if bankruptcy is the best path. For help, contact us today.

People facing debt and considering filing for bankruptcy know that doing so will provide significant relief and a clean slate, but they hesitate out of concerns about their 401(k) and IRA accounts. The good news is that both Pennsylvania and New Jersey offer strong protections for retirement savings, ensuring that your financial fresh start doesn’t come at the expense of your future security.

Under federal bankruptcy law, employer-sponsored retirement plans like 401(k)s, 403(b)s, and other pension plans that qualify under ERISA receive unlimited protection. They are completely exempt from creditors, regardless of what you owe, whether you file under Chapter 7 or Chapter 13 bankruptcy.

As of 2024, traditional and Roth IRAs receive federal protection up to $1,512,350 per person. Even with this cap, funds that are rolled over from employer plans to IRAs hold on to their unlimited protection. SEP-IRAs and SIMPLE IRAs receive the same protection as traditional IRAs.

Pennsylvania residents can choose between federal exemptions or state exemptions. Under Pennsylvania law, retirement benefits necessary for support are protected without dollar limits. This includes all federally qualified retirement plans and can be advantageous for those with IRA balances that go beyond the federal limits. These exemptions cover retirement accounts under Internal Revenue Code sections 401, 403, 408, 409, 414, 457, and 501(a). The state also protects reasonable retirement distributions needed for living expenses.

New Jersey offers similar protections, exempting retirement benefits necessary for the support of debtors and their dependents and doesn’t have specific dollar limits on retirement accounts. This has the potential to make state exemptions more favorable to the debtor for substantial retirement savings. New Jersey also provides teachers, police officers, and firefighters with enhanced protection for public employee retirement benefits.

Choosing between federal and state exemptions can be complicated and has long-term implications, so it’s a good idea to consult with an experienced bankruptcy attorney for assistance. These knowledgeable professionals will provide a careful analysis of your entire financial situation and help determine which exemption system offers the most protection for your specific situation.

During the COVID-19 pandemic, there was a significant downward trend in bankruptcy filings, but the numbers are on the rise in 2025.  There are many factors behind the shift, including higher interest rates, creeping inflation, and increased debt among consumers. If you’ve found yourself negatively affected by these or any other economic issues, filing for bankruptcy may be a necessary financial decision. Before you do so, it’s important to investigate the implications of bankruptcy on your spouse. If you’re married and live in Pennsylvania, the answer depends on several things, including the type of bankruptcy you file, how your debts are structured, and whether your spouse is a co-debtor.

The good news is that the state of Pennsylvania allows both individual and joint bankruptcy filings. If only one spouse files for bankruptcy, the other spouse is not automatically pulled into the case. Their individual assets and credit generally remain unaffected, as long as they’re not legally tied to your debts. However, any joint debts you share—like co-signed credit cards, loans, or mortgages—can still create bankruptcy liability for your spouse. Creditors can still pursue your spouse for payment on shared debts, especially if you qualify for and are filing a Chapter 7 bankruptcy, where there is no co-debtor protection.

Pennsylvania is not a community property state. This means that spouses don’t automatically share all the debts or assets acquired during marriage. Each person’s property and debts are typically considered their own, unless they’re jointly held. This is important because it can help protect a non-filing spouse’s assets. Still, careful analysis is needed to be sure about what’s exempt.

If your spouse isn’t a co-debtor with you, your bankruptcy filing will not appear on their credit report. But again, joint accounts may still be impacted. It may be harder for both of you to qualify for loans or credit if your bankruptcy filing lowers your combined financial profile.

Bankruptcy laws can be complex, and every situation is unique. If you’re considering filing for bankruptcy in Pennsylvania, contact our experienced bankruptcy attorneys to better understand how your filing may affect your spouse and your financial future.

One of the biggest concerns voiced by people considering bankruptcy is the fear that they’ll lose their most important assets. Most New Jersey residents filing for bankruptcy protection can hold onto their car and home: It just takes some strategic planning and a solid understanding of the exemptions that are available.

Every state has its own rules about bankruptcy. In New Jersey, debtors can choose between the exemptions that the state offers and the ones offered by the federal government. The New Jersey homestead exemption protects up to $23,675 of equity in your primary residence, while the federal exemption offers up to $27,900. If you’re a married couple filing jointly, you can double these amounts.

The state and the federal government also offer exemptions to protect your car; New Jersey allows up to $4,000 in car equity, while the national exemption is $4,500. Even if your car is worth more than the exemption amount, you can still keep it by paying the trustee the non-exempt equity value.

The most important thing you need to know about protecting your car and your home is that there are two different types of personal bankruptcy filings. Chapter 7 bankruptcy liquidates non-exempt assets, but has the advantage of being completely wrapped up quickly, usually within four months. If you filed under Chapter 7 and your home and car equity fall within exemption limits, you can keep both assets while eliminating unsecured debts.

By contrast, Chapter 13 bankruptcy doesn’t liquidate assets. Instead, it allows you to catch up on your mortgage or car loan payments while holding on to your property. The process generally involves a three-to-five-year repayment plan, which works well if you have regular income but are behind on secured debt payments and want to keep your things.

If you’re considering filing for Chapter 7, and it’s possible, pay down as much of your secured debt as possible. Doing so will reduce the equity that exceeds the exemption limits. There are plenty of other important things you need to know before deciding on moving forward with a bankruptcy filing. An experienced New Jersey bankruptcy attorney can evaluate your situation and recommend the best way to move forward with your filing to maximize asset protection. Call us today to set up an appointment.

There are some life events that represent major changes.  Getting married, having a baby, and relocating are great examples of milestones marked with great excitement, as well as significant changes in expenses and financial responsibilities. If you’ve found yourself approaching any of these changes while you’re struggling with debt, you may be tempted by the idea of cleaning your economic slate by filing for bankruptcy. Before you jump into this decision, let’s take the time to investigate whether it is actually a smart move.

There’s no doubt that bankruptcy can offer relief from overwhelming debt. It puts an end to the stress created by collection efforts and provides a fresh start. If you have significant unsecured debts like credit cards, medical bills, or personal loans, filing for a Chapter 7 or Chapter 13 bankruptcy might make sense. Still, timing matters—especially when any of the following big life transitions are looming.

• Getting Married – Marriage generally introduces shared finances. Your future spouse’s financial health will become enmeshed with yours, and though they won’t be responsible for your pre-marriage debt, any joint accounts or property you acquire once you’re married will be complicated by a bankruptcy filing that comes after the wedding. Filing before your marriage is a good way to protect your future spouse from financial entanglements and avoid dragging their credit score into your financial issues.
• Having a Baby — Expanding your family means increased expenses: Those little people are expensive, from birth to nursery expenses to healthcare to childcare. Filing for bankruptcy would free up resources by eliminating or reorganizing debts (depending on whether you choose a Chapter 7 or Chapter 13 filing). But while it would let you redirect money toward your growing family, it will also impact your credit for up to 10 years. If you’re thinking of buying a larger home or purchasing a vehicle, your filing could make it harder to qualify for financing.
• Moving – Whether you’re moving around the corner into a better apartment or purchasing a new home, a bankruptcy filing can limit your ability to secure new housing, especially if you’re looking to buy or rent a place that requires a credit check. However, if your current financial situation or poor credit would make moving impossible or unmanageable, bankruptcy may be what you need to make a fresh start in a new location. Also, the bankruptcy exemptions and laws in your state can affect what happens if you file before or after relocating.

Filing for bankruptcy can be a smart move if it’s done strategically. If you’re struggling with debt and have big life changes on the horizon, contact our experienced bankruptcy attorneys to discuss the options that will work best for you.

When your debt is growing and you’re living paycheck to paycheck, it can be overwhelming. Many people who’d like to file for bankruptcy protection hesitate out of fear that the legal process will cost money that they just don’t have, but there are several bankruptcy options and financial relief programs specifically designed to help low-income individuals.

One of the most common bankruptcy options for low-income individuals is filing a Chapter 7 bankruptcy, also known as “liquidation bankruptcy.” A Chapter 7 bankruptcy filing lets qualified individuals eliminate most of their unsecured debts, including credit cards, medical bills, and personal loans. The process is typically fast—usually completed within three to six months—and provides a fresh financial start.

Chapter 7 is particularly helpful for those in lower income brackets. It is not available to everybody: You must pass what’s known as a means test that compares your income to the median income in your state. If your income is below the threshold, you may be eligible. While there’s some risk of certain assets being sold to repay creditors as part of the filing, many essentials—like clothing, household goods, and sometimes a car or home—are protected by exemption laws.

If your income doesn’t fall below the state median, you can still file for Chapter 13 bankruptcy.  This type reorganizes your debts into a more manageable three-to-five-year repayment plan, allowing you to catch up on missed payments while protecting assets like your home from foreclosure. Chapter 13 is generally a better fit for those who don’t qualify for Chapter 7 or who want to keep non-exempt assets that would otherwise be sold.

As for the actual cost of filing for bankruptcy, there’s no question that fees and legal costs can be a problem for low-income filers. The good news is that many courts allow for fee waivers or payment plans when legal fees would be a burden. Additionally, there are many legal aid organizations and pro bono attorneys who are there to assist with bankruptcy filings at little or no cost.

No matter what your income, before filing, you’re required to complete a credit counseling course provided by an approved agency. Though most of these courses have a fee to attend, some agencies offer free or sliding-scale services based on income. If you’re not comfortable with filing for bankruptcy, debt management plans or negotiating with creditors are low-cost alternative forms of relief.

For many low-income individuals, filing for bankruptcy can be the clearest path to financial stability. Debt relief is possible—even on a tight budget. Contact our bankruptcy attorneys today for more information on your best route forward.

If you’re overwhelmed by debt, filing for Chapter 7 bankruptcy holds the promise of a fresh financial start: Though you may need to liquidate some non-exempt assets to pay creditors, the action also allows you to discharge most of your debt. However, not everyone qualifies for Chapter 7 relief. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 introduced a means test designed to determine whether debtors are eligible to file under Chapter 7 or if they instead must file under Chapter 13 bankruptcy, which mandates agreeing to a repayment plan rather than a discharge.

The means test’s goal is to ensure that only those who truly can’t repay their debts can file to have their debts discharged. It does this by assessing a debtor’s income and expenses to calculate how much disposable income they actually have. If that number is too high, they may be steered toward Chapter 13 instead. The test has two parts:

• Comparing Income to the State Median – The means test first compares your household income to the median income for a same-sized household in your state, which is determined by the U.S. Census Bureau. If your test shows that your income is below the median, you automatically qualify for Chapter 7 and do not need to proceed to the second step.
• Assessing Disposable Income – If your income exceeds the state median, you then go on to complete a more detailed analysis of your income and allowable expenses, including housing, food, medical costs, and transportation. These are deducted from your income calculation to determine your disposable income. The Internal Revenue Service (IRS) has issued guidelines for many categories, but some actual expenses may be considered.

If, after deducting these expenses, you have little to no disposable income, you can still qualify for Chapter 7. If you have enough disposable income to repay a portion of your unsecured debts, you may be instructed to file for Chapter 13 and have a structured repayment plan created.

If you are a disabled veteran or your debts are primarily business-related, you may be exempt from the means test. This is also true if your financial situation changed suddenly because of a job loss, unexpected medical expenses, or a similar scenario. If you can present evidence of your inability to repay your debts, you may still be able to pursue a Chapter 7 filing.

The means test is an essential part of determining your eligibility for Chapter 7 bankruptcy. If you need more information or guidance, contact our experienced bankruptcy attorneys today.