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Karina Pia Lucid Esq.

Karina Lucid’s Answers

146 total


  • Do you have to owe a certain amount of debt to file for bankruptcy?

    I owe about $17,000 in debt including credit card, personal loan and car payment..

    Karina’s Answer

    There is technically no "minimum" dollar amount of debt required for a bankruptcy. The bankruptcy code does require that you have more than one creditor though. The question is more whether filing for bsnkruptcy is the best way to resolve your financial dufficulties. Generally I use a benchmark of at least $20,000 of debt for a bankruptcy to have sufficient benefit to the debtor. But $17,000 is close and there may other factors that would make it worthwhile for you to file. You should consult an attorney and weigh all the factors.

    Best of luck!!!!

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  • Is it advisable to try to negotiate a settlement with a debtor before considering Bankruptcy?

    I am closing my business as it is accumulating debt that the business cannot sustain. I have consulted with a Bankruptcy Lawyer and it has been advised that I file Personal Bankruptcy. Mainly because the business has very few assets. We are a ser...

    Karina’s Answer

    • Selected as best answer

    If filing a bankruptcy will jeopardize your home then bankruptcy is not the right choice. I have the feeling you need to consult another attorney. Whether the settlement approach is right required more information especially about the nature and extent of your debts. What Ms. Bunce stated, that debt settlement usually requires a "lump sum" payment is generally true so be aware of that as you consider your options.

    Good luck

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  • Can I discharge the portion of my mortgage debt that exceeds the value of my home in a Chapter 13 bankruptcy.

    I had a lawyer in my Chapter 7 which was discharged. But, my home is still in foreclosure. My mortgage company will not accept my payments. If I file a Chapter 13 can I force them to take my payments now. And, if my mortgage and arrears are $25...

    Karina’s Answer

    Your personal obligation to pay this mortgage was discharged as a result of the chapter 7 case. If the foreclosure continues to a sheriff's sale, you will not be responsible for the deficiency (or the "excess" as you refer to it), which is the amount due that exceeds the value of the real property that secured the mortgage. If you file a chapter 13 case, you can request Loss Mitigation, which is a court supervised loan Modification process. This would not provide you any "additional" discharge, but could provide relief in the form of a modified loan so you can keep the house. However, be aware that if you do modify the loan and then you default you have lost the discharge protection because, by accepting the loan modification, you will have voluntarily agreed to re-affirm your obligation to the mortgage company.

    I highly recommend retaining counsel for the chapter 13 if you are going that route.

    Good Luck!

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  • How can someone find out how much a mediation settlement was for on a case for wrongful termination?

    how can someone find out how much a mediation settlement was for on a case for wrongful termination?

    Karina’s Answer

    I have honestly never been involved in a wrongful termination case where the employer did not require a confidentiality agreement to be agreed upon and fully executed before the settlement was entered. The main reason employers generally settle these cases is to keep the settlement terms, including settlement amount, confidential.

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  • Dismissed without Prejudice after Filing For Chapter 7 Bankruptcy

    I'm in Foreclosure so I filed for Chapter 7 Bankruptcy. I found out that my case was Dismissed without Prejudice. Is this the Automatic Stay? Will the bank attempt to lift the Automatic Stay? Can I argue if the stay is lifted? Thanks for your a...

    Karina’s Answer

    I will just add to my colleagues responses that the dismissal without prejudice means that the bank has withdrawn its foreclosure complaint. The bank could have taken the approach of filing a Motion to Vacate the Automatic Stay, which would have, if granted, allowed the bank to proceed with the foreclosure even during your chapter 7 case. However, since the bank withdrew the complaint without prejudice they are not proceeding at this time. Once the chapter 7 case is closed the bank can, and most likely will re-file, or re-instate, their complaint. The automatic stay is only in effect while your chapter 7 case is pending. Once the chapter 7 is closed, the stay is lifted.

    I hope this helps.

    All the best

    Karina Lucid

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  • Can you list your mortgage payments on Schedule J, Chapter 7?

    We're in foreclosure and are no longer paying the mortgage. In filing Chapter 7, can we list the mortgage payment on Schedule J even though we're no longer paying the mortgage? Can we list any future expenses such as rents since we would have to b...

    Karina’s Answer

    I have to respectfully disagree with my colleagues. Schedule J should disclose a listing of your actual expenses. Although an estimate of those expenses that are not always the same is appropriate, listing a "place holder" amount for an item you are not actually paying anything for is not appropriate. I would recommend listing the estimated rent in response to question number 24, as an expected increase in your expenses.

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  • Can the government garnish my pension as well as my social security benefits if i default on a parent plus student loan.

    i owe 68,000.00 in parent plus student loans. I am currently paying $400 a month and they just raised the amount to $538. I receive a pension and social security.

    Karina’s Answer

    Unfortunately, the Federal Government is, to my knowledge anyway, the ONLY creditor that can reach your social security benefits for repayment of a debt. These are otherwise protected forms of income. Your federal student loan obligation is treated the same as a federal tax obligation. My clients never like to hear this, but a deferral or income based payment plan are probably your best options; or your kid(s) might have to pay the bill themselves.

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  • What happens to a persons credit card debt when they pass away?

    Who is responsible when an elderly person has accumulated a great deal of credit card debt. My mother has terminal cancer and we are trying to get her affairs in order.

    Karina’s Answer

    This is more of an estate question than a bankruptcy or debt question. However, I can provide you with some information that I hope will be helpful.

    The simple answer is "it depends". If your mom has assets that will be administered through probate, then her estate will be liable for the credit card debt. If not, then the debt is hers and passes away with her. Also, a surviving spouse who can show that the/she did not use or benefit from the credit card is also not liable for payment of the unsecured debt.

    For a more complete answer, I recommend that you pose this question to an estate and trust attorney.

    Good luck and I will pray for your family to stay strong and united though your mom's illness.

    Best regards,

    Karina Lucid

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  • Chapter 13 bankruptcy filing for a married couple... questions below.. Please help I am trying to assist my parents in filing

    1. When filing jointly are the debtors required to take the credit couseling course together or seperately? Meaning two certificates submitted or one? 2. When calculating the payment arrangement for the Chapter 13 do most lawyers use a progra...

    Karina’s Answer

    1. You actually need 4 certificates: 2 pre-petition credit counseling certificates (1 for each debtor); and 2 post-petition financial management course certificates (1 for each debtor)

    2. There are guidelines but most bankruptcy attorneys use software. That said, the software makes assumptions that you often have to adjust for. It's not just a matter of "plugging in the numbers".

    I hope this helps.

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  • How can I find an inexpensive bankruptcy lawyer in NJ when my only income is SSDI? I can't afford to pay an attorney.

    My SSDI check barely covers my normal living expenses ie., rent, food, eletric etc. My medical bills are out of control and I need to clear my debt. Most of my debt is medical. I've been disabled since birth (born with 2 forms of COPD. Had lobecto...

    Karina’s Answer

    Most attorneys will take a payment plan. However with only SSDI income and no real property or other assets, you should qualify for pro bono, free, legal assistance thought LSNJ.ORG.

    Good luck!

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