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Bankruptcy Law

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Benefits of a Chapter 13 Bankruptcy

Bankruptcy
Benefits of a Chapter 13

When an individual schedules an appointment to talk with a bankruptcy attorney in NJ they may be given several options including filing either a Chapter 7 or a Chapter 13 bankruptcy. If they have too much income they may not be able to file a Chapter 7 bankruptcy. But the Chapter 13 may be much more advantageous in some situations than the Chapter 7. There are certain situations where one option is better than the other and in many instances a Chapter 13 is preferred over a Chapter 7. InNew Jerseya Chapter 13 bankruptcy is the only available choice if you are behind on business payments or a mortgage and you still want to keep your property when the bankruptcy process is complete. When you file a Chapter 13 bankruptcy there is the unique opportunity to make up all of the overdue payments over an extended period of time and then reinstate the mortgage agreement that was originally made. Most of the time, the payment plan is developed to last for between 3 and 5 years.

Benefits of a Chapter 11 Bankruptcy

Bankruptcy
Benefits of a Chapter 11

A Chapter 11 bankruptcy is sometimes called a “business bankruptcy” even though it can also be a good choice for an individual. A Chapter 11 allows a business or debtor to continue their normal operations while they come up with a “plan for reorganization.” In some circumstances they can create a plan for liquidation as well. It is essential to discuss the particulars of the case with a bankruptcy attorney in NJ to determine if it is beneficial for a particular situation. Just like the other types of bankruptcy codes the debtor in a Chapter 11 bankruptcy is trying to get his debts discharged but very few of those who file for this type of bankruptcy come through it with the business and ownership still intact. In the vast majority of cases the Chapter 11 works to form a new entity even though it will usually have the same name as the old company which went bankrupt. The newly formed business typically has new management along with a new structure of ownership. But there remain some very distinct benefits to filing this particular type of bankruptcy.

Benefits of a Chapter 7 Bankruptcy

Chapter 7: Bad or Good

When you talk to a bankruptcy attorney in NJ he will explain how filing a Chapter 7 bankruptcy is a process of federal law that allows for individuals or businesses to make a fresh start. Chapter 7 will eliminate most of an individual’s unsecured debt and is usually the suggested type of bankruptcy for a person who has no assets, or at least very few of them. In most cases the unsecured debts that are released through a Chapter 7 bankruptcy include things like personal loans, credit cards, deficiencies on repossessed vehicles, medical bills or judgments that are the result of a car accident. Since the Chapter 7 filing procedure is complicated it will require the help of a bankruptcy attorney in NJ to help guide you through the process.

What is Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy will include a 3 to 5 year repayment plan which will allow a debtor to repay creditors by paying off total amounts or partial amounts of the debts. A Chapter 13 can prevent a foreclosure on a house, pay back taxes, and stop a tax debt from accruing interest, help make up missed payments on a house or car and any number of other things. As long as an individual stays to the proposed repayment schedule the remaining debt will be released at the end of the plan. There are several factors which help determine the exact amount that will have to be repaid. These factors include things like the disposable income that is available to the debtor. In order to be eligible to file for a Chapter 13 bankruptcy you will have to have a “regular” source of income as well as some amount of disposable income which can be applied toward the payment plan laid out in the Chapter 13 paperwork.

What is Chapter 11 Bankruptcy

Each state has its own way of handling bankruptcies and has their own provisions. This is why it is important to visit with a local legal professional who can help you come to an understanding of the laws and guidelines concerning bankruptcies. For those who live inLivingston,New Jersey then they should contact a bankruptcy lawyer in NJ. Most of the differences between states have to do with limits pertaining to debts and income levels which have to be met in order to be eligible to file any particular chapter. Chapter 11 is a type of bankruptcy which is filed by a company when their revenues over the long term are likely to be much higher than the value were they to liquidate assets. This ensures their creditors that they will get more money back by allowing the company to reorganize and create a payment plan. In these cases the companies becomes a “debtor in possession” and maintains the ownership and control of their assets and are allowed to continue the regular operations of the business.