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Tag: Bankruptcy

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.

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is generally filed to eliminate unsecure debt. A corporation, married couple, partnership or an individual can file for this type of bankruptcy. It typically discharges debts such as medical bills, personal loans and credit cards. In some cases, even though the Chapter 7 will free an individual from their debts, there are some types of property that they may be able to keep. They will just have to make arrangements which will reaffirm the debt. For most people the main reason for filing a Chapter 7 is to get rid of their debts while keeping most of their belongings including vehicles and homes.