If you’re on the verge, or even just considering the concept of filing for bankruptcy, understanding your options is an important step. People commonly hear about Chapter 7 or Chapter 11, but may not know the difference. The truth is the Bankruptcy Code allows for five different types of bankruptcy and understanding the difference between each is critical. An experienced attorney can guide you toward the best bankruptcy protection option based on your particular situation.
This is the type of bankruptcy that is most commonly utilized by individual debtors. Also referred to as straight bankruptcy or liquidation, the process can last up to six months and entails the discharge of most debts through a court-appointed administrator so you can have a fresh start.
This type is also used by individual debtors but usually lasts a little while longer (typically three to five years). During the process, debtors are permitted to settle their unsecured debt such as credit cards and different types of loans for a percentage of their original balance but need to pay their tax debt in full before they can start over again. Chapter 13 allows debtors to stay in their homes as it requires a plan to make past-due mortgage payments.
Chapter 11 is primarily used by companies or businesses but is occasionally used by individual debtors. The process involves developing a customized payment plan, at the end of which most debts are discharged.
Schedule a Consultation With a New Jersey Bankruptcy Attorney
Bankruptcy is not a process you should undertake without experienced legal representation. These laws are quite complicated; rely on a professional to guide you through the process and make sure you’re being treated fairly by the courts. If you are in need of an experienced attorney in bankruptcy that can provide you with all available options, then you need Joel R. Spivack, Esq. The New Jersey bankruptcy lawyer has been successfully servicing clients for more than 25 years. He understands the bankruptcy process and what it takes to get you through it. Don’t wait for your fresh financial start, contact us today by filling out the online form.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.