eNewsletter for Our Morris County Bankruptcy Law Firm

Are Chapter 11 Bankruptcy Filings For Individuals?

Filing and confirming a Chapter 11 bankruptcy plan can be expensive and complex. As a result, businesses file the majority of these cases. Individuals, however, are not barred from doing so, and a Morris County bankruptcy lawyer can offer the experience necessary to advise and counsel clients on all issues related to filing for Chapter 11 Bankruptcy. Reasons Why Individuals May File Chapter 11 Bankruptcy When an individual has large liabilities or is engaged in complex business transactions, Chapter 11 bankruptcy may be the best solution. Frequently, an individual Chapter 11 client is one who belongs in any of the following four categories: An individual who has many highly complex, typically business-related, debts as well as assets and/or high income which can fund a Chapter 11 Plan An individual who does not qualify for Chapter 7 or Chapter 13 An individual whose business responsibilities prevent him or her from filing…
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Little Known Facts about Bankruptcy Law

Many people who are considering filing for bankruptcy may have misconceptions about the way it works, and this is understandable. Bankruptcy law is a complex field, and it is not always clear what property you get to keep, what property you have to sell, and how long it might take to rebuild your finances following a bankruptcy filing. Below are some important facts that people may not know about bankruptcy. It is important to remember, though, that legal advice will always vary depending on each individual’s situation. A Morris County bankruptcy lawyer can help you understand the important aspects of a bankruptcy filing so that you can make the best decision for your needs. General Bankruptcy Facts You can bounce back quickly from a bankruptcy filing. While it is true that bankruptcy is a major decision that can be on your credit report for up to ten years, people who…
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Understanding the Chapter 13 Means Test

In 2005, Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), introducing several new bankruptcy laws. One of the changes BAPCPA brought about was means testing. Now, when consumers want to file Chapter 7 bankruptcy, they must complete a means test to determine their eligibility for a Chapter 7 discharge. Chapter 13 debtors also have to complete a means test, though it does not determine their eligibility for filing Chapter 13 bankruptcy. Bankruptcy means testing is a complicated process best handled by an experienced Morris County bankruptcy attorney. Plan Length One function of the Chapter 13 means test is to determine the length of a debtor’s Chapter 13 repayment plan. The means test compares a debtor’s household gross income during the six months preceding filing with the median income for the debtor’s household size. If a debtor’s household gross income is less than the applicable median income, he…
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State Exemptions Versus Federal Exemptions in Chapter 7 Bankruptcy

When you file for Chapter 7 bankruptcy, you can protect certain assets by claiming them as exempt. Exempt property is property that you get to keep after bankruptcy. Non-exempt property is property the bankruptcy trustee can sell to pay back your creditors. An important decision that all bankruptcy filers must make is whether to use federal bankruptcy exemptions or state bankruptcy exemptions. Choosing between state and federal exemptions can be extremely complicated and requires a deep understanding of bankruptcy law. A Morris County Chapter 7 bankruptcy attorney has the knowledge and experience to help you determine which exemptions will best protect your assets. Federal Bankruptcy Exemptions Some states allow debtors to choose federal bankruptcy exemptions, which are outlined in the Bankruptcy Code. New Jersey is one of those states. Below are some of the assets you can protect using federal bankruptcy exemptions: Homestead or burial plot, up to $21,625 One…
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