eNewsletter for Our Morris County Bankruptcy Law Firm

Reorganizing Your Business During Chapter 11 Requires Organization

Under a Chapter 11 bankruptcy, a business reorganizes its financial affairs to pay off debts to creditors. Only a corporation, partnership or sole proprietor may file for a Chapter 11 bankruptcy reorganization plan. During the process of a Chapter 11 bankruptcy, the business submits a full list of all its assets and liabilities. It also includes a thorough list of its current financial affairs. Typically, there is no official trustee assigned to the Chapter 11 bankruptcy case. The debtor acts as its own trustee and holds its own meetings of creditors. If the court finds that the debtor acts inappropriately in this role, or if the debtor mismanages the funds, the court may, however, appoint a trustee to the Chapter 11 bankruptcy case. How a Chapter 11 Bankruptcy Works Approximately 30 days after a business files for a Chapter 11 bankruptcy reorganization plan, the business and its Morris County bankruptcy…
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Tips for Completing a Chapter 13 Bankruptcy

Morris County Bankruptcy Attorney Ast & Schmidt Discusses the Tony Mack Case After a series of financial struggles and over half a million dollars’ worth of mortgages and debt, Trenton Mayor Tony Mack filed for Chapter 13 bankruptcy in early 2013. However, only a few months later, a federal judge dismissed the case after Mack neglected deadlines and missed a hearing in court, which terminated his bankruptcy claim. Mack may have also failed to disclose some of his property in his bankruptcy claim. Though Mack has endured a number of financial troubles and public criticisms, his failure to complete a Chapter 13 bankruptcy is not exceptional. The Chapter 13 repayment plan typically lasts between three and five years, and many of those who file for this type of bankruptcy fail to complete the process. How Can I get Through a Chapter 13 Bankruptcy? Chapter 13 is a long commitment, but…
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Do I Make Too Much Money to File Bankruptcy?

One of the most common questions many bankruptcy filers ask is, “Do I earn too much money to qualify for bankruptcy?” The truth is how much money you make is not as relevant to the issue as you may think. The basic way to determine if you qualify for bankruptcy is by a means test. A qualified Morris County bankruptcy attorney can assist you in determining how much your earnings will affect your means test. Basic Truths About Income and Bankruptcy Many people feel that they earn too much money to qualify for Chapter 7. Since the new law has toughened the qualifying rules for Chapter 7, individuals are now required to pass a means test. A knowledgeable Morris County bankruptcy lawyer can explain the new law in more detail. Qualifying for bankruptcy really has to do with other things besides income. One of the ways to determine if you…
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What Happens to My Divorce Obligations in Bankruptcy?

A Morris County Bankruptcy Lawyer Explains Divorce is the final legal step in dissolving a marriage. However, certain financial obligations may force a continuing relationship to pay a property settlement, child support and/or spousal support. This raises questions of how certain divorce obligations are handled in the aftermath of the divorce and when one party decides to file bankruptcy. Family Support Obligations in Bankruptcy In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) changed the way courts handled support obligations in bankruptcy. This amended law removed the distinctions between debts like alimony, spouse support and child support and classified them all as “domestic support obligations”, or DSOs. If these debts are determined to be a DSO it is automatically excepted from discharge in both Chapter 7 and Chapter 13 cases. The primary criteria for determining a DSO are: A debt is owed to or recoverable by a “spouse,…
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