Filing for Bankruptcy in a Tough Economy

In this tough economy, many individuals look to file bankruptcy to get relief from high debt. However, there are certain things that must be considered before you file. A Morris County bankruptcy attorney will assist you with determining if you need to file bankruptcy.

Bankruptcy Chapters Explained

There are three common types of bankruptcy – Chapter 7, Chapter 11, Chapter 13. However, there are certain requirements that must be met when filing for a particular bankruptcy Chapter. A Morris County bankruptcy lawyer can explain the different requirements that must be made.

For instance, Chapter 11 filers must be a business, corporation or other business endeavor who want to readjust their budget and need government assistance. A Morris County bankruptcy lawyer can help you decide which Chapter you need to file. Below are the three common bankruptcy Chapters.

  • Chapter 7 – This Chapter does not require the debtor to make a plan of repayment. Instead, a bankruptcy trustee is assigned to gather and liquidate the debtor’s nonexempt assets to pay owed balances back to the debtor’s creditors. A helpful Morris County bankruptcy attorney can help you gather all the financial information you will need.
  • Chapter 11 – Commonly known as a reorganization bankruptcy, this chapter allows the debtor to propose a plan to reorganize their finances. The businesses can continue conducting business and paying their creditors over a certain period of time. A Morris County bankruptcy lawyer will be able to help you propose your repayment plan.
  • Chapter 13 – Commonly called a wage earners plan, it allows the bankruptcy filer to develop a plan to repay debt owed by making monetary installments to creditors in a specific amount of time. A debtor can still be able to keep their property as they continue making payments. A Morris County bankruptcy attorney can help you draft a plan to repay debt.

Filing for bankruptcy during this tough economy can be a difficult decision. However, it is important to consult with a knowledgeable Morris County bankruptcy attorney who can assist you in making the right choice.

By understanding how each bankruptcy chapter works, you can feel confident in making the decision to file for bankruptcy. A Morris County bankruptcy lawyer can walk you step-by-step through the process of filing for bankruptcy.

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