Chapter 11 or Chapter 13 Bankruptcy in New Jersey: Which One Is For Right For You?

         

   For many people, the idea of going into bankruptcy is frightening, largely because there are so many options and also due to social stigma and lack of frank discussion around the benefits of bankruptcy. The reality is that for many people who choose bankruptcy, the decision makes their lives better, frees them up to make smart financial decisions, and allows them to move forward with their lives without the burden of debt. Many people take on debt and then lose their jobs, or their circumstances change—through no fault of their own. Bankruptcy offers individuals the ability to start over.

            If you have a regular income and have a home, Chapter 13 bankruptcy may be able to protect these assets while allowing you to get on a payment plan that can last anywhere from 3 to 5 years. If you don’t own a home, don’t have property, or a regular income, Chapter 7 bankruptcy may be more appropriate. If you are not sure about which option to choose, you may want to seek the advice of a Chapter 13 bankruptcy lawyer in New Jersey like Stuart M. Nachbar, Esq.

            Chapter 13 bankruptcy is often a bit more complex than Chapter 7 bankruptcy because you’ll need to develop a payment plan to repay your creditors before your debts will be discharged. Your debts must also be below certain limits. If you have high unsecured debt, Chapter 11 may be the better option. Chapter 11 is most often used by businesses to reorganize their debts, but individuals can also use Chapter 11 to reorganize debts if their debts exceed Chapter 13 limits. Limits for Chapter 13 bankruptcy change frequently, but currently you must have less than $360,475 in unsecured debt.

There are many myths surrounding bankruptcy. The reality is that many hard-working individuals choose bankruptcy because they have run out of other options and need the clean slate. According to the Huffington Post, celebrities like Walt Disney and Elton John and even Thomas Jefferson used bankruptcy protections.

Even Donald Trump was quoted by CNN, reminding the public that the laws of the country—namely bankruptcy laws—have afforded him the protections to make the best possible business decisions for his company. CNN reports that as many as 20% of companies may have used bankruptcy to protect their businesses’ best interests—as many as 1 in 5. Trump has filed for bankruptcy for his New Jersey Atlantic City casino and other business ventures.

If millionaires can do it for their companies, individuals facing the burdens of changed circumstances and life situations also have the right to file. We all are granted equal protection under the law when it comes to protecting ourselves from the burden of debt.

Filing for bankruptcy means taking responsibility for your financial difficulties and using protections afforded to you under the U.S. Constitution to move forward with your life. Chapter 13 and Chapter 11 bankruptcies are often more complex than Chapter 7 bankruptcies. If you’re planning to file in New Jersey, it is wise to seek the counsel of a bankruptcy lawyer. Visit Stuart Nachbars website at www.snanj.com for more information on filing in the state of New Jersey.