New Jersey Bankruptcy

Provided by our New Jersey Bankruptcy Law Firm

Individuals and business may file for bankruptcy in federal court if they are unable to manage their debts or meet their creditors’ demands. One should not file for bankruptcy without considering all of the alternatives first. Filing for bankruptcy can have a severe effect on one’s credit. Indeed, it may be difficult to borrow money, buy a car, obtain a credit card, lease an apartment or engage in other consumer transactions after filing for bankruptcy.

On the other hand, bankruptcy can mean a fresh start for people and businesses that have accidentally fallen into arrears financially. Individuals are generally eligible to file a Chapter 7 bankruptcy petition or a Chapter 13 bankruptcy petition. In a Chapter 7 case, the individual is able to obtain a complete discharge of his debts while, in a Chapter 13 case, the individual is given more time to pay off his debts, and may, in fact, pay a lesser amount than he owes to each of his creditors. Both kinds of bankruptcies will automatically freeze any other lawsuits or threatened lawsuits against you.

If you are employed and earning money on a regular basis, you are most likely to consider a Chapter 13 bankruptcy case. In a Chapter 13 case, you or your lawyer will propose a plan for the repayment of your debts which may extend to up to five years. The plan will need to be approved by the bankruptcy trustee, who is appointed by the court in your case. The plan will also need to be confirmed by the bankruptcy judge. If you do not follow your plan, once it is confirmed, your bankruptcy case can be dismissed.

Businesses generally seek bankruptcy protection under Chapter 11. A Chapter 11 case also involves the presentation of a repayment plan. Depending on the circumstances of the business, the size of the business, the number of creditors, and other issues, a Chapter 11 case can become quite complicated, but it can also be resolved creatively and innovatively by the lawyers and the bankruptcy trustee. Many business, including major airlines and other corporations, have continued to do business for years while operating under a Chapter 11 bankruptcy plan.

Bankruptcies are filed in the United States Bankruptcy Court. Generally the bankruptcy court can be found in the federal courthouse in each major city throughout the United States. The preparation of bankruptcy papers is very technical, and the procedures in bankruptcy court are unique and often difficult to understand. If the individual or business would like to appeal the court’s decision, it is important to speak with a qualified New Jersey appeals lawyer. Mark S. Guralnick is an experienced New Jersey appeals attorney who has handled several cases relating to Chapter 7, Chapter 11 and Chapter 13 bankruptcy.

To learn more about the different types of bankruptcy, contact our New Jersey bankruptcy lawyer at our firm today.