Chapter 11, Chapter 7, and Chapter 13 in Newark
Unless you are a bankruptcy expert, chances are good you don't know the difference between a Chapter 11, Chapter 7, and Chapter 13 bankruptcy plan. While in the normal state of affairs in Newark, New Jersey, this ignorance is fine, it's not when you find yourself in financial trouble and need some guidance about bankruptcy. Once you get into the details of the New Jersey bankruptcy laws, it isn't too hard to figure out what would work best for your situation. Of course you still have to qualify, but that's a whole other set of issues. If you are thinking of filing bankruptcy or just want to help someone you know who is, here is a brief look at the different chapters of the Newark, New Jersey bankruptcy chapters.
- for personal use
- chapter 7
- chapter 13
- for businesses
- chapter 11
The first thing to determine in deciding on what type of Newark, New Jersey bankruptcy you qualify for is if your problem has to do with your personal or professional finances. If you answer personal, then Chapter 7 bankruptcy under New Jersey law may be the answer for you. The end result of this kind of bankruptcy is a total fresh start. You and your Newark bankruptcy attorney will appear in a hearing where your financial situation is looked at closely. You then relinquish your rights to your assets and they are sold. The proceeds from the sales are used to repay your outstanding debt. The problem many people have with Chapter 7 bankruptcy is that you stand to lose everything including your home if you are a homeowner.
Chapter 13 bankruptcy is a little less harsh. Under the policies of the Newark, New Jersey bankruptcy law, Chapter 13 is a reorganization of your debts as opposed to a liquidation of your assets. A Chapter 13 bankruptcy involves you paying the court appointed trustee a set amount each month to cover your debts. This type of bankruptcy stops harassing calls and allows for a stay of a house foreclosure if that is an issue for you. while you do have to pay the money back, chapter 13 gets creditors off your case and allows you to keep some of the important things you have worked so hard for.
As written in the Newark, New Jersey bankruptcy laws, a Chapter 11 bankruptcy works a lot like a Chapter 13, only it's for businesses. Under this type of bankruptcy, business owners can keep their doors open while they work to fix the financial problems of the business. This option is certainly better than losing your business altogether.