Bankruptcy is a form of relief that is available to individuals and organizations facing financial difficulties. Below, you will find information on Chapter 7 and Chapter 13 bankruptcies, which are among the most common types of bankruptcy procedures. For immediate help, contact a bankruptcy lawyer in Wayne NJ.
Chapter 7 Bankruptcy
Debtors looking to file for Chapter 7 bankruptcy are seeking to have their debts discharged. A trustee is appointed by the courts to handle much of the procedure, which includes the liquidation of all non-exempt assets to help pay off creditors. In order to qualify for Chapter 7 bankruptcy, you must meet specific income requirements, which stipulate that your monthly income must be less than the state’s median income level. Additionally, the court will apply a means test, which is a full accounting of your expenses and assets.
Chapter 13 Bankruptcy
When you file for Chapter 13, you won’t be required to liquidate your assets. Instead, your debt will be restructured in a manner that is acceptable to the court. This type of bankruptcy is best suited for debtors who want to keep their assets intact and pay off their debts. To be eligible for Chapter 13, you must have less than $394,725 in unsecured debt and less than $1,184,200 in secured debt.
Contact the Law Offices of Larry Goodman today for quality legal representation from an experienced bankruptcy lawyer in Wayne NJ.
