As an experienced and reputable bankruptcy attorney in Woodbridge, New Jersey, Edward Vaisman has to be prepared to handle all of his clients’ sensitive situations. From homes that are facing foreclosure to families that are thousands of dollars in debt, any bankruptcy attorney worthy of representing you in your filing should be prepared not only with the answers to all of your questions, but to help you every step of the way.
Throughout his years in practice, Vaisman says that for most consumer bankruptcy cases where a debtor is bound by credit cards and loans, you can find relief when you file for either Chapter 7 or Chapter 13 bankruptcies. Those who are within the bankruptcy code’s limits to file for Chapter 7 will be able to discharge a large portion of their unsecured debts so that they are no longer required to pay back the creditors. Others who do not meet the requirements will most likely file for Chapter 13. According to Vaisman, this option allows you to create a repayment plan with your bankruptcy trustee so that over three to five years (according to your case), you will be able to repay your outstanding debts.
Have you heard of chapter 11 bankruptcy?
As with most consumer bankruptcy attorneys, Vaisman says that a majority of his clients are better suited for filing either Chapter 7 or 13 bankruptcies because they will find that the results are more beneficial to their needs. In some cases, however, he says that certain individuals may need to file for the lesser known Chapter 11 bankruptcy. This is reserved for very powerful individuals who have a lot of assets, he says, but is mostly used in business filings.
Unlike Chapters 7 and 13, when determining to file for Chapter 11, you do not need to qualify for the means test. Furthermore, while Chapter 7 abolishes many of your debts and Chapter 13 creates a repayment plan to repay the debt you owe, Vaisman explains that Chapter 11 is generally a reorganization process for businesses. And while the exact reorganization period is determined on a case by case basis, he says that filing offers a few options for companies:
- Keeps creditors from calling to collect owed debts
- Discharges some debts as the bankruptcy judge allows
- Consolidates some debts
- Allows for the possibility of a repayment plan
Most of all, he says, Chapter 11 really gives you the opportunity to take a step back to reorganize your business and your finances so that you can become a profitable institution again. For some business owners, this may mean reducing the number of employees, changing suppliers, or closing under-performing locations. However, with creditors constantly calling and with so many hands outstretched for payments, reorganizing without the help of bankruptcy protection can be very daunting and sometimes near impossible.
As always though, the best way to determine which chapter of bankruptcy will be most effective for you or your business is to contact an attorney in your area who is familiar with the process. Since often times this will be the first step towards improving your financial future, you want to make sure that it is a step in the right direction.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Neither publication of this article nor your receipt of this article creates an attorney-client relationship.