Carrying debt is not uncommon for most individuals and families. Few can buy a home and a reliable vehicle and manage their day-to-day expenses without taking on some debt they intend to pay off later. Unfortunately, one setback or unexpected expense can render your financial situation untenable.
When you have significant and unmanageable debt, contact a Toms River Chapter 11 personal bankruptcy lawyer. Though it is often used for businesses or corporations, a Chapter 11 bankruptcy may bring much-needed relief from collection efforts while preserving your most important assets. Our experienced bankruptcy attorneys offer compassionate guidance and support through every aspect of the proceedings.
There are several forms of personal bankruptcy, but not every debtor will qualify. A Chapter 7 bankruptcy requires a means test and many debtors are ineligible on that basis. A Chapter 13 bankruptcy is available only to debtors who owe less than $2,750,000.
A Chapter 11 bankruptcy is available to individuals and married couples, regardless of income or debt levels. It involves restructuring your debt over time, subject to the oversight of a bankruptcy trustee. At the end of the term, unpaid unsecured debt may be discharged.
A Chapter 11 personal bankruptcy is the most complex and expensive bankruptcy option, and the diligent attorneys in our Toms River office will work with you to explore alternatives. If a Chapter 11 bankruptcy is the right choice, we will work with you throughout the process to ensure you emerge financially sound and free of the stress of crushing debt.
A Chapter 11 personal bankruptcy requires significant preparation. The law at 11 United States Code § 521(b) requires you to file a comprehensive financial disclosure when you initiate a Chapter 11 bankruptcy.
Your disclosure must list all of your assets, income, and liabilities, as well as a complete list of creditors and the amount owed. Your disclosure must list your expenditures and include a statement describing any anticipated changes in income or expenditures within the next year.
Your petition to file for a Chapter 11 bankruptcy may be rejected if this disclosure is inaccurate or incomplete, so the attorneys in our Toms River office will ensure your disclosure is supported with appropriate documentation.
You must present a plan of reorganization within 120 days of a Chapter 11 filing, and it must detail your proposal for paying your debts over a three-to-five-year period.
Your debts are divided into classes, and your plan must address payments to each class. The classes are: secured debt owed to creditors that hold collateral for your debt, unsecured debt like medical debt and credit cards, and “priority creditors.” The priority creditors are:
Debt to your “priority creditors” cannot be discharged, but can be restructured over the term of the Chapter 11 bankruptcy proceedings.
Creditors can object to your plan of reorganization and propose alternatives. Arriving at an acceptable plan often requires our Toms River attorneys engaging in negotiations. When the creditors and court accept a plan of reorganization, you must pay your debts as agreed throughout the term—and a default could force you into Chapter 7 or have other negative repercussions.
The decision to declare bankruptcy should never be taken lightly. When other viable alternatives are not available, declaring bankruptcy can free you from collection activities and allow you to regain control over your finances.
If your debt is unmanageable, consult one of our Toms River Chapter 11 personal bankruptcy lawyers. We will review your situation, consider all reasonable alternatives, and help you make the decision that is right for you. Schedule a complimentary intake appointment today to begin the process of freeing yourself from overwhelming debt.
Gillman Capone Law Group
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