Quick Answer: Millions of people each year take advantage of the fresh start provided by the U.S. Bankruptcy Code. In many cases, people who file for bankruptcy are able to eliminate all of their debts and are often able to obtain credit in a relatively short period of time after their bankruptcy has been finalized. …
Quick Answer: Chapter 13 bankruptcy, also known as a “reorganization bankruptcy,” is the second most common type of bankruptcy utilized by consumers in the United States. It differs from a Chapter 7 bankruptcy in that instead of liquidating a debtor’s non-exempt assets in order to pay off creditors, Chapter 13 allows debtors to keep their…
Quick Answer: Bankruptcy Discharge vs. Dismissal If you haven’t filed for bankruptcy in the past, you are free to file for Chapter 3 or Chapter 7 relief at anytime. However, you must satisfy certain requirements to obtain a discharge to be officially released from your debts. If the bankruptcy court discharges your case, it means…
Quick Answer: Bankruptcy Documents Should I keep my paperwork? I advise my clients to make copies of the petition, schedules, discharge, and related documents and keep them with their permanent records. It is rare, but creditors are known to try to collect debts after they have been discharged. Keeping your paperwork in order will allow…
Quick Answer: Many people are under the assumption that bankruptcy can’t eliminate taxes. But, that is a common misconception. Under Chapter 7, Chapter 13, and Chapter 11, you can discharge federal and state income tax debts. In order to do so, your case must meet the 3-2-240 rule requirements. The 3-Year Rule The debt must…
Quick Answer: If you are considering the serious financial option of bankruptcy, you may be plagued with outdated stereotypes about what it means to go bankrupt. While there can sometimes be a serious stigma attached, this is foolish: quite a few wildly successful businessmen and even Presidents have gone bankrupt in their time. While it’s…
Quick Answer: According to statistics published by the AARP, employers in New Jersey fail to supply about 1.7 million workers with access to a retirement plan. Acknowledging the importance of retirement savings for individuals and society as a whole, NJ legislators passed the Secure Choice Savings Plan Act. This bill requires private sector employers with…
Quick Answer: In the difficult situation of needing to file for bankruptcy, it may be hard to decide which chapter of filing is best for you, especially if you qualify for both Chapter 7 and Chapter 13. Often, filing for Chapter 7, the liquidation option, can be more practical than Chapter 13, the reorganization option.…
Quick Answer: It’s hard to consider the possibility of a serious illness or the struggle of recovering from an injury, let alone contemplate the financial responsibility that comes with such issues. Its bad enough being hurt or in pain, but to top it off with a huge medical bill or a zeroed bank account from…
Are you confused about the dissimilarities between Chapter 7 and Chapter 13 bankruptcy? Read this comprehensive guide that outlines the disparities between the two and provides valuable insights for your decision-making process.
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