CHAPTER 13 BANKRUPTCY NEW JERSEY
Bankruptcy under Chapter 13 of the Bankruptcy Code is sometimes referred to as a “wage earner plan.” Under Chapter 13, a Bankruptcy Court can help a debtor reorganize his or her debts and pay them off over time. Under Chapter 13, a debtor typically keeps all of his or her property.
A Chapter 13 bankrupty is very much like a Chapter 7 bankruptcy with a few exceptions. The process is similar, however, within approximately 15 days of filing the petition, the debtor submits a payment plan to the Court detailing how he will pay off his debts. Under the plan, the debtor must completely pay off certain “priority” debts, such as the costs of administering the bankruptcy, employees’ wages and benefits, debts for undelivered services or goods, and taxes, and pay for any encumbered property he wants to keep. The debtor can plan, based on his ability, to partially pay any remaining debt and ask the Court to discharge the rest. Once the Court approves a payment plan for the debtor, a Court-appointed Trustee begins collecting monthly payments from the debtor and administering the plan. Upon the debtor’s successful completion of the repayment plan, the Bankruptcy Court discharges any remaining debt and concludes the bankruptcy.
In some situations, an individual may be able to use both Chapter 7 and Chapter 13 to handle his or her debt.
Whether you qualify under Chapter 7 or Chapter 13, Gary M. Didieo will represent you every step of the way to ensure that your financial crisis is put to an end. To begin the bankruptcy process, call Passaic County Bankruptcy Lawyer Gary M. Didieo today at 201-213-0883 to arrange a free consultation.