The two most common forms of bankruptcy are Chapter 7 and Chapter 13. However, each of them has significantly different criteria that may determine which one is right for your individual needs. A Long Island bankruptcy lawyer can help you understand the right way to file the needed paperwork. However, you must first have an understanding of Chapter 13 and Chapter 7.
What is Chapter 7?
Chapter 7 Bankruptcy is designed for individuals, small businesses, partnerships and nearly any other type of business. When filing a Chapter 7, Nassau County businesses and individuals are required to pass a means test. This involves calculating the last six months of income and expenses to determine eligibility. Chapter 7 bankruptcy results in liquidation of all non-exempt assets.
Debts that may be included in these filings are both personal and business debts. Individuals are required to undergo debt counseling as part of their filing. It is important to note that while Chapter 7 is designed to give a debtor a fresh start, discharge of debts is not guaranteed. In addition, debts that are secured by physical property such as real estate or equipment are not eligible to be discharged.
What is Chapter 13?
Chapter 13 Bankruptcy proceedings are specifically for wage earners and for unincorporated small business owners. This section of the bankruptcy code has specific dollar limits on the amount of debt secured by property and unsecured debt. Chapter 13 also requires that the filing parties receive credit counseling. To file a Chapter 13, Nassau County individuals and small businesses should seek guidance from a qualified attorney. The process is often very confusing and there are numerous deadlines that must be met.
Chapter 13 reorganizes the debt of the filing party or parties. This means that a plan for repayment of debts must be created. Those who have filed for bankruptcy protection during the prior six months are not eligible to file a second time. Once a Chapter 13 plan has been put in place, the debtor must make all payments under the Chapter 13 agreement as well as current payments. Failure to maintain these payments could result in the court nullifying the bankruptcy filing.
Considering filing for bankruptcy protection is very difficult. Small business owners and individuals often see bankruptcy as giving up on themselves. Over the long term, bankruptcy can impact credit, the ability to find a new job and the ability to find housing. It is crucial when considering filing Chapter 13, Nassau County business owners and individuals understand their rights and responsibilities. Hiring a Long Island bankruptcy attorney can help debtors understand the process as well as their rights and responsibilities under the law.
When considering filing for bankruptcy protection under Chapter 7, Nassau County businesses and individuals will benefit greatly from working closely with an attorney who understands bankruptcy law. A qualified Long Island bankruptcy attorney can help debtors seek credit counseling, file the appropriate documents and help determine which chapter of the bankruptcy code is appropriate for their individual circumstances.
What is Chapter 7?
Chapter 7 Bankruptcy is designed for individuals, small businesses, partnerships and nearly any other type of business. When filing a Chapter 7, Nassau County businesses and individuals are required to pass a means test. This involves calculating the last six months of income and expenses to determine eligibility. Chapter 7 bankruptcy results in liquidation of all non-exempt assets.
Debts that may be included in these filings are both personal and business debts. Individuals are required to undergo debt counseling as part of their filing. It is important to note that while Chapter 7 is designed to give a debtor a fresh start, discharge of debts is not guaranteed. In addition, debts that are secured by physical property such as real estate or equipment are not eligible to be discharged.
What is Chapter 13?
Chapter 13 Bankruptcy proceedings are specifically for wage earners and for unincorporated small business owners. This section of the bankruptcy code has specific dollar limits on the amount of debt secured by property and unsecured debt. Chapter 13 also requires that the filing parties receive credit counseling. To file a Chapter 13, Nassau County individuals and small businesses should seek guidance from a qualified attorney. The process is often very confusing and there are numerous deadlines that must be met.
Chapter 13 reorganizes the debt of the filing party or parties. This means that a plan for repayment of debts must be created. Those who have filed for bankruptcy protection during the prior six months are not eligible to file a second time. Once a Chapter 13 plan has been put in place, the debtor must make all payments under the Chapter 13 agreement as well as current payments. Failure to maintain these payments could result in the court nullifying the bankruptcy filing.
Considering filing for bankruptcy protection is very difficult. Small business owners and individuals often see bankruptcy as giving up on themselves. Over the long term, bankruptcy can impact credit, the ability to find a new job and the ability to find housing. It is crucial when considering filing Chapter 13, Nassau County business owners and individuals understand their rights and responsibilities. Hiring a Long Island bankruptcy attorney can help debtors understand the process as well as their rights and responsibilities under the law.
When considering filing for bankruptcy protection under Chapter 7, Nassau County businesses and individuals will benefit greatly from working closely with an attorney who understands bankruptcy law. A qualified Long Island bankruptcy attorney can help debtors seek credit counseling, file the appropriate documents and help determine which chapter of the bankruptcy code is appropriate for their individual circumstances.
Current economic situations not only lend their way to divorce but also bankruptcy. In spite of projections there doesn't seem to be an end in sight.
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