Personal & Business Bankruptcy Lawyers
Debt Relief Attorneys Dedicated to Helping You in New Jersey & Pennsylvania
Bankruptcy is designed to give people who are in financial difficulty a “fresh start.” The law recognizes that people can get into economic trouble for many reasons, and when you get to the point that your financial problems become more than you can bear, you should have the opportunity to discharge certain types of debts and start over.
At McDowell Posternock Apell & Detrick, PC, we have many years of combined experience advising individuals and businesses concerning their options relating to bankruptcy and debt restructuring in New Jersey and Pennsylvania. Whether you are an individual who is eligible to discharge your debts in a Chapter 7 or restructure in a Chapter 13 or a business that needs to reorganize under a Chapter 11, the experienced, caring attorneys at McDowell Posternock Apell & Detrick, PC have the tools to help you address your debt repayment issues. You can call us day or night, or email us to schedule a free phone consultation at our Moorestown, Maple Shade and Browns Mills offices.
What Is Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy is known as a liquidation proceeding, because a debtor filing under this chapter subjects his or her non-exempt assets to the control of a bankruptcy trustee whose job it is to sell those assets to pay creditors. If there are no non-exempt assets, unsecured debts are typically “discharged,” meaning that they are legally non-existent. In the majority of Chapter 7 cases, our clients’ bankruptcy trustees do not end up selling any property because the Bankruptcy Code allows Chapter 7 debtors to “exempt” most personal property from sale. For example, your equity in a home owned by you and used as your personal residence is exempt up to $20,250, and your equity in an automobile is exempt to the extent of $3,125. If your equity in your home or car does not exceed the amount of your exemption, and if you keep your payments current, then you may be able to keep those assets without fear of losing them to the trustee or your creditors.
What Is Chapter 13 Bankruptcy?
In a Chapter 13 bankruptcy, the debtor can force his or her mortgage company to accept a work-out plan to pay back payments that are in arrears. The debtor must make payments to the Chapter 13 trustee for the benefit of his or her creditors for a minimum of three years and a maximum of five years.
What is Chapter 11 Bankruptcy?
Chapter 11 is usually used by businesses that need to restructure their debt, but individuals sometimes file Chapter 11 bankruptcies, too, depending on the complexity of their financial issues or the amount of assets and debts they have. Chapter 11 bankruptcy is more expensive than the other types, but allows a great deal of flexibility and creativity in financial problem-solving.
For other bankruptcy questions, view our frequently asked questions page.
Whatever your financial situation, if your debts are causing you undue stress, you should call us for a free initial consultation to discuss whether bankruptcy is the right option for you. Contact us today to discuss your options.