Doing what you’ve been doing is going to get what you’ve been getting. —Seth Godin Remember that classic definition of insanity—doing the same thing over and over while expecting different results? Filing for individual Chapter 11 bankruptcy represents only one step of your journey to financial wellbeing. Your goal should not simply be to reset financially, but rather to recover—and [...]
Like all forms of bankruptcy, filing an Individual Chapter 11 Bankruptcy isn’t the end of your financial dream; it’s actually a method of resetting. While your financial difficulties may put a strain on your business, you still owe it to yourself to move forward. Here are some best practices to begin doing just that. Keep Business and Personal Finances Separate [...]
If your rising debts have caused increased stress or depression in your life, you’re not alone. In fact, studies by the American Psychological Association suggest that financial-related stress affects as many as 72 percent of Americans. Twenty-two percent report “extreme stress” because of their finances. While filing for bankruptcy relief can help you regain control of your finances, leaving these [...]
The only way you will ever permanently take control of your financial life is to dig deep and fix the root problem. —Suze Orman Before we move forward, let's put something into perspective. Bankruptcy is basically like a bandage for your debt problems: It can help stem the bleeding and give you the time to heal. But it does little [...]
Chapter 11 Bankruptcy is a court provision that affords you a temporary stay against creditor collection activities, allowing you time to reorganize and negotiate for repayment of your debt without losing profitability. The following section-by-section summary outlines the different sections when filling out a Notice of Chapter 11 Bankruptcy (For Individuals and Joint Debtors)—also known as Official Form 309E, also [...]
You’ve decided to handle your debt through Chapter 11 individual bankruptcy. You’ve met with a credit counselor, filed your petition, submitted your monthly operating reports and have had your Section 341 meeting. Now what else do you need to do? The New Jersey Bankruptcy Court’s website provides an excellent breakdown of the basics of the Chapter 11 process. However, this [...]
After you’ve determined that filing Chapter 11 bankruptcy is the best way to handle your debt issues, what’s next? How does the process work? The New Jersey Bankruptcy Court’s website: www.njb.uscourts.gov provides an excellent breakdown of the process. This 2-part blog post will provide you with some easy to follow guidance and help you better understand the process. Let's begin [...]
You’re in debt, and you need to find some relief; and filing for bankruptcy under Chapter 7 or Chapter 13 isn’t right for you. Maybe you earn too much money. Or maybe have too much debt spread across multiple properties or other assets in New Jersey and beyond. Consequently, an individual Chapter 11 might work for you. The Plan Chapter [...]
In contrast to the liquidation approach, when you opt for a reorganization Chapter 11, you’re not selling off assets. You're just restructuring your debt in a way that’s more favorable to you. In many ways, a reorganization Chapter 11 “rhymes” with a Chapter 13. For instance, you get the ability to make payments to creditors. This tool is particularly useful for [...]
Let’s cut to the chase. The main difference between Chapter 11 liquidation and Chapter 7 is that you, as the debtor, remain “debtor in possession.” In other words, you have control over the sale process. You also control the distribution of assets through the bankruptcy court. In a Chapter 7 case, by contrast, you are immediately taken out of possession. [...]
