Bankruptcy is a concept that dates all the way back to the ancient Roman days. It provides a means for a debtor to be forgiven of his or her debts should those debts get to a point where they can no longer be managed. Fairness is the overriding concept when it comes to bankruptcy. This fairness extends to creditors who are assured they will be treated fairly when it comes to receiving any monies in a bankruptcy, and fairness to the debtor who can be given the opportunity for a fresh start. There are four types of bankruptcy: Chapter 13, Chapter 12, Chapter 11 and Chapter 7 in Toms River.
A Chapter 13 bankruptcy is a strategy debtors can use to stop a foreclosure or are at risk of losing an unprotected asset that would be forfeited in a Chapter 7 in Toms River to the trustee who would liquidate the asset and use the money to help pay creditors. Some circumstances do not allow an individual to file a Chapter 7 in Toms River Bankruptcy, and so a Chapter 13 is their only real option. In a Chapter 13, the debtor proposes a plan to repay the creditors which a court-appointed trustee whose interest lies with those creditors will review the plan and give approval. Most repayment plans last between 3 to 5 years. There are debt limitations in a Chapter 13 bankruptcy which should be discussed with a bankruptcy attorney.
Another bankruptcy option is a Chapter 11. This type of bankruptcy is reserved for the person who has too much debt to file a Chapter 13 but do not want to lose unprotected assets in a Chapter 7 in Toms River. The cost for filing a Chapter 11 is expensive than a Chapter 13 or Chapter 7, and if a person is qualified for a Chapter 13, it is rare they would need to consider filing a Chapter 11.
Farmers who need to seek debt relief would file a Chapter 12 bankruptcy, which is not unlike a Chapter 13.
Finally, a Chapter 7 in Toms River is a liquidation bankruptcy. In this type of bankruptcy, a trustee assumes control of your assets and has the right to sell unprotected assets to go towards paying back creditors. Creditors who have their debts secured by property such as a mortgage lender having their loan secured by a house or an auto lender having their money secured by a vehicle can foreclose or repossess the collateral should they choose. There are exemptions to this which a qualified bankruptcy lawyer can discuss with you. Chapter 7 Bankruptcies last around four to five months from the date of filing.
If you are seeking relief from chapter 7, get in topuch with a reputable bankruptcy lawyer at The Law Offices of Lee D. Gottesman for advice concerning Chapter 7 in Toms River today.
