Find a Bankruptcy Lawyer in Middletown, New Jersey

Find the right Bankruptcy attorney in Middletown, NJ

Bankruptcy in Middletown, New Jersey is a court procedure through which a person or business who is unable to pay their debt is able to have some of their debt legally excused, or "discharged." This theoretically allows the debtor to move on with a clean slate. However, bankruptcy should not be treated as a way to avoid debt that one simply doesn't feel like paying. It is meant to be a safety net for people or businesses who are really unable to pay off their debts. Because bankruptcy is not without negative consequences (such as a heavily damaged credit rating for many years afterward), it should be viewed as an option of last resort.

Therefore, it is advisable to consult with an experienced Middletown, New Jersey bankruptcy attorney, who can advise you of the costs and benefits of bankruptcy. Because the decision to file for bankruptcy depends very heavily on the facts of each individual case, the advice of a Middletown bankruptcy attorney cannot be replaced.

Types of Bankruptcy in Middletown, New Jersey

In Middletown, New Jersey, there are three basic bankruptcy schemes that are most frequently used. They are identified as Chapter 7, Chapter 13, and Chapter 11. Being a product of federal law, the procedural rules governing bankruptcy in Middletown, New Jersey will be very similar to those in any other part of the United States. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her assets in order to pay off as much debt as possible. Once the sale of the assets is verified, and the proceeds handed over to the creditors, the debt is perceived as discharged. Liquidation is basically selling assets to the highest bidder. Not all of the debtor's assets will need to be sold, and many types of property are entirely or partially exempt, including homes, cars, retirement accounts, and insurance policies. This means that the debtor can keep them. It should be noted that some types of debts are not dischargeable in Chapter 7 bankruptcy, including student loans, criminal fines, taxes, and child support payments. Even when the bankruptcy process is complete, these debts will have to be paid in full.

The other largely used bankruptcy system in Middletown is Chapter 13 bankruptcy. This allows a debtor to repay most or all of their debts in a structured manner. It reorganizes the debt into lower periodic payments that, with a bit of frugality, the debtor should find manageable. This allows the debtor to continue to earn a living, and allows the creditors to eventually collect what they are owed. Once a repayment plan is authorized by the bankruptcy court, creditors are legally barred from seeking repayment under the terms of the arrangements that gave rise to the debt in the first place, and will instead have to accept payment under the new plan. Chapter 13 bankruptcy is typically a better option for people who have a steady income. Although it can be used by individuals, Chapter 11 bankruptcy is used almost always by businesses. Not unlike Chapter 13, Chapter 11 focuses on restructuring of debt, rather than discharging it. Chapter 11 requires that the debtor come up with a reorganization plan designed to reduce debt and cut costs. Before being enforced, this plan must be approved by a majority vote of participating creditors.

During the Chapter 11 process, a business can typically continue its operations, and the stock can be traded, even if it is de-listed from a major stock exchange.

How Can a Middletown Bankruptcy Lawyer Help?

Filing for bankruptcy in Middletown is a very important decision, and should not be made easily. Before filing, one should consult with a seasoned Middletown bankruptcy attorney for assistance.

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Life in Middletown

Middletown, a.k.a. Middle Township, is in Monmouth County, New Jersey. It was originally formed on October 31, 1693 and became a township via an Act of the New Jersey Legislature on February 21, 1798.

Interestingly, in 2006, 2008, and 2010 Middletown was voted in the Top 100 list for the Best Places to Live by CNN Money Magazine.

Middletown is also home to many practicing attorneys who are able to provide local businesses and residents with the appropriate legal guidance.

Past and present famous residents include Pete Capella, Knowshon Moreno, Christian Peter, Jason Peter, Maury Povich, Geraldo Rivera, E.W. Swackhamer, Kevin Smith, Bob Tucker, Billy Van Zandt, Max Weinberg, Bill Weber, Tom Wilkens, and Brian Williams.