Find a Bankruptcy Lawyer in North Bergen, New Jersey
Bankruptcy in North Bergen, New Jersey is a court proceeding through which a person or business who is unable to pay their debt is able to have some of their debt legally eliminated, 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 severely damaged credit rating for many years afterward), it should be viewed as an option of last resort.
Therefore, it is prudent to consult with an experienced North Bergen, 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 North Bergen bankruptcy attorney cannot be substituted.
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Types of Bankruptcy in North Bergen, New Jersey
In North Bergen, 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 North Bergen, New Jersey will be very similar to those in any other part of the United States. Chapter 7 bankruptcy, or "liquidation," requires the debtor to sell some of his or her property to the highest bidder, and using the proceeds from the sale to pay down as much debt as possible. Once the sale is done, all dischargeable debt is deemed paid in full, whether or not the sale was able to raise the entire amount owed. You should note that some property (usually the types of property deemed essential) is fully or partially exempt from liquidation, meaning that the debtor gets to keep it. This includes houses, cars, and retirement accounts, among others. Some types of debts, however, cannot be discharged in bankruptcy, including taxes, child support, and student loans.
The other common bankruptcy scheme used by consumers in North Bergen is Chapter 13 bankruptcy. In this system, debt is not discharged. Instead, it is restructured. This allows the debtor to have the terms of the arrangements that gave rise to their debts in the first place thrown out, and replaced with new terms that call for a structured repayment plan, designed to allow the debtor to survive on whatever income they have, and allowing the creditors to get paid back eventually. Once a payment plan is approved, creditors are not allowed to attempt to collect payment under the original agreements. Although it can be used by individuals, Chapter 11 bankruptcy is used almost exclusively 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.
One advantage of Chapter 11 bankruptcy is that it allows a business going through it to continue operations, and to trade its stock.
How Can a North Bergen Bankruptcy Lawyer Help?
The decision to file for bankruptcy in North Bergen is not one to be made lightly, and it certainly should not be made without first obtaining the advice of an efficient North Bergen bankruptcy attorney.
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Life in North BergenNorth Bergen is a township located in Hudson County, New Jersey. North Bergen, New Jersey has a population of about 60,000 people, as of the 2000 Census.
North Bergen got its name in the 1800s, when the former Bergen Township was divided into several smaller sections, one of them being North Bergen.
North Bergen, New Jersey is known for its hilly terrain, and is said to be second only to San Francisco in American cities with the most hills. It also has an elaborate shape - resembling an inverted "L." These factors have lead to different sections of North Bergen evolving into distinctive neighborhoods, each with its own unique look and feel.
In order to spur development and commerce, the state of New Jersey has designated North Bergen as an "Urban Enterprise Zone." Many state laws and regulations operate differently (or not at all) in these zones, for the purpose of encouraging businesses to set up shop. For example, sales tax is only 3 1/2%, as opposed to 7% in the rest of the state, and many items, mostly necessities for life, or those related to starting a business, are tax-free.
If you live in North Bergen, New Jersey and are in need of legal advice, you're in luck. There are many North Bergen, New Jersey lawyers who are ready to help you with whatever legal problems you may be facing.