Find a Bankruptcy Lawyer in Plainfield, New Jersey
Bankruptcy in Plainfield, 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 truly 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 Plainfield, 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 Plainfield bankruptcy attorney cannot be substituted.
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Types of Bankruptcy in Plainfield, New Jersey
In Plainfield, New Jersey, there are three basic bankruptcy schemes that are most commonly used. They are known as Chapter 7, Chapter 13, and Chapter 11. Being a product of federal law, the procedural rules governing bankruptcy in Plainfield, 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 property, and use the proceeds to pay creditors. While this doesn't sound like much of a relief at first glance, the upshot is that once the eligible property is sold, and the proceeds given to the creditors, all of the debtor's eligible debts are deemed paid in full, regardless of how much the creditors actually ended up getting. Not all of the debtor's property has to be sold off - the debtor will usually be allowed to keep things like a house, at least one car, some types of personal property, retirement accounts, and insurance policies. It should be noted that some debts are not dischargeable, and will have to be paid in full even if the debtor files for bankruptcy. This includes student loans, taxes, and criminal fines.
The other common bankruptcy scheme used by consumers in Plainfield 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 agreements 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. Though available to individuals, Chapter 11 bankruptcy is mostly used by businesses. Like Chapter 13, Chapter 11 requires the restructuring of debts. Under this system, the debtor must come up with a plan to reduce debt, cut costs, and improve operations. Once this plan is proposed, it is submitted to the participating creditors, who must approve it by a majority vote before it can be implemented.
While going through Chapter 11 bankruptcy, a business can continue operations, and its stock can continue to be traded.
How Can a Plainfield Bankruptcy Lawyer Help?
One should not make the decision to file for bankruptcy in Plainfield lightly. Before making any such decision, it would be highly advisable to contact an experienced Plainfield bankruptcy attorney.
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Life in PlainfieldPlainfield is known as "the Queen City" and is home to 50,000 Union County residents. The City of Plainfield covers a total of 6 square miles and plays host to a predominantly African-American community. With such a strong school system, it's interesting that less than 35% of the households were married families.
The Barack Obama Green Charter High School, New Jersey's first sustainable High School, is located in Plainfield. The high school is focused on green building and sustainable practices for faculty and students.
Citizens can get around the city with the convenient New Jersey Transit rail stations and bus systems. For travel, Plainfield is located just 25 minutes from the Newark Liberty International Airport.
The Plainfield Symphony was founded in 1919 and performs at the Crescent Avenue Presbyterian Church making it one of the oldest orchestras in the entire United States. It may be surprising to find out that the area was settled by Quakers in 1684 and Plainfield was an incorporated as early as 1869. It was a manufacturing center for chemicals, clothing, vehicle parts, and electronic equipment and was popular among the other New York Metropolitan Area suburbs.
Many of the homes from the extravagantly wealthy still remain there in full glory. The historic district of Plainfield has a number of homes with locally influenced architecture including the former home of New Jersey Governor Jim McGreevey who was also a lawyer.
Plainfield lawyers are knowledgeable of local courts and procedures and will likely be able to help you with whatever legal issue you may be facing.