What if I Own a Business in Financial Trouble or Can't File Chapter 7?

Chapter 11 and Chapter 13 bankruptcy attorneys in Clifton,Woodland Park, Little Falls, Passaic and Paterson can help

Chapter 11 and Chapter 13 can help you get your business back on its feet. Consult with a qualified Chapter 11 and Chapter 13 bankruptcy lawyer to determine which is best for your business and how to go about filing.

What is the difference and which should I choose?

Chapter 11

While individuals owing a certain amount may file for Chapter 11, it is usually the option for businesses unable to pay their debts. It entails reorganizing your business affairs and assets. With Chapter 11 the debtor can remain in control of business operations while under the jurisdiction and oversight of the bankruptcy court.

While Chapter 11 is often the best option, it is also the most complex solution and if you choose it, you must invest in a good Chapter 11 lawyer. In Passaic, Clifton and Paterson that would be De Simone & Associates. Unlike Chapter 7, this is a reorganization — your business has to pay back the debt. We help you develop a payment plan for court approval that details how you plan to repay most or all of your creditors partially or in full. Our attorneys aid you in creating a feasible plan that allows you to retain your business and satisfy your debt.

Chapter 13

Similar to Chapter 11, Chapter 13 provides a means for individuals who want to reorganize their debt with a structured payment plan. This type of individual bankruptcy is helpful to homeowners facing foreclosure and for people who have assets they want to protect from repossession or liquidation. Your Chapter 13 bankruptcy attorney may suggest this avenue if you do not qualify for Chapter 7. The process involves developing a payment plan with a timeline of anywhere from 36 – 60 months. It is structured based on what you can pay and must be approved by the court. The benefits include:

  • Provides an automatic stay which means creditors can no longer harass you
  • Reduces your monthly payments while still paying your bills
  • Stops foreclosures in progress
  • Can get driver's license reinstated if suspended because of excessive parking tickets or being in an accident without insurance
  • Allows you to hold on to your assets

You start by finding the right Chapter 13  bankruptcy attorney in Clifton, Passaic or Paterson. De Simone & Associates provides you with a free consultation to discuss your case and map out a plan. Once bankruptcy is decided upon as the best option, we develop a plan and file a petition with the court. You'll receive your automatic stay to keep creditors at bay and a letter telling you where and when to start making your payments.

A few weeks after your case is filed you will be required to appear before the trustee. We will be there to guide you through the questioning process. A few weeks after that meeting the court approves your plan and the trustee begins making payments. Once the terms of your plan have been met, your debts are considered paid in full and you receive a court ordered discharge of your remaining debts.

Call today for a free consultation and save your home or business

We are available at 973-785-3935, Monday – Friday from 9:00 a.m. – 5:00 p.m. and weekends from 9:00 a.m. – 1:00 p.m. We do evenings by appointment or you can reach us through our contact us page.