Just about anyone can file for bankruptcy if they believe that it’s the best way to deal with their debts. There are different types of bankruptcy though, and each chapter has some rules of their own. There are also rules about how often you can file, so if you have gone through bankruptcy before you may need to wait before filing again. This is why it’s a good idea to talk to a Bergen County bankruptcy lawyer before you make any moves.
Who is Qualified to File for Bankruptcy?
Anyone can file for bankruptcy, but individuals usually choose between two different types of bankruptcy and do their best to meet one chapter’s requirements. Chapter 7 is an option available to filers with income that falls below a certain threshold. It requires you to liquidate assets and pay off any debts that you can with the resulting funds.
Chapter 13 requires a higher income and proof of that steady income. You can then make a payment plan and pay off your creditors over time. So while anyone can file for bankruptcy, they usually only qualify for one of these two options.
Can a Person Choose Chapter 11 Bankruptcy?
Chapter 11 is often associated with businesses, but an individual can file for this type of bankruptcy. This chapter allows someone to reorganize debt while keeping their business operational, so it’s an option if you run a small business of your own and don’t want to let debt put an end to it.
It’s important to note that this type of bankruptcy is often more expensive and time-consuming than Chapter 13 bankruptcy though. In many cases, Chapter 13 is the preferred option for individual filers.
Can I File For Bankruptcy If I Have Filed Before?
Filing for bankruptcy does not disqualify you from filing again in the future. However, you are likely to face a waiting period before you can file again. It all depends on what chapter of bankruptcy you went through before and which kind you have decided to file now.
This waiting period can last as long as eight years or be as short as two years. We recommend talking to a lawyer if this is not your first time filing.
Do I Need a Lawyer to File for Bankruptcy?
Not technically, but we would recommend hiring a bankruptcy attorney. Filing for bankruptcy is not a simple process. There’s a lot of paperwork involved and making any errors can lead to issues later. You want to make sure that everything is done correctly so that your case does not get thrown out and a lawyer from our firm can help you with that.
Contact Our Law Firm Today
If you think that filing for bankruptcy may be the best way to address your debts, don’t go it alone. Contact the Law Offices of Boyd & Squitieri to schedule a consultation with our team. We can tell you more about this process and how our attorneys can help.
