Financial woes can affect people from all walks of life, as many in New Jersey know very well. During the recent recession, many have found that businesses that were once successful have fallen on hard times or even been forced to close. This has led some business owners in our state to seek the protections offered by bankruptcy filings like Chapter 13.
In one case that may be of interest to our readers in New Jersey, a former small-business owner from another state was pushed into a Chapter 13 bankruptcy when the printing business that he had owned for 30 years began to fail. In fact, the man asserted to the court that the income from his business had fallen from about $600,000 in 2007 to $143,073 in 2011. This decline led to the Chapter 13 filing by the business owner and the closure of his business.
Once the decision to file the Chapter 13 bankruptcy was made, the man was ordered to make payments to the trustee of his case. These payments were set at $310 per month for a period of five years. Once the payment plan is completed, the remaining debts held by the man that were subject to the bankruptcy will be discharged.
Filing for a bankruptcy such as a Chapter 13 can be challenging for some people to consider doing. However, in many cases it is a good way for an individual to repay many of the debts that they have accrued without being harassed by creditors in the meantime. As the bankruptcy proceeds, the individual who has filed for this type of protection may find that they have time to restart their financial futures while enjoying the breathing room that this form of debt relief can provide.
Source: Burbank Leader, “Burbank City Council candidate says bankruptcy was a ‘business decision’,” Alene Tchekmedyian, Dec. 26, 2012