One of the first decisions made by people in New Jersey who find that they are unable to repay the debts that they owe is whether they should seek the protections offered by a personal bankruptcy. The second thought is which chapter of the Bankruptcy Code is best for an individual situation. That choice requires a detailed review of the financial situation of the person in economic stress and often leads to a choice between a Chapter 13 or 7.
In one recent case that may be of interest to our readers in New Jersey, a Real Estate broker reported that he could not pay the debts that he owed. This fact led him and his wife to file for a Chapter 13 bankruptcy in their home state. This was the third such filing in less than a decade for the pair.
The previous Chapter 13 bankruptcy cases were dismissed when the Real Estate Broker failed to make the payments as was required. In such a case, the Trustee assigned to the matter makes a repayment plan intended to help pay some of the debts that are owed. If the plan is successfully completed, all remaining debts that were subject to the bankruptcy are ended.
There are several different chapters of the Bankruptcy Code, including Chapter 13. In order to ensure that the most property is retained and the best result is achieved, many people in New Jersey and elsewhere find that they must first review all of the available options. This effort can pay off when a bankruptcy is successful and a person is able to restart their financial lives, free from overwhelming debts.
Source: heraldbulletin.com, “Real estate broker filed for bankruptcy protection three times in 10 years,” Stuart Hirsch, June 21, 2013