Hackettstown New Jersey Legal Blog

When it comes to filing for bankruptcy, you may have a number of options in front of you. Some people move ahead with a Chapter 11 bankruptcy, while others turn to Chapter 7 or Chapter 13. It is vital to understand the benefits and possible drawbacks of each option and find out which makes the most sense for your personal financial circumstances. In this post, we will take a closer look at some of the reasons why Chapter 13 can be advantageous. As with any form of bankruptcy, it is essential to have a good understanding of the ins and outs of the process before filing a petition.

First of all, Chapter 13, along with other types of bankruptcy, can provide people with a fresh financial start and help them get their lives back on track. Chapter 13 is especially beneficial for those with regular income since it can enable them to pay back some or even all of their debts under a plan. Moreover, Chapter 13 may also be ideal for those who want to avoid foreclosure. By successfully filing for Chapter 13 bankruptcy, many people have been able to set up repayment plans that work out well and allow them to finally tackle their debts.

Even when a business in Hackettstown struggles with debt to the point of considering bankruptcy, its potential to continue to operate (and even grow) does not go away. Business owners might even use a bankruptcy case as the springboard needed to make organizational and cultural changes that place a company back on the path to sustainability. This may not be easy, however, as news of a bankruptcy might impact both a business' patrons as well as its employees, prompting them to call its future into question. 

A network of hospitals in California currently faces this challenge after its leadership filed for Chapter 11 bankruptcy. The hospital system faces debts of more than $500 million that have built up over the course of 20 years. Yet the system's leaders have stated their intention to keep all six of the hospitals open using $185 million in secured financing. The hope is that the network will be able to sell some (or even all) of the hospitals in order to eliminate its accrued liabilities. Experts in healthcare finance point to the fact that while hospitals can survive bankruptcies, the care they offer does suffer somewhat due to staff turnover and issues negotiating with insurers. Despite these potential challenges, the leaders of this particular network of facilities are promising patients the same quality of care even as its bankruptcy case moves forward. 

If you’ve recently filed for chapter 7 bankruptcy in New Jersey, it may seem like there is no end in sight to the cycle of debt. However, it is possible to recover from chapter 7, provided you take the right steps. Forbes offer a few effective tips on how you can rebuild your credit and work towards a brighter financial future in the aftermath of a bankruptcy filing.

Create a Budget (and Stick to It)

Your New Jersey company has not done as well as you hoped, and now you are struggling to cover your debts and operating expenses each month. Efforts to find more funding have not been successful, but you are not ready to close your business. At The Law Offices of Jonathan Stone, we often explain the benefits of Chapter 11 bankruptcy to business owners who are struggling with debt.

While a Chapter 7 bankruptcy discharges debts and gives individuals a chance to start from scratch, you do not want to have to liquidate your assets. FindLaw explains that a Chapter 11 bankruptcy still gives you a fresh start, but without sinking your company. Rather than discharging all of your debts, you can restructure them through debt consolidation. Once this is done, your monthly payments are manageable, and your business can become profitable.