Many of the Hackettstown residents who come to us here at our offices here at Jonathan Stone Attorney at Law are initially only concerned about what form of personal bankruptcy they should file: Chapter 7 or 13? Yet we counsel them that before they start getting too deep into their plans, they should first seek credit counseling. Like them, you might assume that this is something that we recommend to clients. Yet again like them, you might be surprised to learn that this is not a recommendation; rather, it is a requirement under federal law.
Credit counseling prior to personal bankruptcy
Understanding the role of the debtor in possession
It might be difficult for business owners in Hackettstown to consider filing for bankruptcy simply because they do not want to lose control of their companies. Even in situations where a Chapter 11 case could help alleviate their financial struggles and allow their operations to continue, the thought of the use of their business assets and properties being at the discretion of an outside party (such as a bankruptcy trustee) may be enough to scare them away from the process altogether. Those same business owners will likely be relieved to know that law allows them to retain control of their bankruptcy cases through the role of the "debtor in possession."
