Should I file for Chapter 11 bankruptcy?

June 7, 2019
>> Bankruptcy, Debt

How do you know if you should file for Chapter 11 bankruptcy, rather than say Chapter 7 or Chapter 13 bankruptcy?

I’ve worked for over 30 years as a bankruptcy lawyer in New York, and while Chapter 7 bankruptcy (aka liquidation) is by far the most common, and Chapter 13 bankruptcy (aka repayment plan) is intended to be a sort of “reorganization” for individuals, there are times when Chapter 11 is appropriate for individuals. To be clear, we are talking here about individual Chapter 11 bankruptcy, rather than corporate Chapter 11.

Specifically, Chapter 11 is often an appropriate option for high net-worth individuals (including celebrities) or for professionals with high levels of income.

Why? If your income level or assets amount is too high for you to qualify for a Chapter 7 filing under the means test, and you are ineligible for Chapter 13 because you have more than $419,275 in unsecured debt or $1,257,850 in secured debt, then Chapter 11 is your only option.

However, from a strategic perspective it also often makes sense to file for Chapter 11. Rather than liquidate all of your assets, in a Chapter 11 you’re given some time and space to reorganize your finances. Especially if business interests are also involved.

Chapter 11 bankruptcy is often used to deal with financial problems stemming from divorce, lawsuits, serious medical illness, tax problems or a significant reduction in income.

Chapter 11 bankruptcy can be an extremely effective solution. However, it also typically involves complicated issues. Therefore, make sure to consult with a bankruptcy lawyer with a high level of Chapter 11 bankruptcy experience. And before retaining counsel, ask your bankruptcy lawyer what Chapter 11 cases they’ve handled.

If you’re contemplating filing for bankruptcy in New York, please contact me for a free initial consultation.

Contact Bruce Weiner, Esq.

EMAIL Bruce Weiner
Phone
(718) 855-6840 (Local)
(866) 402-8476 (Toll Free)
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Go to chapter 11 bankruptcy lawyer Brooklyn NY to learn more about Rosenberg Musso & Weiner LLP and/or to set up a free consultation.

Bankruptcy, Brooklyn Bankruptcy, Celebrity Bankruptcy, Chapter 11, Divorce, New York Bankruptcy, New York Bankruptcy Lawyer

Rosenberg, Musso & Weiner, L.L.P
26 Court St # 2211
Brooklyn, NY 11242, USA
718-855-6840
http://nybankruptcy.net/

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