What are some alternatives to Chapter 7 bankruptcy?

January 15, 2015 10:29 am Published by

Chapter 7 bankruptcy, which is available in New York and the rest of the U.S., is used to liquidate property to pay back debts. There are several alternatives to this kind of bankruptcy, which is something to consider if you’re thinking of filing for Chapter 7. For example, if you run a business — partnership or sole proprietorship — then you may be able to avoid liquidation and to stay in business if you choose instead to file for Chapter 11 bankruptcy relief.

With Chapter 11 relief, you can seek to adjust your debts by either reducing them or extending the amount of time you have to pay the money back. Interestingly, as a sole proprietor, you may also seek relief under a Chapter 13 bankruptcy.

Chapter 13 bankruptcy is best used by those who have an ongoing income. For instance, if you have a job or are still in business with a profit, then this may be a choice you could go with. Realistically, Chapter 13 bankruptcy allows you to create a payment plan and to work off the debts instead of having to worry about foreclosure or liquidation techniques.

If you’re still interested in filing a Chapter 7 bankruptcy, then you need to know how to qualify. The debtor in question may be an individual, partnership, corporation or business. You may not have had a bankruptcy case dismissed from court in the previous 180 days or receive too much income each year to qualify for the bankruptcy. If you earn over the state limits, then you could have the case dismissed as “abuse” of the bankruptcy claim.

Source: US Courts.gov, “Alternatives to Chapter 7” accessed Jan. 15, 2015

facebooktwittergoogle_pluslinkedinmailby feather
Free Debt Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Associations & Memberships:
  • New York State Bar Association
  • National Association of Consumer Bankruptcy Attorneys
Rock County New York | Town of Stony Point | Town of Haverstraw | Town of Ramapo | Town of Clarkstown | Town of Orangetown

Ugell Law Firm, P.C.
151 North Main Street , 2nd Floor :: Suite 202 :: New City, NY 10956
Phone: 845-521-7841 :: Telephone: 845-213-1250 :: New City Law Office Map

Se Hable Español

Rockland County Bar AssociationMax Gardener's Bankruptcy Boot Camps | Lizmere South Mountain FarmNew York State Bar AssociationNational Association of Consumer Bankruptcy Attorneys