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Phone: 908-829-6555
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490 Schooleys Mountain Road
Bldg. 3A
Hackettstown, New Jersey 07840
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Running your own business in New Jersey can be as rewarding as it is challenging. For the self-employed, the stakes are often higher because personal finances and business finances are so tightly intertwined. When financial troubles arise, they can feel insurmountable. If you’re a self-employed resident of the Garden State considering bankruptcy, Chapter 13 might just be the lifeline your business needs to stay afloat. In this blog, we’ll explore how Chapter 13 bankruptcy can provide vital support for your entrepreneurial journey, helping you keep your dreams alive while managing your debts effectively.
Chapter 13 bankruptcy, often referred to as a “wage earner’s plan,” allows individuals with regular income to develop a plan to repay all or part of their debts over three to five years. This type of bankruptcy is particularly beneficial for self-employed individuals in New Jersey who find themselves grappling with overwhelming debt but still have a steady income stream from their businesses. Unlike Chapter 7 bankruptcy, which may require liquidating assets to pay off creditors, Chapter 13 allows you to maintain ownership of your assets and continue operating your business while paying back debts according to an agreed-upon schedule.
One of the key advantages that Chapter 13 offers for self-employed individuals is the automatic stay provision. From the moment you file for bankruptcy under Chapter 13, an automatic stay goes into effect. This legal injunction stops creditors from harassing you with phone calls, lawsuits, wage garnishments, and other collection actions. It provides some much-needed breathing room so that you can focus on restructuring your debt rather than constantly fighting fires on multiple fronts.
Chapter 13 offers a unique opportunity for those struggling with secured debts such as mortgages or vehicle loans—crucially important if these assets are necessary for running your business. Through its reorganization plan, Chapter 13 allows you not only to catch up on delinquent payments over time but also potentially modify loan terms under certain circumstances. This could mean reduced interest rates or extended payment periods that make managing cash flow more feasible for small business owners.
Another significant benefit is the ability to prioritize certain types of expenses through what’s called "super-discharge." While not all debts are dischargeable under Chapter 13 (such as student loans), it does allow more flexibility in handling some non-dischargeable debts compared to other forms of bankruptcy protection like Chapter 7. For example, if taxes are weighing heavily on your shoulders—a common concern among New Jersey's self-employed—you might find relief by structuring tax repayment within the framework of a Chapter 13 plan.
Of course, navigating any form of bankruptcy requires careful consideration and professional guidance. Working closely with an experienced bankruptcy attorney like Jonathan Stone can be instrumental in crafting a repayment strategy tailored specifically to suit both personal and business needs. A skilled attorney will help ensure that all necessary documentation is prepared accurately and submitted promptly while advocating on behalf of clients during court proceedings or negotiations with creditors.
For self-employed entrepreneurs in New Jersey facing economic hurdles due to mounting debt burdens, filing for Chapter 13 could present an opportunity not just for survival but revitalization too—enabling them once again to pursue passion-driven ventures without fear looming overhead constantly threatening! With strategic planning assistance provided by seasoned professionals such as Jonathan Stone alongside unwavering determination and resilience inherent within each individual embarking upon this path towards financial recovery, brighter horizons await beyond temporary setbacks encountered along the way toward achieving long-term success and stability.
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Bankruptcy Law
Probate Litigation
Tax Resolution
Phone: 908-829-6555
490 Schooleys Mountain Road
Bldg. 3A
Hackettstown, New Jersey 07840
We are a debt relief agency. We are attorneys who help people file for bankruptcy relief under the bankruptcy code.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
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