New Jersey readers may be interested to learn about a man who was once the co-owner of a successful paper company in another state recently filed for a personal bankruptcy. The Chapter 13 filing came after the business was sold. Reports indicate that the company sale happened at a loss to those who had owned it, including the man who filed for the personal bankruptcy protection.
As is the case for all of those who file a Chapter 13 bankruptcy in New Jersey, the man in this case was asked to tell the court what he owed, to who and how many assets that were owned at the time of filing. In his case, the man stated that he owed some $3.2 million to creditors that included mortgage holders along with unsecured consumer debts. It is this money that the court will look to when determining the amount and duration of a Chapter 13 repayment plan.
When an individual seeks a Chapter 13 bankruptcy, a trustee is appointed by the court. This person is charged overseeing the bankruptcy proceeding. In addition, the filer typically presents a repayment plan for the court's approval, and the trustee works to ensure the specified terms are honored, once the plan is approved.
Seeking a Chapter 13 bankruptcy can appear complicated to any people in New Jersey. This is because of the detailed rules that apply to issues such as exemption f assets and disclosures. To ensure that the best choice is made as to the chapter of the Bankruptcy Code used and the most money retained during and after the process, it can do well for a person to work to understand the code and to seek advice when necessary.
Source: Triangle Business Journal, "Wake Forest businessman files for personal bankruptcy," Chris Bagley, June 10, 2013