South Jersey Laws
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Reorganization Bankruptcy
Chapter 11 and 13 of the Bankruptcy Code
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Chapter 13 is what was formerly referred to as the "wage earner’s bankruptcy." It is useful to individuals with an income or small businesses who wish to remain in operation. Larger corporations which wish to remain in business must file a Chapter 11. In a Chapter 13 or Chapter 11, the debtor submits a plan to the Court whereby it proposes to pay off its debts over the course of three to five years. If the plan is agreed to by the Court (confirmed) the remainder of the debt can be discharged after all the plan payments have been made.
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