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BANKRUPTCY LAW

bankruptcy syracuse ny

What is Chapter 11 Bankruptcy?

 

Although individuals are allowed to file Chapter 11 bankruptcy, it is intended for corporations and companies rather than individuals. Chapter 11 is only preferable for an individual whose debts exceeds the limits of a Chapter 13 repayment plan – specifically, more than $360,475. of unsecured debt and $1,081,400. of secured debt. If your debts exceed either of those limits you may have to consider Chapter 11.
 
Chapter 11 is expensive, time-consuming and fairly complex compared to Chapter 13. However, a corporation is not permitted to file Chapter 13 so in some cases a Chapter 11 is necessary. A Chapter 11 debtor can usually restructure its finances by reducing financial obligations and modifying repayment terms through a plan of reorganization approved by the Bankruptcy Court. Mr. Fintel has filed numerous chapter 11 cases which have been approved and confirmed by the Bankruptcy Court. Some of those businesses include trucking, restaurant, real property and mailing-shipping companies.
 

What Is an Income Execution?

 

An income execution usually consists of a court order that requires your employer to withhold part of your paycheck and turn that money over to a judgment creditor. In most cases, the creditor will have taken a judgment against you for the amount owed. However, there are several government agencies who do not have to sue you and get a judgment before they start executing against your paycheck. Those include debts owing for unpaid income taxes, child support and arrears, and some school loans.
 
In New York State, a judgment creditor can ordinarily take 10% of your gross wages. If you owe child support, income taxes or school loans, the amounts that those agencies can take differ depending on your circumstances. As a general rule, those agencies can take more than 10% of your gross wages.