Many creditors, when they hear that you are considering declaring bankruptcy and who are well aware of the fact that bankruptcy laws are there to protect the borrower, will suddenly become much more flexible. Filing insolvency process as per the state laws will also allow you to exempt Personal bodily injury payments, if any - but only up to the amount of 16150 dollars. Personal effects with little value are exempt, because they do not promote any desirable economic result. Because of the way the NJ bankruptcy laws are written, your attorney will need to know the types of secure debt you have. Stockholders will be paid only if the company is able to stand back on its feet and able to make some profits in spite of filing the bankruptcy case. Misconceptions regarding the laws will only make things much more difficult for you. It is still a step that should not be taken lightly as bankruptcy laws do have their share of short and long term ramifications, especially regarding the borrower's future credit ratings and status. Understanding what kind of information your bankruptcy attorney will need to obtain from you to file your bankruptcy case will help you to start gathering this information so that its ready when you are ready to file. Chapter 11 and Chapter 7 are the two main categories of federal bankruptcy laws that businesses can choose from. ( taxes owed to federal, state or local government, support obligations, and government guaranteed student loans. Misconception 2 - Filing A Petition For Insolvency Means That You Will Be Sent To Jail. Your attorney may use your income, along with other information, to decide which type of bankruptcy is appropriate for your particular case. All kinds of clothing including furs, jewelry, ornaments are exemptible up to the amount of one thousand dollars as a whole. The good news for you is that the insolvency regulations also allow you to use the federal supplement exemptions along with the state specific exemptions. The most common form of bankruptcy is liquidation under a chapter seven filing. All kinds of clothing including furs, jewelry, ornaments are exemptible up to the amount of one thousand dollars as a whole. Misconception 2 - Filing A Petition For Insolvency Means That You Will Be Sent To Jail. It incorporates impediments to filing bankruptcy, new court rules, new forms, and additional work for debtors and attorneys. Chapter 11 is preferred to Chapter 7 because the company will not be closed to liquidate its assets in this instance. During bankruptcy, the company might not be able to provide the bondholders with principle and the stockholders with dividends, but they might try to make up for this by providing then with new stock that they put on the market for regaining their stand. Bankruptcy Laws provides detailed information on Bankruptcy Laws, New Bankruptcy Laws, Chapter 7 Bankruptcy Laws, Chapter 13 Bankruptcy Laws and more. Many people think that as per the bankruptcy laws, a person must be sent to jail if he files for it. Chapter 11 provides the company or firm with an opportunity to rebuild the business in spite of crippling debts. Keeping this into account, lots of law firms have started offering these services to the public. Expenses due to medical, legal, or credit card expenses usually make a person lean towards the option of bankruptcy. Your attorney needs information about any priority debts you have because, under the NJ bankruptcy laws, these debts may not be eligible for discharge with your bankruptcy. Once a person declares that he is unable to meet his personal financial commitments, then he can decide to take the steps involved in declaring himself a personal bankrupt.