As a New York resident who is simultaneously suffering from financial struggles while also having a high net worth, you may be wondering what options are available to you. In certain cases, your net worth may be so high that traditional or common bankruptcy options aren’t available to you. Macco & Stern, LLP, are here to introduce Chapter 11 bankruptcy and what it can do instead.
These days, people who have high net worth aren’t always financially sound. Despite your net worth, you may be struggling with business loans or personal guarantees. You may have bought a dream home that you’re still making payments on, despite the fact that it now has significantly less market value than it did when you first purchased it. There are endless reasons as to why you could be considered a “high earner” or someone with high net worth despite struggling with money.
Unfortunately, Chapter 13 bankruptcy has a debt limit. If you exceed that limit, you aren’t eligible for that type of bankruptcy. Chapter 11 offers many of the same options, but they remove the debt limit. This means you can create a repayment plan and work to pay back debts at a rate that suits you, all while avoiding liquidation.
Chapter 11 bankruptcy is not the answer for everyone. You will need to examine your financial situation first, perhaps with a monetary professional or one of our experienced attorneys. After determining that it’s truly the option you wish to go for, you can take a look at our web page on Chapter 11 bankruptcy, linked above.