Monday, 28 November 2011

Bankruptcy Options in New York

By Geoff Caplan


It's a bad feeling.

Perhaps you or someone you know is drowning in debt. You've tried to pursue every reasonable financial option, but don't see a way out.

It's an all too common situation, especially during The Great Recession. Bankruptcy, once viewed by most as the ultimate, last resort, drastic option, suddenly seems to be a feasible and reasonable option.

Leading New York bankruptcy attorneys will tell you that Bankruptcy law exists to protect individuals and businesses whose bill payments are more than their income.

Unfortunately, it's a situation that can place you in financial jeopardy and at the mercy of bill collectors.

New York Bankruptcy Lawyers are also aware that this can seem like one of the most stressful and difficult times in your life, but it's good to know that the Federal law protects you from collection agencies.

Protection begins immediately upon filing at Bankruptcy Court. A Bankruptcy Order prohibits Creditors from contacting you. You can't be sued, your salary can't be garnished and you won't continue to be pursued by Creditors.

There are two types of bankruptcies for consumers: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. A New York bankruptcy lawyer will help you decide which is best for you.

* Chapter 7 is known as liquidation and releases you from all obligations.
* Chapter 13 is a re-organization of your finances. It gives you the opportunity to pay back some or all of your debt according to what you can afford after paying for living expenses.

Entering bankruptcy requires you to file a Petition and Schedule of Debts and Assets as well as a Statement of Financial Affairs. This paperwork lists all of the money you owe and outlines your complete financial status, including whether you own or rent your home, plus your salary, and any investments you might have.

At first glance, this process can seem overwhelming to you. But not to an experienced New York Bankruptcy Lawyer. They can move you through all of the paperwork accurately and quickly. They will also make sure that you satisfy all the requirements of the bankruptcy filing and that it is executed correctly, the first time, avoiding any unnecessary delays caused by incorrect filing. They will appear at Bankruptcy Court with you and ensure that you understand any agreement you are entering.




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