Posts Tagged ‘Chapter 7 bankruptcy’

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How Long Does Bankruptcy Last? Notes on Personal Bankruptcy Chapter 7 and Chapter 13

Monday, April 19th, 2010

Bankruptcy gives you a fresh start financially. But it’s not for everyone.

So when should you file for bankruptcy?

There are many theories posted online about this subject, but keep in mind few bankruptcies are exactly the same. In some cases, you might be trying to save the home you spent your life paying for. In other cases, you may have fallen into debt due to a medical condition. Even simple credit card overspending, or less than simple job loss, can lead to bankruptcy

Bankruptcy does have advantages, especially when you consider personal Chapter 7 and Chapter 13 bankruptcy. Filing for bankruptcy is not about giving up; it’s about reworking your finances so you can get a second chance.

The question posed in the title–how long does it take to file bankruptcy–is easier to answer than why you should file.

The process for Chapter 7 bankruptcy typically only lasts 3-4 months. You hire an attorney, file with the courts, get a trustee who liquidates your nonexempt assets, and then you are for the most part free of creditor harassment, demanding letters from the bank, and huge interest rates on your credit card debt. Still, Chapter 7 bankruptcy should only be used in certain cases: in some respects, it’s the best form of bankruptcy available; but in others, you might lose many of your assets such as your car and home. It depends on what assets will be exempt and nonexempt. For instance, you cannot cancel mortgage debt, so this won’t save your home from foreclosure. You can eliminate the majority of your debt, especially credit card debt.

Before Chapter 7 bankruptcy begins, hire a professional bankruptcy attorney to look over your case. As you’ll have to follow court guidelines such as taking debt management classes and showing your income and debt.

Chapter 13 bankruptcy typically lasts 3-5 years. You hire an attorney, file with the court, create a plan to pay back your debt over this period, and hopefully at the end you’re back on your feet. If you still have an income, can pay monthly expenses, and follow court guidelines, you will be better off financially within a few years. Many debtors who make enough money are now being told by courts to file for Chapter 13 bankruptcy; this is because Chapter 7 bankruptcy involving canceling credit card debt is much more common.

So we know how long Chapter 7 and Chapter 13 bankruptcy take. How long should it take for you to get a fresh start? If you have to file bankruptcy again, can you? Getting financially solvent is another complicated question, but with the right plan, with the advantages of bankruptcy, you can. However, this bankruptcy will remain on your credit report for 10 years, which can limit your spending.

You can file for Chapter 7 or Chapter 13 bankruptcy again after six years time has passed. At this point, it may seem like you can never get your finances in order. However, a good bankruptcy attorney can help you beyond the court room: he or she can also help you stop creditor harassment.

The advantages of bankruptcy are many, the time it takes most often a few months or a few years, and the costs small in comparison to what you gain. If you’re interested in filing for bankruptcy, if you want a fresh start, contact a good bankruptcy attorney today.

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Eligibility for Chapter 13 Bankruptcy and How to Fund It

Monday, April 5th, 2010

If you need of time to pay back bills, if you face possible foreclosure, or if you’re considering Chapter 7 bankruptcy, you may in fact need to file for Chapter 13 bankruptcy in your state. Chapter 13 bankruptcy is a good option for many individuals, but that’s the only people who can file Chapter 13, as businesses cannot file for it.

With bankruptcy law changes, if you make too much money you may be forced to file for a Chapter 13 bankruptcy repayment plan instead of filing for Chapter 7 bankruptcy. If you’re unsure, hire a professional bankruptcy lawyer in your state today.

So when is Chapter 13 bankruptcy a good option? How are you eligible? And how can you fund the repayment plan? Let’s go over these questions.

When Chapter 13 Bankruptcy is a Good Option
Chapter 13 bankruptcy does have advantages over Chapter 7 bankruptcy, but clear disadvantages as well. This is again a case where professional counsel, a bankruptcy lawyer, can help.

In essence, Chapter 13 bankruptcy does not liquidate your assets and discharge certain debts like Chapter 7 bankruptcy does. You are not free and clear a few months after filing. Chapter 13 bankruptcy is about getting more time to pay back debts; it’s often a solution for those who earn a lot of money but still cannot pay all their bills. Also, rich or not, if you fear your house will go into foreclosure, Chapter 13 bankruptcy and the court can grant you an “Automatic Stay” to buy you several months time. You still have to make your initial mortgage payment, but the repayment plan grants you several years to catch up in a fair way.

Eligibility for Chapter 13 Bankruptcy
As noted earlier, businesses are not eligible to file for Chapter 13 bankruptcy. Businesses typically file for Chapter 11 bankruptcy. However, business owners can file for Chapter 13 bankruptcy as an individual.

For individuals, the key to Chapter 13 bankruptcy filing is to show the court you have enough disposable income for the repayment plan. This means that after your allowed expenses and secured debts, you can still have enough money to complete the 3-5 year repayment plan. Your repayment plan must show how you will pay all these debts back in full, or the court will deny the filing.

Funds You Can Use for Repayment Plan
There is a variety of income you can use to fund your Chapter 13 plan. These can get complex, and that’s where professional bankruptcy lawyers can help you. You can definitely use regular wages or income from self employment, for example, and also Social Security benefits.

Other Rules of Chapter 13 Bankruptcy
You cannot owe too much money and file for Chapter 13 bankruptcy. The number changes every few years, but if you have over one million dollars in debt you might have too much to file. You also must be current on income tax filings.

Hiring Counsel
Hiring a professional bankruptcy lawyer can help you navigate all these laws with ease, save your home from foreclosure, grant you time to pay back debts, and give you a fresh start.

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Bankruptcy Decisions – When it Makes Sense to File for Chapter 7 or Chapter 13 Bankruptcy

Monday, March 29th, 2010

It’s often depressing to look at your finances, see you’re in debt over your head, and admit you have to file bankruptcy. While in many cases alternatives to bankruptcy do exist, whether it’s Chapter 7 or Chapter 13 personal bankruptcy, it’s often clear filing bankruptcy is your best option. Does that mean your house will go into foreclosure? How bad will it be?

In many cases, filing bankruptcy is a logical, if somewhat scary decision you make when you’re out of options. If you are financially in trouble when it comes to your home, job, health insurance, and credit card debt, filing bankruptcy is wise.

This needs to be said because many individuals and families struggle for far too long before they admit they need to file Chapter 7 or Chapter 13 bankruptcy. It’s almost considered giving up. By the time you do make the decision, you’ve lost a lot already and you’re worse than you would have been if you’d made the decision earlier. That goes against why bankruptcy was created–for helping individuals rebound from tough economic times, joblessness, and outstanding debts.

So when do you make the decision? Instead of blaming yourself, file early and take advantage of the law. “You can use Chapter 7, the most popular type, only once in eight years, so draw up a ‘no kidding’ plan for living on your income when you’re finally clear,” says Jane Bryant Quinn for Newsweek.

When to file Chapter 7 or Chapter 13 bankruptcy:
-When you still have assets to protect but you’re financially stuck
-Before you decide to pay back huge bills
-When tap IRAs and 401(k)s
-When you have outstanding medical bills (which can be canceled by bankruptcy)

Speaking of IRAs and 401Ks, you should never use these as an alternative to filing bankruptcy. After all, these are your future, and are meant to provide for you later, not now. These are mainly protected by bankruptcy, so ask your bankruptcy attorney about them.

Never wait for medical treatment–dental, eye, or otherwise–because you are out of money. These can be part of your Chapter 7 bankruptcy filing, or paid back in a reasonable amount of time with Chapter 13 bankruptcy.

Since you can use Chapter 7 bankruptcy once every 8 years, it’s a clear alternative to tapping into funds your future depends on.

So how do you make the decision between Chapter 7 and Chapter 13 bankruptcy? With new bankruptcy laws, Chapter 7 bankruptcy is off the table for many. Now, people are being told to file for Chapter 13 bankruptcy. In short, Chapter 7 bankruptcy clears the majority of your debt, from mortgages, to medical bills, to credit cards. There are some nonexempt items which you may lose here.

Chapter 13 bankruptcy is less about canceling debt and  more about creating a longer time frame for repayment. If you make too much money, you may be forced to file Chapter 13 bankruptcy instead of Chapter 7.

Choosing between the two calls for 1) research and 2) professional counsel. Hiring a professional bankruptcy attorney ensures your financial future will be safe.

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How Bankruptcy Can Eliminate Tax Debt

Friday, March 26th, 2010

If you’ve fallen behind in tax payments and have no chance of paying back the debt, it used to be you had few options. However, with the bankruptcy laws changing in recent years, you can now eliminate tax debt anywhere in the US with Chapter 7 bankruptcy. And with Chapter 13 bankruptcy you can pay in installments.

There is some fine print to those statements. The best thing you can do is a contact a professional bankruptcy attorney in your state who can consult with you on options. A bankruptcy attorney can tell you restrictions and requirements on eliminating tax debt by filing Chapter 7 bankruptcy. The attorney can also explain how Chapter 13 bankruptcy is now much more common than ever before.

Let’s go over the 5 requirements you have to meet in order to eliminate tax debt.

1-Your tax return must have been due at least three years ago. That means, if you file behind one year or two years ago, you cannot get the tax debt discharged yet.

2-The return then must have been filed at least two years ago with the IRS.

3-The tax debt must have been assessed a minimum of 240 days ago. The IRS must recognize the tax debt at a minimum of 240 days ago, in other words.  So if you file for bankruptcy and want the tax debt eliminated, the debt needs to have been present for 240 days or longer, and the IRS must have in some way recognized this debt.

4-The tax return itself must be completely truthful. If there are errors, intended or not, the tax return is fraudulent in many respects, and the debt cannot be discharged.

5-Last, you cannot be guilty of tax evasion.

As you can see it can get complicated. However, in a nutshell, all you really have to worry about is the time frame, that the  IRS recognizes the debt, that the tax return is correct, and you’re not guilty of tax evasion. That likely keeps most options on the table.

What a Bankruptcy Attorney Can Do
There are some more footnotes to this discussion.  You should at a minimum consult with bankruptcy attorneys. While it’s true you can discharge your tax debt completely with Chapter 7 bankruptcy, in some cases home owners may have to pay back in other ways. This is because you cannot discharge a federal tax debt. If the IRS reported a tax lien on your home, you may have to pay back that lien before you can sell it.

A professional bankruptcy attorney knows how to handle not only situations in the courtroom, but all the paperwork involved in handling back taxes. This can be quite complex. You may try and do it yourself, but a few mistakes and you may be in trouble.

But if you successfully file Chapter 7 bankruptcy, you can expect major debts to be eliminated. If you file for chapter 13 bankruptcy, debts like taxes can be paid over a more reasonable time frame. Choosing between the two is a discussion between you and your bankruptcy attorney.

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Is Filing California Bankruptcy Right for You?

Tuesday, March 23rd, 2010

Deciding if California bankruptcy is right for you is clearly one of the biggest financial decisions of your life. While bankruptcy can solve many problems, it’s not the only alternative. There are many other ways to get control of your finances.

You can learn more by hiring a professional California bankruptcy attorney to go over your case. Even a brief consultation with a lawyer could save you a lot of headaches.

Before deciding if bankruptcy is right for you, let’s go over the bankruptcy basics.

For individuals, you’re going to be filing Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankrupt has for years been the more popular one, but new bankruptcy code has made it difficult for many to file under Chapter 7 in California and across the nation. Now, Chapter 13 bankruptcy is often advised.

Chapter 7 bankrupt liquidates your assets, clears you of most debts, and does so within a matter of months. Chapter 13 bankruptcy pays back assets over time, and you usually don’t lose much if anything as long as you stay with the repayment plan. If you feel you cannot pay back outstanding debts, Chapter 7 bankruptcy is wise. If you don’t want to lose your home and have income coming in regularly, get with a Chapter 13 bankruptcy attorney who can go over the advantages of Chapter 13 bankruptcy.

Now let’s go over the decision making process of California bankruptcy.

Alternatives
There are many alternatives to actually filing bankruptcy, including working with debt counseling agencies. This is another point where professional counsel is valuable. You often have more options than you think.

Limits on Bankruptcy
Did you know that if you have enough income, you may be forced to file Chapter 13 bankruptcy? That’s what was alluded to earlier: sometimes you are forced away from Chapter 7. On the other hand, if you wanted to save your house or car, you might think Chapter 13 is the way to go. If your debts are too high and your income too low, you will likely have trouble filing. These are things you should really study as filing bankruptcy is not usually a quick fix.

Debts Canceled
Not all debts will be canceled, even if you file Chapter 7 bankruptcy. Some debts can be canceled but do not limit what the creditor can do to take back property. This is a called a secured debt, and  some items can be lost.

Credit Cards
There are many good things about filing bankruptcy, especially in times when you feel debts are piling up. You can, for example, wipe your credit card debts by filing Chapter 7 bankruptcy. This is perhaps the biggest benefit of filing bankruptcy, as credit card debts and interest rates sometimes only grow.

Keep All Your Property
One big advantage of Chapter 13 bankruptcy is the options you have the time you can buy. For instance, you might be falling behind on house payments, have other outstanding debts, but have a good job about to start. You might be able to pay back all these debts, including your house payments, over an extended period of time. Chapter 13 bankruptcy typically gives you 3-5 years to pay these back. If you love your home, and would do anything to keep it, Chapter 13 bankruptcy is a good option.

Personal Life
Filing California bankruptcy is a way to clear debts, save property, and give you a fresh start. However, it will not make all your problems go away, nor will it be easy to file for. The best thing you can do is hire a California bankruptcy attorney who can help.

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How a Bankruptcy Lawyer in San Diego Can Help You with Chapter 7 and Chapter 13 Cases

Friday, March 19th, 2010

Hiring a bankruptcy lawyer in San Diego is, along with filing bankruptcy, one of the best decisions you can make when feeling the weight of debt, foreclosure, and creditor harassment. There are many reasons to hire bankruptcy lawyers in San Diego. You can stop creditor harassment, be confident when you file, be confident in filing Chapter 7 or Chapter 13 bankruptcy, and get the fresh start you have a right to get.

So what  exactly does a bankruptcy lawyer in San Diego help with? We noted several key reasons hiring a bankruptcy lawyer is smart, but you should also know how to hire one.

How to Hire a Bankruptcy Lawyer in San Diego
Typically all it takes is a phone call or an email to get a lawyer of any kind, but not all lawyers are equal. You should definitely hire a lawyer specializing in bankruptcy, who works locally and knows California bankruptcy laws, who can help you through the process, who can help stop foreclosure of your home, and who can handle all the documentation and court hearings.

That’s not an easy task, so be thorough in researching your bankruptcy lawyer.

How Do They Specialize in Bankruptcy?
Did you know with recent laws it’s now harder to file Chapter 7 bankruptcy, and that many are forced to file for Chapter 13 bankruptcy? Did you know if your home or car is valued too high, it could be a nonexempt item and lost in a Chapter 7 bankruptcy? These are the type of things bankruptcy lawyers in San Diego should be clear with you on. For example, if you sell a nonexempt item and use it to buy exempt items, that is technically legal. A professional bankruptcy lawyer in San Diego can offer tips just like that.

What Help in the Hearing?
Before the hearing there is a lot of paperwork to do. That is actually more time consuming than the short hearing. While it may seem short, there’s a lot that goes on in any bankruptcy hearing, and you need a professional to handle all the details.

Prices of Bankruptcy Lawyers in San Diego
You can expect to pay a fee of some kind, but some bankruptcy lawyers will charge you just for a consultation. This isn’t always unfair, but you should be clear on that before speaking with them. While hiring a lawyer of any kind if never cheap, this is perhaps the biggest decision of your life and you need professional counsel.

Chapter 7 Bankruptcy San Diego
Since Chapter 7 bankruptcy is now tougher to file for, a bankruptcy lawyer in San Diego can help you successfully file and handle all items you own. It’s important to know what property is exempt and nonexempt in any Chapter 7 bankruptcy hearing.

Chapter 13 Bankruptcy San Diego
Sometimes Chapter 13 bankruptcy is in fact the best move. If you’re home is about to go into foreclosure and you’re willing to do anything to keep it, Chapter 13 bankruptcy in San Diego can not only save your home but sometimes cancel 2nd and 3rd mortgages on the home. It can also buy you more time.

Professional bankruptcy lawyers in San Diego mean the difference between success and failure in the process of getting a second chance, so be picky when you hire one.

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How to File Chapter 13 Bankruptcy in San Diego

Thursday, March 11th, 2010

The news is bad. You might lose your home through foreclosure, or you lost your job, or a loved one was in the hospital and the bills are piling up.

It doesn’t always work out that way, as each person’s reasons for filing any kind of bankruptcy are rarely the same. There are ways to 1) buy yourself some added time to pay back bills and 2) save your home from foreclosure. It’s file for Chapter 7 in San Diego, right?

That’s a decision this guide is going to help you make, along with how to file for Chapter 13 bankruptcy. If at the end of this post you think Chapter 7 bankruptcy is your only option, it’s time to call a professional bankruptcy attorney in San Diego. If you feel Chapter 13 bankruptcy is best, hiring professional bankruptcy lawyers is just as important.

Choosing Between Chapter 7 and Chapter 13 Bankruptcy in San Diego
This blog goes over these topics a lot, but all you need to know is where you’re at financially. If you face foreclosure of your home and want to keep it, filing for Chapter 13 bankruptcy in San Diego buys you years to pay back debts in installments and keep your home. If you feel you need to be rid of all your debts immediately, that 3-5 years just isn’t enough, filing for Chapter 7 bankruptcy in San Diego may be the best choice.

How  to File for Chapter 13 Bankruptcy
You file a petition with the bankruptcy court in the San Diego area where you reside.

You must file, according to the US Courts: “a schedule of assets and liabilities;  schedule of current income and expenditures;  a schedule of executory contracts and unexpired leases; and a statement of financial affairs.

There is more to it than that, because after you must also file a certificate of credit counseling and a copy of a debt repayment plan you created through credit counseling. That means you need to show the court proof you’re actively working on creating a feasible budget to pay back assets, as no debts are being eliminated.

Next, you need to show evidence of payment from employers if you have any, within 60 days before filing. The last three steps are to show a statement of monthly net income,  note any expected increase in income, and any records you have in Federal or California (or your state) education accounts.

The Next Steps in Filing for Bankruptcy
There are more steps. The problem with filing Chapter 13 bankruptcy by yourself becomes clear here. It can be done and has been done, but hiring professional bankruptcy attorneys in San Diego can save you from making mistakes in documentation and at the hearing.

So you need to follow these steps too.
-Create a list of credits, debt amounts, and nature of their claims
-The source, amount, and frequency of your income
-A list of all your property, such as homes and vehicles
-A detailed list of all your monthly living expenses, from food to rent

Hire Professional Bankruptcy Attorneys in San Diego
Filing Chapter 13 bankruptcy is now more common than ever, though still most debtors try to file Chapter 7 bankruptcy, a liquidation. How to choose between types of bankruptcy, how to file all documentation, and how to handle creditors are all complex tasks. With the right bankruptcy lawyer in the San Diego area, you can focus on the future instead of the past.

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Alternatives to Chapter 7 Bankruptcy in New York

Wednesday, March 10th, 2010

With changes in bankruptcy laws, it’s not always wise nor possible to file Chapter 7 bankruptcy in New York. Filing Chapter 7 bankruptcy is now more difficult to get with new Federal regulations. Many are now told to file under Chapter 13. Chapter 13 bankruptcy is a good alternative to Chapter 7 in many cases.

So what’s the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy in New York?

-Chapter 7 bankruptcy is a liquidation of debt and assets, while Chapter 13 buys you time
-Chapter 13 bankruptcy can save your home from foreclosure
-With Chapter 13 bankruptcy, you can extend payment schedule and lower payment fees
-With Chapter 7 bankruptcy, certain property is exempt from being repossessed
-Chapter 7 costs $299 to file with the court while Chapter 13 costs $274

That may be speaking more positive of Chapter 13 bankruptcy. The big difference is you can be cleared of debts with Chapter 7 (often preferred), while Chapter 13 bankruptcy allows you more time to pay back debt, typically over a 3-5 year period.

There are alternatives to Chapter 7 bankruptcy in New York beyond just Chapter 13 bankruptcy. Though Chapter 13 is now the second most common, Chapter 11 is wise for individuals actively engaged in business. For example, if you run a corporation, you can avoid liquidation and seek an adjustment of debts with Chapter 11 of the Bankruptcy Code.

Chapter 13 Bankruptcy in New York
You can also seek an adjustment to your debts via Chapter 13 bankruptcy in New York. If you owe money on a home and cannot pay it back immediately because of other circumstances such as medical bills, you can save your home from foreclosure. This is done by giving you the opportunity to catch up with past due payments through a new payment plan. This is good news for New York home owners facing foreclosure, as you can get immediate and extended help by filing with the courts for Chapter 13 bankruptcy.

Other Alternatives to Filing Chapter 7 Bankruptcy
While Chapter 11 bankruptcy in New York is not very common, for people running businesses it can be very beneficial, namely by saving your assets. You should also be open to “out of court” agreements with creditors or debt counseling services. You might be able to pay back debts in installments outside of a bankruptcy hearing–there is no reason you can’t–and many individuals choose this route instead of officially filing. And if the out of court agreement does not work, you still have the right to file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy.

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6 Things You Need to Know About Chapter 7 Bankruptcy Discharge

Monday, March 8th, 2010

You get a fresh start with bankruptcy, but as with most court cases, there’s fine print you must know.

Chapter 7 bankruptcy is essentially a fresh start financially. Typically, most debts are discharged, you’re given a chance to get back on your feet, and you won’t be harassed by creditors.

However, there is the “fine print” part to a Chapter 7 bankruptcy hearing. This article highlights 6 things you need to know about Chapter 7 bankruptcy discharge. Professional counsel, a bankruptcy attorney in your area, can help with more than documentation and filing: they can also explain all the fine print in simple language.

1-What Discharge Means for Liability and Creditors
A Chapter 7 bankruptcy discharge releases you the debtor from liability for most of your debts, while also stopping collections against you by creditors. If you owe a creditor a large amount of money, they may still get some money, but only via the trustee selling nonexempt assets you have. They will have no basis for collecting past debts.

2-What Debts are Discharged
Typically, you need to talk with professional bankruptcy attorneys to help you with this part of Chapter 7 discharge. You can expect the majority of your debts to be discharged, but some of your assets may be too valuable and could be sold. For instance, if you live alone in your home valued well over $100,000, you lose it. There are ways around that, especially if you work with professional bankruptcy attorneys.

3-How Fast the Discharge Occurs
You can expect a fast discharge in most cases unless a party of interest–someone you owe money–objects to the discharge. This process is usually 60-90 days after filing Chapter 7 bankruptcy and meeting with the court.

4-Grounds for Rejection of Chapter 7 Bankruptcy
You can be rejected for discharge in Chapter 7 bankruptcy via a variety of means, depending on your particular situation. If you, for instance, failed to keep adequate financial records, couldn’t explain your loss of assets, or committed perjury, you can be denied discharge.

5-Secured Creditors
Secured creditors may still have the right to seize property in some cases. This is where counsel is most important. It gets complicated, but if you bought a car and made an outside agreement that you wanted to keep it, you could make payments on the debt. The creditor would have the right to repossess the car if you failed to make payments, even with the discharge.

6-What Debts Aren’t Discharged
You can’t be discharged of all outstanding debts. This includes alimony, child support, some taxes, debts for education or loans, debts for death or personal injury causes by by your motor vehicle, debts for injury to another person, and others.

As you can see, there’s a lot more that goes on in and out of the courtroom when it comes to certain laws involving Chapter 7 bankruptcy discharge. The best thing you can do is hire a professional Chapter 7 bankruptcy attorney in your state who can clear up all the fine print, protect you from failing to meet requirements, and help you get a fresh start.

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Why Do People File for Chapter 7 Bankruptcy in New York?

Thursday, February 25th, 2010

Since Chapter 7 bankruptcy is  the most common form of bankruptcy in the state of New York and the entire U.S., it begs some questions. Why do people file for Chapter 7 bankruptcy? What are the problems that go on?

This is important to you because it shows the general causes of filing for bankruptcy in the first place. It’s about money, of course, but often it’s through no fault of your own. Filing for Chapter 7 bankruptcy in New York is an option on the table for most everyone. It’s wise to work with professional bankruptcy attorneys in New York to see the big benefits of filing.

Clearly, filing means you lose outstanding debts, at least in Chapter 7 bankruptcy. The creditors are happy, they get paid and stop bothering you. In Chapter 13 bankruptcy, the story is different because you are buying extra time so you can pay back creditors in installments.

So is outstanding debt the most common reason people file Chapter 7 bankruptcy? That’s a broad term to use, but outstanding debt is the  prime reason for filing Chapter 7 bankruptcy in New York. But what happens before that is even more important.

The most common reasons for filing bankruptcy are:
-Unemployment
-Large medical expenses
-Overextended credit
-Marital problems
-And other large unexpected expenses

Let’s go over how you can handle each situation.

Filing for Chapter 7 Bankruptcy in New York
If you lost your job, clearly it will be hard to stay on top of monthly bills. This is one of the benefits of filing for Chapter 7 bankruptcy: you get a second chance. It’s part of the idea of helping out those in need.

Large medical expenses are another cause for worry. If you have no insurance, even with a job, a sudden accident can send you into debt. Chapter 7 bankruptcy can erase these debts, along with many other kinds.

If you have overextended credit on many possessions, and risk house foreclosure or “repo” men, filing Chapter 7 bankruptcy can save your house, car, and other major assets.

What Debt Chapter 7 Bankruptcy in  New York Eliminates
Chapter 7 bankruptcy can eliminate the majority of your outstanding debts. You will technically be paying back the debts through a trustee selling possessions. However, bankruptcy attorneys in New York can help you save your home and protect many of your most  important possessions.

The good news is most of your debt is gone after filing. Chapter 7 bankruptcy can eliminate all but these debts: child support, alimony, student loans, and income tax debt. That means the majority of your debts can be eliminated.

Bankruptcy Attorneys in New York
Chapter 7 bankruptcy should be done with help. With the new bankruptcy laws of 2009, it’s tougher to file for Chapter 7 bankruptcy. Many are now forced to file for Chapter 13 bankruptcy, which in essence only gives you more time to pay back outstanding debts. With professional counsel from bankruptcy attorneys in New York, you can save your home and car, avoid the “repo” man, and  stop creditor harassment.

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