Chapter 7 bankruptcy is often called “straight bankruptcy” as it’s the most common of bankruptcy cases. Chapter 7 bankruptcy is a liquidation proceeding, intended to help you with outstanding debts. This includes getting a fresh start on bills you can’t afford anymore, help when you’ve lost your job and cannot find one immediately, if you have high amounts of credit debts, and if you have overwhelming medical bills. There are many other reasons to file Chapter 7 bankruptcy, especially in the state of New York. Whatever your reason, filing for Chapter 7 bankruptcy has many pluses which can help you financially.
Chapter 7 bankruptcy for New York residents works like this. A debtor turns over all non-exempt property you have to a trustee who will liquidate the possessions to pay back creditors. You can typically be debt free within 4 months. This gives you a fresh start.
There are many clear pluses for filing for Chapter 7 bankruptcy in New York. But when should you actually file? Should you hire a bankruptcy attorney in New York?
Chapter 7 bankruptcy is usually what you want, mainly because Chapter 13 bankruptcy only buys you more time to pay back creditors. If you are unable to pay outstanding debts, and are in danger of losing everything, Chapter 7 bankruptcy in New York is wise.
You should put a lot of thought into filing before you make the final decision. The good news is a bankruptcy attorney in New York can help you access the situation, see if you’re eligible to file, and explain clear benefits you will get.
But let’s go over the biggest pluses you’ll receive from filing Chapter 7 bankruptcy in New York
1-Stop Creditor Harassment
Chapter 7 bankruptcy can eliminate most of your debts, which has the desired effect: creditors have no reason to call your residence anymore. If you’ve been through creditor harassment, you don’t need to be told the stress it can put on your life. Filing Chapter 7 bankruptcy in New York eliminates most of your debts, giving creditors no reason to harass you. Those creditors who continue can be directed to your bankruptcy attorney instead of calling you.
If you’re afraid you’ll lose possessions, such as your car, there are some things to consider. Technically, the finance company can repossess your car and sell it to reduce their loss. You are then responsible for the balance on the car. However, you can eliminate the balance on your possessions by working with the right bankruptcy attorney in New York.
Though you may lose your car, you can avoid the outstanding balance. The good news is, filing for Chapter 7 bankruptcy in New York is one of the most effective ways to stop garnishment of wages. If you owe a creditor a large amount, they can technically garner your wages and make paying bills problematic to say the least. However, a bankruptcy attorney can walk you through the Chapter 7 process and you can avoid lost wages.
4-Rebuild Your Credit
Filing Chapter 7 bankruptcy in New York means it will be on your credit report for 10 years. The laws are changing, but you can actually start rebuilding your credit immediately. You will be able to buy a car, even a home in some cases. The interest rates will be higher, but just because you file for Chapter 7 bankruptcy in New York does not mean your credit went down the drain. You will be given the opportunity to rebuild your credit and move on by filing for Chapter 7 bankruptcy in New York.