Being free from debt is not an impossible dream. With the help of our New York bankruptcy lawyers, you can forget about the worry and stress that comes with owing money to creditors. Your attorney will take care of filling out your paperwork, contacting creditors and representing you in court in order to make sure that the best chapter is filed and that your debt is reduced as quickly as possible.
Read on to find out more about bankruptcy laws in New York and the different chapters available to file.
New York Bankruptcy Facts
If you have been dealing with surmounting debt, bankruptcy may be your ticket to financial freedom. Bankruptcy is a federal process in which a debtor declares they cannot repay what is owed to creditors. The process begins with analyzing a debtor’s income to determine if they are eligible to file for bankruptcy protection, and if so, which chapter is best for each debtor’s individual needs.
There are several chapters of the U.S. Bankruptcy Code that can be filed in New York, each pertaining to a particular kind of debtor and each leading to a different outcome. Having an experienced bankruptcy lawyer on your side will help you choose the chapter that is most fitted to your situation and which will result in the fastest debt relief. There are also times when debtors qualify for more than one chapter, leading proceedings to become even more complicated. Not to worry though, your bankruptcy attorney will make sure the best petition is filed after you have a full understanding of what each chapter entails. We also want to help you learn as much about the bankruptcy process, and it starts with getting to know more about the individual chapters. In New York, Chapters 7 and 13 are the ones most often filed, so there is a very likely chance those will be your choices as well.
Below are some facts about both chapters to help make your decision easier.
Chapter 7 vs. Chapter 13 Bankruptcy Protection in New York
Most debtors in New York file for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is known as liquidation bankruptcy because assets are liquidated in exchange for the discharge of unsecured debt. This is the most popular chapter filed in New York for several reasons. Both individuals and businesses may be eligible, most – if not all – unsecured debt is discharged, and debtors can exit bankruptcy protection quickly, usually between 3 to 6 months.
Chapter 13 bankruptcy on the other hand can only be filed by individuals. However, debtors do not have to worry about liquidating any assets because the process involves being placed on a payment plan to reimburse creditors. Debts may be significantly reduced, but they will never be completely wiped out as with Chapter 7 bankruptcy protection. It also takes longer to emerge from bankruptcy (3 to 5 years). However, because of the fact that no assets are lost and because it is easier to qualify for this chapter, many debtors in New York chose to take this route when petitioning the bankruptcy court.
If you are interested in learning more about bankruptcy and to find out if you are eligible for protection, contact one of our featured New York bankruptcy lawyers today to discuss your options and be one step closer toward debt relief.