How Do I Know if I Qualify for Bankruptcy in New York State?

man in distress

Filing for bankruptcy is an important decision that should not be taken lightly. All things should be considered before making the decision to do so. Not to mention, the reality of the situation can be overwhelming. Learn more about filing for bankruptcy today by contacting our Rockland County bankruptcy attorney.

What exactly does it mean to file for bankruptcy?

Bankruptcy is a legal process through which people or businesses seek relief from their debts that they cannot pay back. Most of the time the people with debt they cannot pay back initiate filing for bankruptcy.

Signs you may be eligible for bankruptcy

Some of the most common signs a person is ready to file for bankruptcy are as follows:

  • Being denied additional credit
  • Pawning belongings
  • Checks are being bounced
  • Receiving collection calls from creditors
  • Spending more than 20 percent of your net income on credit card bills
  • Hiding purchases from loved ones
  • You pay for necessities like groceries with a credit card
  • Using savings or retirement accounts to pay monthly expenses
  • Bills are overdue
  • Credit cards are being declined
  • A co-signer is needed to obtain a loan
  • You are dependent on family and friends financially
  • You are more concerned with month to month payments than overall big expenses
  • You are financing or leasing a car for six or more years to get a lower monthly payment
  • You have more than two major credit cards
  • You have no emergency fund money
  • You do not understand your debts
  • You get charged high-interest rates when you borrow money

The following are only signs bankruptcy is something you should be thinking about. Contact our Suffern Bankruptcy Attorney, so we can get a greater understanding of your situation.

Misconceptions about bankruptcy

  • You will lose your home- Immediately after you file, a hold will be put on preventing creditors from collecting anything, so you will be able to stay in your home.
  • If you are married, both spouses have to file- If one spouse is in debt and the other is not, only the one with the debt has to file.
  • You will not be able to get credit moving forward- Your credit will be hurt for a period of time, but you will be able to get some.
  • You could go to jail- False. Bankruptcy is 100% legal and is the best path to get out of debt

Contact our experienced New York firm

Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.