Nobody imagines that at some point in their lives, bankruptcy may be a viable option to get them out of hot water. However, if you are someone who currently has debts that you simply cannot pay off on your own, you should strongly consider reading on and speaking with our experienced New York bankruptcy attorney to learn more about the difference between Chapter 7 & Chapter 13 bankruptcy, which one is best for you, and how our firm can help you through every step of the legal process ahead. Here are some of the questions you may have:
What is Chapter 7 Bankruptcy?
If you are someone whose family income is less than the average family income in your county, Chapter 7 bankruptcy may be your best option. When filing Chapter 7 bankruptcy, you can keep your pension plan, automobile, bank accounts, IRAs, and your home. Furthermore, Chapter 7 will discharge the majority of your debt, including credit card debt, foreclosures, personal debt, and more.
What is Chapter 13 Bankruptcy?
If you are someone whose family earns more than the average income in your county, Chapter 13 may be right for you. To qualify, you will have to have a regular and disposable income at the end of every month, and have unsecured debts less than $360,000 & secured debts less than $1,310,000.
In Chapter 13 bankruptcy, you will have to submit a 3-5 year repayment plan. This will allow you to catch up where you’ve fallen behind on certain payments, and it will also prohibit creditors from all collection activities. As long as you complete your repayment plan with no hiccups, all outstanding debt should be discharged.
What is non-dischargeable debt?
One thing you should understand, regardless of which type of bankruptcy you file, there are certain debts that are considered non-dischargeable, meaning they cannot be discharged through bankruptcy. Some examples of non-dischargeable debt include child support payments, restitution ordered by a Criminal Court, income taxes, debts incurred due to fraud, civil judgments for injuries due to deliberate wrongdoing, and, in most cases, student loans.
What is the Automatic Stay?
The Automatic Stay is the primary reason most people file for bankruptcy. Essentially, when you file, the Bankruptcy Court issues an Automatic Stay, halting creditors from pursuing all collection activities, thereby allowing you to keep your home without worry. The Automatic Stay is filed immediately, protects you from harassment, and gives you an opportunity to get your financial situation back on track without the constant fear of losing your dearest possessions, such as your home. If you have any additional questions, feel free to give our firm a call today. We are here to help.
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.