What You Should Know Before Filing for Bankruptcy in New York

bankruptcy print paper

Filing for bankruptcy can be considered a responsible financial decision, but only in the appropriate context. Read along to see if it is in your best interest to file and how a seasoned Suffern New York bankruptcy attorney at the Law Offices of Allen A. Kolber, Esq. can assist you in reaching a decision.

What are the warning signs that I should file for bankruptcy?

Filing for bankruptcy should only be considered in absolute emergencies such as a foreclosure sale, warrant of eviction, or bank restraint involving a large sum of money. Below are some signs that you should file for bankruptcy so to get ahead of such severe circumstances:

  • Creditors have obtained judgments against you or your company.
  • A bank account has been frozen.
  • Your personal wages are being garnished.
  • It is beyond your ability to pay down your credit card bills or medical bills.

What should I do before filing for bankruptcy?

Before making the considerable decision of filing for bankruptcy, you should assess your total financial situation to determine if this is absolutely necessary. This includes: reviewing your income, debt, and credit report, opening all of your mail to know who is collecting against you and for how much, and noting all lawsuits, foreclosure, or collection actions. Importantly, you should not hesitate in reaching out to a practiced Suffern New York bankruptcy attorney to better understand the pros and cons of filing a bankruptcy case.

What am I expected to pay after filing for bankruptcy?

When you are done paying your financial plan, some debts may be discharged, meaning you are no longer required to pay them off. In addition, the creditor who gave the loan is no longer able to try to collect this debt. Examples include, but are not limited to, medical bills, credit card debt, and past-due utility bills.

However, there are non-dischargeable debts that cannot be neglected. This can include the following debts:

  • Child support payments.
  • Alimony payments.
  • Attorney fees for child custody or support.
  • Student loans.
  • Certain types of taxes.
  • Fraud debts.
  • Fines or penalties owed to government agencies.
  • Civil judgments.
  • Criminal restitution and other court fines and penalties.

Notably, certain non-dischargeable debts are not subject to a hearing while others are subject to discharge if a creditor does not challenge them.

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.