Buying items or spending money on credit means you are making an obligation to pay for those items at a later date. Add in medical bills, student loan payments, and other regular bills and you might have more money going out of your home than coming into it. When you have to spend more than you make, keeping up with payments isn’t likely.
There are some instances in which you might be able to afford the payments when you get the item, but later in time, making those payments gets overwhelming. In these cases, filing for bankruptcy might give you the fresh start you need to get back on track financially. In New York, the number of people who are seeking bankruptcy protection has gone down recently.
There were 134 Rochester-area filings for bankruptcy, which includes filings in Monroe, Ontario, Wayne, Livingston, Yates, Chemung, Seneca, Schuyler, and Steuben counties, in January of this year. Last January, there were 179 petitions for bankruptcy. That is a 25.1 percent drop from last year.
These filings include Chapter 11 business filings, which are petitions to reorganize. Chapter 7 liquidation bankruptcies and Chapter 13 debt reorganization filings are also included in this number.
It is easy to think that you can get caught up with payments without filing bankruptcy, but that isn’t always the case. Filing a Chapter 13 bankruptcy gives you a way to reorganize your debts to lower interest rates and pay affordable payments without having to liquidate your assets. Understanding how it works before you file is vital. Consulting with a New York bankruptcy attorney might help you to learn if filing for bankruptcy will help you.
Source: Rochester Business Journal, “Bankruptcy filings drop sharply in the region” Will Astor, Feb. 03, 2014by