Rockland County Bankruptcy Law Blog

Is bankruptcy beneficial to me in New York?

You may be in a bit of financial trouble, and you need to know that you have options. One of the things you may have come across is bankruptcy. A big question you may be asking yourself is if you should file for bankruptcy. There are many myths about it that make it seem like a negative choice, but truthfully, it can have many benefits to you financially.

There are two types of bankruptcy that an individual will typically use. These include Chapter 13 and Chapter 7 bankruptcy. Chapter 7 is where you liquidate your non-exempt assets to pay off your debts. Most people think of this kind of bankruptcy when they consider going into bankruptcy. Chapter 13 bankruptcy is another options, which allows you to adjust and reorganize your debts, placing them onto a payment plan. This can help you avoid having to sell or worry about foreclosure on your home.

Get out of debt with a repayment plan with Chapter 13 bankruptcy

When you’re in a position where you’re facing a growing debt that threatens your life and livelihood, it’s normal to want to get out of the situation through any means necessary. Before you take any steps toward freedom from your debts, it’s important that you understand what you’re doing. Each choice you make now could affect you into the future, and you need to understand how your future will be changed. Chapter 13 bankruptcy is one of the few bankruptcy choices that allows you to restructure your debt, so you can keep the things you have. Part of the problem of having debt is the amount you have to pay each month. Did you know that choosing Chapter 13 bankruptcy can help you reduce your liability and provide you with an affordable monthly payment that is primarily based on your income? With Chapter 13 bankruptcy, there are a number of benefits you can appreciate. You may be able to consolidate high student loans, for instance, helping you reduce them and get a zero-interest repayment plan. You could eliminate credit card debt, and best of all, you could stop harassing phone calls to your home and cellphone. If you have tax… Continue reading

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Is bankruptcy good for eliminating high debts?

If you’ve fallen into debt, you may be wondering if bankruptcy is the right move for your situation. There are circumstances where bankruptcy can help you eliminate debt and get back on your feet with only minor consequences. Sometimes, you can come out of bankruptcy in better shape than when you went into it. Should you go into bankruptcy? That depends on your personal situation. You may be considering Chapter 7 bankruptcy, which focuses on liquidating your assets, or you could consider Chapter 13, which allows you to have a payment plan. The goal of any kind of bankruptcy is to eliminate debt, so your income-to-debt ratio can be improved. With this process, you’ll eventually be able to pay off or eliminate debt, allowing you financial freedom. One reason considering bankruptcy is good is if you make a decent income but find your debt isn’t decreasing, even though you’re paying your minimum payments. Credit card debt can grow quickly, and when your paychecks are maxed out while trying to pay the minimum payments, bankruptcy is an option. Chapter 7 bankruptcy would allow you to sell off items to pay the debt and to start over. Chapter 13 would let you… Continue reading

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What exemptions are allowed during bankruptcy in New York?

If you’ve been considering filing for bankruptcy in New York, you may be interested in knowing what items you own that could be exempt from your bankruptcy claims. Bankruptcy courts know that starting from scratch won’t help you. Because of this, there are many exemptions that you may be able to claim. For instance, did you know that if you have personal property like cash or bank accounts, you may be able to keep up to $1,000 as a single person? What about your vehicle? In most cases, you’ll be able to keep a vehicle worth $4,000 or less as a single person, or if you’re disabled, you may keep one that’s worth up to $10,000. Living in your home is important to you, and the bankruptcy courts know that you need somewhere to stay throughout this time in your life. Fortunately, New York has relatively high homestead allowances. Your primary residence can be exempt from bankruptcy proceedings as long as it’s under $125,000 and you’re located in one of the select countries listed, either Orange, Saratoga, Ulster, Albany, Dutchess or Columbia. If you’re located in other counties, you’ll only get an exemption of $75,000, so keep that in mind… Continue reading

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Is bankruptcy beneficial to me in New York?

You may be in a bit of financial trouble, and you need to know that you have options. One of the things you may have come across is bankruptcy. A big question you may be asking yourself is if you should file for bankruptcy. There are many myths about it that make it seem like a negative choice, but truthfully, it can have many benefits to you financially. There are two types of bankruptcy that an individual will typically use. These include Chapter 13 and Chapter 7 bankruptcy. Chapter 7 is where you liquidate your non-exempt assets to pay off your debts. Most people think of this kind of bankruptcy when they consider going into bankruptcy. Chapter 13 bankruptcy is another options, which allows you to adjust and reorganize your debts, placing them onto a payment plan. This can help you avoid having to sell or worry about foreclosure on your home. The advantages to bankruptcy range, but the immediate benefit is known as the automatic stay. This notice tells creditors to stop trying to collect money from you. That means you won’t get any more phone calls, threats of lawsuits or wage garnishments. This can help you refocus on… Continue reading

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Landlords in NYC can’t evict paying residents in bankrupty

If you lived in a rent-controlled flat but needed to file for bankruptcy, would you worry about losing your home? According to the bankruptcy court’s decision in New York, you shouldn’t have to worry about losing your home when it’s rent-controlled. In fact, landlords aren’t even allowed to evict you as long as you’re abiding by your contract. Thanks to the work of the New York State Court of Appeals and the U.S. Court of Appeals for the Second Circuit, which is based in Manhattan, those who are current on their rent but going through bankruptcy will no longer be able to be evicted from their homes. This goes against the argument that the leases should be able to be sold, helping raise the rent for new tenants and increasing the landlords’ income. Previously, one tenant had been told that her rent-controlled property could be bought out by the landlord when she entered into bankruptcy. Now, the decision protects her right to rent-stabilization measures, because it’s been classified as a kind of public assistance. That means that bankruptcy trustees can’t sell the rent-controlled flats to pay back debts. In the case that went to court, the female tenant fought the… Continue reading

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Learn about the Chapter 13 hardship discharge for New York

Most people know that a Chapter 13 bankruptcy is designed to help you reorganize and pay back your debt. With this process, you won’t have to liquidate your assets, and you may not have to lose your home to foreclosure. The plan can take several years to complete, but by the end, you should be in a financially stable situation. One part of Chapter 13 bankruptcy you may not have known about is called the Chapter 13 hardship discharge. Have you ever wondered what you happen if you had to miss payments due to getting injured or falling ill? That’s something the Chapter 13 hardship discharge can help with. After you’ve decided on a Chapter 13 plan, you have to pay a monthly fee toward your debt. Consider a situation where you fall seriously ill and are hospitalized for months on end. It’s clearly difficult for you to make any payments, let alone work. In this situation, you could apply for a hardship discharge. This discharge is only available to people who have fallen behind on the plan due to situations out of their own control. If you’ve paid enough at this point that the creditors would have been paid… Continue reading

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What should you consider before filing Chapter 7 bankruptcy?

Chapter 7 bankruptcy is known as liquidation bankruptcy. It doesn’t involve repayment plans, so you won’t need to worry about a large amount of your income going out each month in a payment plan. Instead, this kind of bankruptcy allows a bankruptcy trustee to collect and sell your assets to pay back the debts you owe. After this is done and your funds are exhausted, the rest of the debts are forgiven, although there are a few exceptions. Chapter 7 eligibility is what makes it one of the most common kinds of bankruptcy. You can be an individual, partner, corporation or business when you file. Unlike other kinds of bankruptcies that limit who can file, most people can file for this bankruptcy. To file, you must go through credit counseling first. This is done in part to help you understand what bankruptcy means to your finances as well as helping you understand how to avoid bankruptcy in the future. With a Chapter 7 bankruptcy, the end goal is to give you a fresh start. That means that you won’t have any liability for debts that the court allow to be discharged. The right to adischarge of a debt isn’t guaranteed,… Continue reading

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What’s the Chapter 7 discharge?

While working through your bankruptcy in New York, you may have heard about something called the Chapter 7 discharge. This discharge is an important part of the Chapter 7 bankruptcy process. During discharge, some debts are eliminated by releasing the debtor from them. When a discharge takes place, it prevents any further collection activities on the part of the creditor. That means that the debtor is no longer able to be sued or harassed about the debt. As far as the court is concerned, the debt has been resolved. Individuals get debts discharged in over 99 percent of Chapter 7 cases. However, discharges can be blocked in some cases. For example if a debtor asks to discharge a debt, but the creditor files a complaint objecting to the discharge, it’s possible that the court will deny that discharge. A court could deny a discharge if financial records haven’t been kept properly, if a bankruptcy crime has taken place, or if the debtor failed to follow the orders of the court. Not all debts can be discharged. One example is a secured debt like a home. It’s possible to reaffirm that debt, which means that you’d take the debt back on… Continue reading

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RadioShack files for Chapter 11 bankruptcy protection

As a business owner in New York, you know that profits make your business succeed. When you have a difficult quarter, it puts pressure on you. This story may hit close to home. One prevalent store for technology and personal computers in the last century has finally succumbed to the pressure of larger rivals and online stores. RadioShack, a store many people in New York have visited for computer parts, batteries and other equipment, has filed for Chapter 11 bankruptcy following months of low sales. According to a story from Feb. 5, RadioShack’s companies have not taken a profit since 2011. You may know the 94-year-old electronics chain as a place to purchase cellphones, unique radio-controlled and digital toys and MP3 accessories among other items. Now, the company has filed for bankruptcy protection after it entered a deal with the wireless service provider, Sprint, along with a hedge fund of its biggest shareholder. The store itself may continue to be represented thanks to the hedge fund Standard General and Sprint; the two have agreed to buy up to 2,400 of the company’s 4,000 company-owned stores. Despite being at the height of the technological revolution at its start, RadioShack has not… Continue reading

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Restructure your business in New York with Chapter 11 bankruptcy

You run a small business, and it’s not always easy to deal with downturns in the economy. It’s not surprising that sometimes debts become overwhelming or simply don’t get paid. If you find yourself in a position where you’re struggling to make ends meet, you may in a situation that could be relieved with Chapter 11 bankruptcy. Chapter 11 bankruptcy is different than most because it allows you to rework your business. By restructuring your business plan, determining better income streams and by reducing debt, you can get a handle on your situation and emerge out of Chapter 11 bankruptcy with a viable, profitable business. During the process, you’ll also be paying down old debts. Typically, unsecured debts left unpaid at the end of the bankruptcy are dismissed, so you can start fresh. If you’re planning to file for Chapter 11 bankruptcy in New York, it’s important that you work with someone who knows the legal in’s and out’s of the court system. It takes time to come up with restructuring plans and effort to come up with the finances to pay off creditors. You’ll need to work with creditors to determine which debts you need to pay back while… Continue reading

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