People face financial difficulties at some stage in life, although some recover and some fail miserably. In financial problems, when an individual cannot pay off debts faces all kinds of pressure from creditors. In such situations, the only thing they can do is file a bankruptcy. Filling out bankruptcy is entirely a new concept for many people, so this decision comes with overwhelming pressure. To ease their doubts and concerns about bankruptcy, we have provided some vital information you must know about.
Filing for bankruptcy can give you a fresh financial start, but the whole process of bankruptcy, including paperwork and court procedures, will be hectic. Bankruptcy is not a way to fool creditors; only when the situation favors should you take this approach, or NY bankruptcy law will backfire on you.
Is bankruptcy the right approach for you?
It would help if you asked yourself this question before filing for bankruptcy. It is a legal process under federal bankruptcy law, designed only for people with unimaginable debt who want a fresh start. You can find different kinds of bankruptcy, but chapters 7 and 13 are often preferred. What chapter will benefit you depends on several factors, such as income, assets, and debt types. Before filing for bankruptcy, you must understand these options and remember to work with a lawyer.
How good would Chapter 7 bankruptcy be for you?
You may call this a straightforward bankruptcy; under the “NY bankruptcy law,” an individual submerged in debt can discharge unsecured debts by swapping non-exempt assets. There have been many cases where people do not have much to do except for exemption; in such cases, their property is spared. Even if you qualify for Chapter 7 bankruptcy, you may have better choices. If you need clarification to take the next step, consult a financial advisor to analyze your situation and circumstances to make the right decision.
Should you go with Chapter 13 bankruptcy?
Although Chapter 7 is known for discharging debts, it does not happen with Chapter 13. To consider Chapter 13 bankruptcy, you must establish a court-managed repayment plan. Finishing off debt with Chapter 13 might take three to five years. If you earn more than the state’s medium income or have expensive assets that you want to keep, make this choice. Still, you should be more cautious and learn all terms associated with this seemingly effortless bankruptcy law in New York to avoid costly mistakes.
Navigate jurisdiction and e-filling laws in New York
Four bankruptcy courts in New York are found in the Northern, Southern, Eastern, and Western Districts. Based on where you reside in your county, you can file a bankruptcy appeal in compliance with the NY bankruptcy law. You have to know the district’s unique rules and should bear your current contact information and follow your proper filling process. As a pro se debtor, you must notify your court if changing address and ensure all the legal documents are with you to complete the bankruptcy procedure.
