Educating Clients on the Realities of Filing Bankruptcy in New York
If you are thinking about filing bankruptcy, you may have been warned that you will lose all your property or that your credit will be ruined. At Shaked & Posner, we want to dispel common myths about bankruptcy and instead arm you with the truth. We want you to have all the information you need to make wise decisions about how to improve your financial situation.
Some Common Bankruptcy Myths
Myth: I can't file bankruptcy because I'm a wage earner.
Reality: Most people with serious debt problems will qualify for Chapter 7 bankruptcy, which is the simplest form of bankruptcy protection. Even if your disposable income is too high to file Chapter 7 bankruptcy, our attorneys will help you file Chapter 13 bankruptcy.
Myth: I will lose my home if I file bankruptcy.
Reality: In New York, you can file Chapter 7 bankruptcy and keep your home if your payments are current and you have less than $50,000 in equity ($100,000 if you are married). Even if you are behind in your payments or have large equity, you can keep your home by filing Chapter 13 bankruptcy.
Myth: Bankruptcy will ruin my credit.
Reality: Filing bankruptcy is actually the first step toward improving your credit. While a bankruptcy filing does appear on your credit report, and it does have a short-term negative impact, it also gives you a clean slate so you can start rebuilding your credit quickly.
Myth: I will lose my car if I file bankruptcy.
Reality: You can keep your car as long as you are current on the payments.
Myth: I will lose my pension and 401(k) if I file bankruptcy.
Reality: Your retirement benefits are fully protected.
Myth: Tax debts cannot be eliminated with bankruptcy.
Reality: Depending on how old the tax debt is, some state and federal taxes can be wiped out under Chapter 7 bankruptcy or paid out under a Chapter 13 plan.
Myth: Student loans cannot be wiped out by bankruptcy.
Reality: This is partly true. Congress had made it difficult to eliminate student loan debt, but under certain circumstances, including economic hardship, student load debt can be eliminated.
The Truth Is That Filing Bankruptcy Is Easier Than It Sounds
Our lawyers have helped thousands of individual debtors throughout the New York City area wipe out credit card debt, medical bills, personal loans, telephone bills and other types of unsecured debt.
When you retain our law firm, we can help you explore your options and help you start getting peace of mind. Bankruptcy can put an immediate stop to creditor harassment, home foreclosure, repossessions and wage garnishments.
Free Consultation With a New York City Bankruptcy Lawyer
Some lawyers are all about the law. At Shaked & Posner in New York, we think it's people that matter. For a free consultation to discuss your specific legal needs, call 212-494-0035 or toll free 888-783-6690. You can also contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
