Filing Chapter 7 Bankruptcy with a New York Bankruptcy Attorney
You may have heard that the bankruptcy laws changed a few years ago. You may also have heard a myth that you can't file bankruptcy anymore: that you have to enter a payment plan instead. While it is true that the laws have changed, bankruptcy is alive and kicking. In fact, just as many people will file for bankruptcy protection this year as in any previous year.
Recently, big banks and car companies have received bailouts, why shouldn't you? If the recent economic downturn or overwhelming debt has you in a position of hardship, you may be able to receive a personal bailout by filing for bankruptcy.
Chapter 7 bankruptcy can help you in the following ways:
- Wipe out debt
- Stop creditor harassment
- Stop wage garnishment
- Stop eviction
- Stop foreclosure
- Save your home and car
- Give you peace of mind
Chapter 7 Bankruptcy can give you an opportunity to rebuild your credit. If you do not qualify for Chapter 7 bankruptcy, Chapter 13 may be an option for you. An attorney at Shaked & Posner can meet with you to discuss whether Chapter 7 or Chapter 13 bankruptcy is the right choice for you. Contact our Manhattan Chapter 7 Lawyer via email for a no-cost evaluation of your case.
If you are a homeowner struggling with mortgage payment, the Bankruptcy Courts have a new program called Loss Mitigation Program which encourages debtors and their lenders to get together and find a solution such as loan modification, loan refinance, forbearance, short sale, etc.
Filing bankruptcy is a last resort. Our lawyers will counsel you about all of your options, such as negotiating with credit card companies and loan modifications, which may solve your debt problems short of filing bankruptcy.
Myths About Filing Bankruptcy
I can't file bankruptcy because I'm a wage earner. Not true. 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 lawyers will help you file Chapter 13 bankruptcy.
I will lose my home if I file bankruptcy. Not true. 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.
I will lose my car if I file bankruptcy. Not true. You can keep your car as long as you are current on the payments.
I will lose my pension and 401(k) if I file bankruptcy. Not true. Your retirement benefits are fully protected.
Bankruptcy will ruin my credit. Not True. Filing bankruptcy is actually the first step toward improving your credit.
Tax debts cannot be eliminated with bankruptcy. Not true. Under certain circumstances, some state and federal taxes can be wiped out under Chapter 7 bankruptcy or paid out under a Chapter 13 plan.
Student loans cannot be wiped out by bankruptcy. Partly true. While it is true that Congress made it much more difficult to eliminate student loan debt, under certain circumstances, including economic hardship, student load debt can be eliminated.
Credit Counseling and Debtor Education Requirements
Under the new bankruptcy laws, which went into effect in 2005, a person must complete a credit counseling session before they file for bankruptcy. After filing, the person must also complete a debtor education class. The attorneys at Shaked & Posner will help facilitate the process and make it simple for you to meet these requirements.
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 midtown Manhattan, the Bronx and White Plains, we think it's people that matter. Contact our Bronz Chapter 7 Lawyer for a no-cost evaluation of your bankruptcy case.
