25 Dec Should I File for Bankruptcy?
There are few things more stressful than falling behind on your bills. Personal bankruptcy offers a solution to many people dealing with serious financial distress. According to data from the American Bankruptcy Institute (ABI), nearly 35,000 people have filed for bankruptcy protection each year in New York over the last decade.
Bankruptcy is complicated. You may be wondering whether or not you are a good candidate to file for bankruptcy protection. At Poltielov & Habib, LLP, we help people answer this question. In this article, our New York personal bankruptcy attorney provides an overview of the key considerations that you should keep in mind if you are thinking about filing for bankruptcy protection.
Is Bankruptcy Right for Me? (Key Considerations)
Are you wondering if you should file for bankruptcy protection in New York? Here are the key things you need to consider when evaluating personal bankruptcy as an option:
- Are you falling further behind on debt each month?
- Do you see no path to catch up on your bills?
- Have you already made some efforts to negotiate debts?
- Do you want a long-term solution to your financial problems?
If you answered yes to any of these questions, you may want to file. Every situation is different. You do not have to figure everything alone. During a free, confidential consultation an experienced New York bankruptcy lawyer can help you determine the best option.
What Happens When You File for Bankruptcy in New York?
Filing for bankruptcy officially starts the legal process. In New York, you will get access to an immediate automatic stay when you file for bankruptcy protection. This means that all collection efforts by creditors and debt collectors must be paused.
What Bankruptcy Chapter Should I File?
It depends entirely on your specific financial situation. Your two main options for filing for bankruptcy protection in New York are Chapter 7 and Chapter 13. Most people prefer to file for Chapter 7, which is commonly referred to as a straight bankruptcy. You can use Chapter 7 to eliminate all of your unsecured debts. However, not everyone is eligible to file for Chapter 7. You must satisfy New York’s means-test to be eligible. There is a household-size adjusted maximum allowable income. Chapter 13 is an alternative to Chapter 7. You can use it to reduce your debts into a single, affordable monthly payment.
When Should I File for Bankruptcy Protection?
Bankruptcy protection may be the best option if you have large debts that you simply cannot reasonably repay. As a general rule, it is best to be proactive. The sooner you file for bankruptcy protection, the sooner you can start putting the pieces back together. An experienced New York bankruptcy lawyer can review your circumstances and determine if you are a good candidate to file for bankruptcy protection or if you are better suited for a non-bankruptcy debt relief alternative.
Schedule a Confidential Consultation With a New York Bankruptcy Lawyer Today
At Poltielov & Habib, LLP, our New York personal bankruptcy attorneys are compassionate and solutions-focused advocates for people and families. If you are deciding if you should file for bankruptcy, we can help. Contact us today to set up your free, no obligation case evaluation. From our law office in Queens, we provide bankruptcy services in New York City and beyond.