02 Jan What Jackson Heights Residents Need to Know About Bankruptcy
When you live in Jackson Heights, life can feel busy and demanding. There are times when people find themselves under a weight of debt that they cannot pay back, no matter how hard they try.
If you are facing unpaid credit card bills, medical debts, or other financial problems, it may feel like there is no way out. Some people think about bankruptcy but feel unsure or frightened about how it will affect them in the future. The good news is that bankruptcy can be a real chance to start fresh.
To learn more and take action, contact the Jackson Heights bankruptcy lawyers at Poltielov & Habib, LLP. We can explain the process and help you choose the right path forward. Call us today to schedule a consultation.
What Does Bankruptcy Actually Mean?
Bankruptcy is a legal process that can help people who cannot pay their debts. It is not something to be ashamed of, and many people in Jackson Heights and beyond find relief in the bankruptcy process.
There are different types of bankruptcy, but both Chapter 7 and Chapter 13 are common for individuals who need help. Bankruptcy is not about running away from debt for no reason. Instead, it is about having a fair way to deal with debts and start building a better future.
The main idea behind bankruptcy is to give people who are in over their heads a second chance. At the end of the process, you may be able to get rid of certain debts or set up a repayment plan that fits your life. This does not mean you will never pay your bills again. It means you have a system that can clear away some debts that you cannot handle and help you breathe easier.
How Does Chapter 7 Bankruptcy Work?
Chapter 7 is sometimes called a liquidation bankruptcy, but that does not mean you will lose everything. In fact, many people who file Chapter 7 keep their homes, cars, and personal belongings.
The main purpose of Chapter 7 is to get rid of certain debts. Examples of the kinds of debt that Chapter7 can eliminate include:
- Credit card bills
- Medical debts
- Past-due rent
- Utility bills
- Personal loans
- Car loans
Once these debts are discharged, you do not have to pay them back.
To qualify for Chapter 7, you must pass a means test, showing that your income is not too high. If your income is low enough, the process can move quickly, often wrapping up in a few months.
During that time, creditors must stop calling, stop filing lawsuits, and stop garnishing your wages. You will face a trustee who reviews your case. If there are any non-exempt assets, the trustee can sell them to pay your creditors. But with proper exemptions, you can often keep most of your essential property.
What About Chapter 13 Bankruptcy?
Chapter 13 is a form of bankruptcy that helps people who might earn enough money to pay some of their debts but need more time and structure to do so. Instead of wiping out unsecured debts right away, Chapter 13 sets up a repayment plan that lasts three to five years. During this period, you pay one monthly sum to a trustee, who then pays your creditors. The payment amount depends on your income, expenses, and the types of debts you have.
Chapter 13 can help if you want to keep your home but are behind on mortgage payments. By including the past-due amounts (your arrears) in the repayment plan, you can catch up over time. Chapter 13 stops foreclosure actions and might give you a solid chance to hold on to your property. It can also handle car loans and other secured debts in a way that lowers your monthly payments.
Will Bankruptcy Stop Foreclosure?
In Jackson Heights, the cost of housing is high, and many people worry about losing their homes if they cannot pay their mortgages. Bankruptcy can help.
When you file, the court places an automatic stay on most creditor actions. This stay stops foreclosure for a while, giving you breathing room to explore solutions. With Chapter 7, this pause is temporary. If you cannot find a way to catch up, the lender might ask the court to lift the stay and continue the foreclosure.
Chapter 13 offers a better way to save your home. By rolling the overdue mortgage payments into a three-to-five-year plan, you can pay them off gradually. As long as you stay on track with the plan and make your current mortgage payments, you can keep your home. This is a huge relief for people who have only fallen behind because of a temporary setback.
Can Bankruptcy Stop Wage Garnishment?
If a creditor is taking money from your paycheck, bankruptcy can help. When you file, the court issues an automatic stay that stops most collection actions. This includes wage garnishments. Once the stay is in place, your employer must stop sending part of your paycheck to creditors. If the debt behind the garnishment is discharged, the creditor cannot start garnishing that debt again. This relief is a big reason why people consider bankruptcy. Keeping your full paycheck helps you pay your necessary expenses and get back on your feet.
Will People Know You Filed Bankruptcy?
Bankruptcy is a matter of public record. In theory, anyone who searches can find out. But in practice, most people will never know unless you tell them.
Employers usually do not search bankruptcy filings, and your friends are unlikely to do so. If you worry about others finding out, remember that many people who file bankruptcy are just honest individuals who ran into financial trouble. It is not a mark of shame. For most people, privacy concerns are not a big issue compared to the relief of getting out of debt.
Speak with Our Jackson Heights Bankruptcy Lawyers at Poltielov & Habib, LLP
If you think bankruptcy might help you, the first step is to speak with our Jackson Heights bankruptcy lawyers at Poltielov & Habib, LLP. We will look at your finances, explain your options, and guide you toward the best solution. This might mean filing Chapter 7, choosing Chapter 13, or even finding another way to manage your debt.
The important thing is to act. Waiting too long can lead to more interest, fees, and stress. By reaching out for help, you show that you are ready to take control of your future. The sooner you understand your rights and options, the sooner you can start building a better life, free of the debts that now hold you back.
If you are ready to talk, call our Jackson Heights bankruptcy lawyers at Poltielov & Habib, LLP, at (718) 520-0085 or contact us online. With our knowledge and understanding, you can face your financial troubles head-on and find a way toward a brighter tomorrow.