All You Need To Know About Bankruptcy In NY

2007-03-08 10:33:40

( Legal )



Almost everyone in the world today have debts or different kinds. One of the most typical types of debts is your credit card debt. If you are unable to pay your remaining debt, you have the option to file bankruptcy in NY.

You may denote bankruptcy as something negative. This is perfectly normal, as many people share your perception. Bankruptcy in NY is actually seen by a lot of people as a wise move. As you know, there are two basic forms of bankruptcy, chapter 7 and chapter 13. You may opt for chapter 7 bankruptcy if you are no longer capable of paying your overdue and current debts. Chapter 13 bankruptcy, contrarily, allows you to form a repayment scheme with your creditors in a legal manner.

Bankruptcy in NY is common because New York City is a place where large amounts of money are spent everyday. This means that people spend a lot of money daily, which traps them into being moneyless. If you want to declare Bankruptcy in NY, you should know all of the essential information as regards the consequences of this legal action.

Bankruptcy in New York literally entails that you are declaring to everyone that you are incapable of paying your incurred debts. This legally isolates you from your creditors, as they are bound by law not to collect debts from you and are prohibited from contacting you via letters, phone calls, e-mails, and other forms of communication. If you are under chapter 7 bankruptcy, you are protected by law against pestering credit collectors for a certain period of time. The only downside in this form of bankruptcy is that the creditors are obliged to collect some of your properties and collateral as your form of debt payment. On the other hand, chapter 13 bankruptcy allows you to keep all of your belongings. Your only obligation in this form of bankruptcy is the fact that you have to strictly stick to a repayment scheme with your creditors until you fully pay your debts.

New York City bankruptcy is not as negative as how many people perceive it. You will be better off to be declared as a bankrupted individual rather than being considered as someone who always pays your debt late. In fact, filing for New York City bankruptcy and New York state bankruptcy erases all of your old debts. Moreover, your bankruptcy status will remain in your credit records for ten years. After that period of time, your bankruptcy status will be lifted and you’ll be able to have a clean slate.

In sum, bankruptcy in NY is a more practical and a wiser move than avoiding being declared as a bankrupt. If you want to apply for loans and other forms of credit in the future, your creditors will judge you by your credit records. In the long run, you’ll be able to show a clean credit record with no bad credit history, allowing you to apply for loans for your own benefit.


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