How to Deal with New York City Bankruptcy

2007-05-07 10:37:12

( Legal )



Perhaps you are stuck in so much debt that there seems to be no end to collection calls and bills. What should you do? Filing bankruptcy could provide you with a solution. A visit to an experienced new york city bankruptcy lawyer can allay your fears and doubts.

You must understand that a new york city bankruptcy lawyer has the obligation to help debtors make a fresh start and, at the same time, ensure that the creditors get paid. You will need the services of a skillful lawyer to represent you through a complicated new york city bankruptcy proceeding. Bankruptcy is now accepted as a valid method of resolving serious financial problems.

Ny bankruptcy relief comes as either liquidation or rehabilitation.

To qualify for liquidation, the debtor must satisfy a financial means test. In this case, a trustee collects the debtor’s non-exempt property to convert into cash, which is then distributed among the creditors according to a legal order of priority. The court may now discharge any debt of the debtor remaining.

In rehabilitation or reorganization, creditors have the opportunity to recoup the money owed. Debtors are also given the opportunity to retain assets if a plan to pay off the obligations is approved by the bankruptcy court. Failure to adhere to the plan, however, may cause the court to order liquidation.

If you are contemplating of filing for bankruptcy as debtor, you will be filing a voluntary case where the court will determine how payment will be made. In involuntary case, the creditors will initiate the case.

Thus, new york city lawyers specializing in bankruptcy law help both debtors and creditors to overcome obstacles to the repayment of debt. Your bankruptcy attorney will provide you with essential advice in voluntary or involuntary bankruptcy proceedings and even in debt repayment and collection without the need for bankruptcy proceedings.


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