New York Bankruptcy Options

2007-03-08 10:33:40

( Legal )



Bankruptcy gives individuals or businesses the opportunity to work out and settle their debts under the supervision and protection of a bankruptcy court. When any form of bankruptcy is filed, creditors are not allowed to make any form of contact with the individual, company, or their legal counsel in order to collect what is due to them.

There are many types of New york bankruptcy alternatives that one can choose from:

Chapter 7 of New york bankruptcy erases all of your debts and does not obligate any further payment. In order to qualify, one must meet certain income criteria, and your income must be below New york’s median average. Certain assets may need to be surrendered to the court, and is liquidated to pay for your debts. Chapter 7 is applicable to individuals, corporations, married people and partnership corporations.

Chapter 13 of New york bankruptcy is suitable for small businesses, or individuals who have full time or part time employment. In this type of bankruptcy, payment options are worked out to make the debts more affordable to pay each month. Interest rates are lowered, and payment terms extended. There is no need for a debtor to surrender any assets to the court, for as long as regular payments are made.

Chapter 11 of New york bankruptcy can only be filed by companies, and not individuals who have large amounts of debts. Companies filing for a Chapter 11 bankruptcy should provide a reorganization plan to pay for their debts.

Those who are currently thinking of filing for a New york bankruptcy should seek the professional assistance of a bankruptcy lawyer who is knowledgeable in bankruptcy laws, can advise, assist you with the filing and represent you in court.

You can still apply for refinancing after bankruptcy, for as long as you work on improving your credit score. There are techniques to follow to help increase your credit score:

Your bankruptcy record remains in your credit report for a certain number of years. There are certain techniques that you can follow to improve your credit rating:

You should ensure that you pay your bills on time in the next years that follow.

Obtain a copy of your credit report, and ensure that all the information that has been included is correct. You will need to report any errors found.

If you own more than two credit cards, you should pay off all of the balances that are due and get rid of all other credit cards. Any delays in monthly payments can influence your credit history, or score.

Open a savings account, and place money in it regularly. If you own a current or checking account make sure that it has enough balance to cover your check payments, and that they do not result in bounced checks.


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