Today’s current economic conditions have inched more individuals and families than ever before to the brink of financial crisis. While easy credit terms and failure to manage income and debt often contribute to insolvency, more often than not, a medical emergency, divorce, job loss, or an increase in an adjustable mortgage rate triggers out of control finances.
In some cases, debt counseling can help consumers with budgeting, a change in lifestyle, consolidating debts, negotiating settlements and finding other ways to increase family income. When you have exhausted every possible means to manage your financial liabilities, bankruptcy may be the only avenue remaining to discharge debt and re-establish solid financial ground.
Consumer Bankruptcy The U. S. Bankruptcy Code provides consumers with two primary forms of bankruptcy, Chapter 7, which is the most commonly used type, and Chapter 13. While changes to the Bankruptcy Code in 2005 now make it more difficult to file for bankruptcy, many people still qualify for debt relief based upon their salary and dependents.
Get Legal Help When you need professional help to deal with a staggering debt load, it is critical to seek legal advice from an experienced consumer bankruptcy attorney.
New York lawyer Cynthia Burke has been helping clients in towns and communities on Long Island address their financial problems and file bankruptcy for more than a decade. She stands ready to plan a strategy that is right for you, and guide you through the complicated process to gain debt relief.
Bankruptcy Filing Triggers an Automatic Stay The moment a petition for bankruptcy is filed in Federal Court an automatic stay goes into effect. The stay is a court order that stops creditors’ phone calls, foreclosures, repossession and debt collection procedures.
Chapter 7 Bankruptcy Individuals who have a significant amount of unsecured debts, few assets and lack a steady income typically choose Chapter 7 bankruptcy. In a Chapter 7 filing, also called “liquidation bankruptcy,” non-exempt assets are sold. A court appointed U. S. Bankruptcy trustee has the authority to distribute proceeds from the sale of your assets to creditors. The debtor is permitted to keep a limited number of assets exempt from liquidation such as necessary clothing, furniture and household goods, tools of trade up to a specified amount and certain retirement and pension plans.
Chapter 13 Bankruptcy Different from Chapter 7, a Chapter 13 bankruptcy is known as “reorganization,” and allows debtors with a stable income and substantial equity in a residence or other assets to devise a plan to pay debts over an extended period of time, generally three to five years.
If you are struggling with an overwhelming debt, are facing the threat of home foreclosure, repossessions, wage garnishment, and collection agencies are calling you at home and at work, contact attorney Cynthia M. Burke today at (516) 833-5135. We will be glad to arrange an appointment to discuss the legal options available to you and recommend the best course of action to get you back on track to renewed financial stability.
New York consumer bankruptcy attorney serving clients in Nassau and Suffolk Counties, the five boroughs of New York, and Westchester.
