Bankruptcy Basics

If you are new to bankruptcy or never had the need to figure it out before, the bankruptcies you are likely to run across have either been filed as a Chapter 7, 11, 12 or 13.

What does a Chapter 7 bankruptcy do for me?

• Stops the annoying and harassing phone calls
• Stops wage garnishments and unfreezes bank accounts
•  A No Asset Case grants a full discharge of all credit card debt, medical bills and other unsecured debts
• Allows a debtor to surrender a no longer affordable car and avoid collections
• Allows a debtor to surrender a realty property to the bank and avoid having to back pay
• Gives the debtor a fresh start in life

    The Mansion Law Firm helping people to get relief under the bankruptcy code. Mansion Law representing bankruptcy cases in the areas:

      Bankruptcy Lawyer Albany NY

      Bankruptcy Attorney Schenectady

      Bankruptcy Attorney Schoharie

Know About the Pros and Cons of Bankruptcy

Advantages:

 1. A Fresh Start or a Start Over.

Bankruptcy allows for the discharge of most debts. Sometimes due to job loss, medical issues or other circumstances debt has gotten too big to handle. The stress can be overwhelming and people need a fresh start. Examples of debts that are not dis-chargeable are student loans, income tax, debts resulting from criminal restitution.

2. Filing for Bankruptcy protects my assets from unsecured creditors.

Credit card companies can place judgment liens on homes. A bankruptcy prevents such a lien. If a lien is attached prior to the bankruptcy an experienced bankruptcy attorney can take action to remove the lien.

3. Bankruptcy stops wage garnishments, seizure of assets and foreclosure.

Once the bankruptcy is filed an Automatic Stay is instantaneously put in place. Creditors can no longer attempt to collect on their debt. Harassment to the debtor stops. Foreclosure is ceased.

 Disadvantages: 

 

1. Possible loss of nonexempt assets

While it is highly unlikely that a debtor will lose his or her home or vehicles since NYS provides ample exemptions to protect assets it is important that an analysis is done by an experienced attorney. For a proper analysis the debtor must disclose all assets and income.

2. Effect on future credit

it is unpredictable what a bankruptcy filing will do to a person’s credit. The Fair Credit Reporting Act allows for a bankruptcy filing to be on a person’s credit for up to 10 years. How it affects your credit depends on the financial institution looking at your credit report. The decision to issue credit is based on the policies of the financial institution. Rebuild your credit by paying your utility bills, car loans and mortgage payments on time.

3. You cannot file another bankruptcy for 8 years.

If a person is granted a discharge on $30,000 credit card debt and a month later is in the hospital and ends up with a bill of $20,000 that person must wait another 8 years to file Chapter 7 again. However, there are other options under the bankruptcy code. If a person knows of pending debts it is sometimes advisable to wait to file. Consult an experienced attorney.

The Mansion Law Firm  is a debt relief agency. We help people file for relief under the Bankruptcy code.

You Owe Money- Thinking about Bankruptcy

What does Bankruptcy Means?

Bankruptcy is a legal process that can provide relief to honest but unfortunate individuals who are unable to pay their debts. The bankruptcy process begins with a petition filed by the borrower (most common) or on behalf of creditors (less common). All of the debtor's resources are calculated and evaluated, whereupon the assets are used to pay back a portion of excellent debts. Upon the successful completion of bankruptcy proceedings, the borrower is relieved of the debts obligations suffered prior to bankruptcy.