Falling behind in your bills is not an unusual thing. In fact, more and more Americans find themselves in this situation regularly. However, if you have reached the point of not being able to service any of your debts in the amounts requested, then you should consider filing for bankruptcy. Before you make any final decision or file the paperwork, you should speak to a bankruptcy lawyer. Brighton Beach NY bankruptcy lawyers help ordinary people get through this difficult process.
Chapter 13 versus Chapter 7
Most people file chapter 13 or chapter 7 bankruptcy. The one you file will depend on the specifics of your case, and your attorney is best able to help you make the decision.
Chapter 13 is a debt consolidation plan. After you file, the court will appoint a trustee. You and your lawyer will meet with the trustee and decide which creditors will get paid and in what amounts. A long-term repayment schedule will be drawn up, and you will make all payments through the trustee.
In a Chapter 7 bankruptcy, all your debts will be discharged within a few months. A trustee will be appointed, and they will be empowered to sell all non-exempt property to pay down some of what you owe. Although you will be clear of debt at the end of the process, you will be unable to take out loans or lines of credit for some time. Your ability to get certain jobs and accommodation may also be affected.
Do I Get to Keep My Home?
The short answer is yes. In both types of bankruptcy, you will be able to keep your house. If your bank has initiated foreclosure procedures against you and you file for Chapter 13, you can stop the process. You will then be given up to 5 years to repay a mortgage that is in arrears.
The Brighton Beach NY bankruptcy lawyers at Ursulova Law Offices can help protect your interests and rights as you go through this process. If you are on the verge of filing, you should contact Ursulova Law Offices.