How to Decide What Type of Bankruptcy is Right for You?

bankruptcyFiling bankruptcy can be a challenging and emotionally-charged experience. If you have suffered a financial loss great enough to decide that filing bankruptcy might be for you, you should consult a Brooklyn bankruptcy attorney before doing so.

There are two types of bankruptcy available to the general public: Chapter 7 and Chapter 13. Chapter 7 is called liquidation. This basically means you turn over all of your assets and a trustee liquidates what they can to repay creditors. Most bankruptcies are “No Asset” bankruptcies and so nothing is turned over and the unsecured debts are discharged. Debts like student loans cannot be discharged in a bankruptcy.

A Chapter 13 bankruptcy is different in that it allows for a repayment plan. If you have some type of income and are able to repay some of your debts, then the court determines how much will be paid. This is a good way for homeowners to keep their homes and works well because no interest is paid and no negotiation with the creditor is required. You simply pay what you can afford to pay. Most mortgage companies will only allow 4-6 months of repayment, so paying through Chapter 13 is beneficial as you can have up to 60 months to repay.

Tax debt can also be repaid through Chapter 13. There are specific time limits on tax debt through Chapter 13, but as tax debt cannot be discharged, this is also a helpful way to repay this debt without penalty.

You will require the services of a good bankruptcy attorney to not only help you decide which type of bankruptcy is right for you, but also to help you navigate the court process. Both types require paperwork to be filed and a Chapter 13 will require a repayment plan to be submitted to the court. The Ursulova Law Offices can help you go through your debts, determine which type of bankruptcy is right for you, and then get you started on a path to debt relief.

Bankruptcy is not always the best choice, and there are consequences such as the inability to get credit for up to seven years after filing, but if you are deeply in debt, the process can be very helpful and provide substantial emotional and financial stress relief.

Contact Ursulova Law Offices today to schedule your consultation.

Ursulova Law offices, P.C.

Contact Ursulova Law Offices, P.C. to find out how our NY Bankruptcy Attorneys can help you today. Our offices are located in New York, Brighton Beach, Brooklyn and Garden City.


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