How to Know When to Declare Bankruptcy in NY

problem business person woman holding and open empty wallet

According to the American Bankruptcy Institute, non-business bankruptcies have reached–and often exceeded–an average of at least 800,000 filings each year since 1988. Despite the fact that millions of Americans have filed for bankruptcy over the years, the act of filing for bankruptcy is often viewed as a personal failure and something to be ashamed of. This idealogy tends to be a product of the general public knowing little about the bankruptcy system or why someone may choose to file.

Rest assured that if you are considering bankruptcy, you are not alone. Let’s take a closer look at bankruptcy, when you should file, and why you may need a bankruptcy lawyer Brooklyn, to help you through the process.

What Is Bankruptcy?

Before asking yourself, “should I file bankruptcy?” you should take the time to ensure that you fully understand what bankruptcy is and what it can and cannot do.

In the most basic sense, bankruptcy is a legal process that exists to assist individuals, couples, and businesses in achieving relief from debts that have reached the point of being unmanageable.

Bankruptcy is often referred to as a “fresh start” or “clean slate” for those facing seemingly insurmountable, unpayable debts. The right to file bankruptcy is provided by federal law, and cases are handled in federal court. While this may sound daunting, the immediate benefits are unmatched.

Why Do People File for Bankruptcy?

The next question that is commonly asked is, of course, “why do people file for bankruptcy?” – the answer is simple.

The process immediately stops all creditors from seeking to collect debts until the debts are sorted out according to law. This includes freezing creditor claims on assets and stopping foreclosures, evictions, garnishments, repossessions, and seizures of funds in your bank accounts. There are a few exceptions to this rule, however, that vary from situation to situation, meaning that it is best to discuss your unique position with a bankruptcy lawyer in Brooklyn to ensure you fully understand every aspect of filing.

When Should You File Bankruptcy?

As with any financial decision, it’s crucial that you take the time to consider all of your options. Though bankruptcy can provide sizable, immediate relief from debts, not all debts are subject to forgiveness. Examples include but are not limited to:

  • Child support payments
  • Alimony payments
  • Criminal fines or restitutions
  • Some taxes
  • Most student loans

You also need to be aware of the impact filing will have on your credit score, but it’s important to note that your credit is not “ruined,” and there are steps you can take to rebuild it.

All of this aside, if you have spoken to bankruptcy lawyers in Brooklyn, NY, and have determined that declaring bankruptcy is the most beneficial move for your financial situation, you can enjoy having the weight of crushing debt lifted off your shoulders.

File Bankruptcy With the Help of Bankruptcy Lawyers in Brooklyn, NY

As mentioned previously, bankruptcy is a right granted by federal law and not by any one state’s laws. That being said, New York’s laws come into play in a significant way. They can determine the property you can keep and allow you to choose between the state exemption list and the list of federal bankruptcy exemptions, among other factors. Because of this, though you do have the power to file for bankruptcy without an attorney, it is not something that is recommended or a decision to be made lightly. Bankruptcy lawyers in Brooklyn, NY, can help you through every step of the process, ensuring that the proper documentation is filed and you receive the best possible outcome.

Contact the experienced team at Ursulova Law Offices today to get started in the right direction.

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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