Although many economists say that we're in the midst of economic recovery, many people in New York and beyond have yet to feel any significant financial relief. As a result of job losses and other calamities, many are struggling with debt to the point of considering filing for bankruptcy. Depending on your situation, bankruptcy may or may not be the right solution to your debt problem.
A Fishkill bankruptcy attorney can inform you of your options and protect your long-term interests. Call (845) 795-3326 today to discuss your situation in a free consultation.
When you are faced with filing for bankruptcy, you may feel a sense of anxiousness or become overwhelmed by the bankruptcy process. Our attorney understands that this is a difficult time for you and your loved ones.
It is important to follow these steps when filing for bankruptcy in New York:
Chapter 7 bankruptcy: This is known as a "liquidation bankruptcy". Notwithstanding its name, with almost all Chapter 7 Bankruptcy cases, the debtor (the individual who files for bankruptcy) does not have his/her property "liquidated" as will be explained below.
Have questions regarding how the U.S. government deals with taxes when someone files for bankruptcy? We have written several blogs addressing this:
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Generally, all unsecured debts are discharged in Chapter 7 bankruptcy. Unsecured debts are any debts incurred by the debtor without a security interest.
Examples of unsecured debts include:
The goal of Chapter 7 is to give the honest debtor a "fresh start" by eliminating dischargeable debts and giving the debtor an opportunity to continue to be productive members of society. Chapter 7 debtors are allowed to file a petition every 8 years.
"Mr. Fakhoury took away all my worries when I needed to file for bankruptcy. I went to several lawyers around the county and none of them compared to how Mr. Fakhoury explained and went about working on my case. He made me completely understand what my bankruptcy was about and best of all he saved my home!!!"
- A Happy Client
Once you file bankruptcy, the Bankruptcy Law grants you an "automatic stay" which is a prohibition against any creditor from calling you or billing you or suing you in their attempts to collect on a debt. In other words, once you file a petition in bankruptcy, it is against the law for your creditors to harass you. Further, if your bank account is "frozen" or if your paycheck is being garnished, the creditor must immediately "unfreeze" your account and stop any garnishment or any lawsuit once you file.
Many people fear that they will "lose everything" if they file bankruptcy. This fear keeps people who should file for bankruptcy from doing so. New York and Bankruptcy Laws have property exemptions which provide protection for various kinds of assets. For example, in most instances, your house, car, furniture and personal property are exempt. In other words, nothing happens to your property if your property falls within the exemption parameters. Generally, within 18 - 24 months of your discharge, your credit rating can also be good enough again for you to be able to finance a house or car at a competitive interest rate.
Yes. Technically, anyone can file for bankruptcy without a lawyer to represent them. However, there are several reasons why having a bankruptcy lawyer on your side can be beneficial:
We are a debt relief agency and we help people file for relief under the bankruptcy code. Call our firm at (845) 795-3326 if you need assistance in Dutchess County.