Bankruptcy - The Nuclear Option
At the Law Office of Kevin T. Conway, we are all about delivering solutions that drive that keep our clients in their homes. One of those solutions is the nuclear option of a New York bankruptcy. Either it’s a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, the Law office of Kevin T. Conway has you covered.
A New York Foreclosure Defense Lawyer That Knows When To Use The Nuclear Option Of Bankruptcy
Bankruptcy offers individuals relief from debts that they cannot pay.
Foreclosure Defense Lawyer Kevin T. Conway can educate you about the bankruptcy process and if it’s right for you.
Creditors are given an opportunity to receive repayment on the money owed depending on what assets are available.
Both parties can ultimately benefit after a successful bankruptcy procedure.
There are two types of bankruptcies for consumers.
The first is Chapter 7 Bankruptcy. Chapter 7 Bankruptcy allows a person to discharge their debt if certain circumstances are met.
The second is Chapter 13 Bankruptcy. Chapter 13 allows a person the repay their debts over a period of time.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is a liquidation bankruptcy that wipes out most of your general unsecured debts such as credit cards and medical bills without the need to pay back balances through a repayment plan. To qualify for Chapter 7, you must meet income requirements. If you make too much money, you’ll have to file under Chapter 13.
When you file for a Chapter 7, an order called the “automatic stay” immediately stops most creditors from pursuing collection efforts. Also, a bankruptcy trustee is appointed to administer your case. In addition to reviewing your bankruptcy papers and supporting documents, the Chapter 7 trustee’s job is to sell your nonexempt property (property that you can’t protect with a exemption) to pay back your creditors. If you don’t have any nonexempt assets, your creditors receive nothing.
While a Chapter 7 works well for low-income debtors with little or no assets, it can also work for filers whose discharged debt exceeds the value of the property sold—especially if the trustee will apply the funds to non-dischargeable debt, such as income tax or support arrearages.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a reorganization bankruptcy designed for debtors with regular income who have enough left over each month to pay back at least a portion of their debts through a repayment plan. Even though most Chapter 13 filers make too much money to qualify for a Chapter 7, many debtors choose to file for Chapter 13 because it offers many benefits not available in Chapter 7 (such as the ability to catch up on missed mortgage payments or strip wholly unsecured junior liens from your house).
In Chapter 13, you get to keep all of your property (including nonexempt assets—however you’ll have to pay creditors an amount equal to the value of your nonexempt property). In exchange, you pay back all or a portion of your debts through a repayment plan (the amount you must pay back will depend on your income, expenses, and type of debt).
Typically, a Chapter 13 is for debtors who:
- don’t qualify for Chapter 7 but need debt relief (for instance, to lower credit card payments, stop litigation, or prevent a wage garnishment)
- have non-dischargeable debts such as alimony or child support arrears that they’d like to pay off over three to five years, or
- have fallen behind on a house or car payment and want to get caught up on missed payments and keep the property.
In Foreclosure? We can Help!
The Most Aggressive New York Foreclosure Defense Lawyer In New York!
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Phone Number
888-576-2221
Address
18 Scotchtown Avenue, Goshen, New York 10924, United States