Call The Most Aggressive New York Foreclosure Defense Lawyer Today At 888.576.2221
Call The Most Aggressive New York Foreclosure Defense Lawyer Today At 888.576.2221
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 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 bankruptcy, you must meet income requirements. If you make too much money, you’ll have to file under Chapter 13 bankruptcy.
When you file for Chapter 7 Bankruptcy, 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 bankruptcy exemption) to pay back your creditors. If you don’t have any nonexempt assets, your creditors receive nothing.
While Chapter 7 bankruptcy 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 nondischargeable debt, such as income tax or support arrearages.
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 Chapter 7 bankruptcy, many debtors choose to file for Chapter 13 bankruptcy 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 bankruptcy, 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, Chapter 13 bankruptcy is for debtors who:
New York Foreclosure Defense Lawyer Kevin T. Conway offers the best in New York foreclosure defense and loan modification representation!
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Prior results do not guarantee or predict a similar outcome with respect to any future case or legal matter.
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