Are you heading towards bankruptcy?

If you’ve run out of options and can find no way to pay your credit card debt, the remaining installments of your mortgage or car loan, or any other big payments, filing for bankruptcy might be your best option. It’s true that the American federal system believes in giving second chances, but first it is essential that you dig a little deeper and make yourself more familiar with the bankruptcy system and all the possible consequences.

First of all, you ought to know that for the average consumer there are two chapters of bankruptcy you can apply under, and they are chapter 7 and chapter 13.

Chapter 7

Chapter 7 bankruptcy, or “liquidation”, allows you to get a fresh start in the following way:

If you have little to no assets to your name (or assets with very little or no value), and have mostly unsecured debts, Chapter 7 may be the best option for you. This can also include certain eligible back taxes for personal income, medical debts, and judgments. Under Chapter 7, you’ll be allowed to keep exempted assets and personal property.

Chapter 13

If you have a reliable source of income and are looking to save a certain asset (such as a home with equity, a high value car, or a rent-stabilized apartment), Chapter 13 bankruptcy may be your best option. Depending on your current income you can formulate a 3-5 year plan to pay back a portion of your debts.

The biggest advantage, is that the payment plan is predictable and not at the collector’s discretion. You remain protected against continued interest, late fees charges and of course, harassment from the collector.

Biggest Benefits of Bankruptcy

The biggest benefits of any bankruptcy is that it allows you room: room to breathe, room to catch up on your monthly living expenses, and room to live your life free from the harassment of creditors, bill collectors, and judgments.

A Bankruptcy lawyer in NYC can guide you through these complicated procedures. You need someone that is experienced and well-versed in such cases.

The lawyer will not just suggest which chapter you should apply for bankruptcy under, but also help you increase your chances of a favorable result by the court with the same.

She will guide you in presenting your case and financial statements in the court, and inform you about other unique intricacies involved.

A Bankruptcy lawyer in NYC can help you with your bankruptcy. A favorable decision by the court can mean that you get to pay your debt in a way that is convenient, and avoid being harassed by collectors.