If you are one of the many individuals who bought your home right before the housing bubble burst and are behind on your mortgage or are facing foreclosure. Perhaps you or a family member had an illness that required an extensive hospital stay, which depleted your savings. Maybe you have lost your job or had your hours decreased, making it difficult to make ends meet.

No matter what led to your financial problems, you are not alone. There are many families across New York who need help with out-of-control debt. Bankruptcy was designed to help people who have become so inundated with debt that they have fallen behind on their finances and can no longer pay their bills or other financial obligations. The goal of the bankruptcy process is to provide individuals and families with the relief they need to recapture their financial freedom and start fresh again.

Personal Bankruptcy

Bankruptcy refers to the federal court process of eliminating or restructuring a person’s debt. In the United States, the two most common forms of bankruptcy available to individuals and families are Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Chapter 7 Bankruptcy, also known as liquidation, is the most common and most favored form of bankruptcy as it eliminates most of a debtor’s unsecured debt.

However, Chapter 7 does not discharge all of a person’s debt. Certain debts cannot be discharged under Chapter 7, such as: Alimony/Spousal Support, Child Support, Court fines or penalties, Personal injury damages or restitution. In some cases, we can eliminate student loan debts.

There are many myths in bankruptcy that are untrue. In most cases, you can keep your car and home, and in some cases, you may be able to get rid of your 2nd mortgage in the bankruptcy.

Chapter 13 Bankruptcy is slightly different from Chapter 7 bankruptcy, as it does not discharge debt completely. Rather, Chapter 13 consolidates a person’s debt and restructures it into a feasible monthly payment plan. Under Chapter 13 bankruptcy, you will have a set amount of time, usually three to five years, to pay off a portion of your debt each month. Although this type of bankruptcy does not completely eliminate your debt, it does restructure it in a way that is manageable.

We will help guide you through the bankruptcy process. Before you file Chapter 7 or Chapter 13, you should consult a bankruptcy lawyer. Our firm will decide if filing for bankruptcy is the right option for you.