New York Bankruptcy Attorney
Declaring bankruptcy is a serious matter and should not be entered into without doing your best to fully understand the ramifications of such an undertaking. There are some very positive benefits as well as some negative ones to consider.
It is a good idea to present the facts of your potential case to a New York Bankruptcy Lawyer. Diaz & Associates, P.A., will be your best source of information and will guide you through the process of making the important decisions. If you decide to file, your New York Bankruptcy Attorney will help you decide if a Chapter 7 or a Chapter 13 filing would be best for you.
The Decision to File for Bankruptcy
Prior to filing for bankruptcy you must decide if this is the most appropriate way of handling your financial situation. Your New York Bankruptcy Lawyer will explain not only the bankruptcy procedures, but also other alternatives which could include:
- Consumer Credit Counseling - Your creditors may be willing to lower their interest rate and accept lower payments provided you agree to a debt repayment plan. The money you pay each month to the counseling service is used to pay your creditors. You probably will have to agree not to apply for any additional credit while you are in the program. Some services charge you little or nothing at all for managing the plan. Some are funded, at least in part, by contributions from creditors. Some firms charge monthly fees that could significantly add to your overall payment.
- Debt Consolidation/Second Mortgage - You may be able to improve your financial situation by consolidating all of your debt through a home equity line of credit or a second mortgage. Consider this very carefully as these types of loans require you to put your home up as collateral. If you don't make the payments, or the payments are late, you could lose your home. If you have more home equity that you are allowed to protect under your home exemption in Chapter 7 bankruptcy, this may be a viable alternative.
The National Association of Consumer Bankruptcy Attorneys lists 5 steps you should take before deciding if a Bankruptcy filing is for you.
- Learn the Advantages and the Disadvantage of Bankruptcy – Benefits include a discharge of most debts and an automatic stay against creditors. The negative in particular is the possibility of losing property and the negative affect it will have on your credit rating.
- Determine Whether Bankruptcy Will Get rid of Your Debts – Certain debts cannot be discharged in bankruptcy. Debts which can't be eliminated include taxes, alimony, child support and student loans.
- Do a Budget Analysis – It will help you determine if you will be able to pay your bills after bankruptcy or whether your problems will continue.
- Consider Alternatives to Bankruptcy – Bankruptcy is only one method of dealing with overwhelming debt. There are other steps you can take to reduce your debt that don't include filing for bankruptcy.
- Finding a Good Bankruptcy Lawyer – Picking the right bankruptcy attorney for you can appear daunting. The best advice is to select one who is trained and very experienced handling both Chapter 7 and Chapter 13 cases, and one with which you feel very comfortable.
Deciding if a bankruptcy is the right option for you is a very important to you and your future. Contact a New York City Bankruptcy Lawyer, who will help you decide and guide you through the entire process.
