Important Things to Know About Bankruptcy

Important Things to Know About BankruptcyHere are a few important things to know about bankruptcy in New York to find out if this is the right option for you. Contact our Jamestown bankruptcy attorneys today to schedule a free consultation and discuss your best solution for debt relief.

Important Things to Know About Bankruptcy | Chapter 7

Chapter 7 bankruptcies are the first type of bankruptcy that we want to look at for you, because it is the least expensive, and you’ll be in and out of the process in less than four months. The problem is that not everybody has the ability to make a Chapter 7 work for them, and they may have to therefore look at Chapter 13.

Our goal with a Chapter 7 bankruptcy is for you to keep all of your property and wipe out or discharge your unsecured debt.  You walk away free and clear from that. When people come in, and they are in trouble, their credit report is not looking too stellar, so generally speaking, most of the time, when you file a Chapter 7 bankruptcy, one year after discharge, your credit score is actually going to go up.

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Important Things to Know About Bankruptcy | Exemptions

Exemption laws are the laws that protect the property that you want to keep, so they’re very important. There are federal exemptions, and there are New York state exemptions, and sometimes one is better than another. When I first started practicing nearly 30 years ago, we only had New York state exemptions, and they weren’t very good, which forced a lot of people into Chapter 13 bankruptcy.

Recently, the law has changed so that we can use federal exemptions, and people can keep their property and file a Chapter 7 with no payments to unsecured creditors, so it’s worked out really well. They additionally changed the New York state exemption where you can have a house that’s worth over 175,000 dollars in this county or Cattaraugus or Alleghany, and you can keep that house and not have to file Chapter 13 like the old days.

Contact our experienced Jamestown bankruptcy lawyers today to schedule a free consultation and find out if you are eligible to file.

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