Making the decision to file for personal bankruptcy should not be taken lightly. Declaring bankruptcy can have long-term financial consequences. However, for some New York residents, it can make funds available to take care of necessary expenses. Some of the people who may benefit the most from bankruptcy are couples who were recently separated or divorced, senior citizens and the unemployed.
Choosing Chapter 13 bankruptcy in New York
There are two primary types of personal bankruptcy available to New York residents. While Chapter 7 involves a liquidation of non-exempt assets in order to pay creditors, Chapter 13 offers a different option through which individual debtors will not necessarily have to give up their assets.
The foreclosure process in New York state
Individuals in the state of New York may have their homes foreclosed upon if they miss a mortgage payment. A payment is considered late if it is still outstanding even a day after the due date. After 16 day, a late charge may be assessed on the payment that is still outstanding. When 30 days have passed, it may be possible for a lender to send out a pre-foreclosure notice.
A look at the differences between personal bankruptcy types
Long Island residents who are struggling to pay bills and have overwhelming consumer debt may be interested in some information about the types of personal bankruptcy available. Depending on a number of factors, one of the two types of bankruptcy may be appropriate for their particular situation.
