Jeffrey M. Rosenblum, P.C.
A Fresh Start

Moving forward with the appropriate chapter of bankruptcy

Making the choice to move forward with filing for consumer bankruptcy can be difficult, especially if you are unsure which chapter may be most appropriate for your unique situation. If you are unable to meet your financial obligations and are struggling with debt, you would be wise to seek an explanation of the legal options available to you.

Bankruptcy is not the ideal choice for every person who is overwhelmed by debt, but it does offer many New York consumers the ability to effectively address their debt and build a better financial future. You may need help to decide which chapter is best for you and offers you the most benefits.

The right choice for your future

Ultimately, the right option for consumer bankruptcy depends largely on the details of your individual financial situation and the types of debt you owe. The most common chapters for consumers is Chapter 7 and Chapter 13. Consider the following facts about the differences between these two chapters:

  • Chapter 13 may allow you to stop foreclosure and keep your home if you stick to the terms of your bankruptcy plan.
  • Chapter 7 will require the liquidation of non-exempt property, but you will be able to keep all exempt assets.
  • Chapter 13 generally takes longer to complete, and is an option for individuals not eligible for Chapter 7 bankruptcy.

Chapter 7 is a popular choice for people considering bankruptcy, particularly because it takes less time to complete. However, not everyone is eligible for this option. A means test will determine your eligibility and allow you to move forward with the most appropriate course of action. Whether or not you are sure you should move forward with bankruptcy, it can be smart to take steps to ensure you understand all of the options available to you.

The benefits of bankruptcy

Consumers struggling with debt and dealing with harassment from creditors can find many benefits to filing consumer bankruptcy. If you think you should move forward with either Chapter 7 or Chapter 13, you will find it useful to first seek a complete evaluation of your individual financial situation.

Bankruptcy can provide you with an organized and efficient way to deal with your debt, make debt collection efforts stop and help you move forward to a better financial standing. Many consumers are reluctant to consider bankruptcy, but in reality, it could be a smart and practical choice for your financial condition and situation.

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