For a long time, you may have tried to ignore your money issues or thought that you would be able to handle them on your own. Each time you missed a payment or incurred another fee, you may have told yourself that you would make up for it next month. Unfortunately, that vicious cycle has only continued, and you are feeling overwhelmed by your debt.
Debt issues can affect anyone of any income level. Your issues may have started out because of something outside your control, like job loss or a medical emergency, or you may have spent a little too much over the holidays one year and never got back on track. Now, you want to know how you can resolve your debt issues.
If you believe you have reached a point where knocking your debt back little by little will not work, you may be considering bankruptcy. Of course, you likely have some hesitation about using this debt relief method because it gets such a bad rap. However, bankruptcy can be useful for many people who are struggling with their finances, and having the right information may help you decide whether it is right for you.
Will you lose everything?
Some people avoid bankruptcy because they are afraid they will lose everything in the process. While Chapter 7 bankruptcy does involve liquidating assets in order to pay creditors, it does not mean that you will have to give up everything you own. Some of your assets fall into the category of exempt assets, which means that you do not have to liquidate them during bankruptcy. Those assets can include your home, clothing, tools for your job, personal items, a car and public benefits.
Non-exempt assets are those that can be liquidated during bankruptcy to repay creditors. Those assets include real estate other than your primary residence, a second vehicle, investment accounts, bank accounts, recreational vehicles and other items.
Gaining reliable information
It can be easy to end up with the wrong information when it comes to processes like bankruptcy. If you hope to find reliable information that applies to your specific case, you may want to speak with an experienced New York bankruptcy attorney. This legal professional can answer your questions and help you better understand how bankruptcy could help and otherwise affect your financial situation.