Bankruptcy can be an intimidating process, but for many the end goal is to achieve a fresh financial start. New Yorkers may elect to file for Chapter 7 bankruptcy to get ahead of their overwhelming obligations and take control of their financial lives. To do so, they must be eligible to seek Chapter 7 bankruptcy protections.
Chapter 7 bankruptcy is not for everyone
Chapter 7 bankruptcy is a common choice for individuals who wish to file for personal bankruptcy. It is also an option for businesses. Partnerships, corporations and other business entities can use Chapter 7 bankruptcy and its liquidation provisions to work through their debts.
Any individual or entity, though, that wishes to use Chapter 7 bankruptcy must pass the means test, which as been discussed previously on this blog. If they do not satisfy the terms of the test, they cannot use Chapter 7 to get out from under their debts. Additionally, individuals who have had prior bankruptcy cases dismissed in the preceding 180 days may not be eligible to file.
Understanding debt to take the right bankruptcy course
Readers may know that other options, such as Chapter 13 bankruptcy and Chapter 11 bankruptcy, exist and offer different paths to financial relief. Those options may be better suited for some debtors and the types of obligations they are paying. Not all debts are dischargeable in Chapter 7 bankruptcy and before an individual files, they should know what outcomes to expect.
Bankruptcy in any form can be challenging, but it can also be rewarding. Attorneys who practice bankruptcy law are excellent resources for individuals, business owners, and others who have questions and concerns about overcoming their debts.