Bankruptcy does not always happen the way you assume. There are many reasons people get into financial trouble, some of which they have no control over themselves. It is important to understand these reasons as you consider all of your options.
Both Chapter 13 and Chapter 7 bankruptcies give New York residents a clean slate upon which to build a secure financial future. A Chapter 7 filing can also help debt-strapped people get out from under some of their tax obligations. This is a perfectly legal approach to discharging or minimizing tax debt, as long as the government does not believe that you are attempting to evade your tax obligations unlawfully.
For most people, the thought of filing a Chapter 7 bankruptcy is frightening. The process is shrouded in a great amount of negativity, and although some of the negativity is true, some of it is false. We have found that once people weigh the negative consequences against the positives, most of them feel better about the prospect of a Chapter 7 filing.
If you declare bankruptcy, one of the things you may naturally worry about is how that filing is going to impact your ability to earn a living. You know that Chapter 7 means liquidating assets. However, are you going to have to sell the tools you use to make a living right now?
If you're a Long Island resident who is contemplating filing for bankruptcy, your debts may have accrued from many sources. Credit card debt, personal loans and student aid obligations can all take a huge chunk out of your disposable income.
You have a great business idea, but you have too much debt to get it started right away. You decide that you're going to file for bankruptcy, eliminate your debt and then start the company. How soon can you do it?
Financial mistakes are pretty common. As much as everyone wants to be in control of their finances, life has a way of getting out of control. Sometimes, it just takes one small mistake. Other times, a series of chronic mistakes cause the problems. What are some of the most common errors people make? A few are listed below:
You may have heard that Chapter 7 bankruptcy cannot be used to get rid of student loans. While that is true for many people, it is not 100 percent accurate in all cases.
You want to use Chapter 7 bankruptcy to eliminate your debt, but you worry that it will destroy your credit rating. This will make it hard for you to buy a car, something you absolutely need to do for work. Can you buy a vehicle after bankruptcy?
Bankruptcy myths abound, and they can often give people the wrong idea about the process. It is time to break down at least one of those myths to show exactly why it does not hold up.