A New York resident who is currently going through a bankruptcy or someone who is considering bankruptcy as an option may want to know if they can walk away from a home during the proceedings. While it is sometimes possible to do so, there are many considerations homeowners who are in bankruptcy need to take into account before they can stop making their mortgage payments, including the type of bankruptcy that is involved.
A recent study conducted by economists from the Federal Reserve Bank of New York and Columbia University suggests that the costs associated with filing for personal bankruptcy could cause some people to become insolvent. The researchers looked at the impact that the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act has had on bankruptcy filings.
While filing for bankruptcy may result in a discharge of many different types of debt, tax obligations are only released under certain circumstances. For example, being freed from tax debts is typically more likely when the individual is filing for Chapter 7 bankruptcy. Other factors that might affect the discharge might be the age and type of the tax.
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.
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.
Residents of New York may be interested to know that there is some protection against debt collection that is enforced by the Federal Trade Commission. Under the Fair Debt Collection Practices Act, debt collectors are restricted from harassing a debtor.
New York residents who are facing overwhelming debt from first or second mortgages may be interested in one way to find debt relief. One specific legal process may allow a homeowner to remove a lien on their home that is held by the second mortgage creditor.
Levels of personal debt are high across the nation and many New York residents may be struggling with debt problems. For many people who are searching for a solution to debt problems, debt relief services may seem like an attractive option. However, many of these services encourage customers to file for bankruptcy while labeling their services "debt relief." Bankruptcy is an effective option for dealing with debt but it may not be the best choice for everyone.
According to findings from several studies, nearly 33 percent of cancer survivors in New York and around the country say that they have suffered financial hardships due to their illness. The American Society of Clinical Oncology says that younger patients tend to suffer the most from these hardships. Furthermore, these hardships may last for several years after receiving treatment even if a patient has insurance.
New York residents contemplating bankruptcy may want to learn more about the timing aspects of a bankruptcy filing, such as the discharge date or how long bankruptcies stay on a credit report. The discharge date is dependent on the type of filing. For a Chapter 7 bankruptcy, which is a liquidation, the discharge date generally occurs about four months after the bankruptcy petition is granted.