As most New Yorkers know, debts are neither inherently good nor inherently bad. If they pay bills on time and pay off credit cards each month, then debtors can avoid acquiring debts that are difficult to pay off. Failure to pay on time, however, not only results in higher interest rates but also leads to creditor harassment from third-party collectors who dog the debtor to pay his or her debts.
Many people on Long Island, New York believe in the old adage that says health is wealth. However, rising medical costs can be a serious issue that can land a person in a pile of debt. In a report by the National Patient Advocate Foundation in the United States nearly two-thirds of bankruptcy filings are a result of medical debt.
Long Island businesses and individuals who are saddled with overwhelming debt may get their finances back under control through declaring bankruptcy. There are several types of bankruptcy under U.S. law, and one of the most effective is Chapter 7, or liquidation bankruptcy, as it is sometimes called. It differs from other types of bankruptcy in some important ways.