New York residents may have read that the U.S. Supreme Court recently issued a ruling regarding the ability to appeal a denial of proposed repayment plans in Chapter 13 bankruptcy cases. Previously, the lower courts had split, with some allowing people to appeal denials and others prohibiting them.
Some New York residents may be familiar with how the bankruptcy system works. By filing for bankruptcy protection from creditors, some or all outstanding debts may be discharged upon the completion of the process. However, there are some obligations that will be unaffected. For instance, those who owe back taxes, spousal support or child support will still owe that money even after the case has been resolved.
There are two primary types of personal bankruptcy available to New York residents. While Chapter 7 involves a liquidation of non-exempt assets in order to pay creditors, Chapter 13 offers a different option through which individual debtors will not necessarily have to give up their assets.
Residents of New York may not realize how Chapter 13 bankruptcy pertains to an existing mortgage. During this process, certain legal rights exist to protect the homeowner from a lender being able to initiate a foreclosure, provided that the three or five-year payment plan that was established in court is not neglected. In addition to the payment plan that takes the homeowner's financial abilities and total debts into account, the individual is also responsible for paying the monthly mortgage amount as well. If these payments are not made, the lender may be legally allowed to initiate the foreclosure process.
Many New York residents considering bankruptcy avoid filing for it because they fear that they will lose their homes or other property. However, Chapter 13 bankruptcy helps individuals, even those who are self-employed or own an unincorporated business, adjust payments on their outstanding debt, and the filer may be able to avoid losing some of their assets.
Long Island residents who are struggling to make payments on their credit card debts or mortgage may be interested in how a Chapter 13 bankruptcy can help. This bankruptcy type has many advantages and allows manageable payments to be made over a period.
Those who are seeking debt relief may seek protection in bankruptcy court. The two most common forms of bankruptcy are Chapter 7 and Chapter 13, and Chapter 13 bankruptcy is often sought by those who want to protect assets from liquidation or other creditor actions. When a debtor applies for Chapter 13 bankruptcy, that person is entering into a debt reorganization plan that takes as many as five years to complete.
Some debts can be good, while others can be bad. Generally, debts should be paid on time and local Nassau County, New York, residents know that failing to repay debts in a timely fashion can result in serious financial challenges, huge interest rates, creditor harassment and low credit scores.
Many Nassau County, New York, residents are dealing with debt. Small ones are easy enough to settle, but insurmountable debt can be subject to creditor harassment. Whatever the reason, debtors need to understand that there are ways that can lead to a fresh financial start. One of the most viable options is filing for bankruptcy.
Anyone can be subject of financial challenges. Residents of Long Island, New York, are not exempted as their financial footing can be affected by numerous reasons such as unemployment, serious medical condition and major life changes such as divorce. Getting back on track may be difficult if a debtor chooses to give up, rather than finding a solution to the problem.