Very few people actually use paper notes nowadays as the world runs on credits today. The consumer and business world is ruled by plastic money. The main source of purchasing is the credit card to which more and more people are getting addicted. Even if they have no money in their bank accounts, they can buy anything taking a loan from the bank. Since it is the easiest way to borrow, it is very tough to control the expenditure and people generally end up spending more than they can pay back.
This results in a large amount of debts and before the individual even realized it he or she is neck deep in unmanageable debt which is impossible to pay back. This is the start of bankruptcy usually in today’s age and day. There can be several other causes also like unemployment, loss of employment, prolonged sickness, death in the family, loss of inheritance, divorce , alimony issues, failure in business, etc. But whatever the reason may be, bankruptcy is an unfortunate situation where people are often confused as to what they should do and how they will be able to cope with the situation and get back up again.
Most people who are in this condition possess no knowledge about the proceedings related to bankruptcy. The New York bankruptcy law has many sets of rules and regulations and a lay person has almost zero ideas regarding these or how they should proceed. The main chapters that govern bankruptcy are generally two, chapter 7 and chapter 13. But even if an individual knows about the basic facts, it is wise to take the help of an able lawyer to handle the situation, as there are many legal intricacies and documentation process related to the bankruptcy cases and each case has different dimensions which only an experienced lawyer will be able to handle best. They will make sure that the case is handled in an all-inclusive way, and make sure that you as a client come out of it with minimum possible losses because they will be dealing with all the legal hassles and regulations. Actually, bankruptcy has its positive side also and can actually help you if you take the whole experience in an affirmative way.
The laws and regulations of the chapters mentioned can help you to start anew and get rid of the weight that has been bogging you down in all financial aspects. As a debtor, you get a fresh start with the help of bankruptcy, and it also helps the creditors because they get a fair chance of getting a portion of their money back. There are indeed chances of turning your financial fortune in your favor with the two chapters of the New York Bankruptcy law, chapter 7 and chapter 13. With an individual who has declared bankruptcy chapter 7 is the most often favored one as it assists individuals to expunge qualifying debts. Most of the repayment obligations are obliterated and the debtor can get a little relief. But it is better to keep in mind that with chapter 7 you will be stamped as a high risk individual who is irresponsible with his or her finances and this can affect your credit history forever.
For the next decade, it will reflect as a priority on your credit reports. Under chapter 13 you will be obligated to follow a plan of payment during which you will be repaying your outstanding unpaid amount. As it is often done with chapter 7 the assets and properties that you possess, will not be sold off under chapter 13. It won’t be as severe as chapter 7 there will still be a black mark on your credit history with chapter 13. Therefore, you can take an informed decision after studying both the chapters and decide which will help you the most, and through which you will be able to regain your financial footing.
The author of this article, Laxmon, has been practicing law in the city of New York for the last decade and has done research on the various aspects and has broad knowledge about New York bankruptcy Law. He has helped many clients to overcome the hurdles and regain their economic footing.