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Common Questions About Bankruptcy

Are you or someone you know drowning in debt? If so, you might consider filing for bankruptcy. Filing for bankruptcy can be a beneficial decision that allows you to start over or significantly reduce your debt. Our experienced New York bankruptcy lawyers of Law Office of Simon Goldenberg are here to answer common questions about bankruptcy and dispel the myths out there. Thus, if you’re in New York and would like to know more about debt elimination, continue reading below.

Why Do I Need A Bankruptcy Lawyer?

Filing for bankruptcy is no easy task. You might have been confused or overwhelmed by some of the information you read, and just imagine, there are many more nuances, stipulations, and exceptions. With so much on your plate already, you shouldn’t have to stress over deciding which bankruptcy to file as you juggle your financial hardship. Rather, let compassionate, knowledgeable New York bankruptcy lawyers help you. Law Office of Simon Goldenberg lawyers are here to guide you and tell you all you need to know. So, don’t make such an important decision alone. Call us now at (888) 301-0584 or contact us online for a free initial evaluation.

What’s The Most Common Type Of Bankruptcy To File?

There are five bankruptcy chapters. However, the most common chapters people file are Chapters 7 and 13. To put it simply, typical citizens can file for Chapter 7 or 13 bankruptcy; Chapter 9 is mainly for municipalities seeking to get out of debt; Chapter 11 is primarily for corporations and, Chapter 12 is specifically for farmers and fishers who need to get out of debt. Of Chapters 7 and 13, Chapter 7 is the most commonly filed. In fact, over 60% of all personal bankruptcies are Chapter 7 bankruptcies. Even well-known celebrities, such as Willie Nelson and Wayne Newton, tend to file Chapter 7 rather than Chapter 13.

How Long Does Bankruptcy Stay On Your Credit Report?

Regardless of which bankruptcy you file, it affects your credit score. Different chapters will remain on your credit report for various lengths of time. For example, Chapter 7 bankruptcy may show on your report for as long as ten years. However, Chapter 13 bankruptcy will automatically stop showing after seven years. You should know that you can improve your credit score in a reasonable time if you meet certain conditions, so it’s wise to speak with qualified bankruptcy lawyers for more information. Also, please know that a record of your bankruptcy filing will be a public record.

What’s The Difference Between Chapter 7 And Chapter 13 Bankruptcy?

Because you’re likeliest to file Chapter 7 or 13 bankruptcy, it’s important that you understand some differences between the two. For one, if you file for Chapter 7 bankruptcy, your trustee liquidates your assets, sells them off, and uses the profit to pay off your creditors. Yet, your assets aren’t liquidated if you file for Chapter 13 bankruptcy. Instead, your trustee puts you on a three-to-five-year payment plan. Two, you don’t have to worry about a cap or floor before you file for Chapter 7. However, you may only file for Chapter 13 if your unsecured debts have a limit of $419,275 and your secured debts $1,257,850.

What About The Other Bankruptcy Chapters?

We’ve mentioned that there are other bankruptcy chapters above. If you’re wondering whether they might be most tailored to your financial hardship, we’ll discuss a little about them here. If you’re a school district that’s seeking funding and in excessive debt to your creditors in the meantime, Chapter 9 is ideal for you. If you’re the CEO of a corporation and you’re in massive debt, consider filing for Chapter 11 bankruptcy; you can avoid liquidating your assets and maintain control of your business. Maybe you’re a farmer or fisher who’s come under dire straits—Chapter 12’s three-to-five-year payment plan is available to you.

Can I File For Bankruptcy More Than Once?

Yes, you may file for hardship relief as many times as is necessary. Many people, including multi-platinum singer Toni Braxton, and millionaire businessman and former president Donald Trump, have filed for bankruptcy more than once. But there are stipulations in place to not file in proximity to a previous filing. For example, you’re required to wait eight years between your first and second Chapter 7 bankruptcy filing. If you filed for Chapter 13, you’re required to wait two years between the first and second filing. But suppose you want to file under a separate chapter your second time. The wait time varies depending on the previous and subsequent chapters.

Please know that whether you may file again also turns on whether the bankruptcy court discharged your previous filing.

What Does Bankruptcy Discharge?

When a bankruptcy judge discharges a debt, you’re no longer obligated to pay it. Generally, bankruptcy can discharge your:

  • Credit card debt
  • Personal loan debt
  • Medical bill debt, and more.

What Doesn’t Bankruptcy Discharge?

Regardless of which bankruptcy you file, there are certain debts that you cannot erase or negotiate away. They include:

  • Student loan debt
  • Alimony debt
  • Child support debt
  • Court debt
  • Tax debt

New York Bankruptcy Lawyers At Your Service

The best decision for your financial future depends on many factors. Before deciding, it is important to educate yourself on all available options. When making these decisions, no one is better suited to help you navigate the world of bankruptcy than an experienced bankruptcy lawyer. While the bankruptcy process can be intimidating and confusing, having a trained professional on your side can make all the difference.

Law Office of Simon Goldenberg is dedicated to helping clients resolve their financial issues through bankruptcy or another alternative. Our bankruptcy lawyers will carefully review your situation and advise you on options that closely fit your needs. If you are considering bankruptcy, please do not hesitate to reach out to Law Office of Simon Goldenberg by calling (888) 301-0584 or contacting us online today.