During today’s turbulent economic times, it’s not difficult for debts to become unmanageable. If that has happened to you, you may be considering the option of Filing for Chapter 7 Bankruptcy Melville. You’re probably also wondering how to go about it and what kind of bankruptcy you should file. Consulting with a New York state bankruptcy lawyer is a great way to get all your questions answered and start the filing process off effectively.
Who Benefits From Chapter 7 Bankruptcy
If you have more debt than you will ever be able to pay off, Chapter 7 bankruptcy may be the right choice for you. However, you must meet the income requirements in order to file. To determine whether or not you qualify, a means test is often given. This test uses your average income from the past six months to determine whether or not this average income is below a certain level. If it is, then you are eligible to file for Chapter 7 .
Who Benefits From Chapter 13 Bankruptcy
Chapter 13 offers a variety of advantages over Chapter 7’s liquidation. In the most significant way, Chapter 13 allows individuals to save their homes from foreclosure. More specifically, filing under this chapter can potentially put a stop to foreclosure proceedings and can alleviate mortgage payments over time in Melville.
However, it is important to note that individuals must continue paying their mortgage on time during their Chapter 13 plan. Also, Chapter 13 allows individuals to reschedule secured debts and extend them over their Chapter 13 lifespan, resulting in potentially lower payments (note: this is not applicable to mortgages for primary residences).
Through a special provision, Chapter 13 also protects third parties and co-signers who may be liable with the debtor on “consumer debts.” Lastly, Chapter 13 acts as a consolidation loan in that individuals make the plan payments to trustees who, then, distribute the payments to creditors. Under Chapter 13 protection, individuals will not have direct contact with the creditors.
Call to Schedule a Free Consultation With a New York State Bankruptcy Lawyer Today
If you are considering filing for Chapter 7, call to schedule a free consultation with a Melville or Long Island attorney today. At the Law Offices of Scott R. Schneider, we can answer any questions you have and will treat you with respect and dignity. We serve the cities of Long Island, Melville, Lindenhurst and surrounding Nassau and Suffolk County communities. Visit our website at https://nassaubankruptcyattorney.com or call us at (516) 433-1555 . We will help you get a fresh financial start.
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