Financial Spring Cleaning

After the busy winter holidays it is time for everyone to take a close look at any debt. Credit card bills from gift buying, travel expenses, mortgage, and car payments are screaming to get paid. Unforeseen circumstances such as a layoff, car accident, or cancer have added to the list of creditors.

Bankruptcy is not necessarily the result of bad behavior. Not everyone can benefit from working at a company whose stock prices shoot up in an initial public offering. Not everyone can afford health insurance. In 2010 over 50 million Americans lived without health insurance. The cost of treatment, even for minor issues like a cold or a dental cleaning, can be high. Insurmountable debt stems from the inability to pay bills, and can happen even to people who work all the time or are conscientious about saving money.

Look to a New York bankruptcy attorney with years of experience with debtors to understand that debt can be overwhelming.

A person in debt just wants to take all the bills and throw them in the garbage or a box in the dark corner of a closet. While an experienced NY bankruptcy attorney understands a debtor’s urge to hide debt from sight, do not ignore the bills. Creditors will soon begin harassing a debtor to payoff the debt. The debtor’s wages might get garnished and the debtor might face foreclosure on home that is not just a place to live but a place of memories.

Open each envelope holding bills, sort the bills by creditor and add up the debt and the monthly payments. Is there income enough to pay all these bills every month and take care of the cost of living? If not, consider filing for Chapter 7 or Chapter 13 bankruptcy. Don’t hesitate to call an experienced NY bankruptcy attorney to find out about bankruptcy options. Chapter 7 or Chapter 13 bankruptcy will help clean up financial problems and start 2012 fresh.

Chapter 7, filed by most individuals without a lot of assets, is the type of bankruptcy named from the chapter of the bankruptcy code which can be found at Chapter 7 of Title 11 of the United States Code. Chapter 7 bankruptcy gives the debtor a fresh start. In Chapter 7 bankruptcy all dischargeable debts will be cancelled. Creditors are not able to claim any debt after a discharge. Most people get to keep all of their property such as their home in Chapter 7 bankruptcy.

While filing a Chapter 7 bankruptcy may sound simple, filing the proper court documents, with all the scheduling of assets and liabilities, and understanding how to protect property through the bankruptcy process can be confusing and overwhelming to someone not represented by an attorney.

A Chapter 13 bankruptcy is another type of bankruptcy often filed by individuals. It differs from a Chapter 7 in that there is a payment plan.

A Chapter 7 or a Chapter 13 bankruptcy may be filed jointly for married couples. This makes a difference when evaluating exemption amounts. Exemption amounts mean amounts such as retirement benefits that are exempt from a Chapter 7 or Chapter 13 bankruptcy.

Consult an experienced NY bankruptcy attorney on how to deal with insurmountable debt.