What Is Bankruptcy?

Imagine daughter and mother crossing the street hand-in-hand, and suddenly, an 18-year-old college student, texting while driving, smashes into them. The daughter, age 2, dies at the scene, and the mother, age 42, gets flown to the hospital, suffering serious injuries. Not only does the mother struggle to walk again, and mourns the death of her daughter, her family struggles financially from mounting medical expenses since her husband lost his job right before the accident, leaving the family without insurance.

When life goes unexpected, it shocks people into new opportunities. Bankruptcy is a way to move on when life does not often go as planned. People suffering from debt can still make life anything they want it to be when they look to bankruptcy to discharge debt. Bankruptcy is an option, not a tragedy. Choosing bankruptcy provides a fresh start to debtors.

Dealing with financial hardship is like rocking climbing. People reach to the top with resilience. When the unimaginable happens, trust the situations will ultimately turn out okay. Before filing bankruptcy, negotiate with a creditor. This may be the solution when debt is owed to a few creditors or if the inability to pay is short-term.

If a person fails to negotiate a debt, it is not necessarily a tragedy if a debtor gains new information. Creditors often are more willing to work out a repayment with a New York bankruptcy lawyer, knowing that if they do not cooperate, the debtor may file bankruptcy under which circumstance the creditor may not see anything.

Since creditors attempt to discover a person’s assets during negotiations, be careful during credit talks. When information is not necessary for a transaction, do not give it. For example, some banks tend ask for someone’s occupation these days, even when a person is not taking out a loan. The bank officer may trick someone into answering questions by saying it is required under law. Ask for the specific statute or regulation. Do not notify creditors of non-exempt assets that creditors may take in a collections lawsuit. Do not think a creditor will get scared off by threatening to file bankruptcy. If an individual tells a creditor s/he will file bankruptcy if s/he is not given a break, the creditor may note it in the person’s file. If the person later makes credit card charges after the threat, and then files bankruptcy, the creditor may argue the person planned to file bankruptcy while making credit charges in anticipation of a bankruptcy discharge.

Discuss with a New York bankruptcy attorney how to negotiate debt and learn which bankruptcy option to take towards debt elimination.