Bronson Law Offices, P.C. in Westchester County
Bankruptcy is a subject rife with misconceptions and falsehoods. These can make it difficult to get accurate information about how filing for bankruptcy can affect you and whether a filing is the right choice in the first place. At the Bronson Law Offices, P.C. we are committed to offering our clients information that is not only true but also applies to their unique situation. Below, we answer some of the frequent questions we are asked about the bankruptcy process.
Question #1: Will people find out I filed for bankruptcy?
A: Although bankruptcy is a public legal proceeding, chances are that no one will find out that you filed unless you tell them yourselves. The only exceptions are if you run a large corporation or are a celebrity of some kind, but in most cases, it will not be an issue.
Question #2: Will I lose all of my property if I file a Chapter 7 bankruptcy?
A: Although Chapter 7 bankruptcy does involve the liquidation of assets to pay off creditors, many of your assets will actually be protected.
Question #3: Will all of my debt be eliminated through bankruptcy?
A: Not all debt can be discharged by filing for bankruptcy. Generally, you can eliminate all debt except for certain taxes, child support, spousal support, and student loans.
Question #4: Do l have to pay off all of my debt if I file a Chapter 13 bankruptcy?
A: Although a Chapter 13 bankruptcy involves the repayment of debt through a 3 to 5-year payment plan, this does not necessarily mean that you will have to pay off all of your debt. In some cases, you will only pay a small portion of what you owe and the rest will be discharged at the end of your payment plan.
Question #5: Will bankruptcy ruin my credit?
A: It is true that bankruptcy shows up on your credit report, but restoring your credit is actually easier than you think. You can start with a secured credit card and then manage your money right and get yourself back on your feet in a relatively short amount of time, depending on the particular case.
Question #6: What is a "discharged" debt?
A: When debt is "discharged" this means that the debtor has no further obligation to pay it. The debtor is no longer personally liable for the debt and no further action can be taken by any creditor or debt collector to collect this debt. The specific manner in which debt will be discharged will vary not only depending on your unique financial situation and the type of debt but also whether the debtor files under Chapter 7 or Chapter 13.
Question #7: What types of debt can be discharged during bankruptcy?
A: A bankruptcy discharge typically only applies to unsecured debt, such as credit cards, personal loans, medical bills, and utility bills.
Question #8: Why do I need a lawyer to file bankruptcy?
A: Deciding whether to hire a bankruptcy lawyer is an important issue to consider. A bankruptcy lawyer can talk to you about what you are experiencing, can review your financial situation, and can talk to you about your short and long-term financial goals. A lawyer can also assist you in taking the means test to determine if you qualify for a Chapter 7 case, or if we can pursue a Chapter 13 case.
Question #9: What property is exempt if I file for bankruptcy?
A: Basic exemptions available for debtors who file for bankruptcy include the homestead exemption, motor vehicle exemption, trade tools, IRAs, and 401k plans.
Question #10: Are there federal Exemptions in Bankruptcy?
A: New York bankruptcy filers can elect to utilize the Federal exemptions which feature a wild card exemption of up to approximately $12,000. When determining whether a debtor should use the NY state or Federal exemptions, an attorney should analyze the debtor's assets and equity value of real estate to maximize the possible benefits.
Reach Out Today to Speak With a Knowledgeable Bankruptcy Attorney
A Westchester County bankruptcy attorney at the Bronson Law Offices, P.C. can talk to you about what you are going through. By evaluating your income, expenses, debt, and assets, we can get a clear picture of what you're up against. We can inform you of the positive and negative impacts that filing for bankruptcy might have for you. Please get in touch with our firm for the compassionate and experienced help you need in the face of overwhelming debt.
Amazing Legal Team
Attorney Bronson and his team are compassionate, professional and communicate in a way that makes any complicated legal process easy to understand.
Service Available in Spanish
Working with clients in the language that makes them feel the most comfortable.
Smoothly consulting and navigating clients through Bankruptcy, Debt Relief, Creditor Harassment, Foreclosure, or Tax issues.
Specializing in Businesses
Highly experienced in navigating the complicated process of Business Bankruptcy, Corporate Restructuring & Asset Protection.