FAQ: Individual Bankruptcy Claims

Summary

Few of our clients ever suspected that they would have to file for bankruptcy. The stigma against the practice is strong, as it is seen as a personal failure on the part of the debtor. This does not necessarily have to be the case, however. More than a million people filed for Chapter 7 bankruptcy in the United States last year, with the number only increasing as time goes on. Bankruptcy should only ever be a last resort, but it does not have to be an end. Rather, think of it as a new lease on your financial future.

With the help of a skilled Queens bankruptcy attorney, you can erase your debt and start over again. There are two primary kinds of bankruptcy claims that our clients will want to look into. These are Chapter 7 and Chapter 13 filings. Call a bankruptcy attorney with our firm to learn more specifics and receive advice on the best action for you to take.

Chapter Comparison

The two types of filings offer fundamentally different avenues of bankruptcy protection. Chapter 7, often referred to as ‘liquidation’, involves a relatively quick process of selling off your assets to pay off creditors. Before filing for this type of claim, it is important to speak with a bankruptcy lawyer to determine which of your assets are considered exempt from liquidation, and which are not. Generally, your primary home, automobile, wedding rings, and tools of your trade will not be taken from you. Everything else the court deems non-essential to your life and wellbeing, however, can be removed from your possession and sold. Once this process is over, however, your debt is considered repaid.

Chapter 13, by contrast, offers a restructuring of your debt. The court will assess your income and expenses along with the debt you owe, and create a simple monthly payment plan, usually taking three to five years. After you have finished your payments, your debt is finished. This allows you to protect your assets, and is usually undertaken by clients with a reliable source of income.

Seek A Compassionate Legal Advocate

If you are considering filing for bankruptcy of any kind, it is vital that you speak with a trained finance law professional. Bronson Law Offices have been serving clients in Queens for years, helping them avoid creditor harassment and repay their debt in a fair and timely manner.

Please, contact a Queens bankruptcy attorney today for a free case evalutation!