Bankruptcy Information
Chapter 7 bankruptcy and Chapter 13 bankruptcy offer different forms of protection. If you’re facing a financial crisis, a local bankruptcy attorney can help you determine whether Chapter 7 bankruptcy or Chapter 13 bankruptcy might be the right answer for you.
Generally speaking, Chapter 7 bankruptcy is intended to wipe the slate clean by discharging unsecured debt—debts like credit card debt, medical bills, and unsecured loans. Chapter 13 bankruptcy, on the other hand, is intended to give a debtor time to catch up past due payments over a period of 3-5 years, while keeping secured property like houses and cars.
Just complete this form & let Bankruptcy.me connect you with a bankruptcy attorney near you.Filing for bankruptcy is typically something we tend to think of as a voluntary act in New York. Go to a lawyer, offer documents and complete the process. However in terribly rare cases, creditors might band along and force you to file for bankruptcy.
First, let me get one issue out of the manner – the probabilities of this happening depend quite a bit on your situation. Involuntary bankruptcy cases usually involve businesses and individuals with important non-exempt assets, and are filed by creditors that are wanting to a manner to get their hands on those assets.
I’ve got never seen a bunch of credit card firms get along and force a shopper in New York to file for Chapter 7 bankruptcy. Ever. I am not saying it can’t happen, just that I have not seen it yet. And keep in mind, New York is a massive place – if it’s happens the least bit, possibilities are pretty good that it happens here.
Section 303 of the U.S. Bankruptcy Code governs involuntary bankruptcy cases, and provides that 3 or more creditors with claims totaling a minimum of $thirteen,475 may file a Chapter seven or a Chapter 11 case against a person. I’m not going to induce into the business aspects of involuntary cases as a result of I do not handle them as a general rule.
There are limitations on the kind of claim {that the} creditors are allowed to have against you, however the most necessary one is {that the} claim can’t be the subject of a authentic dispute on liability or amount. Meaning if you are being sued for a debt and are actively defending the claim in a very New York court, the creditor cannot realize 2 more entities to gang up on you and file an involuntary bankruptcy case.
If your creditors file an involuntary bankruptcy case against you, the law permits you to continue using your property. After all, you’ll be able to even sell it or give it away unless the creditors request {that a} trustee be appointed to seize your assets. The court might need you to post a bond or other security to shield the price of the property.
If a bankruptcy case is filed against you by your creditors, you need to require immediate action by filing an answer to the petition. If you don’t then the court can merely move ahead with liquidating your property.
Before you panic, remember what I said – involuntary bankruptcy proceedings against customers are extremely rare. If a New York involuntary bankruptcy case is commenced it’s usually against a big-cash person or corporation.
But if it ever happens to you, don’t sit around – do something. Fast. Read more other FREE info about premier credit card, zero percent credit cards and travel credit card
