Debt burdens can be overwhelming and stressful in the daily lives of many individuals. The potential good news is that personal bankruptcy options are available to help individuals struggling with debt to enjoy debt relief. In addition, there are different types of personal bankruptcy for different circumstances and situations both with the goal of allowing the filing party to enjoy a fresh financial start.
Options for debt relief are available to consumers through different bankruptcy methods intended to meet the different needs of consumers facing financial challenges. In another part of New York, bankruptcy filings recently increased nearly 10 percent when compared to the same time period one year ago. Bankruptcy filings increased from 161 cases to 177 cases. Chapter 7 bankruptcy filings accounted for 138 of the filings. In addition, 38 Chapter 13 bankruptcy petitions were filed and one Chapter 11 bankruptcy filing was also included in the number of filings.
For people in Long Island and throughout New York, there's no way to be prepared for the curveballs that life often throws. Whether it's unemployment, an unexpected medical issue or simply making mistakes with one's finances, there are many ways in which financial challenges can arise. Chapter 13 bankruptcy is a useful tool to get back on better financial footing while simultaneously saving one's home from being foreclosed upon.
In many cases, an individual or family begins struggling financially after a series of other unfortunate events or circumstances. For example, a person may suffer an unexpected illness or disability and lose his or her ability to work. Lay-offs and job loss are also common predecessors to financial hardship. After the initial stress of dealing with a sudden illness or loss of employment, the strain that comes with efforts to juggle finances and maintain financial stability is often quite significant. It is during these times when people are in desperate need of debt relief options but often do not know where to begin.
Chapter 13 and Chapter 7 both provide debt relief for consumers who are no longer able to meet all their financial obligations. There are some key differences between the two types of bankruptcy, however. Knowing how the two types of personal bankruptcy differ will help people better understand which type is likely better for their situation.
When New York residents consider filing for bankruptcy, they often have many questions about the process. It is important to understand that filing a petition for Chapter 13 bankruptcy requires the filer to provide a significant amount of information and evidence to the bankruptcy court in support of the petition.
If you're in financial trouble but still have a regular income, then you may not qualify to have all of your unsecured debts -- for example, medical bills, past-due utility bills, credit card debt, etc. -- discharged through Chapter 7 bankruptcy. People who qualify for Chapter 7 protection must pass a means test showing that there isn't enough income to establish a repayment plan.