The reasons why Long Island residents consider filing for personal bankruptcy are varied and diverse. In many cases, a person's need for bankruptcy takes him or her by surprise because the events leading up to the bankruptcy are completely unexpected. Filing for bankruptcy - despite being a difficult decision - can be very beneficial for people who are suffering severe financial hardship prior to filing and desperately need debt relief and a fresh start.
New York debt relief is a complicated topic. There is no perfect form of debt relief. Instead, there are many different types of debt relief, including both bankruptcy and non-bankruptcy remedies. Within the range of possibilities, not every type of debt relief will be appropriate for every situation. Choosing the best type of debt relief generally involves a consideration of the individual or entity seeking debt relief, as well as the debt situation itself. For example, businesses commonly take advantage of Chapter 11 bankruptcy when seeking debt relief, while individuals more commonly file under Chapter 7 or Chapter 13.
When people find themselves in the midst of serious financial challenges, it is easy to think that there is no effective solution. That is oftentimes untrue, however, as there are a range of options and debt relief solutions that can help with repayment and liquidation of debt. For people who can count on regular income, Chapter 13 could be a viable solution as it provides for adjustment of the individual's debt and does not require liquidation of assets.
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.
Filing for Chapter 7 bankruptcy enables people struggling with severe financial hardship to obtain a liquidation of their debts and a fresh financial start. Also known as liquidation bankruptcy, it requires the turning over of assets to a trustee who will sell them and use the proceeds to pay debt obligations. However, Chapter 7 is not intended to allow people to simply eliminate their debts without regard to actual necessity. There are strict eligibility requirements that limit who may actually take advantage of this debt relief mechanism.
Debt is generally a normal part of the life. The majority of New York residents likely carry some form of debt, although the overall levels of debt may vary from household to household. Unfortunately, debt can easily grow and become unmanageable, especially when consumers experience unforeseen circumstances or emergencies. When people begin to struggle under crushing levels of debt, many of them seek some type of workout or other debt relief solution to ease the financial strain.
When New York consumers are struggling under crushing amounts of debt, it can feel as if there is no way out. Dealing with the harassment of bill collectors or problems related to wage garnishments can make the situation even worse for those already worried about how to make ends meet. Many consumers and families would benefit from a greater understanding of personal bankruptcy, a very valuable debt relief tool which can stop foreclosure or result in more manageable payments.
Many New York residents may be hesitant to file for Chapter 7 bankruptcy because they underestimate its advantages as a debt relief tool and have a range of misconceptions about the actual effects of Chapter 7 bankruptcy. Understanding the realities of Chapter 7 can help consumers make a better informed decision about whether filing for bankruptcy is the right step for them.
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.
Debt is extremely common, and nearly unavoidable, in many households in Long Island, New York. For decades, debt levels throughout the country continued to rise, which created significant problems for many people and families when the economic recession hit. Since the economy has begun recovering, people have attempted to reduce their debt loads where possible, but many people continue to struggle with debt and seek bankruptcy or some form of debt relief workout.