Nearly every Long Island resident likely knows that bankruptcy exists as a form of debt relief. Many people probably fail to consider Chapter 7, however, because of stories they may have heard or their own fears about what the process will look like for themselves and their families. It is important to remember, though, that when you are struggling with crushing debt and severe financial stress, Chapter 7 bankruptcy can be an especially effective way to get a fresh financial start.
Financial considerations are often foremost in the minds of New York residents who seek to keep moving ahead economically and enjoy a stable lifestyle. When unexpected circumstances occur and debt levels rise, many people feel the pressures in the form of financial stress, harassment from debt collectors, falling credit scores, and worries about bankruptcy. Because credit has become more and more important in American society and can affect everything from getting a cell phone or electricity to securing a mortgage, many people may look to a debt workout or settlements in an effort to prevent further damage to a credit score. Fortunately, changes to the credit score calculation formula are likely to benefit a number of people throughout the country.
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.