A bankruptcy lawyer in NYC can seem like an intimidating topic. It’s understandable why considering the city’s reputation as a legal services hub. What’s even scarier is the number of people who don’t understand how bankruptcy works. Many people think that it’s only for financial hardship or for people struggling to pay their debts. Both are true to an extent, but the volume is minimal. You’re probably not in dire financial straits if you’re reading this article. This article will explain what you need to know about bankruptcy lawyers in NYC.
What is bankruptcy?
Bankruptcy is a legal process that helps debtors get rid of some or all of their unsecured debts. This type of debt includes medical bills, credit card bills, alimony payments, fines, and back child support. When someone files for bankruptcy, they discharge their obligations as if they had no creditors. This means that they don’t have to pay anything regarding those debts. There are some exceptions, but they’re rare. If you file for Chapter 7 bankruptcy, you must prove that every creditor listed was entitled to payment.
Why would someone file for bankruptcy?
There are many reasons that someone would file for bankruptcy, but the most common of those is debt. Someone struggling with their finances and has a large amount of unsecured debt may file for bankruptcy to get out from under those debts. This can include people who are behind on child support payments or individuals who have not been able to keep up with their mortgage payments. There are other situations where someone might file for bankruptcy, but they’re not dealing with debt. They cannot make payments on a business they own, but they can’t afford to keep it afloat. Whether you have a minor obligation or a significant one, bankruptcy can help you get it off your back.
How does bankruptcy work?
Like we said above, filing for bankruptcy discharges your creditors. There are special rules for some types of debt, and bankruptcy does not entirely wipe out your other obligations. When someone files for bankruptcy, they file a petition with the United States Bankruptcy Court. They state their financial circumstances and list the creditors owed money in that petition. Once that petition is filed, the creditors have about ten months to come forward and ask the court to dismiss the petition. If the creditors file a motion with the court, bankruptcy will be discharged. This means that you will have to immediately pay all of the money you owe to those creditors. If the creditors don’t file a motion, your bankruptcy will be “dismissed”, and they will be paid back.
The basics of bankruptcy law
You first need to know that a bankruptcy trustee will cover almost everything related to bankruptcy proceedings. This person will file your petition with the court, and they will also handle most of the proceedings in the court. The trustee will also collect your debts, organise the exemptions you declare, and work with the creditors to collect what you owe. If you file for Chapter 7 bankruptcy, the trustee will also take care of the property you will be exempt from. Chapter 13 bankruptcy, on the other hand, is handled by the bankruptcy court. The court will sell off most of the property you will be exempt from and direct the trustee to pay off your debts.
How is bankruptcy different from other forms of debt relief?
There are several different ways that people can get out of debt. One of the most popular of those is a debt settlement. A debt settlement is when your creditors agree to reduce the amount that you owe. This might be for a lump-sum payment or a lower interest rate. While debt settlement can effectively reduce your debt, it doesn’t discharge your debts. You still owe the money that you settled with your creditors, so you’re still in an uncomfortable situation. You will erase your debts and no longer worry about paying them by filing for bankruptcy. This is a much better situation for everyone involved.
Which Bankruptcy Lawyers in NYC Are Best for You?
There are several bankruptcy lawyers in New York City that you can hire. However, we recommend hiring a New York City bankruptcy lawyer. This is because New York City is a very wealthy city. What happens there can often reference what bankruptcy law is like in other parts of the country. While there are attorneys from other parts of the country that practice bankruptcy law in New York City, the bankruptcy laws in New York are different. New York City bankruptcy laws are the same laws in all New York states. That makes them a better guide for understanding what bankruptcy means. Most importantly, New York City bankruptcy lawyers can give you personal attention. You will likely need this when dealing with a debt of this magnitude.
How to choose a good bankruptcy lawyer in New York City
Now that you have a better understanding of bankruptcy law and its benefits, let’s talk about choosing a good bankruptcy lawyer in New York City. There are a lot of bankruptcy lawyers in New York City, which means that it can be challenging to know who to hire. To help you find the best bankruptcy lawyer in New York City, we recommend reading reviews: Before you decide which bankruptcy lawyer to hire for your case, read their reviews online. This will give you a better idea of what to expect from that particular lawyer. If you don’t know where to find these reviews, then you can use our bankruptcy lawyer reviews as a starting point. – Ask questions: When talking to a potential bankruptcy lawyer, ask as many questions as possible. This will help you to make sure that you hire the right one. – Get a trial plan and financial affidavit: Once you’ve hired a bankruptcy lawyer, ask for a trial plan and financial affidavit. This will give you a better understanding of the financials of your case. – Schedule your appointment: Once you’ve received those documents from your bankruptcy lawyer, make sure to schedule an appointment. This way, you’ll be able to get your consultation and file your bankruptcy petition on time.