Having large amounts of debt could jeopardize your financial future. Not only do you have enough to start a new investment, but it also becomes difficult to make ends meet. In such cases, it becomes ideal to file for bankruptcy. nyc bankruptcy is a type of relief for debtors to help them clear all their debts and start afresh. There are different types of bankruptcy proceedings to help different types of debtors. To know about the process and get the best settlement offer, it is important to hire the best bankruptcy lawyer.
What Are The Advantages of Bankruptcy Proceedings?
Bankruptcy is not adverse but helpful. It could help you get rid of debts and free you of tension. Not only do you start afresh, but you also do not have to worry about repaying older debts. nyc bankruptcy brings in confidence and assurance:
- Since you are free of debts, you can take loans, invest or begin a new financial adventure. Your credit score could be bad but by hiring the best bankruptcy lawyer, the score could be improved easily.
- In some of the proceedings, you could become debt-free within 3 months. Such a short period makes room for better future planning. Instead of wasting time on bankruptcy proceedings, hire a good bankruptcy lawyer ny for a quick settlement.
- As soon as the proceedings start, all the collection efforts are stalled. You do not have to compromise on your present earnings. You are not harassed while the proceedings are ongoing and after they have culminated.
- The most crucial trait of bankruptcy is that the best lawyer will ensure that most of your debts are discharged. Thus, your personal property is stopped from being attached for paying off debts.
- Only non-exempted property is sold out and the rest is saved from the creditors. Your valuable possessions are kept safe.
- Depending upon the type of proceeding, you might not have to stop your work or business operations. A debt repayment plan is drafted and the interest is almost reduced to zero to gain maximum benefits.
How Many Types Of Bankruptcy Proceedings Are There?
There is more than one type of bankruptcy proceedings. These are designed for both, individuals and businesses. All of them could be referred to as Fresh start bankruptcy as all of them make the individual or business debt-free.
The most common type is Chapter 7. It is common for individuals or businesses with few assets. Unsecured debts such as medical bills are prioritized over secured debts. Non-exempt assets of the debtor are attached to repay the creditors. If such assets do not cover the whole of debt, the remaining amount is discharged. On the contrary, if the debtor has sufficient assets, they qualify for Chapter 13. Instead of liquidating debtor’s non-exempt assets, a repayment plan is drafted by a bankruptcy lawyerto pay off the debts within 3-5 years.
Chapter 11 is solely for businesses. Like Chapter 13, the debtor or the business does not stop working. Instead, a suitable debt repayment plan is designed and its approval is sought by the bankruptcy court nyc. The business is reorganized and the whole process is supervised by the court.
Other such proceedings include Chapters 9 and 15. These are rarely used and are for municipalities and cross-border cases, respectively.
How to Start Afresh With Bankruptcy?
To start afresh and get relief through bankruptcy, it is important to hire a professional bankruptcy lawyer ny. For any legal proceeding, a lawyer will be required. It is important to hire a good lawyer because:
- The lawyer will help you initiate the proceedings by filing the right papers. You will be asked to provide the right documents to help initiate the proceedings and be guided along every step.
- A professional lawyer will help choose the best Chapter. It will ensure that not all of your possessions are lost and most of the debts are discharged.
- The lawyer will ensure that the proceedings end up quickly. In the case of Chapter 7, they can end within 3 months while others can take years. Regardless, by the end of the proceedings, you will become debt-free.
- Once the proceedings are over, you will not have any past debts to repay. You can start new financial adventures. With the help of the best bankruptcy lawyer, you can maintain a good credit score.
File For Bankruptcy Today
A good lawyer will help you understand the process. From initiation of proceedings, drafting of a debt repayment plan to protecting your valuable property; a good lawyer will take care of all. Thus, to begin a new financial life, you will require the best bankruptcy lawyer. Hire one from mid town bankruptcy and become debt-free.
Thus, referring to bankruptcy proceedings as Fresh start bankruptcy is not wrong. Your assets are protected and most of your debts are discharged to secure your financial future.