Knowledgeable New York Bankruptcy Attorney Helps Protect Your Rights

During the height of the recent financial crisis, many individuals and businesses sought protection from their creditors through the bankruptcy courts. Although the worst of the recession may be behind us, the Bankruptcy Code is still available for those who find themselves with too many debts and too few assets.

Bankruptcy law is a mixture of federal and state laws, and knowing how to effectively use these laws in your case can require significant legal skill and knowledge. When used properly, bankruptcy laws can give you a “fresh start” financially while allowing you to keep certain assets. If not used properly, bankruptcy can be a painful process in which you needlessly part with treasured assets and property and obtain little, if any, relief from your debts.

Chapter 7 Bankruptcy

There are two main types of bankruptcies that individuals can file: Chapter 7 and Chapter 13 (each named after the chapter of the federal Bankruptcy Code in which the particular type of bankruptcy appears). A Chapter 7 bankruptcy is sometimes called a liquidation bankruptcy because the debtor turns over all assets and property that are not exempted by federal or state law to the bankruptcy court trustee, an individual who oversees all bankruptcies filed in a particular court. The trustee then liquidates (or sells) these assets and divides the proceeds up between the debtor’s creditors. Eligible debts that remain outstanding are then discharged, and the debtor is no longer legally responsible for them.

Chapter 13 Bankruptcy

In a Chapter 13 bankruptcy, the debtor proposes to pay back his or her creditors his or her disposable income through the court trustee over a period of three to five years. At the conclusion of this time frame, any remaining eligible debts are then discharged (note that certain debts cannot be discharged in either Chapter 7 or Chapter 13 bankruptcy and the debtor will continue to be responsible for paying them. These include federal and state taxes, certain court judgments, child support payments, and student loans).

The Mehra Law Group is experienced in helping indebted New York residents obtain the maximum benefit from their bankruptcy case. We can assist you in determining whether bankruptcy makes sense for your situation and in filing the appropriate documents necessary to file your case, protect your assets, and help secure your future. Contact us about your situation today by calling (718) 347-6800.

"Let us not bankrupt our todays by paying interest on the regrets of yesterday and by borrowing in advance the troubles of tomorrow."