11 West Prospect Ave.
Bankruptcy Attorney in New York
Perhaps the most powerful help to people finding it hard to pay their bills and also to avoid lawsuit and foreclosure is Federal Bankruptcy law. Unfortunately, while this law is powerful, it is also complex, and in recent years major changes have occurred which make the law even more complex.
There are two basic reliefs available: Chapter Seven (which means a total liquidation or cancellation of debt) and Chapter Thirteen (which means a reconstruction of your finances and obligations under strict court supervision). This Federal law actually freezes State court lawsuits, stops all calls and letters from all creditors, and interrupts foreclosures. At the same time, however, all your personal and business finances are opened in court, available to your creditors, who may, or may not, fight this protection. It is not an easy step and must be closely considered by you and your attorney. It means filing your own lawsuit (Petition) in Federal Bankruptcy court, which means that the bankruptcy attorney you select must know a very complex and very demanding set of laws not ordinarily known by most State lawyers.
After your Petition is filed, creditors are served with copies of the Petition. They then have the option to challenge the Petition, and many creditors do. They usually counter that you used credit irresponsibly, and just don’t want to pay back your debts. They want all or most of their money. You need a bankruptcy lawyer to defend against these charges. It is then a matter of settling these debts, at terms approved by both the Bankruptcy Trustee (who actually handles most of the Court work) and eventually the Judge. You usually have to attend Bankruptcy Court ordered counseling classes. Lawyers are hired by the consumer and must list their legal fees in the Petition. The actual court dates are at the local bankruptcy court, and while some privacy is attempted, the discussions are in open court. You should also know that a bankruptcy, if successfully sought, remains on your credit record for seven years.
Please contact our New York bankruptcy law firm with any questions you may have.
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Rights, Matrimonial and Family Court,
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