Is Bankruptcy the Best Option? Information and Opportunities in Great Neck, New York

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Declaring bankruptcy is one solution to address all of your outstanding debts at the same time and finally eliminate the constant collector calls. Having said that, it is not anything to plunge into carelessly. If you have other options, you should think about them, after educating yourself about the advantages and disadvantages of consumer bankruptcy proceedings. Nobody ever wants to declare bankruptcy. Of course, nobody ever really wants to have a problem with consumer debt. Yet, a circumstance which is increasingly prevalent is a condition of spinning out of control financial debt which requires a remedy; and quite often consumer bankruptcy is this remedy. Declaring consumer bankruptcy will not be an uncomplicated decision or an uncomplicated task. There have been lots of reforms designed in an effort to cause the course of action to be more complex and much less available. Having said that, as a result of desperation, thousands of people in the US make use of this solution to handle their insurmountable debt.

Nobody ought to leap into a choice such as this without looking at all of the facts. Read on to start researching the consumer bankruptcy process and exactly how it can benefit or impair your credit rating, consumer debt and fiscal goals. Then, we've got the many consumer bankruptcy alternate options in Great Neck, New York that may be a possibility for you and are going to be introduced after we take a look at the most significant things to recognize concerning the consumer bankruptcy process.

Defining Consumer Bankruptcy for people in Great Neck, New York

Before starting to really think of consumer bankruptcy proceedings, you have got to fully understand it; and that takes far more than a fast glossary description. A bankruptcy proceeding is a method for any person or enterprise that's drowning in debt. What a lot of individuals and companies don't know is that there are several different ways to file for these wide categories. Concerning consumer bankruptcy, the majority of people are going to use Chapter 7 or 13.

The goal of bankruptcy proceedings are fundamentally to enable the filer to regain control of their financial circumstances by minimizing and eradicating debts. All your debt collectors will have the opportunity to play a role in the discussion on your own financial potential with the bankruptcy judge that manages the process. There's a lot to think about when ever confronting bankruptcy, and you'll undoubtedly want to know the benefits and drawbacks of every option prior to taking the next step.

Chapter 7 Fundamentals

The first thing you'll want to find out about Chapter 7 is the terminology. Words that are useful to reference Chapter 7 include "liquidation" and "straight bankruptcy." For many people, this is the final approach to think about because it may involve losing lots of personal property.

When you file Chapter 7 , unsecured financial obligations like credit cards, health care expenses and certain legal judgments could be forgiven. It's important to notice, though, that not all your financial debt will be resolved. Education loans, auto loans and various property debts might still exist. For that reason, liquidation will probably cost a number of properties and assets which will be seized to settle what you owe.

Finally, going through the arduous steps involved in declaring Chapter 7 liquidation and having all your economic weak points discussed and attended to, the process is over and you will go on with life. It doesn't mean, however, that you will quickly forget the whole thing - the consequences of consumer bankruptcy are not over quickly.

Chapter 7 Straight Bankruptcy Benefits plus Drawbacks

There are many points to recognize concerning the important things about liquidation. Number 1 naturally is that straight bankruptcy involves drastically reducing your debt, doing away with the majority of it. It's an extremely important component of liquidation considering that unsecured debt forgiveness is why men and women use consumer bankruptcy proceedings in the first place. By forfeiting the assets to which they're attached, you can also place your secured outstanding debts behind you.

It obviously will not be a desirable prospect to get rid of the majority of your possessions. With that, if you have certain properties and assets which are essential for your daily routine, they could be regarded as 'asset exemptions.' Appropriately, a Chapter 7 Great Neck, New York consumer bankruptcy filing is not going to turn you into a beggar. Some of the most commonplace assets that folks are usually able to hold onto include enough personal property to live on, your main mode of transport, your savings account for retirement and some money. Every state is unique in terms of the specific exemptions that are permitted.

You can actually hold onto some property obligations if you consent and are able to come up with installment payments promptly. This is actually the best practice to hold onto a part of your property.

What is important to know about Chapter 7 is that it will give you a chance to start again and rebuild. A fresh start, however, isn't easy; and liquidation is a prime illustration of a hard option.

Having said that, there are many fundamental drawbacks to think about. You will lose most of your assets. All your valuable belongings, non-essential property and even savings shall be surrendered to this process.

Once you've finalized the process, you will find that certain responsibilities remain. The type of debts you will still have to pay include child support, alimony, real estate property tax expenses and college loans. Worse, your Chapter 7 straight bankruptcy filing will remain on the credit report for a whole 10 years. Through this time, it will be tougher to obtain work, obtain credit and lending options and also to rent or buy a home.

Bankruptcy proceedings are general public data, and this is something important to bear in mind. Thus, if you are concerned about having your situation widely known and on display for anyone who wishes to look at it, this is one thing to take into account. Prospective credit, personal loan and job opportunities could be affected by that.

Chapter 13 Fundamentals

Chapter 13 bankruptcy is also known as "reorganization." Chapter 13 consumer bankruptcy, similar to Chapter 7 straight bankruptcy, is not the perfect debt relief option; though (also much like liquidation), there are times when it's worth considering.

In contrast to Chapter 7, Chapter 13 reorganization isn't going to provide for the forgiveness of debts like outstanding credit card debt and medical debts. Alternatively, it gives you the alternative of actually paying the debts with a restructured payment platform.

When your collectors are agreeable and you have a bankruptcy judge to oversee the case, then it's a possibility for you. Sometimes credit card issuers will take a prolonged repayment plan, decreased interest or even lowered principals in a Great Neck, New York bankruptcy case when they realize they're assured to get timely payments. You'll typically be able to handle your secured debt individually without having to worry about surrendering property within this technique. Chapter 13, naturally, isn't a rapid process. It is something you have to commence within 45 days of authorization, and then spend the next 3 to 5 years into the process.

What are Benefits and Drawbacks of Chapter 13 Bankruptcy filing

There's no need to be worried about sacrificing the vast majority of your belongings with Chapter 13. Reorganization will give you a 2nd chance by offering you a little time and breathing space to get back on your feet. In addition, your amounts owed will be decreased and it is possible to more quickly take care of credit debt that has been cut down to a practical sum.

Nonetheless, reorganization is not a perfect solution either. Like liquidation, Chapter 13 bankruptcy is a matter of open public record and can critically harm your credit score. Yet another downside (although it compares well with Chapter 7 liquidation) is the fact that Chapter 13 will remain on the credit report for seven years, disrupting your ability to acquire loans and consumer credit.

A Quick Note About Your Own Home and Re-financing

You may qualify for the HARP refinance program which could enable you to re-finance your house loan at a lesser rate of interest and reduce your month-to-month mortgage payment. As soon as you are salvaging some cash and equipped to direct that cash towards debts, you'll find you don't need to declare bankruptcy at all.

You shouldn't set your confidence in any sort of program that you haven't looked into carefully. Consolidating debts is an alternative that a lot of folks opt for, using home value; however, it might be something you can expect to be sorry for.

What Debt Consolidation Will Do to Help You Out

Borrowers that do not wish to cope with a wrecked credit score or the forfeiture of a significant portion of their assets could gravitate to a widely used option: debt consolidation loans. These distinctive lending options are created to pay back existing unsecured obligations, such as credit card debt, just after they're granted. You'll then be sending a single monthly payment to the debt consolidation lender.

Remember that as nice as the alternative seems, there are some things that could impair your economic goals in the long-term. All that you have to do to end up in default is to skip a single payment. A default on that loan account would be very harmful to your current credit rating.

Possibly even more important, consolidation isn't accessible for everyone. Consolidation is typically not available for anyone who does not have excellent credit. In fact, anything beneath 620 is not likely to be qualified; and if it was, you would be paying excessive interest.

Is Consumer Debt Negotiation Services the Answer for Great Neck, New York Consumers?

Fortunately, there exists yet another Great Neck, New York consumer bankruptcy alternate option that does not feature a minimum credit score prerequisite: debt negotiation. Although consumer bankruptcy is general public record, debt negotiation services are not going to be; which will make this approach a really attractive option for lots of folks that are deterred by the prospect of having their debt information accessible for anyone to look at. Anybody who executes a record check can observe that you have declared consumer bankruptcy. They won't see, however, that you have employed the option for consumer debt negotiation services.

Debt negotiation is especially recognized as a relevant alternative to Chapter 13 reorganization, which also cuts down the total amount that you have to pay.

It takes only two to four years to undergo the process and it will not be stuck to your credit rating for up to a decade, either. This will also bring your balances right down to only one easy monthly payment to just one agency.

Get More Information

Are you struggling with a difficult financial situation which shows no signs of improving? Consumer bankruptcy proceedings are not the only route! Think about all the alternate options outlined on this page and meet with a debt negotiation services professional before you make your final choice. Don't try to make an uneducated choice. Learn everything that you are able to about consumer debt negotiation services and each of your other options so as to decide which one is ideal for you. To find help with this approach and with working with the most suitable process for you, fill out the totally free, no-obligations contact form. OR Call 1-888-339-3144 to converse with a professional debt negotiation service consultant.

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