Bankruptcy

Michael F. Kanzer & Associates,  P.C. is a New York Law Firm that has helped over 500 individuals discharge their debts under bankruptcy law for the past 11 years.

What Is Bankruptcy, and When Is It Appropriate?

Bankruptcy involves a formal process to reconcile or legally discharge the responsibility of paying financial obligations to creditors when someone has fallen so far in arrears with bill payments that it is unlikely that they will recover.  The purpose of bankruptcy is to allow individuals and families financial relief so that they can reclaim a normal standard of living without losing everything they own.

Years ago when creditors were considered more “fair” and banking practices were better regulated, filing for bankruptcy was looked upon as being a “personal failure”, or perhaps even a “character flaw” for having poor financial management skills.  These labels and attributions are no longer valid today.

With the predatory lending and beguiling financial practices engaged by many banks and corporations in today’s world, if you are in debt beyond a reasonable recovery, it may not be your fault at all!  In fact, credit card companies and other lending institutions use bait and switch tactics, burying their disadvantageous terms in obscure fine print.  Combine that with the fact that many credit contracts allow the creditor to change payment terms and interest rates at will, and the individual (you) are often backed into a financial corner with no feasible means to escape.

Consequently, bankruptcy nowadays is a legitimate defense to the unfair tactics used by big business.  If you find yourself in the situation where escalating debt is compounded by one or more life-changing experiences (loss of a job, had a child, relocation, illness, injury, etc.), then the difficulty in paying your monthly bills can begin to spiral out of control.