Chapter 7 Bankruptcy in BrooklynSunday, May 8th, 2016, 9:07 pm
Filing for bankruptcy can be scary and confusing, especially when you’re not sure exactly what all the terms, classifications, and details mean. You want to ensure you file for the form of bankruptcy that best fits your particular situation, so you’ll want to have a complete understanding of Chapter 7 and Chapter 13 bankruptcies before making your filing.
Here is a side by side comparison of the two forms of bankruptcies, including the advantages and disadvantages of each.
Chapter 7 Bankruptcy
When you file for Chapter 7 bankruptcy, your debts are essentially forgiven. You assign a trustee to liquidate your assets and disperse the takings throughout your various creditors. But if your debt is the result of student loans, taxes, child support, alimony, or a few other certain debt styles, you may not qualify for Chapter 7 bankruptcy.
Advantages of Chapter 7 Bankruptcy
The biggest benefit of Chapter 7 bankruptcy is that you are forgiven for your debts once the process as been finalized and there is no debt minimum for qualifying for Chapter 7. Filing for Chapter 7 can also be used as protection against collection agencies immediately starting from the date that you file bankruptcy.
Also starting on the date that you file bankruptcy, the wages and property you earn or acquire cannot be taken by your creditors or the court. In most cases, your case is complete in 3-6 months.
Disadvantages of Chapter 7 Bankruptcy
While there are advantages to Chapter 7 bankruptcy, it also comes with some disadvantages. The biggest issue being that you will have to sell any property and assets that do not qualify as being exempt.
Chapter 7 bankruptcy can also become a problem for any co-signers you have on a loan. Unless they file for bankruptcy protection, the weight of the debt may fall into their hands if you file Chapter 7. Finally, Chapter 7 bankruptcy can only be filed once every eight years.
Have more questions about filing for bankruptcy? Don't hesitate to contact the Brooklyn bankruptcy law office of Michael F. Kanzer & Associates, P.C. We can help Brooklyn residents discharge their debts with our expert knowledge of New York Bankruptcy law.