Filing for bankruptcy can help you shed debt and live a more financially responsible life. However, bankruptcy isn’t for everyone and you should consult with an attorney before making any hasty decisions. Some of the questions you need to consider if you are thinking about filing for bankruptcy in the Bronx include:
- What type of debt do I have? If you owe medical, credit card, or utility bills, declaring bankruptcy can help you discharge your debt. However, if you have non-dischargeable debt such as alimony, child support, student loans, or criminal fines, bankruptcy will not help.
- What type of bankruptcy should I file for? Depending on your income and your debt, you may want to file for Chapter 7 or Chapter 13 bankruptcy. While Chapter 7 eliminates debt within 3-6 months, Chapter 13 has you repaying creditors over a three- to five-year period.
- Can you afford it? Declaring bankruptcy can cost hundreds of dollars. Based on your situation, you may be better off working with an attorney or credit counselor to develop a debt management plan.
- Do you qualify for bankruptcy? To qualify for Chapter 7 bankruptcy, you must pass the New York means test. This test is based on the income per household and the number of occupants in a household.
- Do you have a bankruptcy attorney? Prior to filing for debt elimination, it’s in your best interests to speak with a Bronx bankruptcy attorney. A lawyer can evaluate your finances as well as your level of debt and determine the optimal path for discharging your debt.
If mounting credit card bills and other unsecured debt are bringing your family down, it’s time to get help. At Thomas M. Denaro, Esq., we guide you through the bankruptcy process and advocate for your rights at every turn. We can help stop a foreclosure action and end the harassing phone calls and letters from creditors.