Many people contemplate filing bankruptcy as a last resort. People who are suffering financially can file bankruptcy in Staten Island to help them get out of debt. Bankruptcy can be a great tool to get individuals back on their feet and start over. If you are thinking about filing a Staten Island Bankruptcy, you are probably wondering what happens when you file bankruptcy in Staten Island. Below well will discuss what will happen to your credit score when you file bankruptcy in Staten Island.
What Happens When Declaring Bankruptcy in Staten Island?
If you are struggling with debt, bankruptcy can eliminate your debt completely to help you regain control over your finances. A Chapter 13 bankruptcy, can get you into a repayment plan, that will allow you to pay your debts over 3-5 years. A Chapter 7 bankruptcy, can eliminate your debt completely. This means that you no longer will have to pay any creditors back.
Declaring bankruptcy initiates an automatic stay. The automatic stay, blocks creditors from trying to collect against you. This means that creditors must stop suing, garnishing wages, and levying bank accounts. Both chapters of bankruptcy provide great protections for individuals against their creditors.
Chapter 7 bankruptcy
A Chapter 7 bankruptcy in Staten Island is known as a liquidation. This is because all of your assets become part of the bankruptcy estate. Don’t panic yet! Staten Island bankruptcy exemptions allow you to keep most of your property when you file bankruptcy. A good Staten Island bankruptcy lawyer can go over your exemptions to ensure that your property is safe.
Chapter 13 bankruptcy
A Chapter 13 bankruptcy in Staten Island, allows you to pay back your debts. This will give you time to catch up on any payments you have fallen behind and stop interest and fees from accruing. People who file chapter 13 bankruptcy, often have more assets with equity or are high wage earners.
A good Staten Island bankruptcy lawyer will help you determine what chapter of bankruptcy you qualify for.
Will I lose My Property if I File Bankruptcy in Staten Island?
What happens to your property when you file a Staten Island bankruptcy will depend on whether your property can be exempt. Many people who file bankruptcy in Staten Island are able to clear their debt while keeping their property. If you are facing foreclosure in Staten Island both Chapter 7 bankruptcy and Chapter 13 bankruptcy allow different ways to keep your property safe. When you file bankruptcy in Staten Island, you will file your bankruptcy petition in the Eastern District of New York. The Eastern District of New York has implemented a loss mitigation program that allows consumers to work directly with the bank to try and qualify for a loan modification. Our Staten Island bankruptcy lawyers have helped many people save their homes through the process of loss mitigation.
What Happens to My Credit if I Declare Bankruptcy?
When you file bankruptcy in Staten Island, it is because you no longer can afford to pay your debts. Many people believe that filing bankruptcy can seriously damage your credit history. That is not true. In some instances you may actually see a rise in your credit score after you file bankruptcy. Bankruptcy can stay on your credit report for up to ten years. Keep in mind, through, this does not mean that you won’t get credit for ten years. Many people who file bankruptcy in Staten Island can have a great credit score within two years. Moreover, you can start putting away money almost immediately after you file bankruptcy.
Even though you have filed bankruptcy in Staten Island, this doesn’t mean that the creditors you included won’t extend credit to you again. Many people assume that the creditors won’t give them credit again because they were included in the bankruptcy. This is far from true. Thousands of people file bankruptcy everyday and to creditors you are less of a risk after you have filed bankruptcy then someone who hasn’t. This probably seems very confusing. Creditors will be willing to extend credit to you because they know you have no debt and you won’t be able to file another Staten Island bankruptcy for another eight years. This makes you less of a risk. Keep in mind, late payments stay on credit reports for 7 years as well. So, if you think that holding off on filing bankruptcy is better even though you can’t make your payments, you are wrong. This will also continue to negatively impact your credit score if you don’t do something about it.
By practicing good positive credit habits you can start regaining a great credit score after filing bankruptcy in Staten Island.
Track Your Credit Score After Filing Bankruptcy in Staten Island
If you want to rebuild your credit after filing bankruptcy, it is important that you monitor your credit score. Look for different things on your credit score that may be affecting it. If you can, try to dispute different things that are incorrectly listed. It is important that you use less than 10 percent of your available credit, and try to pay your balances off in full each month.
How Can A Staten Island Bankruptcy Lawyer Help you?
A good Staten Island bankruptcy lawyer will be able to review your credit history and determine if bankruptcy is the right option for you. They should also be able to give you the tools you need to begin rebuilding your credit after the bankruptcy process. If you have more questions about how bankruptcy will impact you in the future, you can contact Karra L. Kingston Esq. Our bankruptcy lawyers have helped many people get out of debt and start over.