Many people who are in debt, often contemplate filing bankruptcy. Many people who are thinking about filing bankruptcy in Staten Island research all of the bad connotations that go along with filing bankruptcy and wonder “What is the downside of filing bankruptcy?” For people who are riddled with debt and can barley make ends meet, filing bankruptcy often has more advantages than disadvantages. If you have been falling behind on your debts, filing bankruptcy is a legal way to get your debts eliminated.
There are two Chapters of bankruptcy that individuals can file. Chapter 7 bankruptcy and Chapter 13 bankruptcy. Filing a Chapter 7 bankruptcy in Staten Island, can wipe out your debt completely. While a Chapter 13 bankruptcy, will allow you to repay your debts over a 3-5 year repayment plan. A chapter 13 bankruptcy, can making paying back your creditors much easier and affordable.
When you file bankruptcy in Staten Island, an automatic stay is initiated. The Automatic Stay prevents creditors from going after you. This means that any creditor you owe money to is barred from trying to collect against you. This will immediately stop harassing debt collectors from calling you, suing you, garnishing your wages, and levying your bank account.
You may be wondering, if you decide to file bankruptcy if all of your property will be taken away. Contrary to popular belief, Staten Island bankruptcy exemptions allow you to file bankruptcy and keep your property. In New York, individuals are able to choose between Federal and State exemptions to keep their property. Bankruptcy exemptions keep your assets safe from being sold to pay off your creditors. For example, if you own a home in Staten Island, you can still keep your home if you have equity in it. As long as the equity does not exceed $165,000. Keep in mind if two people are on the deed this number can be doubled.
If you are worried about your credit score and think you will never be able to get credit again if you file bankruptcy, there is no need to worry. This is not true at all. Many individuals who file bankruptcy, are able to have perfect credit within two years of filing bankruptcy. Moreover, people who file bankruptcy in Staten Island are usually able to get secured credit cards right after they get a bankruptcy discharge.
If you are worried that bankruptcy is public knowledge and will impact your future career, there is no need to worry. Under bankruptcy laws you can not be discriminated against because you filed bankruptcy.
What are the Cons of Filing Bankruptcy
Many people contemplating filing bankruptcy in Staten Island often what to know what the cons are of filing bankruptcy. Despite helping you out of debt there are a few cons. First, bankruptcy does not eliminate all kinds of debt. Some debts that can’t be discharged in a bankruptcy are
- Most recent back taxes
- Student loans
- Child Support
- Alimony
- Criminal Fines
- Fines owed to government agencies
Further, if you use the wrong exemptions you can lose your property. Using the right bankruptcy exemptions is vital to ensuring that your case goes smoothly. A good Staten Island bankruptcy lawyer can go over the bankruptcy exemptions to ensure that your property is safe from your creditors.
Bankruptcy stays on your credit report for ten years. Although, this is a con for many people, keep in mind that walking around with bad credit will be a bigger problem over the long run. As you continue to go deeper and deeper in debt, and continue your late payments, creditors will not be willing to extend credit to you. Moreover, late payments stay on credit reports for seven years. Filing bankruptcy can allow you to get out of debt immediately in turn, this can allow you to begin rebuilding your credit immediately. Another advantage
If you want to learn more about filing bankruptcy in Staten Island, speak with a knowledgable Staten Island bankruptcy attorney that can review your financial situation and determine if filing bankruptcy is the best route to getting you back on the right financial path. Karra L. Kingston Esq. has helped many individuals file bankruptcy.