Who Should File for Bankruptcy?
Long Island Bankruptcy Lawyers | Queens, New York Bankruptcy Lawyers
Generally, if you do not have enough money to pay your other debts after you pay the bills for your necessary expenses each month, you may file for bankruptcy.
Most people who file for bankruptcy are either unemployed, have large medical expenses, have seriously over extended credit, or encounter large unexpected expenses.
In order to qualify for bankruptcy protection, there are several primary prerequisites:
- You must either live, have a place of business, or own property in the United States.
- You must not have been granted a Chapter 7 bankruptcy discharge within the last six (6) years, or, if you have received relief under Chapter 13 of the bankruptcy code, you must have completed your Chapter 13 payment plan.
- You cannot have had a bankruptcy petition dismissed for substantive reasons within the last six months.
- It cannot be “fundamentally unfair” for you to receive relief under Chapter 7 of the bankruptcy code.
Reasons for Filing Bankruptcy
The filing of either a Chapter 7 or Chapter 13 bankruptcy can be the route taken by you to deal with your financial difficulties. The following are reasons why you should consider filing bankruptcy: then instead of bullet points we will do numbers indented.
- You can’t make your mortgage payments, and you are more than two months behind on these payments.
- Your credit card bills are behind, and you can’t afford to make payments on them.
- Your home is at risk of foreclosure.
- You have been laid off from your job.
- You have been injured or become ill and are unable to work.
- You have been downsized on your job and are making less money.
- You have large medical bills that you cannot afford to pay.
- You can no longer afford basic necessities.
All the foregoing are possible reasons to file bankruptcy. The bankruptcy lawyers at the Law Office of Elliot Schlissel can help you reach an educated decision as to what your options are to deal with your financial difficulties. We will explain the differences between Chapter 7 and Chapter 13 bankruptcies to you at your initial free consultation. We also advise you whether bankruptcy is right for you.
Dealing With Your Creditors
After you have filed for bankruptcy, your creditors may no longer contact you. The court will notify all of the creditors listed in your bankruptcy filing that you have filed for bankruptcy. Once they receive notice from the court, usually a couple of weeks after filing, they must stop all collection efforts and you should then be free from collection calls or any other type of collection efforts. If, despite notice of your bankruptcy proceeding, your creditors continue to contact you, they may be liable for court sanctions or your attorney’s fees.
If you are drowning in debt and you feel that you are unable to pay your way out on your own, we can help you make a new start by filing for bankruptcy. Read this article to help you decide which type of bankruptcy is appropriate for your situation.