File For Bankruptcy And Get A Fresh Start

July 27, 2012 - PRLog -- NEW YORK, July 27, 2012 - If like many Americans you are overwhelmed with the credit card bills and telephone calls from your creditors, you are not alone. Today a record number of consumers are seeking debt relief due to the weak economy.  Bankruptcy is a choice that may help if you are facing serious financial problems.

Bankruptcy gives debtors a fresh start on their finances. You can cancel your debts, stop collection calls, law suits and garnishments. When you bankruptcy is complete, most of your debts will be canceled and you will no longer be legally obligated to pay them.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy cancels most types of consumer debt.  For instance, you can wipe out your credit card debts, medical and attorney bills,  and personal loans.  

However, you may have to let the bankruptcy trustee sell you nonexempt property for the benefit of your creditors.  In Chapter 7 bankruptcy, you will have to disclose your property, debts, and expenses and transfers of property over the past several years.

About four months after you file your bankruptcy petition, you will receive a discharge of most types of debts and emerge with all or most of the property you had going in.

Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, you will need to propose a three- or five-year repayment plan. You will have to repay certain types of debt in full and some portion of your unsecured debt.  

Chapter 13 provides some remedies that are not available in Chapter 7 like an opportunity to pay off missed mortgage payments over the life of the plan.

Automatic Stay

Filing you bankruptcy petition instantly creates an “automatic stay”. It requires creditors to stop all collection efforts immediately.  However, some creditors will not be not affected by it and others will be able to get it lifted with the judge’s permission.  

The automatic stay ensures that the trustee will be responsible for deciding what to do with your property and how the proceeds will be divided.

After bankruptcy

Once you receive your bankruptcy discharge, you are free to resume your economic life.  However, if within 180 days after your filing date you receive an inheritance, insurance proceeds, or proceeds from a divorce settlement, you have a duty to report those assets to the trustee.

Some debts will survive bankruptcy
Certain debts will not be discharged in bankruptcy. For example, the law provides that back child support and alimony, student loans, government fines, tax arrearages, and some other debts are not dischargeable in bankruptcy.
Your credit score
After you file for bankruptcy, at first you will be able to spend only the money you have because it will be difficult to get credit right away.  However, even though it may look like an inconvenience, it is also an opportunity to learn to live your life credit free and become financially responsible.

The Law Office of Yelena Kalika was established to assist clients in reducing and eliminating their debts. The firm’s practice primarily focuses on Chapter 7 and Chapter 13 bankruptcy and consumer debt issues in the State of New York as well as business law.
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About Ms. Kalika

Yelena Kalika represents and assists individuals in consumer Chapter 7 and Chapter 13 bankruptcy and consumer debt matters.
Areas of Practice

Ms. Kalika’s practice primarily focuses on Chapter 7 and Chapter 13 bankruptcy and consumer debt issues in the State of New York and grant writing.

She is admitted to practice in New York, New Jersey and in the Eastern, Southern and New Jersey Districts of the U.S. District Court.

If you'd like more information about this topic, or to schedule an interview with Yelena Kalika, please visit us at http://www.kalikalaw.com, or call us at (855) 357-3300

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