New York Bankruptcy Law was designed to protect the consumer. That’s right, the Bankruptcy law was created to protect you! The purpose of the law is top allow the consumer who is over burdened with debt to find a way out. The Bankruptcy law is designed to help you restore your credit, keep your home and car, and to return you to the road of life on a sound financial footing.
Bankruptcy is governed under Federal law and is administered in a special court called the Bankruptcy court. The matter is started by filing a Bankruptcy petition. The two most common forms of bankruptcy for individuals are Chapter 7 and Chapter 13 bankruptcy New York. Essentially Chapter 7 Bankruptcy, also known as, liquidation discharges all unsecured debt. There are restrictions and limitations to this discharge that will be explained to you at your free consultation with one of our lawyers. Chapter 13 Bankruptcy is slightly different from Chapter 7. Its purpose is to help you consolidate and restructure you debt in to an amount you can pay. The payment period is usually three to five years. Again, certain restrictions and limitation apply and can be fully explained at your free consultation with on of our lawyers.
Another form of bankruptcy is Chapter 11. This is not a personal Bankruptcy but rater Bankruptcy for business. It allows the business to continue to operate while the company debt is restructured.
If you are interested in setting up a free consultation with one of our experienced and knowledgeable attorneys, please call Steven Zalewski & Associates or visit our contact us page.