New York Bankruptcy Law
FANNING & HUGHES: New York Bankruptcy Law Firm
If you are suffering under the burden of debt, an experienced New York bankruptcy lawyer from Fanning and Hughes can give you a fresh financial start. The New York bankruptcy lawyers at Fanning and Hughes can help you file for bankruptcy under Chapter 7 or Chapter 13.
An Overview of Bankruptcy
Bankruptcy is a federal court process available for people and businesses to either eliminate their debts or repay them under the protection of the bankruptcy court. “Chapter 7” and “Chapter 13” refer to the chapters of the federal statutes (the Bankruptcy Code) that contain the bankruptcy law.
Broadly speaking, the intent of Chapter 7 is to discharge your debt, while the intent of Chapter 13 is to create a manageable payment plan that allows you keep your house or other valuable asset.
The usual Chapter 7 candidate has few assets and little money left over after living expenses are paid. In Chapter 7, your debt is discharged, with some exceptions. If you have assets above a certain value that you want to keep, you may need to consider Chapter 13.
The usual Chapter 13 candidate has a valuable asset, such as a house, that cannot be kept (claimed as exempt) under Chapter 7, or they have too much income. Under Chapter 13, creditors are paid through what is essentially a court-supervised repayment plan. In order to qualify under Chapter 13 you must have regular income. This income may consist of wages, commissions, rents, public benefits, social security, unemployment, alimony, child support, or pensions.
There are many benefits to Chapter 13: If you have a house with a large amount of equity, it allows you to keep it. If you have too much income to qualify under Chapter 7, it allows you to pay what you can afford, with the rest being discharged at the end of the case. In addition, some debts that cannot be discharged in Chapter 7 may be discharged in Chapter 13.
Next >> Chapter 7 Bankruptcy – An Overview
We are a federally designated debt relief agency helping people for relief under the bankruptcy code.
FANNING & HUGHES, PLLC
108-18 Queens Blvd -
4th Floor
Forest Hills, NY 11375
718.261.3290 p
718.228.2422 f
contact@FHLawOffice.com
