New York Bankruptcy Lawyer

Bankruptcy is a powerful tool for debtors, but some kinds of debts just will not be eliminated. Bankruptcy will wipe out credit card debt but debts such as student loans, back taxes, child support, secured debts and alimony payments. If you are facing a serious problem with personal debt, then bankruptcy may be your last resort. If you live in the State of New York, consider contacting a New York Bankruptcy Lawyer.

Bankruptcy is designed to eliminate unsecured debt, which is debt that does not have a lien on it where the creditor can repossess the item if you fail to pay. Bankruptcy will wipe out any other unsecured debt you may have. Your bankruptcy lawyer in New York or any other state for that matter will provide you with all the information you need in filing for bankruptcy.

Your bankruptcy attorney will explain the differences of filing for Chapter 13 or Chapter 7 bankruptcy. If filing for Chapter 13 bankruptcy then you might have to pay back a portion of the unsecured debts. After the repayment plan has been completed any unsecured debts that remain likely will be discharged.

If creditors constantly harass you then bankruptcy may alleviate the harassment. Harassment can come in the form of mild harassment such as phone calls and letters. Serious harassment consists of repossession of a vehicle or foreclosure of your mortgage. If things have gotten this far then it is time to consult with a New York bankruptcy lawyer if you live in the State of New York.

If a creditor has a lien on your property, the lien is not affected by your bankruptcy thus your obligation to pay the creditor still exists. There are certain procedures that if invoked during the bankruptcy could wipe out the debt with the lien. A lien is a creditors right to take all or some of your property. Another form of lien is a judgment lien, which is placed on your property after a creditor, has taken you to court. The judgment lien can be removed during bankruptcy proceedings. For more information on liens, contact your bankruptcy lawyer in New York or the state you reside in.

It is important to note that filing for bankruptcy does not remove your obligation to make child support and alimony payments. These debts are completely ignored by the courts. They will still exist as if you never filed for bankruptcy at all.

In your initial interview with your New York bankruptcy lawyer, you will discuss your outstanding student loan that is of course if you have one. The only way to discharge a student loan in bankruptcy is to prove that ‘extreme hardship’. This standard is extremely hard to meet though. You must prove to the court that you cannot pay your loan now and you have very little likelihood of being able to pay it in the future. In addition, you must prove that you have made an honest effort to repay the loan before the onset of bankruptcy.

© 2007 bankruptcyleadfiles.com: new york bankruptcy lawyer