What is Chapter 7 bankruptcy?
Chapter 7 is known commonly as a straight bankruptcy or liquidation proceeding, where the debtor turns over all non-exempt property to the trustee to convert into cash distributed to all creditors. In most of these cases, the bankruptcy filer is without any assets, so this will give the person a quick fresh start.
What are the most common reasons for filing Chapter 7?
Unemployment is the most frequent, followed by large medical expenses, overextended credit and martial problems among other large, unexpected expenses.
What is Chapter 13 bankruptcy?
Chapter 13 is a reorganization type of bankruptcy filed by persons who want to pay off debts within three to five years. This appeals to those who have non-exempt property they want to keep, and is available only to those with predictable income sufficient to pay reasonable expenses.
Will I stop getting harassed by creditors?
By law, they have to cease once documents are filed. The creditors are prevented from continue or file any lawsuits or garnishees demanding payments.
Will my utilities be affected?
Electric companies and other providers of public utilities cannot take disruption actions, such as refusing or cutting off service, because you filed for bankruptcy. They may, however, require a deposit for future services.
NY bankruptcy lawyer Michael Kanzer can help you with all your bankruptcy matters. Contact his office today by visiting www.KanzerLaw.com.
