Many people mistakenly believe that bankruptcy is one all-encompassing concept – something that releases debtors from some or all of their debts.

However, the law takes a much more detailed approach to the concept of bankruptcy, and divides it into several sub-categories in an attempt to ensure that all parties are best served by the bankruptcy protection process. That’s why it’s critical to work with only an experienced bankruptcy attorney in Suffolk who knows the ins and outs of the bankruptcy process.

The two most common types of bankruptcies are Chapter 7 (also known as Liquidation bankruptcy) and Chapter 13 (known as Reorganization bankruptcy.) While both have their pros and cons, an experienced bankruptcy attorney in Suffolk can help guide you through the process, so you can decide which one is best for you.

Chapter 7 bankruptcy is commonly used when the debtor has few if any assets other than basic necessities (such as furniture and clothing.) Most unsecured debts can be eliminated completely, and the process often progresses much more rapidly than other types of bankruptcies. Again, a bankruptcy attorney in Suffolk can advise you in further detail if Chapter 7 might be right for you.

The goal of Chapter 13, on the other hand, is to reorganize your finances in order for you to pay off as much of the debt as you can, while having the remainder legally eliminated by the court if possible. One big attraction of Chapter 13 over Chapter 7 is that it lets you retain most of your property.

If you’re in a financial bind and wake up every morning wondering how you’ll get through the day, filing bankruptcy might be the right choice for you. While there are some downsides to filing bankruptcy, the benefits can be truly life changing.

Whichever option you’re contemplating, it’s imperative that you seek competent legal counsel from a reputable bankruptcy attorney in Suffolk, who can give you the advice you need, so you can start down the road to fiscal recovery.

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The choice to pursue bankruptcy protection is never an easy one, and should not be made lightly.

However, many people – after exploring all of their options with a reputable bankruptcy attorney in Nassau – come to the realization that bankruptcy is indeed the only way out from under their financial burdens.

For those with assets, the primary advantage of Chapter 13 is the ability of the debtor to retain valuable assets (such as a home), that they would otherwise be forced to sell under Chapter 7.

Chapter 13 also gives debtors a longer period of time to pay their debt than other filing options, and a professional bankruptcy attorney in Nassau can advise you as to what timeframes you might face.

Additional advantages of Chapter 13 include:

• - You keep all of your property – both exempt and non-exempt.
• - You have protection against creditors’ collection efforts, as well as from wage garnishment.
• - You are protected from foreclosure on your home.
• - You can file Chapter 13 in the future as needed. You’re not limited to filing limitations like you would be with Chapter 7.

However, the benefits of a Chapter 13 reorganization bankruptcy also has some counterpoint drawbacks which need to be considered carefully by you and your bankruptcy attorney in Nassau before making a final decision:

• - Your debt must be under $1,000,000, with unsecured usually less than $250,000 and secured less than $750,000.
• - You pay your debts out of remaining monthly disposable (post-bankruptcy) income, greatly restricting availability and access to cash.
• - Not all of the debts are subject to being repaid during the time period of the reorganization. Some may survive, requiring you to keep paying.
• - As with any bankruptcy action, there will be long-term effects to your credit rating.

Filing Chapter 13 bankruptcy may be right for you if you have assets and earnestly want to work with your creditors in order to restructure your debt. By working with an expert bankruptcy attorney in Nassau, you can review your unique situation and get the best legal counsel for your specific circumstances.

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