Brooklyn is the most populous of New York City’s five boroughs, with the U.S. Census Bureau estimating its 2015 population at more than 2.6 million. As is the case in any part of the United States, people and businesses in Brooklyn sometimes experience financial problems, often through no fault of their own. Some of the more common causes of financial issues include the following:
When you are unable to pay your bills, they can compound, resulting in what feels like an inescapable cycle of debt. Fortunately, there is help available. For some people and businesses, bankruptcy is a viable option that will eliminate debts and provide them with a fresh financial start. It is important to understand, however, that bankruptcy is not appropriate for every person or business who is in debt and that there are many different types of bankruptcy from which to choose. For this reason, anyone who is considering bankruptcy should speak to an attorney as soon as possible.
Chapter 7 bankruptcy is the most commonly filed type of consumer bankruptcy in the United States, but it is also available to businesses. In this type of bankruptcy, a debtor’s nonexempt assets are liquidated and the proceeds are used to pay back creditors. Any debts that are left over are liquidated unless they are non-dischargeable. Examples of debts that are typically non-dischargeable include student loans and past due child support payments.
Chapter 11 bankruptcy is available to both individuals and business but is typically utilized by larger companies because of the cost and complexity associated with filing. It is a type of reorganization bankruptcy that allows a debtor to enter into a payment plan with his/her/its creditors with oversight from the court. This type of bankruptcy is used most often by businesses that are trying to stay in operation while they pay back their debts.
Chapter 13 bankruptcy is a form of reorganization bankruptcy that is only available to individuals who make a regular income. In this type of bankruptcy, a debtor proposes a repayment plan to the court that describes how he or she plans to pay his or her debts. Certain priority debts must be paid in full, while others may be partially paid or not paid at all. Chapter 13 payment plans last between 3 and 5 years, and as long as debtors stay current on their payments, they are protected from any collection actions from their creditors.
Contact a Brooklyn Bankruptcy Attorney Today to Discuss Your Case
If you are having trouble making your monthly payments, you should discuss your options with an experienced attorney. Ronald D. Weiss is a skilled Brooklyn bankruptcy lawyer who is committed to helping businesses and individuals obtain a fresh financial start. To schedule a consultation with Mr. Weiss, call us today at 631-271-3737 or contact us online.