(631)-271-3737
(718)-751-0226
(516)-307-0262
(347)-508-9316
Long Island lawyer Ronald D. Weiss has been helping people and businesses eliminate debts through bankruptcy for over 20 years. To schedule a free consultation with one of our experienced Long Island bankruptcy lawyers at The Law Office of Ronald D. Weiss, P.C., call our office today at 631.271.3737.
The economic downturn of the past several years has negatively impacted thousands of Americans. Many people struggle to keep up with their financial obligations from month to month, negatively impacting their credit scores and risking foreclosure of their homes or repossession of secured property. Fortunately, the United States Bankruptcy Code1 provides a legal mechanism so that people who have gotten into financial trouble can obtain a fresh start. In many cases, people who file for bankruptcy are in a better financial position immediately after filing. Consequently, anyone who is having financial problems should speak with a Long Island bankruptcy lawyer as soon as possible.
Bankruptcy Discharge and Consumer Debts
One of the primary benefits of bankruptcy is the discharge of debts2. Once a debt is discharged, the debtor is under no legal obligation to repay it. If a debt is secured, meaning it is tied to some piece of property as collateral, the collateral will be sold in order to satisfy the debt. Types of debts that are dischargeable in a New York bankruptcy include:
- Credit card debts
- Medical bills
- Consumer loans
- Personal loans
- Business debts
- Certain tax debts
- Civil judgments
- Utility bills
- Unpaid rent
Importantly, some debts are nondischargeable for public policy reasons. Nondischargeable debts notably include unpaid child support and student loans. Even if nondischargeable debts are a portion of your total debt load, bankruptcy may still be able to help. Discharging other debts can help free up income allowing you to stay current on your other bills.
Automatic Stay
In addition to discharging debts, bankruptcy has additional benefits as well, including the “automatic stay.” The automatic stay is an injunction that keeps creditors from engaging in any collection activities, including foreclosure, repossession, filing lawsuits, or even making phone calls. Creditors that violate the terms of the automatic stay may be subject to significant sanctions under Federal Law.
