Find a Bankruptcy Lawyer in Hempstead, New York

Find the right Bankruptcy attorney in Hempstead, NY

Bankruptcy in Hempstead, New York is a court proceeding through which a person or business who is unable to pay their debt is able to have some of their debt legally absolved, or "discharged." This theoretically allows the debtor to move on with a clean slate. However, bankruptcy should not be treated as a way to avoid debt that one simply doesn't feel like paying. It is meant to be a safety net for people or businesses who are really unable to pay off their debts. Because bankruptcy is not without negative consequences (such as a severely damaged credit rating for many years afterward), it should be viewed as an option of last resort.

Accordingly, it might be a good idea to consult with a Hempstead, New York bankruptcy attorney. Your lawyer will be able to counsel you about your options, including alternatives to bankruptcy, if such alternatives exist in your case. Whatever the result, it is often challenging to anticipate the long-term consequences of any bankruptcy-related decisions, so the advice of a bankruptcy in Hempstead could prove invaluable.

Types of Bankruptcy in Hempstead, New York

In Hempstead, New York, there are three basic bankruptcy schemes that are most frequently used. They are identified as Chapter 7, Chapter 13, and Chapter 11. Being a product of federal law, the procedural rules governing bankruptcy in Hempstead, New York will be very similar to those in any other part of the United States. Chapter 7 bankruptcy involves liquidation of some of the debtor's assets to pay off as much of his or her debt as possible. Once the liquidation is done, and the proceeds given to the creditors, the rest of the debt is discharged. Liquidation is essentially selling assets to the highest bidder. Only some of the debtor's assets have to be sold, and varied classes of property are exempt, meaning that the debtor can keep them, including homes, cars, insurance policies, and retirement accounts. It should be noted that certain types of debt cannot be discharged through Chapter 7 bankruptcy, including student loans, child support payments, criminal fines, and recent taxes.

The other popular bankruptcy system in Hempstead is Chapter 13 bankruptcy. Under this system, the debtor's debts are restructured, instead of discharged. This involves creating a new repayment plan that the debtor will find manageable, given his or her income, and that will result in the creditors being paid in a reasonable amount of time. When a repayment plan is approved by a court, creditors are legally barred from attempting to collect under the original terms of their arrangement with the debtor. Chapter 11 bankruptcy is almost exclusively used by businesses, but there is nothing that legally prevents it from being used by individuals, and its use by individuals is very rare. Chapter 11 bankruptcy requires the debtor to come up with a restructuring plan - telling the court how they propose to cut costs, improve their operations, and pay down their debts. The plan has to be approved by a majority vote of participating creditors.

While going through Chapter 11 bankruptcy, a business can continue operations, and its stock can continue to be traded.

How Can a Hempstead Bankruptcy Lawyer Help?

Filing for bankrtuptcy in Hempstead is an influential decision with costs and benefits that must be weighed carefully. Before filing, it would be a good idea to speak with a good Hempstead bankruptcy attorney.

Talk to a Bankruptcy & Finances Law Attorney now!

Life in Hempstead

Hempstead comprises one third of the municipalities in Nassau County and is situated in the southeast. Hempstead is much larger than nearby Buffalo playing host to 756,000 New York residents. It is the 14th most populous city in the State of New York. The Town of Hempsead is the 47th largest employer in Long Island with 2,000 employees. The Village of Hempstead is incorporated within the Town of Hempstead that also includes a total of 22 villages and 37 hamlets. There are many lawyers living in Hempstead. Those lawyers are familiar with Nassau County courts and procedures in many different areas of law.  

Hempstead plays host to a number of outstanding parks and recreational areas including the Hempstead Lake State Park, Valley Stream State Park, and Jones Street State Park. The New York State Parks in the Town of Hempstead incorporate fishing areas, covered picnic areas, tennis courts, sports fields, boat launches, hiking, and nature trails. In the winter ice fishing, ice skating, cross-country skiing, and snowmobiling are just a few of the activities offered by state parks in Hempstead. 

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