Find a Bankruptcy Lawyer in New Rochelle, New York

Find the right Bankruptcy attorney in New Rochelle, NY

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Bankruptcy in New Rochelle, New York is a court procedure through which a person or business who is unable to pay their debt is able to have some of their debt legally excused, or "discharged." This theoretically allows the debtor to move on with a clean slate. Bankruptcy should be treated as an option of last resort, and should not be viewed as a proper way to get out of debt that you just don't feel like paying. Bankruptcy can have severe consequences, including but not limited to damage to your credit rating. A bad credit score can impact your ability to get loans in the future, to rent an apartment, and possibly even your ability to get hired at some jobs (as some employers now run credit checks on prospective employees).

Therefore, it is advisable to consult with an experienced New Rochelle, New York bankruptcy attorney, who can advise you of the costs and benefits of bankruptcy. Because the decision to file for bankruptcy depends very heavily on the facts of each individual case, the advice of a New Rochelle bankruptcy attorney cannot be replaced.

Types of Bankruptcy in New Rochelle, New York

In New Rochelle, New York, there are three basic bankruptcy schemes that are most often used. They are recognized as Chapter 7, Chapter 13, and Chapter 11. Being a product of federal law, the procedural rules governing bankruptcy in New Rochelle, New York will be very similar to those in any other part of the United States. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her assets in order to pay off as much debt as possible. Once the sale of the assets is verified, and the proceeds handed over to the creditors, the debt is perceived as discharged. Liquidation is basically selling assets to the highest bidder. Not all of the debtor's assets will need to be sold, and many types of property are completely or partially exempt, including homes, cars, retirement accounts, and insurance policies. This means that the debtor can keep them. It should be noted that some types of debts are not dischargeable in Chapter 7 bankruptcy, including student loans, criminal fines, taxes, and child support payments. Even when the bankruptcy process is complete, these debts will have to be paid in full.

The other largely used bankruptcy system in New Rochelle is Chapter 13 bankruptcy. This allows a debtor to repay most or all of their debts in a structured manner. It reorganizes the debt into lower periodic payments that, with a bit of frugality, the debtor should find manageable. This allows the debtor to continue to earn a living, and allows the creditors to eventually collect what they are owed. Once a repayment plan is authorized by the bankruptcy court, creditors are legally barred from seeking repayment under the terms of the contracts that gave rise to the debt in the first place, and will instead have to accept payment under the new plan. Chapter 13 bankruptcy is normally a better option for people who have a steady income. Chapter 11 bankruptcy is usually used by businesses, though it can be used by individuals (which is quite rare). Chapter 11 bankruptcy requires that the debtor come up with a reorganization plan - basically telling the court how they propose to cut costs, streamline their operations, and pay their debts. This plan must be authorized by the participating creditors through a simple majority vote.

A major advantage of Chapter 11 bankruptcy is that businesses can continue their operating while going through the process. Also, they can continue to buy and sell their stock.

How Can a New Rochelle Bankruptcy Lawyer Help?

One should not make the decision to file for bankruptcy in New Rochelle easily. Before making any such decision, it would be highly advisable to contact an accomplished New Rochelle bankruptcy attorney.

Talk to a Bankruptcy & Finances Law Attorney now!

Life in New Rochelle

Named by Money Magazine as one of their Top 100 Best Places to live in the United States, New Rochelle, New York has it all. The city, which is just a half hour train ride from the famous Grand Central Station is a New York gem to be enjoyed by residents and visitors alike. New Rochelle was first settled in the 1700's and it is a city that prides itself on its ethnic and religious diversity. New Rochelle was also the suburban neighborhood featured in the cult classic, Dick Van Dyke show. With views of the Long Island Sound from parts of the city, New Rochelle is home to just under 80,000 residents. With its close proximity to big city New York, New Rochelle has an abundance of fabulous lawyers to serve their local clients in issues ranging from family law to estate planning. New Rochelle lawyers are some of the best and brightest in their business. In addition to lawyers, New Rochelle also has many other professionals that add to the appeal of the city. On the cultural side, New Rochelle has lots of parks and museums for its residents to enjoy. No wonder New Rochelle is considered one of the best places to raise children. Not surprisingly, New Rochelle also has a nationally recognized public school system. New Rochelle has the nickname, "Home Town" because of the large number of single-family residential developments throughout the picturesque city.