New York Attorney Helping You Obtain Debt Relief
If you can't keep up with your debt payments and are facing frustrating situations like wage garnishment, frozen bank accounts, and phone calls and threatening letters from creditors, you have options.
Chapter 7 bankruptcy puts a stop to all creditor harassment and collections and can wipe out certain types of unsecured debt — such as credit card debts and medical bills, immediately upon filing.
An experienced attorney can help you decide whether Chapter 7 bankruptcy is right for you. Contact me at my offices in Hicksville, New York, for a free consultation to discuss what you can do to obtain debt relief and make a fresh start.
Preserving Important Assets While Eliminating Debts
One of the most important factors when you are considering Chapter 7 bankruptcy is whether you will end up losing any assets that you want to keep. I always make sure my clients are aware of the possible consequences before filing for bankruptcy.
Although Chapter 7 bankruptcy is technically considered "liquidation," most people who file do not end up having any assets liquidated.
Depending on the amount of equity you currently have in a home or vehicle, you may be allowed to keep them. Retirement accounts, most personal property and a certain amount of cash are also safe from liquidation.
Of course, you may have assets that you would rather liquidate than keep. If you are saddled with a house that is worth less than you owe on it and unlikely to regain its value, Chapter 7 bankruptcy may allow you to give it up without the risks of the short sale process.
An Alternative to Drawing Down Retirement Accounts
If you are tempted to borrow money from your own 401(k) or IRA retirement plan in order to pay down high-interest credit cards that have gotten out of control, you should consider all your options and their impact on your future.
In Chapter 7 bankruptcy, credit card debts are discharged completely, while 401(k) and IRA retirement accounts are protected from liquidation, so you can eliminate high-interest debts will preserving your retirement safety net.
Obviously, your unique financial circumstances will help determine which option is best for you, and it is best to consult an experienced lawyer before taking any course of action. Contact me to learn whether Chapter 7 can help you protect your retirement savings.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
