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by - Elizabeth Bean
Deciding to file bankruptcy is never an easy choice. This decision should never be taken lightly, but there are times when there seems to be no other way out. When this happens, the first thing anyone should do is to find a quality lawyer that has experience with such cases. In New York state, there are many lawyers out there who handle these almost exclusively. People are scared to start the process because there is much that is not understood about the process. Bankruptcy filing in New York might not be quite as devastating as one might think.
Anyone who files for bankruptcy automatically assumes they are going to lose their house. Though this is sometimes true, there are exceptions to that rule. This is something to discuss with an attorney. Many also assume that they will be left with no car and no money, but that is not necessarily true either. Many are allowed to keep a car or truck as long as the value is under 2,400 dollars. A person is also allowed to have up to 2,500 dollars in cash remaining after the settlement is over. This might not seem like a lot, but it is enough to keep someone from being homeless and ensures they still have a way to get to work.
Many also assume that they are going to have to do without any type of credit for ten years. Though the bankruptcy stays on a credit report for that period of time, there are some lenders who don’t care about that, and in fact, see it as a benefit. You can only do bankruptcy filing in New York every six or seven years. If a creditor sees that someone has a steady job and has filed a short time ago, they know they cannot charge up a card and file again, at lest for several years. They may extend credit in these cases.
Even though these things seem like a relief, bankruptcy filing in New York should not be taken lightly. Finding the right firm for representation is essential so no mistakes are made. Credit counseling should also be a part of the process so the same financial mistakes are not made in the future. Though this can be done every six or seven years, it is best to avoid it completely if at all possible. When new financial habits are formed, debt and bankruptcy can be things of the past.
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