O'Connor, O'Connor, Bresee & First, P.C.
SERVING ALL OF NEW YORK AND VERMONT
877-886-4029 Toll Free
518-465-0400 New York

How filing for bankruptcy affects your debt

Bankruptcy is a viable option for many people who are drowning in different types of debt. Whether it is credit card debt, medical debt, or an inability to keep up with other loans such as car payments or a mortgage, bankruptcy filings affect different types of debt in different ways.

If you are considering filing for bankruptcy, you should learn more about how the different types of bankruptcy could affect your specific situation. Although the best solution is to consult with a bankruptcy attorney, the following information could help you get a general understanding before you turn to an attorney for a consultation.

Chapter 7 and Chapter 13 bankruptcy

Chapter 7 and Chapter 13 are the two types of bankruptcy filings available to individuals. They vary in how they treat and discharge debt. Chapter 13 is also considered debt reorganization or debt restructuring because it allows you to pay back a portion or all of your debt through a repayment plan. This type of filing can be a good fit for individuals with regular income. Chapter 7, on the other hand, is commonly referred to as a "fresh start" bankruptcy, as it allows for discharges of debt without a repayment plan. However, it also allows for the liquidation of your non-exempt property to pay back creditors.

Credit card debt and bankruptcy

Credit card debt is one of the most common types of debt that bring people to file for bankruptcy. You may file for either Chapter 7 or Chapter 13 bankruptcy to deal with credit card debt, depending on your individual circumstances. Since credit card debt is unsecured debt - that is, there is no collateral held to pay back the debt in the event of default on payments - it could be fully dischargeable in bankruptcy.

Generally, the best way to get a handle on how a bankruptcy filing could affect your debt is to consult with a qualified bankruptcy attorney. A lawyer who works with bankruptcy filings can analyze your particular debt situation and advise you on how to best proceed.

No Comments

Leave a comment
Comment Information

Contact Our Law Offices

Email Us For A Response

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact Us for Your Insurance Defense Solutions and Other Legal Needs

CALL TODAY AT

877-886-4029 Toll Free
518-465-0400 New York

NEW YORK OFFICE
20 Corporate Woods Boulevard
Albany, NY 12211

Phone: 518-465-0400
Fax: 518-465-0015
Albany Law Office Map

VERMONT OFFICE
507 Main Street
Bennington, VT 05201

Fax: 518-465-0015
Map & Directions