Macco Law Group, LLP

Know when to consider Chapter 7 bankruptcy

Know when to consider Chapter 7 bankruptcy

When you are having financial problems in New York, you may sometimes think that putting more money toward your debt is the only solution. Sometimes, though, this solution may not fix your current situation and you may need a more serious plan of action. At Macco and Stern, LLP, we understand that some people are wary of bankruptcy. That’s why we are committed to making sure you have all the information you need to determine if Chapter 7 is a good option for you.

You may think that filing for bankruptcy is one of the worst things you can do for your finances. Nerd Wallet says that depending on your financial situation, bankruptcy may not destroy your future financial security. You might worry that once you file for Chapter 7, you will be unable to repair your credit history. However, it is important to remember that by the time you decide bankruptcy is a good option, your credit score might already be in terrible shape. One professor of economics says that most people can quickly rebuild their credit after bankruptcy, especially if the bankruptcy removes all of their debt.

You may sometimes think you need to solve your financial problems by yourself. However, it is important to be realistic about how long it might take you to repay your debt. After thoroughly looking through your debts, you may realize that it might take more than five years to pay back all of the money you owe. In this situation, tightening your budget to put more money toward your debt may not be the most feasible option. Additionally, bankruptcy can help ensure you are not harassed by your creditors. Once you file for Chapter 7, creditors typically need to stop contacting you about paying your debts. This means that any wage garnishments or pending lawsuits typically end as well.

Sometimes you may see Chapter 7 bankruptcy as the last solution to your financial difficulties. However, there are times when this may be your most viable option. If a court has ordered that your wages need to be garnished so you can pay back your creditors or if your creditors are repossessing your property, you may want to consider bankruptcy. Bankruptcy can also be a good option if your medical bills or credit card debt seems insurmountable or if your mortgage company is threatening to foreclose on your house. You can find more information about this subject on our webpage.