Dedicated Lawyers in Orange County, New York Provide Bankruptcy and Alternative Solutions to Debt Problems
Bankruptcy attorneys serving the Mid-Hudson Valley analyze whether bankruptcy is right for you
Bankruptcy is an extremely powerful set of tools to reduce or eliminate your debt burden. However, it is essential that your select the right bankruptcy tool for your debts and circumstances. At Hayward, Parker, O’Leary & Pinsky Esqs., our attorneys meet with clients in Kingston, Poughkeepsie and throughout the mid-Hudson Valley to better understand your goals and debt situation. Speaking directly to the attorney you work with, enables us to help you select the best alternative debt solution or form of bankruptcy for you.
Before choosing bankruptcy, we often explore whether bankruptcy alternatives are a better solution. Debt consolidation is only an option if you can take on new debt in the form of a bank loan, a home equity loan or even a loan through a credit card. This new loan is used to pay off the original creditors. By paying off the original loans, you are able to make just one payment at a reduced interest rate. Another option is to negotiate with your existing creditors. Many creditors would rather modify the terms of the original loan than deal with the collections or bankruptcy processes. Finally, debt counseling can help you develop a plan to reduce your debt burden.
Which type of bankruptcy should I file?
The type of bankruptcy you file depends on the type of debt you hold, your goals for bankruptcy, and your financial history.
- Chapter 7 — Chapter 7 is known as liquidation. It is appropriate if most of your debt is unsecured such as credit card or medical bills, or if you don’t mind surrendering property. Under Chapter 7, the bankruptcy trustee looks for assets that can be sold to satisfy your debts to creditors. Following the distribution of liquidation proceeds to your creditors, your debts are typically wiped clean by the court.
- Chapter 11 — If you are a small business or an individual who is not eligible for Chapter 7 or Chapter 13, a Chapter 11 reorganization can be the best way to reduce your debt burden.
- Chapter 13. — Chapter 13, is sometimes termed a “wage-earner’s plan.” Under Chapter 13 you agree to pay back your secured debts over a three- or five-year payment plan. A Chapter 13 plan handles secured debts better than Chapter 7, and you are able to keep more of your property. Additionally, Chapter 13 provides a means to permanently stop a home foreclosure.
Will I lose everything I own if I file for bankruptcy?
Regardless of the form of bankruptcy you select, you never lose everything. The purpose of bankruptcy is to give the honest debtor a fresh start. If bankruptcy stripped you of all assets and possessions that could hardly be considered a fresh start. Instead, New York law permits you to select from either the New York or federal exemptions. Bankruptcy exemptions define the types and value of the property you may keep through the bankruptcy procedure. Common bankruptcy exemptions include:
Work with us for strategic and thoroughly considered approach to bankruptcy
Hayward, Parker, O’Leary & Pinsky Esqs. is well known and respected for its meticulous handling of bankruptcy matters throughout New York, including in Kingston and Poughkeepsie. Put our more than 55 years of combined experience to work for you by calling us at 855-592-1559 or contacting us online to schedule your free bankruptcy consultation.