Financial stress is a problem affecting a major section of
the World's population in this age of easy credit and competitive consumerism.
If the finances are not carefully managed, the debts can easily blow up in a
very short time to a point of no return. This is a fact which applies to both
domestic and corporate finances. In the absence of adequate and timely
corrective measures, finances can go down the route of liquidation and
bankruptcy. Contrary to popular perception, the term bankruptcy doesn't signify
the end of the world. Instead, under dependable
legal guidance, declaring bankruptcy gives an opportunity for someone in
acute financial stress to make a fresh beginning. If a strict financial
discipline is maintained, bankruptcy gives a chance to start with a clean slate
within the next 5-7 years.
At the onset it should be clarified that opting for
bankruptcy is not the cure-all for all financial troubles and neither does all
financial scenarios qualify for bankruptcy under New York Bankruptcy Law.
Appropriate legal
advice is the very first step before proceeding to declare insolvency. The
second step is to determine whether bankruptcy should be declared under Chapter
7 case or under Chapter 13 or Chapter 11, as per provisions of New York
bankruptcy law. As per Long Island Bankruptcy Law, in a Chapter 7 case most debts can
be eliminated while in a Chapter 13 or Chapter 11 case, the debts can go for a
reduction or cure under a reorganization plan.
In consultation with reputed and dependable
lawyers, it should be finalized what should be the best way forward as it
depends upon an individual's net expected cash inflow from different sources of
income in the years ahead. Care should be taken to verify the antecedents of
the lawyers handling the case, as it often happens that a few years down the
line, the client remains saddled with burgeoning debts along with inflated
bills from lawyers who take advantage of the situation and work towards making
a kill from someone's financial compulsions. The overall fees required for
filing a bankruptcy plea along with a Long island Bankruptcy lawyer's
initial fees should also be clearly estimated by the client. The charges for
bankruptcy under Chapter 7 is $306, while for that under Chapter 13 is $281 for
both an individual and a married couple. The court may allow for the payment of
this fee in installments if the entire amount is not available upfront.
Before filing for bankruptcy extreme care and discretion
should be displayed in financial spending. Whatever liquid assets are with an
individual shouldn't be used to pay off individual debtors or making
undervalued payments. Such payments made prior to declaration adversely affect
the case of bankruptcy pleas. The bankruptcy trustees can declare all such
payments null and void and even reverse the payments. An individual should only
make necessary monthly payments like utility bills, rent, mortgage dues or taxes
in the intermittent period. If an individual feels that any such payment has
been made which might reflect badly on the bankruptcy litigation,
the best options is to simply wait before filing. With time, all such unwanted
transactions get erased from the particular period of credit record accessed by
the trustees.
Once an individual has carefully weighed out all above
options and decided on filing a bankruptcy plea, it should be the end of mental
agony and financial stress and incessant pressure from creditors. All creditors
are restrained from making individual claims and exerting any sort of pressure.
If financial issues are taken care of prudently, the affected individual will
again get an opportunity to live a debt free life with dignity.
