Main Menu Peter R. Scribner, Esq.
888-326-7220 | 585-563-4535

Rochester New York Bankruptcy Law Blog

How will bankruptcy impact your future credit?

It doesn't take long to fall behind on payments to creditors. Maybe the balance on your credit card has been slowly going up for months because your living expenses exceed your income. Perhaps you experienced an unexpected illness or got into a car accident that left you unable to work. Serious medical conditions, like cancer, with expensive treatments, could also create an insurmountable pile of debt for your household.

When you're unable to make payments on every bill and you're facing collection efforts, it may be time to consider bankruptcy. Bankruptcy can help you by forgiving your unsecured debts and helping you get your financial situation back under control. However, many people worry about the potential impact of bankruptcy on their credit report. Educating yourself about how bankruptcy affects your credit can help you decide if bankruptcy relief is a good option for your situation.

Living on credit can mean facing aggressive collection efforts

There is an assumption that bankruptcy protections are only necessary for those who have extremely low income. This population is certainly at risk of overwhelming debt, which is why Chapter 7 bankruptcy exists. If someone's income is below the state average and their debt is high, Chapter 7 bankruptcy can help that person build a new start. However, debt issues are common among those with higher incomes as well. Overspending is a common issue.

The more prestigious your position, the greater the potential temptation to live beyond your means. You may feel like you need to "keep up with the Joneses" by driving an upscale vehicle, wearing designer clothing or living in a massive home. In time, however, your attempt to fake it until you make it could leave you unable to meet your monthly financial obligations.

How can I modify my mortgage in New York?

There can be many reasons for wanting to modify your mortgage loan in New York. Perhaps you are struggling to pay for your repayments, have encountered a change in lifestyle such as a loss of job or increased medical costs or you want to dedicate your income to other priorities.

It is possible to modify your mortgage so that the repayments are less, but it's important to consider whether this is a wise idea since this will likely mean a prolonged mortgage repayment period.

Advantages to filing under Chapter 13

When debtors begins to consider bankruptcy, it usually doesn't take too long for them to discover that Chapter 13 offers many of the same protections and debt relief of other bankruptcies, without requiring those who owe to get rid of all their property. While Chapter 13 is not available to all debtors, those who qualify may find that it offers the flexibility they need to get their finances back on track without starting at ground zero, financially speaking.

If you are interested in filing for bankruptcy, be sure that you fully understand the intricacies of the Chapter that you choose. Failure to understand the issues at hand or properly navigate the process can create an even larger financial disaster than the circumstances that pushed you to bankruptcy in the first place, so this understanding is important to prioritize. An experienced bankruptcy attorney can help you assess your finances and create strategies to protect your rights and the property that you most value.

Can you keep your home in a New York bankruptcy filing?

It only takes one serious incident to put your family in a position of financial hardship. Divorce or a sudden layoff from work could leave you charging all your expenses for a few weeks. That can result in struggling to catch up on your mortgage, credit card bills and monthly car payment. You may find yourself struggling to make the monthly minimum payment while the principle balances of your accounts grow.

As your debt increases, you will also have to pay more interest and, potentially, fees as well. This can be a devastating cycle, leaving you on the cusp of losing your home and unable to meet your basic financial obligations. For many people, bankruptcy offers protections. However, there are limits to the assets you can maintain and still discharge through bankruptcy. Many people worry that they will not be able to keep their home.

4 common reasons why people file for bankruptcy

When an individual becomes overwhelmed with debt, it can seem impossible to recover. If you have found yourself in this position, you are not alone. Many people in the Rochester area have found themselves struggling to make ends meet due to out-of-control debt. Fortunately, there are options available to help you get your finances back on track.

While credit counseling may be enough for some people to conquer their money troubles, others require more drastic measures. For many, the only way to truly get their finances under control is to file bankruptcy. Here are some of the common reasons why people file for bankruptcy.

Understanding the means test in a New York Chapter 7 bankruptcy

For most people who think of bankruptcy, Chapter 7 is what comes to mind. Filing Chapter 7 bankruptcy allows those in debt to discharge their debts without a repayment period. There is also Chapter 13, which allows a person overwhelmed by debt to work with creditors. By creating a workable payment plan with a time limit, Chapter 13 allows for repayment and debt forgiveness for those who don't qualify for Chapter 7 bankruptcy.

Generally speaking, in order to file for Chapter 7 bankruptcy, an individual must pass what is known as a means test. Those who can't pass the means test will generally need to consider Chapter 13 instead of Chapter 7. Understanding the means test makes it easier to determine what kind of bankruptcy protections could work for your situation.

Foreclosure? Wage garnishments? An automatic stay might help

If you are facing an overwhelming amount of debt, you could be receiving constant calls from collection agents and creditors. You may feel like you are in an impossible situation and that there is no way to climb out of the debt hole that seems to be swallowing your life. However, there are options. Filing for bankruptcy may be the best course of action you can take to get your debt under control.

Bankruptcy comes with many benefits, including debt restructure that makes keeping up with monthly payments much easier. Another benefit is an automatic stay that applies to anyone attempting to collect a debt from you. To find out what an automatic stay can and cannot do for you, read below.

How to decide if bankruptcy is right for you

If you live in Rochester and have found yourself with more debt than you can handle, you are not alone. Many people find themselves in similar circumstances due to a sudden reduction in income or surprise expenses that drain savings and checking accounts. The most important thing you can do is to be proactive when it comes to getting your debt under control. For some this might mean a meeting with a mortgage lender to discuss options. For others, this could be filing for bankruptcy.

If you are looking for a solution to your debt problem, you might be wondering if bankruptcy is the right choice for you. The factors below might be able to help you determine if bankruptcy is the best option for your specific circumstances.

You have responsibilities in a Chapter 13 bankruptcy

People who file for bankruptcy have specific responsibilities that they need to live up to. If you don't live up the responsibilities that you have in these cases, you can cause your bankruptcy to not be discharged as it should.

Ideally, you should learn about the responsibilities you have before you file your Chapter 13 case. Even if you are already in the process of filing or have turned everything in, including the required payment, you should still take a peek at this list to give you an idea of what you need to accomplish.

Peter R. Scribner, Esq | 1110 Park Avenue | Rochester, New York 14610
Phone: 585-563-4535 | Toll-Free: 888-326-7220 | Fax: 585-256-6462 | Map and Directions