New York Bankruptcy – Chapter 7
In the United State, Chapter 7 bankruptcy is the most common type of bankruptcy filed. It is the process of liquidating assets to pay off creditors.
When an individual files for bankruptcy they are many times allowed to keep certain exempt properties such as real estate mortgages. Other, non-exempt assets are then used for liquidation to pay back creditors. Other types of exemptions that are common include child support, taxes, student loans etc.
One bad aspect of filing for personal bankruptcy is that it will stay on your credit report for ten years. Obviously, this makes applying for new credit less favorable, although there are too many factors involved to say that conclusively.
Businesses can also file for Chapter 7 bankruptcy which means that the business intends to sell all its assets and distribute the proceeds to its creditors, before ceasing operations. This sometimes means that employees will lose their jobs, but sometimes entire sections of the company are sold intact to other companies.
In 2003, there were 1,156,284 filings for Chapter 7 bankruptcy by individuals, and 21,008 filings for businesses. According to the Administrative Office of the U.S. Courts, bankruptcy cases filed in 2004 fell 2.6 percent.
Filing for bankruptcy can be one of the most important financial decisions one can make. It is always best to have someone who is experienced and knowledgeable in bankruptcy law there to help you through the process. Contact an experienced bankruptcy lawyer today.
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