Answering Your Question about the Bankruptcy Process
If you are struggling to keep up with your bills and living in fear of creditor harassment, repossession or wage garnishments, filing bankruptcy may be the only way to eliminate your debt and achieve a fresh start.
At Silver & Lesser, P.C., in New Windsor, New York, we represent clients throughout the Hudson Valley region, Orange County and New York City. To discuss your bankruptcy options with an experienced lawyer, call us at 845-562-9020 or toll free at 866-687-1338.
Answers to Frequently Asked Bankruptcy Questions
• Have changes in the bankruptcy law eliminated the right to file for personal bankruptcy?
o No. most consumers will still meet the requirements for filing either Chapter 7 bankruptcy or Chapter 13 bankruptcy. However, changes to the law have made the process more complex, making it important to have an experienced attorney representing you.
• Can debtors be arrested or put in jail for owing money to creditors?
o No. debtors are not arrested or put in jail for owing bills and debts to creditors unless they have committed a crime in connection with obtaining the debt. However, creditors can seek a civil “money judgment” or by placing a “garnishment” up to 10 percent of the debtors paycheck. Creditors can also seek the repossession of property.
• Can debtors who file for personal bankruptcy lose their home or car?
o Sometimes. While it is possible to lose such property in a bankruptcy, in most cases, debtors will not lose their home or car. However, each case is different, and it is important to discuss this risk with an attorney. In some cases, a debtor may have to file for Chapter 13 Bankruptcy in order to save the property from liquidation, repossession or foreclosure.
• Does an individual who files for bankruptcy lose future property?
o No. A debtor can keep any property obtained after filing as well as property that was exempted from the bankruptcy process. However, if a debtor receives inheritance or a life insurance settlement within 180 days of filing for bankruptcy, that may have to be turned over the trustee for payment to creditors. Personal injury and other legal settlements will be subjected to a similar process.
Contact Silver & Lesser, P.C.
For answers to questions about your specific situation, contact us to speak to an experienced bankruptcy lawyer.