Bankruptcy is an option when an individual or organization is not in a position to be able to pay all of their debts owed either personally by them or the business. Bankruptcy in New York when filed in good faith by the individual or organization, allows the debtor that owes creditors some amount of money to either not pay the money back or to enter into a payment plan. Bankruptcy can either be voluntary when it is filed by the debtor. Bankruptcy can also be involuntary when creditors have filed a petition in bankruptcy court. Once the petition is filed, the debtor has twenty days to respond to the petition. If you speak to a New York Bankruptcy Attorney you will have a better understanding of how a bankruptcy can benefit you. If you are worried about how it will affect your credit you can have a credit report run that will show your credit score before and after bankruptcy. See here for an example: 123nylaw[dot]com/wp-content/uploads/2016/11/sample-credit-report.pdf
You will need the help of foreclosure defense lawyer if you want to save your home. Especially if you want to use bankruptcy to save your home. Bankruptcy is usually filed when the home owner has tried all other options but has failed to work out a plan with his creditors. A chapter 7 bankruptcy allows for the assets belonging to the debtor to be distributed among all his debtors that are above his exemptions. Most people declaring a chapter 7 bankruptcy do not have assets that will be distributed. Assets can be sold to try to pay off debts, however, if they are not sold at fair market value the bankruptcy trustee can force the petitioner to pay money to his debtors equal to the difference between the value and what they were actually sold for,
Foreclosure is a legal process where you need a foreclosure law firm to help you. When a mortgage firm or bank forecloses, this is not the time for someone to try to learn the law to try to save the most expensive item they will ever own: their home. Failure to the borrower to pay her obligations to the bank forces the bank to file for foreclosure in court. Once the bank wins in court, this allows the mortgage firm to sell the property first to clear their outstanding debt concerning the property and any other expense that could have occurred during the foreclosure procedure. From the sale the first priority belongs to the lender and after all his needs and any other lien holders have been cleared the amount that remains is given to the borrower. If there is not enough money to cover the debt, the borrower can still be held liable to pay the unpaid debts which can result in wage garnishment or other property such as her car being seized to satisfy the debt.
Foreclosure is different with bankruptcy. Bankruptcy can force the bank to negotiate and stay the foreclosure process in court. Bankruptcy also deals with all other debts that may be outstanding. Because all this are legal process one is usually required to hire a foreclosure defense lawyer. From Long Island to New Jersey bankruptcy can be used as a tool. Thus one would be required to identify the best defense law firm to represent his interest in the process will require a defense law firm that can use multiple tools for you to win.
Elena Kitsch is an author of 123nylaw.com one of the best bankruptcy and foreclosure attorney services in New York City, USA. She has been writing articles on bankruptcy and foreclosure for 123nylaw