Whether you live in New York City or another area where the cost of living is high, you know how difficult it can be to pay the bills when you have a family that relies on you. You’ve been frugal with your money, only spending on things that were necessary but you haven’t been able to make ends meet. Maybe it’s the large medical bills you have to pay because your insurance has lapsed, or because your spouse lost their job when trying to take care of a sick child. Or maybe you just need help because creditors are threatening to repossess your home and car. You need somewhere to live and a car to get to work. Those are valid reasons to consider bankruptcy, and you shouldn’t feel ashamed.
10 Common Reasons to File Bankruptcy:
1. Stop foreclosure on your house
2. Reduce or eliminate large medical bills.
3. Loss of employment income.
4. Huge student loan debt.
5. Wage garnishment.
6. Harassment from creditors.
7. Stop repossession of your car and other property.
8. Preventing utilities such as gas, electric, and water from being turned off.
9. Release from debt obligations.
10. You need help restructuring your business finances and debts by reducing obligations and modifying payment terms in order to continue doing business.
Do’s and Don’ts of Bankruptcy Filing
It can be difficult knowing what to do when creditors are calling, and want to be paid. Before filing for bankruptcy, you need to adhere to a list of do’s and don’ts. Otherwise you may jeopardize your chances of being able to successfully obtain debt relief through bankruptcy.
Things Not to Do
· Buy expensive items you really can’t afford.
· Buy items just before filing bankruptcy, unless they are necessities.
· Get a large cash advance on your credit card.
· Hide your assets.
· Pay off one or more creditors and not others.
· Transfer assets out of your name.
· Hide income.
· Sell assets for less than they are worth.
· Deposit money, other than income, into your accounts.
· Talk to creditors.
· Talk about filing for bankruptcy.
Things to Do
· Get credit counseling from someone certified in that field.
· Let your creditors know you are having trouble paying bills.
· Reduce unnecessary expenses and create a reasonable budget.
· Educate yourself about the bankruptcy process.
· Determine what your assets are worth.
· Be completely honest with your lawyer.
· Pay basic and necessary expenses.
· Pay for things you wish to keep.
· Close all bank accounts.
· Keep a bank account open, as long as you don’t owe that bank money.
· Keep accurate records of finances.
· Be honest and cooperative with bankruptcy officials.
· Be patient and understanding.
Going through bankruptcy and repossession can be a traumatic and scary experience. That’s why it is important to consult with a knowledgeable New York bankruptcy attorney who can help you navigate the difficult times and lessen the burden of dealing with bankruptcy court and creditors. If you live in New York City or the surrounding Burroughs, give Rob Solomon a call. He specializes in bankruptcy and repossession law.