Many of us in New York are struggling to pay the bills. The credit card statement shows up and the minimum payment is sent. The next month, the statement shows up in the mail again, and the balance has barely gone down from the previous month. This is very discouraging, especially when you are unable to make more than the minimum payment each month.
The bills are piling up, you’re struggling to pay what you can, and you are stressed out. All of this may have you wondering when to file bankruptcy in New York because you just can’t take it anymore. You have no idea how in the world you can pay all of the debt you have when it well exceeds your income.If it is bankruptcy that you are considering, there are some aspects of it that you have to think about. First, you need to know when to file bankruptcy in New York. It isn’t something you want to do just because you are overwhelmed right now. You have to decide carefully because it will remain a public record on your credit report for 10 years. Second, you need to review what caused you to be in a financial bind in the first place. Lastly, you need to exhaust all of your options.
The Results of Bankruptcy
Yes, it is true that your debt will be discharged when you file bankruptcy. This means that you do not have to pay back your creditors or, if you filed Chapter 13, you enter into a payment plan that works for you so that you can pay back all or part of the debt. Nonetheless, those with assets may lose some to satisfy their creditors. Each state has a limit as to how much a person can own of certain assets. In other words, only a certain amount is exempt from forfeiture. This goes for homes, cars, jewelry, property, tools of the trade, and much more.Another result of bankruptcy is the fact that you can acquire credit soon after having debt discharged, but the interest rates are going to be very high. It can be difficult to acquire a credit card without a high interest rate in addition to annual fees and maintenance fees that must be subtracted from the card’s already low credit limit.
Many individuals, however, find that wiping the slate clean and starting all over is exactly what they need to get back on track, even if it means having a high interest credit card or two. But we have all see people file bankruptcy and then be able to build a home a couple of years later or buy a new car, right? The main difference between them and someone who hasn’t filed bankruptcy is that the bankrupt has to pay much more for those items for longer periods of time, thus they pay tens of thousands of dollars in high interest and fees.
Fortunately, creditors can be settled with. It isn’t so much about when to file bankruptcy in New York as it is when to finally resolve yourself to the fact that you need help with your debt. Consolidation through settlement is a solution that many individuals are turning to. Most of us have found ourselves in a tight spot and wished for a solution that’s easy and as stress-free as possible.
Consolidation through settlement does remove a great deal of your stress. Perhaps you have tried to settle with your creditors and they just weren’t going to have it. When you allow a professional to deal with the creditors for you, you can achieve a much better and affordable result.
Here is what happens: Your creditors are contacted and they are given proposals. Really, not settling could run you into bankruptcy and that could mean the creditors would lose the money owed to them. If they settle, then they can at least receive the amount owed without the interest that has been accrued or they can receive part of the balance. It is in their best interest to settle since the alternative could be them not getting paid at all.
Once creditors are settled with for an amount that works for you, you make one lump sum payment each month to your debt settlement company to pay those bills for you. You don’t have to worry about writing dozens of checks per month or forgetting a payment and accruing late fees. All it takes is a single payment and multiple monthly expenses are paid. Your debts are also paid off faster because the debts do not accrue interest while in the program.
If you are in a difficult financial situation, then a free debt analysis may be exactly what you need right now. A flexible and professional debt relief company can settle with your creditors and make life much easier on you. Simply call or fill out the form and take the first step toward the rest of your life.