Bankruptcy Benefits

When a person files for bankruptcy it is usually because of being unable to
handle an overwhelming amount of debt.   Although most individuals find it hard
to confront having to file, there are many benefits to handling your debt in this
manner. Whether you file a Chapter 7 or Chapter 13, there are specific benefits
to each. One immediate benefit is that your creditors are generally required to
stop contacting you at once, upon being notified of a filing.   All legal actions,
repossessions, foreclosure proceedings, holds on your bank accounts or wage
garnishments must stop as the bankruptcy process goes through. That means
relief for you - from the stress and worry you have been living through.

Other benefits to you of filing bankruptcy include a discharge of most all of your
debt in a Chapter 7 filing and a reasonable and affordable restructuring of your
debt with a Chapter 13. Both will allow you to get back in control of your finances
and look forward to the future.

Types of debt eliminated:
If you are one of the millions of Americans suffering from an overwhelming debt
load which includes tax bills, mortgage payments, credit card debt, medical debt,
and personal loans, you are not alone. More and more families are having a
difficult time keeping up with their payments due to the loss of a job, divorce, or
other unforeseen circumstances.   Some of the types of debt you can eliminate
with either a Chapter 7 or Chapter 13 filing include:

- Credit card debt
- Medical bills
- Department store bills
- Personal loans

There are certain types of debt that cannot be discharged in a bankruptcy and
must still continue to be paid regardless of a bankruptcy filing.   These include:

- Child support
- Spousal support payments
- Most student loans
- Most income taxes
- Property taxes
- Court-ordered fines or penalties

What may you lose in Bankruptcy:
When filing for bankruptcy protection, you are able to discharge or restructure a
lot of your debt. A bankruptcy filing has restrictions on assets you can keep. Your
credit record will be somewhat impacted by the filing, although will improve as
time passes form the date you filed.

While Chapter 7 bankruptcy allows you to discharge almost all your debts with
the exception of exempted debts such as child support or income taxes, certain
assets you own may be liquidated in the bankruptcy process to offset any creditor
losses.   You must turn over any such property to the Bankruptcy Trustee, who
will sell it to pay creditors. Many times there are few assets available to liquidate
over the exempted assets you are allowed to keep. Below are assets you may
lose in a Chapter 7 Bankruptcy.

- Recreational vehicles
- Your primary residence, if your are unable to maintain your mortgage payments.
If you are current on your payments and can continue to make payments, you
will likely be able to keep your home.
- A second home or land
- Any inheritance received within 6 months of filing bankruptcy
- Any cash on hand or checking or savings accounts are usually taken in Chapter
7 bankruptcy proceedings except for a minimal amount you are allowed to keep.

Chapter 13, as it allows for restructuring of your debt, does not seize your assets
as long as you complete your repayment plan. However, if you fail to complete
the repayment plan, you could lose some of your assets. In general, these are
the main points which effect you when filing a Chapter 13:

- All available income must be used for repayment of your debts.
- You will pay higher legal fees for a Chapter 13 due to its complexity.
- You will be tied to a strict payment plan for 3 to 5 years.
- You are involved in the bankruptcy court process for the entire 3-5 year plan.

Bankruptcy time line
There are different time lines for how long your bankruptcy will take depending on
what type of bankruptcy you file. In brief, the time line is generally as follows:

Your time line will begin when you file your petition with the Bankruptcy Court.
However, there are a few restrictions which may apply prior to filing that are
important. You must be a resident of the district for at least 90 days prior to filing.
You must also obtain counselling from a certified credit counseling agency no
earlier than 180 days prior to filing.

If you have ever filed a Chapter 7 before, you must wait 8 years from the date of
your discharge before you can file again. If you have filed a Chapter 13
previously, you may be eligible to file 6 years after your discharge. If you filed for
a Chapter 7 previously but now need to do a Chapter 13, you must wait at least 4
years from the date of your last discharge.

The first step in any type of bankruptcy filing is to gather all the information about
your debts, assets, income and expenses.   Our office will work with you to put
this together.   Once all information is gathered, our office will file the legal
petition with supporting schedules and statements.

30 days after filing for a Chapter 7 you must file a Statement of Intention, which
states which, if any, debts you wish to reaffirm (Basically, which debts you will
keep in order to keep property, such as a car that has a loan still owing on it).

30 days after filing for your Chapter 13 repayment plan with the Bankruptcy Court,
you must make your first scheduled payments on your debt.

Within 45 days of your filing there will be a Meeting of Creditors.

In a case where there are no assets, approximately 5 to 6 months after your filing
for Chapter 7 your debts will be discharged and your bankruptcy will be finalized.

3 to 5 years after you filing Chapter 13 and having made your payments under the
payment plan, you will receive a discharge from the Bankruptcy Court.   All
eligible debts will be discharged at this point.

LAW OFFICES OF
CHRISTIAN H. DRIBUSCH

Experienced Bankruptcy Attorney

The benefits of Bankruptcy:

Successfully
Navigating You
Through the
Bankruptcy Process

Serving clients throughout the New York Capital Region including
Albany County,Columbia County, Greene County, Rensselaer County,
Saratoga County, Schenectady County, Ulster County and Surrounding
New York counties.