Many Americans, including some residents of Nassau County, New York, are still trying to get out from under large medical bills and struggling with unemployment. With this in mind, it is safe to say that a large number of people may be considering bankruptcy. However, there are still a lot of people who do not completely understand bankruptcy and the reasons why it may be a good option for them.
As a result, there are some residents of Nassau County who did not make the correct financial decisions. Some people who have found themselves struggling with debt might have selected the wrong credit counseling agency and might have fallen victim to financial scams that left them worse off than they were before. To help Nassau County residents avoid these unfortunate outcomes, here are some things to ponder regarding bankruptcy.
Bankruptcy does not eliminate secured debts, including mortgages and car loans. It also does not allow people to discharge other debts like alimony, student loans and child support. However, bankruptcy can actually help a person to be free of most of their debts. Bankruptcy may also postpone or eliminate the foreclosure of their homes, repossession of their car and allow them a chance to repay missed payments.
Readers in Nassau County, New York should remember that bankruptcy is an effective means of standing up to financial challenges. Once the person decides that bankruptcy is beneficial for them, he or she should consider which kind of bankruptcy would suit the situation best. One of the most efficient types of bankruptcy is Chapter 13 or Reorganization Bankruptcy. With Chapter 13, residents will not be required to surrender any property. Instead, the person will be required to formulate a structured repayment plan that explains how they will use their income to pay their debts over a period of time.
Residents of Nassau County who are interested in filing for Chapter 13 bankruptcy may wish to consult a legal professional. That is because Chapter 13 requires people to show that they are eligible to file. A legal professional might be able to provide some legal advice on how this task can be accomplished so that the person can have a fresh financial start.
Source: Huffingtonpost.com, “When Is Bankruptcy the Answer?,” Dedrick Muhammad, Aug. 19, 2013