New York Bankruptcy Laws:

If you are thinking about filing for bankruptcy in New York State, you may be interested in some facts and changes in New York bankruptcy laws.

The New York Bankruptcy laws are not intended to make bankruptcy impossible, or even unnecessarily difficult, for those who have a legitimate need. Instead, the purpose is to reduce the numbers of individuals and businesses who wish to take unfair advantage of the system in order to be financially irresponsible. While the entire process is a bit more detailed and time-consuming than it was in the past, if you have checked into the alternatives and have found that bankruptcy is the most appropriate method for dealing with your debts, you will find that it is well worth the time and effort.

One aspect of the New York Bankruptcy laws is that your situation will be more carefully assessed than before. This means that your income and assets will be balanced against your necessary living expenditures, in order to determine whether or not you can afford to pay off your debt without unreasonable difficulty. The purpose of this is to ensure that individuals and companies that can pay their debts do not attempt to file for bankruptcy simply to avoid doing so. It is a matter of being fair to both consumers and creditors alike.

Another new aspect of New York Bankruptcy laws is the requirement of money management classes and credit counseling sessions. This, too, is for your benefit. As too many people have gone through the process of bankruptcy in the past, only to repeat the process again, learning all of the basics of effectively managing your income, expenses, and credit is your best bet in avoiding future financial problems.

Under the new laws, fewer consumers will have the option of filing for Chapter 7 Bankruptcy. Rather than this option, which liquidates one’s assets and includes the cancellation of many debts, more consumers who wish to file for bankruptcy will need to rely on Chapter 13, which involves paying off the majority of one’s debts through an extended repayment plan. The principle behind this is that it is fairer to creditors to receive payment for valid debts, rather than allowing consumers to simply have all of their debts cancelled.

While the New York Bankruptcy laws are more stringent than those in the past, this should not deter anyone who legitimately needs this process to avoid it. Consumer responsibility, and fairness to all concerned, makes it worthwhile.

Ronald S. Cook is a Bankruptcy Attorney that proudly serves New York City, Manhattan, Nassau County and Suffolk County on Long Island, New York, NY. We offer reasonable rates and payment plans. Call us today at 631-265-0102 or Email Us for your Free Bankruptcy Review.