Let’s face it, there is still a stigma attached to declaring bankruptcy. Though it is very common for people to go through Chapter 7 or Chapter 13 bankruptcy, those who have never faced crushing death may stereotype those who have as irresponsible with their money. Others may look at bankruptcy as “gaming the system”: living beyond your means, then not having to pay anything back.
New York City residents with financial problems may feel cornered by debt collectors, but there are always options. Some people in this position may have a choice between Chapter 7 and Chapter 13 bankruptcy.