New York Law Blog

He could not stand the pressure of the monthly note payments so he visited us for advice. We determined that he could not file chapter 7 bankruptcy because his house was worth too much. It appraised at $485,000 and he had paid down his mortgage to $63,000. That left $422,000 in equity. His wife owned half the house, so his share was worth $211,000, but he was entitled to a homestead exemption of only $165,000. That left $46,000 of equity that could not be protected. If we filed a chapter 7 case, the bankruptcy trustee would ask him to pay a lump-sum of $46,000, and if he could not pay it, the Trustee would sell the house.

Getting into debt is easy. A credit card purchase, a vacation, a medical emergency and before you realize it, you are unable to make your minimum payments. On the other hand, your money troubles may have hit you all at once following a job loss or divorce. While everyone's path to debt is different, many people in New York share the goal of getting out from under the burden of debt.

If you have sat down with your bills and attempted to organize a pay-off plan, you may have felt overwhelmed. Falling behind on certain bills, such as your taxes or your mortgage, can have serious and rapid consequences, but every delinquent bill comes with a cost. The trick is to choose a debt payment option that does not make matters worse for you.

Most New York residents, as well as people in other states, understand what it's like to face temporary financial problems. From minor issues, such as having to pay a late phone bill or come up with some cash to get a few extra groceries before the next paycheck arrives to serious problems involving creditors threatening litigation or lenders saying they're considering foreclosure, financial crises of any kind can be quite stressful.

You can solve most financial problems by determining the best course of action according to your circumstances. There's no general rule for resolving such issues; in fact, what works for one problem may not be viable in another situation. This is why it's critical that you explore all available options to figure out which solution best fits your needs before taking any formal action to resolve a financial crisis. It often helps to speak with others who have successfully overcome similar problems in the past.

Bankruptcy may not be your first choice, but it could be an optimal way for you to take back control of your life. If you are dealing with overwhelming debt, you understand that your financial situation can have a negative impact on multiple areas of your life.

New York readers know debt can lead to many negative consequences, and one of them is the harassment and constant contact from debt collectors. These people may be calling you at home, sending you letters and even taking physical steps to repossess your property or ensure they get payment. This is extremely stressful, especially when you cannot pay, but there are certain ways you can make it stop.