When residents in New York like you find yourself facing debt that seems insurmountable, you may end up feeling lost and hopeless. Even filing for bankruptcy may seem futile, especially if you are thinking about the potential negative effects of Chapter 7 bankruptcy. However, there are alternative options that may work better for you.
The United States Courts discuss some of the alternatives to Chapter 7 bankruptcy. This particular option can often seem daunting due to the involvement of asset liquidation. One potential alternative is Chapter 13 bankruptcy. It allows you to avoid having to liquidate your assets. Because of that, it’s valuable to people whose main concerns revolve around the loss of cars, properties, and so on. However, it is important to note that Chapter 13 is only available if you are a wage earner. You must be able to create a reliable repayment plan and stick with it.
Another option is Chapter 11 bankruptcy. This is available if you are engaged in business. If you are involved in a partnership or a corporation, or if you are registered as a sole proprietor, you are eligible. Filing for Chapter 11 will allow you to adjust your debts by extending the time in which you are required to make the repayments or by reducing the amount that you owe. It is also possible to file for a more comprehensive reorganization of your debts through this option.
The type of bankruptcy you choose to file depends a lot on your current situation and means. If you are interested in filing for bankruptcy, consider looking into your options to determine what might be more beneficial to you and what is possible given your current circumstances and situations.