If you are a homeowner in Central New York, you may be wondering how this could impact your situation if you were to declare bankruptcy. It is essential to understand the downsides and benefits of bankruptcy before taking this step, especially if you own substantial assets, such as a home or property.
At Grady BK, PLLC, we serve our Central New York clients with the goal of providing the resources you need when you file for bankruptcy. We understand how complicated this process can be, whether you are trying to decide if this is the right fit for your situation or looking into how this will impact you as a homeowner. We will help you every step of the way as you decide on the right type of bankruptcy and file your petition. In this article, we will be discussing the benefits of bankruptcy for homeowners and how this will impact their financial situation.
Bankruptcy For Central New York Homeowners
If you are in a difficult financial situation in Central New York, you need to understand the benefits of filing bankruptcy, especially if you are a homeowner. Filing for bankruptcy is already a difficult decision to make but it is especially complex when you own something as valuable as a home.
Bankruptcy may be a good option if you are in a financial situation that you are unable to get out of on your own. You may have substantial debt that is slowly stacking up, making it impossible to make your monthly payments, such as your mortgage payments. When your finances are in the red and you are missing payments, you may want to consider the advantages of declaring bankruptcy.
Here is a breakdown of how Chapter 7 and Chapter 13 bankruptcy impact homeowners:
- Chapter 7: Chapter 7 bankruptcy allows you to have certain debts discharged (wiped away) so that you no longer have to make payments on them. The main benefit of filing Chapter 7 is that it can help you get relief from your creditors so that you can afford to make your monthly mortgage payments.
- Chapter 13: On the other hand, Chapter 13 helps you create a personalized repayment plan to target specific types of debt. These plans are 3 to 5 years, allowing certain debts to be discharged upon the completion of your plan. One of the benefits of Chapter 13 bankruptcy is that it can help stop foreclosure proceedings by allowing you to pay back the mortgage arrears during your 3 to 5 year plan.
Before deciding which type of bankruptcy is the best option for your situation, you need to hire a bankruptcy attorney in Central New York. An attorney will understand the complexities surrounding the bankruptcy process and can help you protect your assets and get the best possible financial outcome.
Benefits of Bankruptcy For Homeowners
Now that you know how Chapter 7 and Chapter 13 bankruptcy work for homeowners, here are some of the benefits of claiming bankruptcy that homeowners can take advantage of. Keep in mind that New York homeowners receive a homestead exemption to protect the equity in their homes. How much this exemption is depends on where your home is located, which will impact how Chapter 7 and Chapter 13 affect the bankruptcy process.
Protection From Creditors
The main benefit of filing for bankruptcy is that an automatic stay is initiated when you file, which prohibits creditors from making any debt collection efforts. This automatic stay remains in effect throughout the bankruptcy process, whether you file for Chapter 7 or have a 3 to 5 year plan with Chapter 13 bankruptcy.
An automatic state not only protects you from harassment and from having your assets seized, it can also give you the time you need to catch up on payments you may have missed.
Stops Foreclosure
If you are in a substantial amount of debt and you own your own home, you may be facing threats of foreclosure if you have been unable to make your monthly mortgage payments. The automatic stay that takes effect when you file your petition can help to protect you from foreclosure proceedings. However, keep in mind that Chapter 7 will not prevent your home from being foreclosed but it can give you time to pay off the amount you are behind on.
Chapter 13 is a more direct solution for stopping for closure as it allows you to keep your home while getting caught up on your monthly payments throughout your 3 to 5 year plan.
Provides Financial Relief
As a homeowner in Central New York, your mortgage is most likely your largest monthly payment, which can be quite a strain if you are in debt. Filing for bankruptcy can help you discharge certain types of debt so that you can redirect your finances to cover your monthly mortgage payments. This can also help you get rid of high-interest debt that is making it impossible for you to make any financial progress.
Central New York’s Top Compassionate Bankruptcy Attorney
As you are navigating the process of bankruptcy and house ownership, there are certain things you need to be aware of before you decide on a bankruptcy option. At Grady BK, PLLC, we will help you every step of the way as you petition for bankruptcy and deal with the steps that come afterward. Having a Central New York attorney on your side will equip you with the knowledge you need as you navigate this process so that you can proceed confidently.
At Grady BK, PLLC, we have helped hundreds of bankruptcy clients in Central New York and focus on treating each and every case as though they were our only priority. We provide a personalized approach for all of our clients, ensuring you understand how this process works and can make decisions with peace of mind.
Contact us today at 315-299-9005 to discuss your financial situation with a bankruptcy attorney in Central New York. Our team at Grady BK, PLLC, is here to provide you with the legal assistance you need as you navigate bankruptcy proceedings.
