What Will Happen To Private Property In case You Submit Bankruptcy?
When someone decides to submit bankruptcy in New York, he must understand how the court checks his economic details. There are lawyer's fees and expenditures which you have to pay besides what you ultimately have to pay to creditors. As stated by the law, you are just permitted to have $7,500 after paying off the lawyer's fees. Any sum, or property which you possess will be taken away.
You have to keep in mind that bankruptcy trustee, which has been formed to look after your case is responsible to pay back your lenders. The law visibly says that no amount of money beyond $7500 would be left behind. Every property or everything that has some sort of economic benefit will get into the hands of Bankruptcy trustee for settling of financial debt. Before you file for bankruptcy, you have to know what chapter 7 bankruptcy is.
Chapter 7 bankruptcy
If you file chapter 7 bankruptcy, you will be glad to find out that you will never have to repay your debts. Your creditors will rather get the money from the court. The court will form Bankruptcy Trustee, that will deal with the creditors directly. They will be responsible to pay back the cash that you owe to the creditors. However, there is a hitch here - you'll have to surrender any property that you've.
Again, in some instances, there's a possible exception. Your property has been exempted from takeover by the state, or the federal government has granted the property to be exempted. In such situations, no one will come near your property. Otherwise, the Bankruptcy Trustee will take control over the property.
They'll do the estimate of the property and do other needful, before looking for a buyer. Once the deal has been settled, the property will be sold at the agreed price. After selling the property, the amount they receive will be used to repay the lenders.
In the meantime, you need to sit with your creditors, to finalize monetary specifics and check out documentations. Additionally, you will have to answer the court regarding your secured debt. This takes around six months in all, before you will be finally released from the bankruptcy status.
There are plenty of problems in the process. It is essential that you consult with a top class attorney. A legal professional who has got the experience to help you out of problems would be a good thing for you. You have to make contact with a Queens Bankruptcy attorney to know the way the court operates in bankruptcy issues in New York.
There are several legal professionals in New York that can provide you an insight regarding how to move forward on bankruptcy issues. Zelenitz Shapiro & D'Agostino P.C. is probably, perhaps the best legal representatives who have dealt with several bankruptcy cases. He knows these cases good enough to inform you what you can do to acquire greatest advantage from these circumstances. Discuss with him to know the whole method before you file for for bankruptcy.