What Are the Benefits of Filing for Bankruptcy in NY?

empty wallet

Our firm understands that making important financial decisions is not that simple. With an experienced Newburgh bankruptcy lawyer, you can make the most informed choice for you and your future.

What are the benefits of filing for bankruptcy?

You will want to recognize the several upsides to filing for bankruptcy in New York, and it is not as serious as it seems to be. In particular, one of the most important advantages of filing for bankruptcy is the automatic stay policy. This policy was passed so that in the event that you file for bankruptcy, an automatic stay is immediately set on all your creditors, which permits you to keep your home while preventing creditors from seeking all collection measures. It is also essential to mention that there are many other benefits in addition to this one. Some other pros to filing for bankruptcy include:

  • You may ignore your obligation to repay any of your dischargeable debts
  • Multiple debtors will start improving their credit rating after you file
  • You may go through the bankruptcy process without relinquishing any of your property
  • Sometimes, you may be able to keep your car, your home, any pensions, IRAs, and retirement accounts, up to $10,000 in value of household goods, life insurance policies, and more.

It is in your best interest to reach out to our firm today if you have questions or concerns about the pros of filing for bankruptcy. Our skilled legal team is ready to help you with whatever uncertainties you may be feeling. We are determined to make sure you and your financial future are put first.

What are the cons of filing for bankruptcy?

Note that while there are many benefits to filing for bankruptcy, there are also cons to think about. It is important to consider all of these factors in order to make sure that you are making informed financial conclusions. Some of the most significant cons of filing for bankruptcy include the following:

  • It may be difficult to get a new credit card or line of credit
  • Raised insurance premiums
  • Bankruptcy will be noted on your credit report for 7-10 years
  • It may negatively affect your ability to acquire a job in the future
  • Some landlords are suspicious of those who file for bankruptcy

Our firm suggests that you view all of your options and understand the pros and cons of filing for bankruptcy before making your decision. The best way to do this is to give our firm a call today to look into your options with a skilled attorney. We are equipped to help you with whatever you choose.


Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.

Read Our Recent Blog
View More