What Are the Pros and Cons of Filing for Bankruptcy in New York?

Filing for bankruptcy is a big decision. That is why you will want to ensure that you understand the pros and cons of each before making your first move. Continue reading and reach out to a skilled Newburgh bankruptcy lawyer today to learn more.

What are the pros of filing for bankruptcy?

Even though many people may think otherwise, there are a number of upsides to filing for bankruptcy in New York, and it really isn’t as scary as it seems. One of the greatest advantages of filing for bankruptcy is the automatic stay policy. This implies that in the event that you file for bankruptcy, an automatic stay is immediately set on all your creditors, which allows you to keep your home while blocking creditors from pursuing all collection measures. It is also critical to understand that there are a number of other benefits outside of just this one. Some other pros to filing for bankruptcy include the following:

  • You may dismiss your obligation to repay any of your dischargeable debts
  • Numerous debtors will begin improving their credit rating after you file
  • You may go through the bankruptcy process without losing any of your property
    • In some cases, you may be able to keep your car, your home, any pensions, IRA’s and retirement accounts, up to $10,000 in value of household goods, life insurance policies, etc.

To learn more about the pros of filing for bankruptcy, it is in your best interest to reach out to a skilled New York bankruptcy attorney today to examine the facts of your case with a reliable legal team member.

What are the cons of filing for bankruptcy?

While there are many advantages to filing for bankruptcy, it is important that you also recognize the cons of filing for bankruptcy to ensure that you are making educated financial determinations. Some of the most significant cons of filing for bankruptcy include the following:

  • You may find it hard 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 impact your ability to get a job in the future
  • Some landlords are leery of those who file for bankruptcy

It is essential to consider 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 reach out to our firm today to discuss your options with a skilled attorney. Our legal team is on your side.

CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE

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.

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