When you have missed several debt payments, your creditor (person who you owe money) may take you to court. The result of this may be a judgment against you that allows your creditor to take money out of your bank account or put a lien on your property. A lien placed on your home or other property means that the creditor will take payment when that property is sold. So if a person was sued by their credit card company for $175,000 in debt, and the credit card company won a judgment and lien against that person’s home, then the person has three options: pay the $175,000, wait until the home is sold and give the credit card company $175,000 from proceeds, or declare bankruptcy.
If a judgment is taken against you, bankruptcy can discharge that judgment. If there is a judgment and a lien against property, then your bankruptcy options are more limited, but can still be very helpful in getting rid of much of the debt.
However, if you are involved in another type of law suit, and you are being sued for fraud, negligence, personal injury, etc., then bankruptcy cannot discharge this debt. Instead of going to a bankruptcy lawyer in New York, to have all of your debts discharged and canceled, this makes it hard or impossible to remove this debt.
Bankruptcy is of course a good option for many people- if only to keep all of your belongings and stop the phone calls and cancel the debt, allowing you to take control of your income and assets. Why not contact experienced New York bankruptcy attorneys at Dwyer & Associates to discuss your options or call 212-203-4965.
We are a debt relief agency. We help people file for Bankruptcy under the Bankruptcy Code.
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Are people really choosing to suffer rather than declare Bankruptcy? « Dwyer & Associates Blog (NYC Attorneys) // June 16, 2009 at 9:44 AM |
[...] weren’t running through her head. So I explained the benefits of bankruptcy and the dangers of not filing. We also compared bankruptcy to credit repair companies,debt management companies, and mortgage [...]
NYC Attorneys- Questions of Trust? « Dwyer & Associates Blog (NYC Attorneys) // June 25, 2009 at 12:14 PM |
[...] In short, you should take advantage of any free initial consultations with a lawyer to get a feeling for how you might like to work with them; if they give you some faith in your situation and above all else, take some stress of your shoulders. Being a lawyer is a calling, a profession where we hope to offer counsel and advice so the public will be able to trust us the same way they would trust a doctor, accountant or priest. There is no doubt attorneys want to be able to help you, but there is also no doubt that people will often wait so long out of worries about trust that they will end up in a far worse position! At Dwyer & Associates we regularly try to give valuable advice, even if means you won’t be our client if we feel you don’t need a lawyer. If you are worried about debt in particular, please don’t suffer for so long you end up with a judgment. [...]