The 5 Things Bankruptcy Court Won’t Tell You.

1. “Personal Bankruptcy’s not just for the poor.” The old saying about the bigger they are the harder they fall is certainly true. Take a look at Celebrity Recession: Who Lost It All In 2009 and 2010 Anybody can get in financial difficulty and they do!

2. “When it comes to bankruptcy, one size doesn’t fit all.” You don’t go to the shoe store and ask for the same size shoes as your brother-in-law got yesterday. Same holds true for bankruptcy. There are differences in the way debt gets handled in personal bankruptcy, often depending on which kind you file for, either Chapter 13 or Chapter 7. And each has pros and cons. In the shoe store you need a knowledgeable salesperson to measure your foot and find the size just right for you. Likewise, to find the right course of action in bankruptcy you need to consult a experienced bankruptcy attorney to find the Chapter just right for your circumstances.

3. “We don’t want your house if we can’t get good money for it.” There is an old saying that warns “be careful what you wish for you may get it.” Secured Creditors sometimes make loud noises about taking back their collateral, but often times they really don’t want your car or your house. Especially when there is no equity or it has big exemptions protecting the equity.

4. “This could actually improve your credit score down the road.” You heard it right, filing a bankruptcy could actually start you on the way to a much improved credit score. Whenever you find yourself in a hole the first thing to do is to stop digging! Filing a Chapter 7 or Chapter 13 Bankruptcy certainly will lower your score, but at least then you can start back on the road to recovery. Continuing delinquencies on credit cards will doom you to perpetual FICO hell. Starting with a clean slate gives you the chance to make rapid improvement in your score.

5. “Debt-settlement firms may do more harm than good.” Trying to get multiple credit card companies to get in line and agree to meaningful debt-settlement is kind of like herding cats. It just does not work. Unless you can come up with a cash settlement for creditors debt-settlement is doomed to failure. If you don’t qualify for a Chapter 7, making payments per a Chapter 13 Plan is a much better option.

To speak with a New York Bankruptcy attorney contact Maxwell Law Firm PLLC at 718-701-0095 or online.