Bankruptcy is a federally guaranteed right set out in the constitution that allows individuals and businesses to start fresh when they find themselves in dire financial situations overcome by debt. This financial fresh start usually comes from a combination of:
- Liquidation
- Reorganization
- Repayment
Congress enacted the Bankruptcy Act of 1898 which allowed debtors to claim exemptions to certain property while increasing debtor ability to discharge debts.
Undertaking Bankruptcy Filing in Nassau County, New York
Every bankruptcy begins with a petition filing. The petition is essentially a breakdown of an individual's finances, assets, liabilities, contracts and leases. When someone files for bankruptcy, an automatic stay goes into effect and bars creditors by law from attempting to collect (unsecured debts). A trustee is assigned to oversee the bankruptcy and play a role in administration. Ultimately the course that the process takes after this depends on the filing, whether it is Chapter 7 or Chapter 13.
It's worth noting that federal law is supreme over state or local law. Because bankruptcy is federally guaranteed, any entity (person, business, etc.) that files for bankruptcy is protected, regardless of state laws in effect. It is also convenient, as all creditors file claims in one court.
As an attorney, I've helped hundreds of clients file bankruptcy optimally. I'm committed to taking more than two decades of experience to educate you fully on how bankruptcy works, help you decide if it is the best solution in your circumstances, and decide which route to take.
To discuss filing bankruptcy in a free initial consultation with New York bankruptcy lawyer Scott R. Schneider, call 516-433-1555 or e-mail him here.
I am a federally designated debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.
