Bankruptcy is often the most effective way to eliminate major debts. By filing, New York residents could reduce or eliminate their credit card, medical and other outstanding balances. However, it is important to note that not all debts can be eliminated. Student loan debt generally cannot be discharged, regardless of whether a person files for Chapter 7 or Chapter 13 protection.
Past-due taxes and bankruptcy
The United States bankruptcy code allows consumers to have certain debts dischared. Other debts are not eligible for bankruptcy protection. It's important to know the difference prior to filing for voluntary bankruptcy in New York. Those with debts such as recent taxes,that cannot be discharged may need to make an arrangement with the IRS to pay the taxes or negotiate a settlement.
Is alternative dispute resolution a possibility for my divorce?
When it comes to divorce, most people immediately think of high-stakes conflict and nasty, drawn-out courtroom battles. However, not all couples go through traumatic divorces, and many are even able to find harmonious solutions despite a fraught situation.
How to quickly recover from bankruptcy
A bankruptcy can stay on a credit report for up to 10 years. However, those who file in New York or elsewhere can start rebuilding their credit far sooner. According to a study from LendingTree, 65 percent of those who filed for bankruptcy had a credit score of 640 or higher two years after filing. The study looked at 1 million LendingTree users who had received loan offers in 2017.
