Residents of New York understand that debt can be a major pitfall in life. In an attempt to get their life back on track, some have decided that filing for personal bankruptcy would be their best bet. For some, this is their opportunity for a fresh start, while for others debt reconstruction is their only option. Paying off debts can be a difficult task when a person is unemployed or underemployed. This is why it is important that debtors understand their rights and options in these situations.
Since the recession and an era of difficult economic times, the number of bankruptcy cases filed in two major cities in New York in 2013 has dropped nearly 10 percent from the previous year. This marks the fourth consecutive year of a drop in filing for bankruptcy in these areas.
When looking at the trend, it is clear that the decrease could be owed to people using credit more responsibly since 2009. In addition, fewer people are being extended credit. This allows for fewer people to misuse credit and get into difficult debt situations.
There are various ways to alleviate or reduce major debt issues, and for some filing for chapter 7 might be their best option for dealing with their financial woes. This allows the debtor to liquidate their assets in order to pay off their debts. Any remaining amounts owed will be erased, so the individual or family can start fresh.
When an individual or family is struggling with debt, it is sometimes helpful to speak with a credit-counseling agency. They can help put their money situation in perspective and give them a realistic future outlook. For some, negotiating an agreement with their lenders might be the solution to their problem.
When it comes to debt and restructuring or alleviating that debt, it is important to be aware of the available options as well as the steps needed to take in order to file for bankruptcy. Starting fresh might seem ideal, but one should understand what it means to file for bankruptcy so they can determine if it is their best option.
Source: Buffalo News, “Buffalo/Rochester bankruptcies fall for fourth straight year,” Matt Glynn, Jan. 03, 2014