Chapter 7 bankruptcy is designed to give consumer debtors fresh starts on financial freedom. This freedom is achieved through liquidating the debtor's assets and using the proceeds to pay off creditors. Though Chapter 7 bankruptcy can give debtors a way to get out from under their financial burdens it can also induce fears in those who want to keep at least some of the real and personal property items.
For New Yorkers and people all across the country, money troubles can develop in a number of ways. Unexpected unemployment can stop a person's income. Emergency medical procedures can create insurmountable bills. Failing to adequately plan for one's future can also throw a wrench into a person's financial health.
Previous posts on this blog have discussed the differences between business bankruptcy and personal bankruptcy, as well as the differences between the various forms of bankruptcy available to individuals seeking out financial legal protections. While some types of bankruptcy allow individuals to keep their assets, others require parties to sell off their possessions in order to satisfy creditors. A recent news story may highlight for New York readers how bankruptcy can lead a business to undergo the process of asset forfeiture.
Like other legal processes that seem to go on forever, a consumer bankruptcy matter can seem to sit in the courts for months. As a Rockland resident watches as his assets are sold or his debts are reorganized, he can find himself wondering when the headache will end and the fresh start can begin. That answer depends on the form of bankruptcy that he has utilized.