Credit seems to be available everywhere. Many stores throughout New York offer their customers credit cards that provide those users with in-store benefits. Car dealerships find ways to finance new automobiles for people who cannot pay cash for the vehicles they want and need. The vast majority of people who endeavor to own their own homes must take on mortgages in order to cover the high costs of owning real property.
In a short period of time, a New York business can find itself working with a variety of creditors. From banks that loan it money for start-up costs, to credit card companies that give it spending power to outfit it to succeed in its industry, businesses can quickly owe money to a lot of creditors with a lot of different loan terms. If a business struggles to gain a financial foothold, it can find itself facing those creditors all at once when bills start falling into default.
As readers of this New York bankruptcy law blog may know, Chapter 7 bankruptcy and Chapter 13 bankruptcy have different processes and end goals. Chapter 7 bankruptcy, also known as liquidation bankruptcy, sells off a debtor's possessions with the end result of satisfying creditors and leaving the former debtor with a clean financial slate. Chapter 13 bankruptcy, however, allows a debtor to keep his possessions and reorganize his debts into manageable payments for the satisfaction of his outstanding obligations.
It is an unfortunate fact that every year some individuals choose to break the law and commit bankruptcy fraud. While some instances of bankruptcy fraud occur due to accident or inadvertence, in other cases individuals in New York and across the rest of the country deliberately violate legal mandates to follow proper consumer bankruptcy procedures. A popular reality star is now in jail for committing crimes related to bankruptcy.