Many New York businessmen look on bankruptcy as the end of a business, but some investors look to bankruptcy as the only path to resurrecting the business. A prime example of using bankruptcy to save a business instead of dismember it was recently provided by the TIME Nyack Hotel.
Firms who file bankruptcy petitions offer many different reasons why they are in financial peril. In a recent filing in White Plains federal court, the president of a construction firm based in Armonk, NY, blames lack of revenue for the firm's inability to pursue legal claims and recover money allegedly owed to it.
One of the first tasks faced by a Rockland County resident who has decided to file a Chapter 7 bankruptcy petition is choosing between exemptions provided by the United States Bankruptcy Code or New York law. The two lists are different from each other, and choosing the list that best suits the debtor's financial circumstances can be crucial. Some exemptions are better known than others. For example, New York law allows a debtor to declare up to $10,000 of value in real estate as exempt, whereas federal law limits the exemption to $15,000. If real estate constitutes a person's largest asset, this difference alone may determine the choice. However, many debtors do not own a home, and the lesser known exemptions may be more important.
One of the prime motivations for filing a bankruptcy petition is accumulated credit card debt. Many residents of Rockland County who have let their use of credit cards get out of control often look to bankruptcy for relief, but very few understand what happens to credit card debt in a bankruptcy proceeding. The answer to this question depends upon the type of bankruptcy proceeding that is chosen and upon the debtor's ability to continue to pay off those credit card balances.