Will bankruptcy affect my credit?

Although bankruptcy will remain on your credit report for ten years from the filing date, by eliminating all or most debts, it may actually help your credit.

In addition to improving your debt to income ratio, bankruptcy may allow you to qualify for an FHA or VA-insured mortgage in as little as two years.

As your counselor, Buffalo bankruptcy attorney Thomas Denny will provide guidance on how to establish new credit and improve your credit rating.

Will I have to go to court?

Approximately 20 to 40 days after filing for bankruptcy you will be required to attend a ”meeting of creditors.” There, the trustee will review your petition and ask questions about your property and finances. The proceeding takes approximately 15 minutes and, although it is a called a “meeting of creditors,” very rarely do creditors actually attend.

Unlike many lawyers who send associates to take their places, Buffalo bankruptcy attorney Thomas Denny personally represents each and every one of his clients at the meeting of creditors.

Will bankruptcy stop foreclosure?

Filing for bankruptcy places an automatic stay (a stop) on foreclosure proceedings. Under Chapter 7, however, after several weeks, the mortgagee (the bank) will likely apply for and be granted relief from the stay and be allowed to continue the foreclosure proceeding.

Chapter 13 provides a way to avoid foreclosure altogether by forcing the bank to allow you to pay the past due amount, over time, in addition to your current mortgage payments.

Contact Buffalo bankruptcy attorney Thomas Denny for more information on how bankruptcy can stop foreclosure.

Can I Keep My Home After Bankruptcy?

Under the New York State bankruptcy exemptions, a debtor in Buffalo NY may keep up to $75,000 in equity in his or her home. A married couple filing jointly may keep up to $150,000 in home equity. Under the federal exemptions, each debtor may keep up to $22,000 in equity in his or her home.

As long as the difference between what you owe on your house and its market value is less than the exemption amount, you will not lose your home.

For those who do not own homes, the federal exemptions are the preferable option since they allow the debtor to keep considerably more in cash and personal property, such as an automobile.

What is a bankruptcy discharge?

A bankruptcy “discharge” releases you from personal liability for discharged debts and prevents creditors from taking any action against you to collect the debts.

If you are struggling to pay your debts, Buffalo bankruptcy attorney Thomas Denny will help you attain protection from collection action under Chapter 7 of the U.S. Bankruptcy Code.

When your bankruptcy case is completed, you will receive a discharge from the Court which will release you from all or most of your debt obligations.

Chapter 7 or Chapter 13?

Chapter 7 bankruptcy enables you to discharge certain debts, including medical bills, personal loans, and credit cards. If you wish to keep your home or your car you will need to continue to make your mortgage and/or car payments.

Chapter 13 bankruptcy allows you to avert foreclosure by extending the delinquent mortgage payments over the life of the Chapter 13 repayment plan. It also allows you to cure other delinquent secured debts, such as an automobile loan.

To find out which form of bankruptcy is right for you contact Buffalo NY bankruptcy attorney Thomas Denny.