Welcome to Bankruptcy Guide
Bankruptcy New York Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Planning to Avoid Bankruptcy
from:In many cases, it is possible to avoid bankruptcy with some major financial planning and whole new attitude towards your standard of living. In other words, you can avoid bankruptcy if you make plans to do so and then stick with those plans. There are plenty of reasons why you would want to take this approach if there is a way to avoid bankruptcy. Bankruptcy is life changing for many years and can make it more difficult to do certain things for up to 10 years including getting credit you need.
Avoiding bankruptcy is not something you can do in a haphazard manner. It requires a serious evaluation of your current financial status, a desire to reduce your debt and a determination to do whatever it takes. Your plans will require some sacrifices and belt tightening, but the rewards can far outweigh the effort required to avoid bankruptcy. Some people attempt to make these life changes on their own, but a bankruptcy attorney can assist you in many ways you may be unaware are possible.
The reason you are feeling as if you are near bankruptcy is because you have too much debt compared to your income. To reverse the process you will have to reduce your debt and maybe increase your income temporarily. Some people get a part-time job for a while in order to earn extra money to pay off debt. But there are many other steps you will need to take which either lower your debt or create revenue in order to pay off debt.
When you meet with a bankruptcy attorney, the first thing you do is complete a financial evaluation form. Sometimes, the attorney will see ways you can restructure your personal finances in order to avoid bankruptcy. For example, you can sell some assets that are not critical to your day-to-day life. These assets may be any of your personal property.
In some cases, you will be advised to sell your home in order to eliminate a large mortgage payment. You can then take the equity and purchase a smaller house or one with a lower payment. You can also use the equity to pay off debt even if it means renting for a while. Obviously, you need to reduce your spending however it is possible. If you have a lot of unsecured debt, it is often possible to negotiate with the credit card companies to get lower interest rates so you are able to actually make progress towards paying off the balances.
A bankruptcy attorney can assist you with negotiating with your creditors. For example, if you have loans it might be possible to restructure them in order to lower the payments. This is true for your car payment also. In other words, your attorney and you will go through each debt determine if there is a way to get your payments in line with your income.
One of the most important steps you will take though is to establish a budget and then develop the discipline to stick with the financial plan. It may hurt to sell some of your assets, but if you are able to avoid bankruptcy the rewards are immeasurable.
Bankruptcy New York News
Departures leave Dewey a shell of its former self
NEW YORK (Reuters) - Seventeen more partners at Dewey & LeBoeuf announced their departure on Monday, as the failing law firm considered filing for bankruptcy. Rival law firm Proskauer Rose said it was bringing in four partners, including Ralph Ferrara, a vice chairman at Dewey and former general counsel of the U.S. Securities and Exchange Commission. Duane Morris, another law firm, said it was ...
Read more...Bankruptcy judge to rule on American labor contracts June 22
The judge handling the American Airlines bankruptcy case in New York gave himself two additional weeks to decide on parent company AMR's request to reject existing contracts with employees' unions.
Read more...Dewey to consider bankruptcy filing: source
NEW YORK (Reuters) - Ailing law firm Dewey & LeBoeuf is considering a bankruptcy filing as new debtholders take a more aggressive track, shifting away from earlier attempts at an out-of-court liquidation, a person familiar with the matter said on Friday. The majority of Dewey's partners have quit as a result of concerns about compensation, and $225 million in bank loans and bond debt. ...
Read more...How Truthy is David Sedaris?; Defending the New York Public Library Renovations
Today in books and publishing: the truthiness of David Sedaris draws scrutiny post Mike Daisey, Houghton Mifflin Harcourt is headed for bankruptcy, and a defense of the coming New York Public Library Renovations.
Read more...Ally Financial's mortgage unit nears bankruptcy: sources
NEW YORK (Reuters) - Ally Financial Inc's Residential Capital unit is nearing a bankruptcy filing, sources familiar with the situation said on Sunday, in a move that could help the taxpayer-owned auto lender to shed its troubled mortgage business but also spur drawn-out legal fights. The board of ResCap is scheduled to meet later on Sunday and a pre-arranged bankruptcy filing, where Ally has the ...
Read more...Kaye Scholer Partner Madlyn Primoff Provides Outlook for Bankruptcy and Distressed Situations in 2012 and 2013
NEW YORK, May 16, 2012 /PRNewswire/ -- Madlyn Primoff , a partner in Kaye Scholer's Bankruptcy & Restructuring Practice today released her outlook on bankruptcy risks facing various industries in the ...
Read more...REFILE-Dewey to consider bankruptcy filing - source
(Corrects month in which Dewey partner said no plans forbankruptcy to May from March in paragraph 13 of story publishedMay 18) * New crop of creditors pressuring Dewey to seek bankruptcy- source * Creditors ...
Read more...Houghton Mifflin files Chapter 11 bankruptcy
(Reuters) - Houghton Mifflin Harcourt Publishers Inc filed for bankruptcy protection on Monday after the textbook publisher reached agreement with a majority of its creditors to cut about $3.1 billion of debt. The Boston-based company and two dozen affiliates filed for Chapter 11 protection in U.S. bankruptcy court in Manhattan. It said it had more than $1 billion in both assets and liabilities ...
Read more...