Don’t be tricked by enticing advertising for “debt consolidation” and “debt relief programs”. The only debt settlements that work, are those made directly with the bank, in writing.
Not that many people know, but the best way to get a mortgage or loan modification on your primary residence is through the loss mitigation program instituted in all districts of the New York Bankruptcy courts.
Chapter 7 is the simplest type of bankruptcy, ideal for those with no assets or assets and real property that are “exempt” and income below a certain allowance. It allows you to discharge unsecured debt, while in many cases retaining your real property, with equity below a certain amount.
Chapter 11 is one of our specialties. It is a reorganization’s bankruptcy that can be used for an individual or a business, in order to save property and assets, keep business functioning, while in many cases, drastically reducing debt.
Chapter 13 Bankruptcy is an option for those whose income exceeds Chapter 7 bankruptcy requirements and those who own property whose value exceeds homestead equity allowances of Chapter 7, or who own an investment property with equity. Chapter 13 is usually a 3-5 year repayment plan of all excess monthly income to the trustee, for the benefit of the creditors.