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Hudson Valley Area bankruptcy fraud lawyer

Bankruptcy can help debtors turn their lives around, but it is a highly complex process with a lot of potential pitfalls. Landing in one of them can have consequences that range in severity, from difficulty in getting the bankruptcy discharged to a full-on bankruptcy fraud investigation with additional consequences if found guilty. If you are planning on filing for bankruptcy, know your risks and how you can best avoid these possible consequences.

What Is Bankruptcy Fraud?

Bankruptcy is intended for those who cannot afford to pay back their creditors. If, however, one files simply to avoid paying debts that are owed, he or she can be found guilty of bankruptcy fraud—a broad term used to describe any and all intentional abuse of the system. This can include:


Rockland County bankruptcy attorney

Sometimes, life attacks from multiple sides at once. Unfortunately, it is not terribly uncommon for those going through a divorce to find themselves facing the possibility of filing for bankruptcy protection at or around the same time. In some cases, the couple’s debt may have contributed to the decision to divorce. In others, the breakdown of the marriage and the subsequent separation may have pushed one or both spouses into a troublesome financial situation.  However, depending on your unique situation, it can be difficult to determine which proceeding should happen first and how to handle both. A skilled attorney can assist you in exploring your legal options to achieve a secure financial future. 

Divorce First

Depending on the situation, getting a divorce before filing for bankruptcy can be the best path for many couples. There are two different types of bankruptcy filings that are primarily used by private individuals and families, and they are referred to by the chapter in the U.S. Bankruptcy Code under which the petition is filed. Generally, Chapter 7 is used to discharge debts for individuals or couples with very few assets, while Chapter 13, also called reorganization bankruptcy, is for those with steady income and debt that it is possible to restructure. 


Hudson Valley Area bankruptcy attorney

In the fall months, students across the country are embarking on a new year of education. For those who are concerned about their finances, now may also be a good time to educate yourself on personal financial management and the potential benefits of filing for bankruptcy. When you work to improve your financial literacy, you can make decisions that help you avoid or reduce excessive debts and plan for a more stable future. There are many useful resources available to you if you know where to look, and help is always available from an experienced bankruptcy attorney.

Understanding Bankruptcy and Personal Finance

For individuals and families facing high amounts of debt and struggling to keep up with payments, bankruptcy can be a good option to eliminate, reduce, or reorganize payment obligations. If your income is below a certain threshold according to the Means Test, you may be eligible for Chapter 7 bankruptcy. This form of bankruptcy liquidates your assets to reduce or discharge debts. Otherwise, you may pursue Chapter 13 bankruptcy, which allows you to reorganize debt payments to make them more manageable.


Hudson Valley Area bankruptcy attorney

As your college student children begin another school year, the financial cost of their education may be at the front of your mind. U.S. News reports an average tuition cost of over $10,000 for in-state, public college students for the past year, with significantly higher costs for private colleges, and this does not even account for additional expenses like room and board. These high costs mean that many parents and students require financial aid, but if you have recently filed for bankruptcy, you may be concerned about your ability to qualify for aid that can make your children’s educational goals a reality.

Financial Aid Eligibility After Bankruptcy

Thankfully, there are still options available to you to fund your children’s education even if you have recently filed for Chapter 7 or Chapter 13 bankruptcy. The United States Bankruptcy Code protects you from several forms of discriminatory treatment due to your bankruptcy, including the denial of most federal student loans and grants. This means you and your child can still apply for federal subsidized and unsubsidized Stafford loans, which do not take your credit history into consideration.


Hudson Valley Area bankruptcy attorney

Are you finding yourself drowning in loads of debt and are unsure of how you will financially recover? Debt can quickly become overwhelming and as the number continues to add up, you may not know how you will ever pay it back. Filing for bankruptcy is typically a last resort for overcoming debt issues, but for some, it may be their only option. The term bankruptcy holds a certain amount of dramatic weight, and you may be wondering if you have really made it to that point. If you are thinking about taking this major financial step, consider the following information before contacting a reputable bankruptcy attorney.

Common Reasons for Filing for Bankruptcy

Although everyone’s circumstances differ, there are a few common life experiences that can spur the need to file for bankruptcy, such as the following events: 

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