Post-Sandy: Can a Chapter 7 Bankruptcy be My Best Option?
What might climate change and a Brooklyn Chapter 7 attorney have in common? Plenty, given how major storms can be the event that pushes people and companies financially over the edge.
According to research compiled on storms of $1 billion or more in damage between 1980 and 2004 (University of Illinois College of Law, Robert M. Lawless, author, published in the Nevada Law Journal, 2005), bankruptcy filings rise for two to three years following a hurricane. This suggests an increase in Chapters 7, 11 and 13 bankruptcy filings in 2013 through 2015 in the Tri-State area.
For some of those in financial distress, the difference might be if your building was destroyed or not. Lacking any ability to rebuild and recover such a large loss, the best option is likely to contact a Bronx Chapter 7 attorney. While Chapters 11 and 13 offer an opportunity to reorganize and pay off debts over time, Chapter 7 instead enables the following:
- Discharge all debt immediately, enabling a clean start.
- When a property is worth little or if you rent, it is not a large loss in the required dissolution of assets. That said, homeowners retain a homestead exemption worth as much as $150,000, depending on the county or borough where you live.
- The process is relatively quick, completed in three to six months.
Climate change might bring more superstorms, and it certainly makes sense to prepare physically and financially, while including ironclad insurance policies. However, if bankruptcy is what you’re considering, contact the Law Office of Gregory Messer, serving businesses and individuals in Brooklyn, throughout New York City and on Long Island.