Silverberg Business Bankruptcy Law

Life During Bankruptcy

Perhaps you have experienced a divorce, or a serious illness, or the loss of a job. Life can throw curves that are unexpected and can cause financial devastation. Statistics show that in many cases those who file bankruptcy are better off than those who do not. It is important to remember that bankruptcy is not a moral decision, but a financial one. It is an opportunity that exists within our legal system to create a fresh financial start. However, while you are in the process of bankruptcy, it can feel overwhelming. Knowing what your life will be like during bankruptcy can help the process.

Chapter 7 vs. Chapter 13

You have two options when you declare bankruptcy, either to file a Chapter 7 or Chapter 13 bankruptcy. Chapter 7 discharges all of your debts, but also requires you to liquidate many of your assets. Many people choose to file a Chapter 13 bankruptcy that will require you to create a repayment plan for three to five years but will allow you to keep a substantial amount of your assets.

Length of Bankruptcy

If you file for a Chapter 7 bankruptcy, your life during the bankruptcy process will consist of filing, likely visiting with your attorney, the bankruptcy trustee, and the creditors in your 341 meeting of creditors. After all your debts and assets are determined, final decisions are made, many of your debts are discharged and you then start your new fresh financial life. The time during this period requires you to be financially careful and not make any large purchases, as well as remain in contact with the bankruptcy trustee. However, a Chapter 7 bankruptcy does not take a considerable amount of time, and your life will be only slightly inconvenienced through the process.

If you file for a Chapter 13 bankruptcy, your life during the bankruptcy will look quite different. The bankruptcy can take a full three to five years to complete, and during this time you will be paying monthly to your creditors under your repayment plan. Three years can seem like a long time, and it may seem overwhelming to be involved in the legal process of bankruptcy for that period of time, but this type of bankruptcy will allow you to keep many of your assets, so the price may be worth it to you.

Bankruptcies are Public Information

Both Chapter 7 and Chapter 13 bankruptcies are public information. As you consider your life during bankruptcy, realize that there is no longer such a stigma associated with filing bankruptcy as there once was. If you file a Chapter 13 and have a reorganization and restructuring of debts, your employer will likely find out as some bankruptcy trustees will send a form to your employer to set up that deduction automatically. It is possible to request that the court allow you to pay the trustee directly if you are uncomfortable with your employer knowing about your bankruptcy.

Additionally, if any of your creditors are your family or friends, they will also find out as the bankruptcy trustee will send out a notice to all creditors as required by law. Again, while this may be emotionally uncomfortable, the bankruptcy process is intended to allow a person to create a fresh financial start.

Paying Bills

Even though you are going through a bankruptcy, you are still required to pay your bills, and remain current on your house, car, or other debts. Maintaining your payments on these debts is important, as if you are behind on your payments at the end of the bankruptcy there is a chance that the court will not issue you a discharge.

Contact an Experienced Bankruptcy Attorney Today

An experienced bankruptcy attorney can help you understand what your life will be like during your Chapter 7 or Chapter 13 bankruptcy. Your specific case has unique circumstances, and a bankruptcy attorney is well equipped with years of experience to let you know not only about the legal process but about how to navigate financial issues during and after a bankruptcy. Contact the bankruptcy attorneys at Law Offices of Jay Silverberg at 212-687-7000 or online for a free consultation today. 


Speak to our experienced attorney about your case; and we’ll provide you with the best solution possible.

At Law Offices of Jay Silverberg our team will analyze your case and determine that whether bankruptcy is the right option for you. If yes, then we will handle every aspect of your legal process, start to finish.

We will provide you with:

  • Professional Assistance
  • Strong Legal Representation
  • Quality Guidance
  • Complete Knowledge

Which will help you make the right choice, and get out of debt smoothly, and fast.


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