Legal Question in Bankruptcy in New York

If a consumer debtor defaults on credit cards debt, typically 1st the account gets turned over to a collection agency for collection efforts (calls and letters). If the debtor doesn't pay at that stage it then typically gets sent to a collections law firm to file a lawsuit against the debtor.

If the creditor gets a judgment the creditor�s attorneys can seek to enforce that judgment against any non-exempt assets that the debtor may have, including bank accounts, cars, and real estate. Judgments also accrue interest at the rate of 9% per year. A judgment stays on a credit report for 7 years and is enforceable for 10 years.

If the debtor owns real estate and the creditor obtains a judgment depending upon the court from which that judgment issued, or if a transcript of judgment is filed with the County Clerk for judgments from certain inferior courts, the judgment creditor will have a lien upon the debtor's real estate that is good for 10 years and can be renewed for another 10. If the debtor seeks to sell, transfer or refinance the property the lien will need to be satisfied.

Whether or not bankruptcy makes sense for a debtor depends upon various factors. Please feel free to visit the Frequently Asked Questions (FAQs) on our website at www.starrandstarr.com and posting on our Blog at www.newyorkbankruptcylawyerblog.com/ for further information.

The foregoing is not intended as legal advice for your situation. Facts and circumstances not disclosed in your brief posting may materially affect your rights. You should consult with an attorney in your district.

Best regards,