Rochester Bankruptcy Law Blog

In today's economy, individuals and businesses are equally challenged financially. For some, one of the ways to find relief from relentless creditors is under the protection of bankruptcy. New York residents haven't been immune to the country's economic downturn. Even famed celebrities have found it difficult to hide from their financial trouble.

Celebrities are often living proof that it does not matter how much money you make, because unless you manage your finances wisely, you will find yourself buried under insurmountable debt. This is where we have found famed actor Gary Busey, who recently filed for the Chapter 7 bankruptcy protection from his creditors. In recent documents filed into bankruptcy court, the star of the hit movie "Lethal Weapon" revealed that he owes a lot more money than he actually has. Busey listed $50,000 or less in total assets while his liabilities totaled $500,000 to $1 million.

If you are an individual in New York facing insurmountable debt, then debt collectors are generally bad news. After all, many of these companies can leave you feeling stressed by paying you a number of threatening phone calls or issuing a threat of foreclosure.

Granted, there are a number of debt collectors that over step the bounds of what is legal, or even ethical, in order to extract money out of you. But, to be fair, many third-party debt collection agencies play by the book and have had a very positive effect on the nation's economy.

Many residence in Rochester and the greater area have been inundated with news reports about the Kodak's bankruptcy proceedings. The worldwide maker of photography equipment, based in Rochester, has filed for Chapter 11 bankruptcy. Those that do know a bit about bankruptcy law, or are regular readers of this blog, might wonder why the company has not opted for a Chapter 7 bankruptcy filing.

Chapter 7 bankruptcy, which includes liquidation of all assets, certainly can prove valuable for individuals facing insurmountable debt. It is also generally aimed at individuals that have low or no income in which to use to pay off those debts. Therefore, instead of forming a payment plan in hopes to pay off most of the debt, they simply receive forgiveness on a lot of it.

New Year's resolutions generally remain intact within the first couple of weeks into a new year only to fall apart later. If you are one of the many New Yorkers who vowed to blast through credit card bills, rebuild your credit and live an overall healthier fiscal life, there are steps to take rather than just letting another resolution go to waste.

There is no better time to rebuild a credit score than now. A recent study conducted by the credit information web site, Quizzle, said that in the last two years, it has seen credit scores slide by up to 30 points. A credit score is vital in accessing important financial resources, like loans. The average credit score is 657, and anything lower than 600 puts a consumer at risk of not receiving a loan. Credit scores over 700 generally put consumers in line for lower interest rates.