What Is Not Contemplated In A Bankruptcy
In the previous section we saw what is involved in filing for bankruptcy in New York. However, in this section we will discuss what bankruptcy does not do. And, in that sense, it is important to clarify that filing bankruptcy does not solve all financial problems. Bankruptcy has some consequences, such as, for example, weakening your credit score.
Note: Filing for bankruptcy will weaken your credit score. Check here how you can improve your score.
Bankruptcy does not take into account the following points:
Filing For Bankruptcy To Stop Eviction In New York
When a tenant files for bankruptcy in New York, an automatic stay is created. An automatic stay is a mandatory injunction that arises without the need for a hearing or court order, and it operates to protect the debtor and his or her property at the onset of a bankruptcy case. An additional function of an automatic stay is to prevent eviction until the bankruptcy court has had an opportunity to assess the merits of the case. However, there are a number of circumstances in which a bankruptcy automatic stay will not prevent an eviction, including:
New York Legal Representation
If you are considering filing for bankruptcy in New York, please contact an attorney to discuss your situation. An experienced New York Chapter 7 or Chapter 13 bankruptcy attorney will keep you apprised of your rights while ensuring that you understand all of your debt relief options. Please contact us for a free consultation.
What Is Chapter 7 Bankruptcy
Filing for bankruptcy gives a fresh start to financially strapped individuals. In a Chapter 7 personal bankruptcy, all credit card debts and unsecured debts are eliminated and it gives you a chance at a new life.
After bankruptcy, you can recover good credit in about two years. Filing for bankruptcy does not mean 7 to 10 years of bad credit that is a myth. Credit card companies usually offer you new credit cards right after the bankruptcy is over. Qualifying for a mortgage will take about three years after bankruptcy.
The most often asked question is how does one qualify for Chapter 7 bankruptcy? Essentially, you need to have three things: moderate to low income, significant amount of debt and no substantial property.
One: Moderate to Low Income
In order to qualify for Chapter 7 personal bankruptcy, you must have moderate to low income as set forth in the Bankruptcy Code. Your income level is determined by your households circumstances. This includes factors such as your cost of living, where you live and what deductions are taken out of your paychecks.
In order to determine if you qualify for Chapter 7, please call us. We provide free consultations to review your situation and let you know if you qualify for help.
Two: Significant Debt
Three: No Substantial Property
Contact Us Today for a Free Consultation. Call:
About Us
For the past twenty years, Charles Juntikka & Associates has filed the most personal bankruptcies annually in New York City over 20,000.
Recommended Reading: How To Save Your House In Bankruptcy
Print Your Bankruptcy Forms
When completed, the forms for your Chapter 7 bankruptcy in New York City will consist of between 60 and 100 pages. You will need to print at least two copies of your New York City bankruptcy forms. You will sign one copy and file it with the Bankruptcy Court and keep the other copy for yourself. When you print your New York bankruptcy, you should only print on one side of each page. If you donât have a home printer, or your printer is not capable of printing that many pages without difficulty, Upsolve suggests that you print the forms for your New York City bankruptcy at your local library. The New York Public Library offers black and white printing for $0.20 per page. The Mid-Manhattan Library is located at 476 Fifth Avenue in Midtown Manhattan, just a 6 minute walk from the Grand Central and 42nd Street subway station. Itâs open from 8:00 a.m. to 8:00 p.m., Monday and Thursday, 8:00 a.m. to 9:00 p.m., Tuesday and Wednesday, 8:00 a.m. to 6:00 p.m. on Friday, and 10:00 a.m. to 6:00 p.m. on Saturday. Itâs closed on Sundays.
Collect Your New York Bankruptcy Documents
In order to file your Chapter 7 bankruptcy in New York, youâll need to collect some personal and financial documents. These documents include pay stubs, bank statements, and tax returns. You should collect your last 60 daysâ worth of pay stubs, your last six monthsâ worth of bank statements and your most recent tax return. You will also need copies of your current and past due bills, as well as your monthly expenses. The type of bills you should collect include credit card statements, medical bills, payday loans and court judgments. The type of expenses you should have records of include rent, groceries, utilities, gasoline, telephone or cell phone bills, insurance and taxes. Itâs also helpful to have a copy of your most recent credit report available when filing bankruptcy in New York City.
Read Also: Debt Of United States
Let Us Help You Through The Bankruptcy Process
At Hayward, Parker & OLeary Esqs., our attorneys know that selecting a competent, experienced attorney is one of the most important decisions you can make as you embark on the road to financial health. From our Middletown office, we have helped thousands of New York residents file for bankruptcy to reduce or eliminate their debt. For your free consultation, please call us at or contact us online today.
Contact us
When To File For Bankruptcy
There is no exact date or ideal time to file for bankruptcy. The only clue as to when you should file bankruptcy is if you can no longer pay your debts. Here you can review how to find out if you have debts in the United States.
At Ortiz & Ortiz we can advise you and evaluate your financial and credit situation to determine if filing bankruptcy is your best alternative.
Also Check: How Long Bankruptcy Last On Credit Report
Choosing The Right Type Of Bankruptcy
If you have reached the point where bankruptcy is on the table, you will first need to decide which form of bankruptcy to file. The type of bankruptcy available to you depends upon the structure of your business: Chapter 7 involves liquidating assets to repay debts Chapter 11 involves reorganizing a business, its liabilities, and its assets in order to repay debts and keep the business going Chapter 13 involves restructuring individual debts and establishing a plan to repay owed debt over a set period of time. A sole proprietorship can file under Chapter 7, Chapter 11, or Chapter 13. Corporations, partnerships, and limited liability companies cannot file for Chapter 13 and thus must choose between Chapter 7 and Chapter 11.
The decision between Chapter 7 and Chapter 11 generally turns on whether you are trying to salvage the business. If you are unsure of what caused the business to reach the point of bankruptcy, or if you have decided that the problems with the business cannot be fixed, then Chapter 7 liquidation might be appropriate. Problems such as a lack of market base, the presence of a big box category killer in your area that you cannot compete with, or new developments in the industry that would require complete rehiring of your workforce or complete retraining of your employees to continue, are generally too difficult to solve via Chapter 11 reorganization. Chapter 7 liquidation effectively ends the business.
All Of These Details Can Become Complex And Tricky Very Fast
You should never attempt to file bankruptcy on your own. Get expert advice from an attorney who can help you navigate the process. For example, some of your property could be in a legal grey area, like a credit card that you obtained prior to the marriage but ran up debt on after the marriage.
Want to get a look at your unique situation? Contact us for a free consultation today. Together we can find the best road to your financial freedom.
Read Also: Liquidation Pallets Salt Lake City
New York Bankruptcy Filing Process
The bankruptcy filing process in New York is similar to other states. Generally, the process is as follows for Chapter 7 bankruptcy:
The Benefits Of Bankruptcy
Although going bankrupt is not pleasant, choosing this option could have several benefits for you.
For example, losing your home could make financial sense if the value of your home is lower than what you owe your bank. By going bankrupt, you dont have to pay more for something that is worth less.
A bankruptcy can also be an opportunity for a new beginning. As bills and unpaid expenses pile up, Chapter 7 or Chapter 13 can help you re-organize your finances and make a fresh start.
Carrying a heavy financial burden for years can be debilitating and drag down your family and business. You could lose your car, your home, and your sanity by trying to make payments that simply cannot be made with your disposable income.
In most cases, Chapter 7 bankruptcy can help you protect your home. You may have to sell other assets and belongings, but your home is the last to be touched. Most courts will exempt your family home and your bankruptcy lawyer will guide you through the proceedings to make sure your most precious real estate asset is safe.
With Chapter 13, you can protect both your belongings and your property: basically, you save all your personal assets.Filing for bankruptcy is sometimes the only way to ensure a new beginning. Your creditworthiness takes a temporary hit but, in the long term, bankruptcy can be the only rationaland responsiblething to do.
You May Like: How Often Can You Apply For Bankruptcy
Contact An Experienced Bankruptcy Attorney Today
Contact The Law Office of Andrew M. Doktofsky, P.C., today for a free consultation about whether you should file for Chapter 7 or Chapter 13 bankruptcy in Suffolk County, Nassau County or Long Island. I will determine which chapter of bankruptcy is right for you. Call or email the firm if you are considering filing for bankruptcy in New York and would like to learn more about the process from an experienced bankruptcy attorney.
This is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.
Take A Debtor Education Course
You had to take the credit counseling course to understand the consequences of bankruptcy before filing your case. After you file, you have to take a debtor education course. This course focuses on financial management tools and aims to help you take full advantage of your post-discharge fresh start.
The course itself only takes about 1â2 hours. Like the credit counseling course, it can be taken online, over the phone, or in person. If you were happy with the company you used to complete the first bankruptcy course, find out if itâs approved to offer the financial management course in New York as well. If so, you can go through them again for this second course. You may even be able to get a discount for taking both classes with them. If not, check out the list of providers approved to offer this course for New York bankruptcy cases.
You must complete this course within 60 days of filing your petition. Once you complete it, youâll receive a certificate, which you have to submit to the court before you can get your bankruptcy discharge. If you donât submit the certificate, the court can close your case without discharging your debts.
Also Check: Debt Clock Real Time
Chapter 13 Bankruptcy New York
Chapter 13 bankruptcy New York is a payment plan bankruptcy where your debts are reorganized via the bankruptcy court, often in a 3 or 5-year payment plan. One of the most important questions is determining your monthly plan payment. Once you have a sense of your plan payment, you compare that payment to your current monthly obligations to see whether you may afford Chapter 13 bankruptcy. Debt settlement is often an alternative to a Chapter 13 bankruptcy. For a deep dive on Chapter 13 bankruptcy, you may want to check out the article titled Chapter 13 New York
Cost Of Chapter 7 And Chapter 13 In New York
Any important question that you are probably asking yourself is what is the cost of attorney fees, filing fees and whatever other costs are associated with bankruptcy.
- Attorney Fee: Often different cities and counties in New York will have different attorney costs, including variability of cost based on experience. You may want to check out a New York bankruptcy cost calculator to estimate the cost for your zip code.
- Filing, Admin and/or trustee surcharge fee: The fee for Chapter 7 is $335 and the fee for Chapter 13 is $310 .
Don’t Miss: What Does Foreclosure Out Of Market Mean
Attend Your 341 Meeting
Everyone filing bankruptcy in New York has to attend a meeting of creditors. This is also known as the 341 meeting because thatâs the section of the Bankruptcy Code that requires it. The same notice that has your trustee’s contact information will also tell you the date and time of your 341 meeting. As a COVID-19 precaution, most 341 meetings are currently being held over the phone or by video.
Itâs completely normal to feel nervous about your meeting, but these meetings are fairly routine. Your trustee will confirm your identity and ask you some questions about the information in your bankruptcy forms and about your general financial situation. You donât need to do much to prepare, though itâs helpful to review all of the bankruptcy forms you filed with the court to refresh your memory before the meeting.
If you find yourself worried about what could go wrong, focus on the light at the end of the meeting tunnel: the discharge of your debts!
How To File For Bankruptcy In New York In 2022
Just hearing the word bankruptcy scares many people. If this is your case, dont worry. In this article we will clarify your doubts and guide you through the process. Therefore, before going into detail on how to go through the process of filing for bankruptcy in New York, we will clarify some key points.
Read Also: How To File Bankruptcy Chapter 11
How Often Can I File For Bankruptcy
If you are evaluating filing bankruptcy and have already done so before you will have to wait a few years.
Lets look at some cases:
You want to file for Chapter 7 bankruptcy now, but you cannot do so if:
- in the last eight years you filed for Chapter 7 bankruptcy
- in the last six years you filed a Chapter 13 bankruptcy
Now you want to file for Chapter 13 bankruptcy, but you will not be able to do so if:
- in the last four years you filed for Chapter 7 bankruptcy
- in the last two years you filed for Chapter 13 bankruptcy
Generally, you can file for a Chapter 11 bankruptcy as soon as the last bankruptcy has concluded.
If you have never filed for bankruptcy before, you may do so without any time restrictions.
Whats The Difference Between Chapter 7 And Chapter 13 Bankruptcy In New York
Our bankruptcy firm has handled more than 5,000 bankruptcy cases, and he is the largest filer for people who reside in Westchester and Rockland Counties. Mr. Schwartz has the experience and insight necessary to help you determine which form of bankruptcy is best for you.
In general, individuals will choose to file for either Chapter 7 or Chapter 13 bankruptcy. The decision depends on the persons reason for filing. Ch. 13 was originally enacted to allow mortgage arrears to be repaid over a 5-year plan. That is still the case, but in New York, loan modifications can be added to the Ch. 13 case. It is also a useful Chapter if you have an exceedingly high income or assets that you could lose in a Chapter 7 case.
A Chapter 7 bankruptcy is intended to wipe the slate as clean as possible. Ideally, that means all debts are discharged. To receive Chapter 7, you must:
- Qualify under the means test. This is an analysis of your income and debts to determine if you have the ability to pay your debts. The key factor is whether you make above or below the median income in your state given your household size.
Most people who earn above the median income can still file after the costs for health insurance, taxes, etc. are deducted from your income.
- Complete online or phone credit counseling. The U.S. Department of Justice lists approved New York credit counseling agencies here.
Recommended Reading: Where To Pay Collections
How To File Bankruptcy For Free In New York
Upsolve is a nonprofit tool that helps you file bankruptcy for free.Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we’ll never ask you for a credit card.Explore our free tool
In a Nutshell
Filing for bankruptcy doesnât have to be scary and confusing. We provide helpful tips and resources to help you file Chapter 7 bankruptcy in your state without a lawyer.
Written byAttorney Andrea Wimmer.
Whether you live in New York City or elsewhere in the Empire State, worrying about your debt can be extremely stressful. Although it may feel like youâre giving up if you take advantage of the protections bankruptcy offers, you donât have to feel guilty about getting help. No one is immune from a sudden downturn in their fortunes that can make bankruptcy a lifeline. That includes high-profile New Yorkers like late-night talk show host Larry King.
Filing a Chapter 7 bankruptcy in New York may be the most responsible option for you and your family. Read on to get a feel for your options, the timeline for Chapter 7 bankruptcy, and how you can navigate the bankruptcy process without an attorney.
The rules for how to file bankruptcy are slightly different depending on which of New Yorkâs four bankruptcy districts you live in. Your district is based on the county you live in, so take a moment to find your district so you can keep it in mind as you go:
