Shielding Assets And Shedding Debt: Bankruptcy In New York
Think of bankruptcy as a shield, protecting your financial assets and wiping out most of your bills that you can no longer to afford to pay. The purpose of filing bankruptcy is to help you resolve, reorganize and rebuild your finances from the ground up, so that you can obtain a fresh start, and eliminate crushing financial burdens.
If you are thinking about filing for bankruptcy in New York, you should understand the insolvency process, review your assets, understand what assets are exempt and protected from your creditors, and prepare for a fresh start.
Chapter 13 Bankruptcy New York: 7 Things You Need To Know
You may wonder whether filing Chapter 13 bankruptcy in New York is the best debt relief option. Bankruptcy is a common relief option. In fact, there were 16,723 bankruptcies that have been filed in New York by June 30th, 2021.
The purpose of this article is to provide what you need to know about Chapter 13 bankruptcy in New York. Heres what we will cover:
- Chapter 7 vs. Chapter 13 Bankruptcy in New York
- Calculating Chapter 13 Plan Payments in New York
- Filing for Chapter 13 Bankruptcy New York Process
- New York Bankruptcy Exemptions
- Bankruptcy Courts and Trustees for New York
- New York Chapter 13 Bankruptcy FAQs
- Alternatives to Filing Bankruptcy in New York
Northern District Of New York Filing Requirements
The Northern District comprises the 32 counties in Upstate New York and is divided into three divisions headquartered in Albany, Utica, and Syracuse. The county you live in determines which divisional office your case will be assigned to. If you file your Chapter 7 bankruptcy in New York without a lawyer make sure to review this local rule on keeping the court up to date on your best contact information and providing a local address if needed.
The Northern Division accepts installment payments in increments of your choosing. You can pay by certified check or money order made out to the âClerk, U. S. Bankruptcy Court.â
COVID-19-related updates can be found here.
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Understand Which Debts Will Be Eliminated
The goal of bankruptcy is to get relief from your debt. As such, it can be helpful to understand the types of debt that can be eliminated when filing for bankruptcy.
Many debts can be discharged. This includes unsecured credit cards, medical debts, personal loans, old utility bills, judgment debts, and old lease payments
Other debts cannot be discharged. This includes back alimony or child support, debts owed to the government, judgments related to DUI accidents, tax debts, and administrative costs or restitution
Tax debt receives special treatment in Chapter 13. You may not know how much debt you have. As such, you can access a free credit report annually, thanks to the US government. This can help you estimate how much debt would be eliminated by filing for bankruptcy.
What Does Pro Bono Mean
Pro bono is a Latin term that refers to lawyers who are willing to provide assistance for free. Bar associations like to talk about the fact that lawyers do pro bono but, in fact, very few actually do, and the need for legal services is far greater than the amount of pro bono help available. Nevertheless, some court websites will direct you to pro bono services instead of simply providing the information you need.
Pro bono services can be uneven. Some can be excellent while others may be done by lawyers with little expertise in bankruptcy law. If you read a good book on how to file for bankruptcy before you meet with your pro bono lawyer, you will be better able to gauge their knowledge of bankruptcy law.
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Bankruptcy Attorney Fees New York
A Chapter 7 Bankruptcy is often less expensive than Chapter 13 bankruptcy. Chapter 7 bankruptcy attorneys in New York can cost between $1170 $1950. The cost may increase or decrease based on the following factors: Complexity, location, level of attorney connection, and the bankruptcy lawyers expertise.
Here are some of the ranges of cost in major cities in New York.
How Do I Gain Access To Bankruptcy Forms
To learn more about how you can obtain bankruptcy forms, check out www.uscourts.gov/forms/bankruptcy-forms to get access to some copies. Furthermore, you will want to remember that your local bankruptcy court may request that you file additional forms in the event that bankruptcy court applies others.
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How Much Will It Cost Me To File Bankruptcy
Your initial interview with Syracuse bankruptcy lawyers in our office will be done as a courtesy there will be no charge for coming in and discussing with us whether filing Bankruptcy would be a good option for you to take.
The fee that our office would charge you as payment for our services in helping you file either a Chapter 7 case or a Chapter 13 case will depend on the complexity of your situation. But unless your case is unusually complicated, our fee would be a flat rate, one lump-sum amount covering all of our work.
In addition to the fee of our office, the Bankruptcy Court will require the payment of a filing fee. The filing fee for a Chapter 7 case is $306.00. The filing fee for a Chapter 13 case is $281.00. Depending on what actions are required after your case is filed it is possible that additional fees would be required, but usually not more than $50.00 in total.
For a case under either Chapter 7 or Chapter 13, you would have to deliver to us the amount of the filing fee before your case is filed.
For a case under Chapter 7 you would have to pay us the entire amount of the fee of our office before we filed the case. For a Chapter 13 case, we would ask you to pay as much of our fee as you could before the case is filed, but a substantial portion of our fee could be paid from the money that the trustee will distribute to your creditors.
Chapter 13 Bankruptcy New York: 9 Things You Need To Know
A New york or New Jersey licensed bankruptcy lawyer appears with you at the 341 meeting. The Petition: To file for bankruptcy, you fill out a petition and
Does personal bankruptcy in NYC eliminate my debt? and Is filing personal bankruptcy right for New York Personal Bankruptcy Lawyer Free Consultation.
NYC BAP provides free bankruptcy assistance to low-income residents of New York City. We provide bankruptcy assistance through pro bono attorneys and law
Willful and malicious here means deliberate and without just cause. In Chapter 13 bankruptcy, this applies only to injury to people debts for property damage
When it comes to filing for Chapter 7 bankruptcy, choosing whether to use New York requires the assistance of a New York individual bankruptcy attorney.
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Bankruptcy Statistics In New York State
As you may know, the COVID-19 pandemic has brought about an onslaught of bankruptcy filings throughout New York State, though perhaps surprisingly, there were not quite as many bankruptcy filings as there were in 2019. That being said, Chapter 11 bankruptcies, typically used for struggling businesses, were up around 13% in the past year. Please continue reading and speak with our knowledgeable New York bankruptcy lawyer to learn more about the 2020 bankruptcy trends here in New York State and how our firm can help if you are currently looking to file for bankruptcy.
Learn The Basics Of Bankruptcy
Bankruptcy is a legal proceeding created to give people a fresh start after financial disasters. If you’ve explored your alternatives and can’t see a way out from under your debt, bankruptcy may be the right solution for you.
There are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13. Chapter 7 can wipe out most of your debts in a matter of months in exchange for giving up all of your property that the bankruptcy law does not protect.
Chapter 13 takes three to five years. During that time, you repay some or all of your debts under a payment plan approved by the bankruptcy court. Its often used by people who are behind on mortgage payments and want to use Chapter 13 to catch up. Most folks who file for bankruptcy prefer to file for Chapter 7 if they qualify, because you can get out from under lots of debt in a matter of a few months.
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How A Bankruptcy Attorney Can Help You
Only an experienced bankruptcy attorney can:
- Properly advise you as to whether you should file for bankruptcy
- Advise you as to the proper timing of a bankruptcy filing
- Properly advise you regarding property exemptions
- Represent you at the Meeting of Creditors
- Represent you in proceedings in the Bankruptcy Court
Attorney Andrew M. Doktofsky is knowledgeable and experienced with New York bankruptcy procedures and will guide you through every step of the bankruptcy process.
Information Center For The Bankruptcy Process
How Often Can You File Bankruptcy In New York
Nobody plans to file bankruptcy twice, but its hard to get by in todays economy. Covid-19 hasnt made anything any easier, and some people are once again in dire financial straits through no fault of their own.
The law does allow for multiple bankruptcies.
If you have filed for Chapter 7 bankruptcy in the past, the earliest you can file Chapter 7 again is 8 years from the date you filed your previous case. Note this is not the same date as your discharge date. You could file a Chapter 13 six years after your Chapter 7.
If you file Chapter 13 a second time then you have to wait 2 years from your discharge.
There are of course other forms of bankruptcy that arent as common: Chapter 12, and Chapter 11. If you filed Chapter 11 you have to wait 8 years before filing a Chapter 7 or 4 years before filing a chapter 13. If you filed Chapter 12 you have to wait 4 years before filing Chapter 7 or 13.
There is no limit on the number of times you can file for bankruptcy, as long as you observe the proper time limits between each filing. There are some caveats. If your bankruptcy case is dismissed you can still file again, and you can even do so immediately after the case dismissal. The difference is the automatic stay may be as little as 30 days, which means it wont cover the entire period of time that it would take to get your discharge. In some cases it may be eliminated altogether.
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S In A New York Bankruptcy
We all know that seeing the forest helps us recognize the trees, so it’s probably a good time to consider the significant steps you’ll take during your bankruptcy journey. Think of this checklist as a roadmap, but you can also use it to track your progress. The good news? You’ve already made headway on the first two items!
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.
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File Motions Objections Or Responses
You may never need to worry about this, but theres a chance that you will want to file additional paperwork after you submit your bankruptcy petition. For example, you may want to file a request to remove creditors claims against your property. Or, if a creditor says that you owe more than you think you do, you may want to file an objection with the court.
Depending on the complexity of the situation, this is another place that you might want the advice and assistance of a bankrupcy lawyer. If youre handling your own case and you want to learn more about the situations that may arise after you file, you can turn to a detailed guidebook like How to File for Chapter 7 Bankruptcy or Chapter 13: Keep Your Property and Repay Your Debts Over Time.
Attend A Creditors Meeting
Several weeks after you file for bankruptcy, you will be required to attend a 341 hearing, which is also called a “creditors meeting.” The bankruptcy trustee assigned to your case will lead the meeting and may ask you questions about the information you’ve provided on your bankruptcy forms. Creditors may also show up at the hearing to ask you questions.
The bankruptcy trustee will tell you exactly what to bring to the meeting, but you should be prepared to bring the following:
- tax returns for the past few years
- bank statements
- property ownership documents, like deeds and the pink slip for your car, and
- copies of mortgage documents.
The book How to File for Chapter 7 Bankruptcy provides detailed information about what to expect at a 341 hearing.
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Estimate Whether You Will Lose Any Property
As you can imagine, many people want to keep their home, car, cash, etc. when filing bankruptcy.
You need to understand the bankruptcy exemptions in New York. The bankruptcy exemptions are complex because some states allow you to choose between state and federal exemptions when filing bankruptcy. For example, check out the New York homestead exemption.
As such, we created this New York bankruptcy exemptions calculator to simplify the information. This free calculator helps you estimate whether your belongings are at risk when filing bankruptcy in New York.
Understand The Differences Between Chapter 7 And Chapter 13
Chapter 7 and Chapter 13 bankruptcy are the most common consumer bankruptcy filed in the United States. You need to know the difference because one chapter is more expensive and also often takes much longer.
Chapter 7 Bankruptcy in New York
A Chapter 7 bankruptcy is referred to as liquidation bankruptcy. In many cases, bankruptcy filers do not lose their home or vehicle by using bankruptcy exemptions. We will cover how your belongings may be at risk below.
Heres what you need to know about filing Chapter 7 bankruptcy in New York.
Chapter 13 Bankruptcy in New York
Heres what you need to know about filing Chapter 13 bankruptcy in New York.
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Why You Need To Speak With An Attorney About Bankruptcy
The complexity and final outcome of a bankruptcy can vary significantly depending on your income, the median income of the specific New York county you live in, how much debt you owe, whether you own any property or businesses, and so on. While skipping a conversation with a bankruptcy attorney is potentially an option for those with few assets, it isnt a particularly good option.
Heres why a bankruptcy attorney is specifically worth the cost: you are going to have questions along the way and will almost certainly run into problems you dont even know to watch out for yet. Experienced New York bankruptcy attorneys have already dealt with these issues in the past and can advise you on how to proceed.
To prevent serious legal and financial repercussions that can prevent you from getting back on your feet, you should consult an attorney on bankruptcy topics like: