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How To File For Bankruptcy In Nyc

Helping Nyc Residents Find Financial Relief

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When faced with a difficult financial situation and overwhelming debt, it is important for you to seek the help of a bankruptcy attorney who can evaluate your situation and steer you towards a beneficial outcome. Here at the Law Offices of David Brodman, serving clients in the Bronx, Westchester, New York, Brooklyn and Queens, we believe that everyone deserves a fresh start and self-confidence. You likely have many options to explore, and it is our goal to help you determine the best course of action based on the particulars of your situation.

Our firm is highly experienced in handling bankruptcy cases, both straightforward and intricate. To best serve our clients, we go out of our way to find ways to provide top-quality representation at affordable, competitive rates. If you think bankruptcy will help you out, then please contact our firm as soon as possible.

Protect your financial future by contacting us online or calling 354-8027 now.

Southern District Of New York Filing Requirements

The Southern District has jurisdiction over all New York bankruptcy cases filed by residents of the Bronx, Dutchess, New York, Orange, Putnam, Rockland, Sullivan, and Westchester counties, and has concurrent jurisdiction over Greene and Ulster counties. It has locations in Manhattan, Poughkeepsie, and White Plains.

If you file your Chapter 7 bankruptcy in this district, you have to submit your paycheck stubs from the 60 days before you filed your case to your case trustee by the date set for the first meeting of creditors, instead of filing them with the court.

The Southern Division accepts installment payments in increments of your choosing. You can pay by money order or cashierâs check made out to the âClerk, USBC, SDNY.â Include your contact or case information in the memo section of the payment. Personal checks and cash are not accepted.

COVID-19-related updates can be found here.

What Happens After I File For Bankruptcy

Once a debtor files for bankruptcy, the debtor’s estate is protected by the “automatic stay,” which bars creditors from trying to collect debts without the permission of the bankruptcy court. This provides immediate protection against foreclosure, repossession of your car, eviction from your apartment, garnishment of your wages or bank accounts, cut-off of your electricity, or other measures creditors may take to try to recover monies owed.

Approximately 30 to 45 days after your initial filing, you will have a meeting of creditors with your appointed bankruptcy trustee. At this meeting, you will have to answer questions under oath regarding the information in your bankruptcy petition. About 60 days after your initial meeting of creditors, you will receive a discharge of indebtedness that releases you from all personal liability.

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Chapter 7 Federal Exemptions

In New York State, debtors filing for Chapter 7 bankruptcy are entitled to choose between the Federal Exemptions and the New York State Exemptions.

Below is a list of properties that an individual may protect under Federal Exemptions:

  • In a home, condo, or mobile home that you live in, per debtor, up to $21,625 may be exempted. This doubles to $43,250 for those who are married and own the property jointly.
  • Household goods that are valued up to $500 per item, with the maximum total value of $11,525
  • Equity in a vehicle up to $3,425
  • Tools that are required for your business or trade — up to $2,175
  • Valid retirement savings accounts such as 401, 403, IRA accounts, and other ERISA qualified retirement savings accounts — up to $1,095,000 per debtor
  • Benefits such as pension, social security, or workers compensation
  • Jewelry that are valued up to $1,450
  • Support payments for child or spouse to the extent needed to support the debtor and their children
  • Recovery from a personal injury action, except for pain and suffering or for pecuniary loss — up to $21,625
  • Wildcard exemption, which allows a debtor to protect up to $1,150 of any property and any unused portion of a homestead — up to $10,825 per debtor

What Does Pro Bono Mean

Simple Ways to File for Bankruptcy in New York (with Pictures)

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 lawyer’s expertise.

Here are some of the ranges of cost in major cities in New York.

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:

  • The landlord obtained a judgment before bankruptcy was filed If a landlord obtains a judgment of possession before bankruptcy is filed by his or her tenant, then an automatic stay will not prevent eviction. However, under New York law, a tenant may prevent eviction under these circumstances by declaring a legal right to cure the default on the bankruptcy petition, making a deposit with the bankruptcy court clerk for the amount of rent that will be owed to the landlord within 30 days of the filing, and paying all outstanding rent 30 days thereafter.
  • 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.

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    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:

    It Is Wise To File For Chapter 7 Bankruptcy If

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    Cost, qualifications and how to file in 2019. Understand that chapter 7 bankruptcy will allow a court to seize your assets to meet the demands of creditors. How does filing bankruptcy impact credit? If you read on how to file bankruptcy yourself and filed for a chapter 13 bankruptcy, youd receive your discharge after making the necessary repayment however, if you feel that youre up for it, follow the above steps to file for bankruptcy successfully. We explain everything you need to you must pass a means test before you can file a chapter 7 bankruptcy petition. Generally, filing for chapter 7 bankruptcy protection does not eliminate your obligation to repay certain the procedures involved in filing for chapter 7 are numerous. If you miss this deadline, you have to go through counseling again before you can file your. You cant file chapter 7 bankruptcy if you had a bankruptcy dismissed within the past 180 days for any of these reasons: Can i take out a student loan how do i file for bankruptcy in ny without a lawyer? Under new york state law, effective 1/22/2011, the following is a sample of the types of personal property that are considered exempt: Getting help from a lawyer is almost do i need a lawyer to file chapter 7? In chapter 7, the this guide will explain who is eligible to file chapter 7, and how that will affect you now and in the future. It is wise to file for chapter 7 bankruptcy if.

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    How Much It Costs To File Bankruptcy In New York In 2022

    The cost to file bankruptcy in New York is $338 for a Chapter 7 bankruptcy and $313 for a Chapter 13 bankruptcy, but the answer becomes more nuanced if you decide to file with a bankruptcy attorney and if you are trying to get the filing fees waived.

    If you are like me, you probably wonder how you can afford the cost of bankruptcy in New York when its difficult to pay bills, especially in 2022 as inflation runs rampant. Many bankruptcy costs such as the filing fee and the credit counseling courses are relatively similar. That said, the cost of bankruptcy attorney fees may range dramatically whether you are in New York City or Buffalo.

    The purpose of this article is to provide you with estimated all-in costs:

  • Bankruptcy Attorney Fees
  • Bankruptcy Filing Costs
  • Do I Need A Personal Bankruptcy Attorney

    As bankruptcy lawyers and attorneys, we have often stood in court, looking around us and seeing homeowners losing their homes or their other property because of poor, or no, legal representation. We have felt for them. Homeowners are real people who deserve real solutions for their problems.

    While banks and financial institutions have big legal teams fighting for their interests, homeowners and financially stressed individuals often try to solve their problems on their own. However, they dont know the bankruptcy filing system, their options, and the consequences of each decision.

    Thats why people need a bankruptcy lawyer who will explain all their available choices. For example, most of our clients are surprised to learn that foreclosure is a measure of last resort and is definitely not the only solution available.

    We will discuss our clients financial situation and sources of income and come up with a detailed plan to save their homes or decrease their personal or credit card and medical debt.

    With a bankruptcy law firm like Roemerman Law by your side, you know your interests are well protected. You can stand up to your lender and find a financial result that protects you and your family.

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    How To File For Bankruptcy In New York In 2021

    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.

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    Special Rules For New York Homestead Exemptions

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    Article 52 §5206 sets the homestead exemption amounts for properties in New York. The exemption amounts vary by county. According to the code section and the figures from the NY Department of Financial Services, the homestead amounts for cases filed between April 1, 2018, and March 31, 2021 are:

    • 170,825 is the homestead exemption for properties located in New York, Kings, Queens, Suffolk, Bronx, Nassau, Richmond, Rockland, Putnam, and Westchester counties.
    • $142,350 is the homestead exemption for properties located in Albany, Dutchess, Orange, Columbia, Ulster, and Saratoga counties.
    • $85,400 is the homestead exemption for properties in all other New York counties.

    NOTE Federal bankruptcy exemptions limit the homestead exemption a debtor may claim in a home that has not been owned for at least 1,215 days .

    Regardless of the state exemption, a debtor cannot claim more than $170,350 as a homestead exemption in their home unless they have owned the home for at least 40 months. An exception applies if the debtor owned a home in the same state, sold the home, and used the proceeds to purchase their current home in the same state.

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    Getting A Lawyer To Help You With Your Bankruptcy

    Bankruptcy is a specialized area of law that is very complex. And the issues are not always apparent or simple. The bankruptcy laws changed in October 2005 to discourage many people from filing for bankruptcy. So the law became more complicated. And there are more situations where a mistake can result in your case getting dismissed. If your case is dismissed, the bankruptcy court often imposes a penalty of 180 days before you can refile, and in this time period a lot can happen. This is why it is so important to have a lawyer advise you and help you with your bankruptcy.

    Find a lawyer who can help you work through the issues, alternatives you may have, and consequences of your choices.

    • Pick a lawyer with whom you are comfortable, one who will allow you to ask questions and give you responses that you can understand.
    • Pick a lawyer who either specializes in bankruptcy or does a large part of his or her practice in the field.
    • Ask questions until you understand what your choices are.
    • Dont be afraid to interview a lawyer and leave without hiring him or her.

    If you decide to represent yourself in bankruptcy court, read a guide for Filing for Bankruptcy Without an Attorney.

    To find a good bankruptcy lawyer:

    • Check state bar groups and specialization/certification programs for bankruptcy lawyers in your community.
    • Ask other lawyers or tax preparers you know for recommendations.

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    Judicial Approval Of The Chapter 13 Plan

    If you filed for Chapter 13, the proposed plan you submitted with your filing must be approved by a judge. The judge will review the plan with you and the trustee present. Any creditors may also attend, but rarely do. If the judge approves the plan, the bankruptcy proceeding is finalized and the plan is entered. Any eligible debts outstanding at the end of the plan will be discharged.

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    Debtors Interest In A Multi

    The debtors interest in the LLC is personal property and, as such. is an asset that the debtors Trustee can liquidate. if he can nd a buyer. It is not uncommon for a Trustee to sell an interest in a multi-member LLC to one of the other members. The purchaser of said interest clearly is entitled to the debtors economic interest in the LLC. but it appears that under New York law the purchaser only becomes entitled to participate in LLC management decisions if a majority of the other members authorize it.

    The Chapter 7 Trustee can also seek:

    • A dissolution of the LLC pursuant to the provisions of the LLC. but unless the Operating Agreement provides otherwise.New York law requires that a majority of all members approve such an action. Unless the debtor held at least a 51% membership interest, the Trustee will be unable to employ this strategy without the consent of some of the other members.
    • A judicial dissolution of the LLC. although this remedy is typically reserved for situations where the LLCs management has become so dysfunctional or its business purpose so thwarted that it is no longer practicable to operate the business. Since a Trustees desire to reduce the debtors LLC interest to cash is probably inconsistent with the goals of the other members wanting to continue the business operations. this remedy can potentially bear fruit for a Trustee. although the LLC would need to have a positive net worth for it to be worthwhile for the Trustee to pursue.

    Most Keep Their Property In Chapter 7

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    Most people are able to keep their property even though they file for bankruptcy. The law provides for exemptions, which are things you get to keep even though you file for bankruptcy. This includes a car, if it is not too valuable some money in the bank your household goods and wearing apparel your retirement benefits and even your house again, if there is not too much value in it.

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    What Documents Does A Bankruptcy Attorney Need

    When you have your first meeting with a bankruptcy attorney, you should bring all of the documents that you will need to file bankruptcy. This includes records of all outstanding debt obligations and proof of all income sources and assets. You should also bring copies of your last two years of tax returns.

    Experienced New York Bankruptcy Attorneys

    When life happens and youre looking for a top bankruptcy attorney in New York, Roemerman Law is here to help you recover from financial misfortunes. We can protect your home from foreclosure and stand up for you in court during a civil lawsuit brought against you by your lender.

    If things do not go as planned, you have the security that Roemerman Law will provide sound legal advice to straighten out your financial position. We have the tools, knowledge, and expertise to challenge banks and other lenders in court.

    Likewise, if you are facing foreclosure or if bills, credit card debt, and other payments are stressing your finances, we are here to reassess your options, advise you on loan modifications, and find the solution that best fits your financial standing and income.

    Whether its a Chapter 7, Chapter 11, or Chapter 13 bankruptcy filing, we will be your bankruptcy lawyer, guiding you throughout the process and giving you the best legal advice for your interests.

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