New York Bankruptcy Forms
Since New York bankruptcy cases are filed in federal court, a majority of the New York bankruptcy forms are national forms used in bankruptcy cases across the United States. While the clerk’s office may not be able to provide you with the official forms, you can each one of them, for free, as a fillable PDF. Additionally, each one of the bankruptcy districts in the Empire State has created certain local forms for use in cases filed within each district. These New York bankruptcy forms are available for download on the individual web pages for the four districts.
New York Legal Aid Organizations
If hiring a lawyer to help you with your Chapter 7 bankruptcy in New York is simply not something you can afford, you can seek assistance from one of the organizations offering free legal aid in New York. Since the law only entitles people dealing with a criminal matter to free legal representation, New York legal aid organizations assist low-income New Yorkers with a variety of civil matters, including New York bankruptcy matters.
Do You Need A Chapter 7 Bankruptcy Lawyer
It is not required by law and you can do it yourself. However, even on the website of the US courts it is stated that it is extremely difficult to do it successfully.
The truth is, you will have many more options with an experienced Chapter 7 bankruptcy lawyer by your side. A small administrative error can get your case dismissed.
In bankruptcy matters, it is always important to have experts such as those from the Ortiz & Ortiz law firm.
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Mail Documents To Your Trustee
You will receive the name and contact information for your bankruptcy trustee a few days after your bankruptcy case is filed. The trustee’s job is to administer your case, make sure that youâre not hiding anything, and review the circumstances surrounding your case to determine whether your creditors are entitled to a disbursement. Even though your tax returns are not actually filed with the court, you must provide a copy of your most recent federal income tax return to the bankruptcy trustee
Additionally, some trustees mail out a letter requesting certain other documents, such as paycheck stubs and bank account statements. Keep an eye out for any such request from your trustee and make sure you follow the instructions provided with respect to how and when to submit everything to the trustee’s office.
New York Bankruptcy Means Test
Not everyone who wants to file a Chapter 7 in New York is actually eligible to do so under the New York bankruptcy means test. The means test calculation is necessary is to ensure that only folks that truly canât pay even a portion of their debts are able to file bankruptcy under Chapter 7 of the Bankruptcy Code. If youâre below the applicable income limits for New York, you pass the means test, meaning you are eligible to file a Chapter 7 bankruptcy in New York. If your income is higher than what is allowed, you may nevertheless qualify for Chapter 7 after completing part two of the New York means test for bankruptcy.
Data on Median income levels for New York
New York Median Income Standards for Means Test for Cases Filed On or After May 1,2021 |
|---|
| Household Size |
| $6,717.50 |
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What Assets Are Exempt From Chapter 7
The exemptions vary from state to state although there are also federal exemptions. These exemptions allow you to keep certain assets to avoid being in a poor personal situation after the discharge.
Federal law prohibits liquidation of the following possessions:
- Jewelry totaling up to $ 1,600.
- Clothing, personal and household items: Up to $ 600 per item and up to $ 12,625 in total.
- Pets and crops if you have them.
- Motor vehicle up to $ 3,775 in total value.
- Up to $ 1,283,025 in Roth IRA and IRA retirement accounts.
- All retirement accounts that are tax-exempt including 401 and 403 plans. Also defined benefit pension plans.
- Work equipment and work tools up to a value of $ 2,375.
- Medical equipment and health aid.
- Unused home or real estate exemption up to $ 23,675 in equity.
- Compensation money such as recovery for personal injury, payment for lost profits, or wrongful death.
- Any type of federal benefit you receive such as Social Security, Veterans, or Unemployment benefits.
Note: In case of being married, all the listed values are duplicated. You may be interested in reading our article Does filing for bankruptcy affect your spouse to find out the effect of bankruptcy on your spouse.
Are your assets secure? Our expert New York asset protection attorney can guide you. Call us today for a private consultation.
Free New York Bankruptcy Attorney Consultation
There are many other pros and cons to filing bankruptcy. Some of these may impact only a small number of people, but may impact them significantly. It is important that you evaluate all options before filing and fully understand its implications. Our attorneys thoroughly understand the bankruptcy process and have been helping clients evaluate the pros and cons of filing bankruptcy for years. If you are curious as to whether bankruptcy can help your situation, contact Moshes Law P.C. today.
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CIVIL LITIGATION AND BANKRUPTCY LITIGATION If you have been sued by a creditor, trustee, liquidating trustee or debtor in possession in state court, federal court, bankruptcy court, can help you defend the lawsuit. Our Bankruptcy Attorneys also represent plaintiffs and defendants in litigation and mediation in bankruptcy court, including preference actions seeking to avoid preferential transfers, and avoidance actions seeking to avoid fraudulent transfers.FILING PERSONAL BANKRUPTCY NY Consult with Bankruptcy Attorneys. Your Bankruptcy Attorney will work to save any property you may want to keep when declaring a Chapter 7 bankruptcy. An exclusive focus on bankruptcy law and alternatives to avoid bankruptcy. Free Evaluation Is Bankruptcy => Right for You?
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Confirming New York Bankruptcy Exemptions
Unless indicated otherwise, all references are to the New York Code Civil Practice Law and Rules , and New Yorkâs laws on the New York State Senate website.
You should be aware that additional exemptions exist and New Yorkâs exemption amounts adjust every three years . While you can read the statutes on the New York State Senate website, youâll find the most recent figures on New Yorkâs Department of Financial Services website or by consulting with a local bankruptcy lawyer.
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Is Chapter 7 Bankruptcy Right For You
Make sure you know the difference between Chapter 7 bankruptcy vs Chapter 13 bankruptcy. Chapter 7 makes sense when:
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You dont have many assets.
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Your problem debts total more than 50% of your annual income.
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Your problem debts can be discharged, or forgiven, by Chapter 7. These include debts such as medical bills, credit card debt and personal or payday loans.
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It would take five years or more to pay off your debt, even if you took extreme measures.
Some debts typically cant be erased in bankruptcy, including recent taxes, child support and student loans. Bankruptcy still may be an option for you, though, if erasing other kinds of debt would free up enough money to pay the debts that cant be erased.
The other common form of consumer bankruptcy, Chapter 13, may be better if you have more assets or secured debts, and can repay some or all of what you owe.
Other debt relief options are available, too, such as a debt management plan through a agency. Take advantage of the free initial advice that credit counselors and many bankruptcy attorneys offer before deciding on a path.
What Bankruptcy Can Not Do For You
Filing Bankruptcy can change a persons life in many positive respects. However, there are some problems that not even Bankruptcy can fix. Here are the most important examples:
However, it is possible to use Bankruptcy, particularly Chapter 13 , to control aggressive behavior by creditors holding nondischargeable claims, so that you can recover some stability and peace in your life.
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How To File Bankruptcy For Free In New York
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In a Nutshell
10 step guide on how to file Chapter 7 bankruptcy in New York without a lawyer. This guide provides an overview of the bankruptcy process for filers seeking debt relief in the New York Bankruptcy Court.
Written byAttorney Andrea Wimmer.
Whether you live in the city or elsewhere in the Empire State, worrying about your debt load can be a significant burden on you and your family. Even though New York is home to some of the more spectacular bankruptcy cases, such as the case filed by the Lehman Brothers following its collapse in 2008, or the Texaco bankruptcy filed in 1987, it’s important to understand that bankruptcy protection is available to all New Yorkers who are struggling financially.
Although it may feel like you are giving up if you take advantage of the protections the bankruptcy laws offer, you should not look at it this way. Filing a Chapter 7 bankruptcy in New York may be the most responsible option for you, your family, and your creditors, who are otherwise just competing with one another over money you can’t afford to pay them.
Alternate Ways To Afford An Attorney
Your attorney won’t file a Chapter 7 case until you’ve paid in full. Why? Because the bankruptcy would wipe out the fees still owed to your attorney. A debtor who doesn’t have the fee will often start by asking friends and family for help.
If that isn’t an option, qualified Chapter 7 debtors will stop making bill payments if the obligation will be discharged in the case. Then they use the money for legal fees. While this might seem sketchy, rest assured that the court understands and expects filers to use this approach. But it’s essential to be sure that you’re qualified because it can be difficultif not impossibleto catch up on bills if you find out you don’t qualify later.
It isn’t as challenging to finance a Chapter 13 case. Many attorneys will take a downpayment upfront. The remaining amount gets paid in your repayment plan, thereby allowing you to pay a small part of your legal fees each month.
Find out more about how bankruptcy lawyers get paid.
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Southern District Of New York Requirements
This 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 and is currently handling 90 so-called mega cases.
This district requires individuals filing a Chapter 7 bankruptcy in New York to submit all paycheck stubs received within the 60 days before their case was filed to their case trustee by the date set for the first meeting of creditors, instead of filing them with the court.
Will I Receive A Discharge In Bankruptcy
Certain types of debt automatically do not get discharged in bankruptcy, like certain taxes, student loans, most government fines and penalties, court restitution orders, domestic support obligations , and debts in connection with divorce decrees, among others.
For other types of debts, creditors have the right to file a lawsuit in the Bankruptcy Court, called adversary proceedings, against the debtor to determine if these debts are dischargeable. Creditors can sue debtors for a judgment in the court determining that their debts will not be eliminated in bankruptcy.
Here are some examples of debts that could be excepted from discharge with a bankruptcy court order:
- Actual fraud or false representations
- Consumer debts owed to a single creditor above the dollar limits specified in the Bankruptcy Code for luxury goods or services
- Debts for malicious injury of the debtor to another person or entity or property of another person entity
- Money or cash advances above the dollar limit specified in the Bankruptcy Code incurred within the time period specified in the Bankruptcy Code
- Properties
- Renewals or refinancing of credit obtained under false pretenses
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How Bankruptcy Works In New York
In most respects, filing for bankruptcy in New York isn’t any different than filing in another state. The bankruptcy process falls under federal law, not New York state law, and it works by unwinding the contracts between you and your creditorsthat’s what gives you a fresh start.
But New York’s laws come into play, too, in a significant way. They determine the property you can keep in your bankruptcy case. You’ll also need to know other filing information, which we explain after going over some basics.
Digging Your Way Out Of A Financial Rut
Everyone deserves a second chance. Fortunately, Bankruptcy law allows people to start over by wiping away most if not all of their debts. Bankruptcy has many advantages for the struggling debtor it can be a relatively quick and easy way to end creditor harassment, and the hardship, anxiety and marital stress associated with burdensome debt. If you are overloaded with debt and harassed by creditors, filing for Bankruptcy may be an excellent option for you.
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New York Bankruptcy Exemptions And Law
By J.P. Finet, J.D. | Reviewed by Bridget Molitor, J.D. | Last updated April 14, 2021
If you are a New York resident struggling to pay your bills and don’t believe your situation will improve, filing for bankruptcy could help. It will give you the breathing room you need by stopping debt collection actions while providing you a roadmap for paying down or erasing your debt.
If you are a New York resident struggling to pay your bills and don’t believe your situation will improve, filing for bankruptcy could help. It will give you the breathing room you need by stopping debt collection actions while providing you a roadmap for paying down or erasing your debt.
Attorneys Fees For A Chapter 7 Bankruptcy Filing On Long Island
Unlike many attorneys, I will gladly quote you a fee on the telephone, after discussing the particulars of your situation. However, to give you an idea of what it will cost you to file for a Chapter 7 bankruptcy, below are estimates of what the fee would be based on a variety of common scenarios, from lowest to highest fee.
Keep in mind that these are examples only. The fee in your case will depend on the specific facts of your situation. The attorneys fee is in addition to the court filing fee .
Sample fees for a Chapter 7 bankruptcy filing:
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The Best Time For Filing Bankruptcy Chapter 7
Here are some signs that indicate that you are a good candidate to file for Chapter 7 bankruptcy:
- Your credit score is already low, that is, below 600.
- You have more than $ 10,000 of forgivable debt.
- It is impossible for you to make ends meet by keeping up with your payments.
- You do not own luxurious property.
- You worry about being sued for your debt or having your wages garnished. Read our blog: Will bankruptcy stop wage garnishment?
- There is no clear path to pay off your debt over the next 5 years.
- You pass the means test by earning below the median income for your state.
If these assumptions apply to you, it may be the best time to consider filing for bankruptcy Chapter 7. Feel free to contact our experts in Chapter 7 bankruptcy law.
With over 30 years of history, the expert lawyers at Ortiz & Ortiz helped hundreds of people in your same situation.
What Are The Types Of Bankruptcy In New York And What Are The Requirements Of Each
Individuals are eligible to file for New York bankruptcy under chapters 7, 11, 12, or 13.
Chapter 7 allows a trustee to liquidate a debtors non-exempt assets to raise money to pay off creditors. Individual consumer debtors are subject to eligibility requirements, and spouses can file together. The 2005 Amendments to the Bankruptcy Case has made provisions to prevent abuse and protect consumers.
Chapter 11 gives the debtor the chance to reorganize their finances using a plan voted on by the debtors creditors. This chapter of the Bankruptcy Code generally involves a corporation or partnership and pays creditors over time, and is only used for an individual when such individual will not qualify for a chapter 13.
Chapter 12 adjusts the debts of a family farmer or fisherman with regular income and is subject to certain debt caps.
Chapter 13 adjusts the debts of an individual and spouses with regular income. However, the total amount of unsecured debt cannot exceed $419,275, and secured debt cannot exceed $1,257,850 as of April 1, 2019.
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