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Do I Need to Keep Paying My Bills When I File Bankruptcy in New York?

Many Americans are struggling with large amounts of debt. Many people experiencing financial difficulties before the pandemic have found these struggles even more debilitating, as they struggle with mortgage payments, loss of employment, exorbitant medical bills, and other expenses they fear they cannot pay. Filing for bankruptcy can give many individuals the fresh start they need to build a more stable future for themselves and their families. However, many people wonder whether they need to continue paying their bills once they file for bankruptcy in New York. Let’s look at how the bankruptcy process affects your payment obligations.

You Can Stop Payments on Unsecured Debts

As soon as you file for Chapter 7 bankruptcy in New York, the court will issue an automatic stay that prevents creditors from hounding you for money. This means that any payments you owe on unsecured debts, like credit card balances, medical bills, and personal loans, will stop when the bankruptcy is filed. The automatic stay prevents credit card companies, banks, and other creditors from calling you, sending you bills, suing you, or contacting you for payments.

You Must Continue to Pay on Secured and Non-Dischargeable Debts

Just because you file for bankruptcy does not mean you can stop making all payments you owe. You will still need to pay on secured debts that you want to keep in your possession, like car and mortgage payments. Additionally, you are still responsible for paying on non-dischargeable debts you owe, including child support payments, student loans, and most tax obligations. If you are unsure of what bills you will still be responsible for paying after you file for bankruptcy, discuss your situation with a knowledgeable New York bankruptcy attorney.

Contact a Skilled New York Bankruptcy Lawyer Today

The prospect of bankruptcy may feel intimidating or even shameful for many people. However, the bankruptcy process can give you the fresh start you need to steadily regain control of your finances. Remember, you do not have to go through this challenging time alone. Working with a compassionate and experienced bankruptcy attorney can give you the support and confidence you need to stay motivated throughout the bankruptcy process. Together, you can lay the foundation for a stronger and brighter future.


Call Grady BK, PLLC, today at (315) 299-9005 to discuss your debt relief options with a trusted and compassionate New York bankruptcy attorney.