Filing for bankruptcy in New York is a big step, but may be a necessity if your debt has become unmanageable. When this happens, filing for bankruptcy in New York is usually a good option that allows you to address the problem so that you can move forward with a clean slate.
At Grady BK, PLLC, we understand how overwhelming personal bankruptcy in New York can feel, especially if you are worried about life post-bankruptcy. That is why we provide one-on-one legal representation and guidance so that you can navigate the bankruptcy process with confidence. In this article, we will discuss how bankruptcy works in New York and how you can proceed with filing for bankruptcy.
What Happens Before You File For Bankruptcy?
Before you officially file for bankruptcy, New York requires all individual debtors to go through bankruptcy credit counseling within 180 days before they file for bankruptcy. Once you have completed this, you will get a certificate of completion, which you will need to include with your bankruptcy papers.
You will also need to gather all of your financial documents to establish your income, living expenses, and debts. This should include:
- Monthly living expenses
- All sources of income
- Secured and unsecured debts
- Assets and possessions
How to File a Bankruptcy Petition
Although bankruptcy can feel overwhelming, the actual steps to file for bankruptcy are relatively simple. Once you have prepared the necessary documents and completed the bankruptcy counseling course, you can move forward with filling out the required bankruptcy forms.
The bankruptcy forms can be submitted either online or you can file them directly with the court. Don’t forget to include your filing fee, which will be different depending on the type of bankruptcy you are filing for.
It’s essential that you are completely transparent and honest when you file for bankruptcy. All the information you provide needs to be accurate; otherwise, you risk having your petition denied.
What Happens After Filing For Bankruptcy?
If your petition is approved, the next steps of the bankruptcy process will begin. The first thing you can expect is for the automatic stay to immediately take effect.
This is a protection granted to those who have filed for bankruptcy that protects them from all collection efforts from creditors. This means that your creditors will no longer be able to reach out to you for any reason.
Also, the court will appoint a bankruptcy trustee to your case. The trustee will be responsible for managing the details of your bankruptcy case as well as ensuring you follow the terms of your bankruptcy agreement.
After a trustee is appointed, you and your trustee will need to attend the 341 meeting of creditors. The 341 meeting will review the details of your bankruptcy filing, confirming that all the information you have provided is accurate.
New York also requires those who have filed for bankruptcy to complete a course in personal finances from a pre-approved course provider.
Chapter 7 Vs Chapter 13 Bankruptcy Cases in New York
Chapter 7 and Chapter 13 bankruptcy are the two most common options that New York residents choose. However, they are quite different, so you need to understand what both options entail before you make a decision.
- Chapter 7: Chapter 7 bankruptcy is a fast option that will usually discharge all of your dischargeable debts. To qualify, you will need to take the means test to ensure you do not make over the income limit. Also, Chapter 7 can increase the risk of you losing certain assets if your trustee uses them to pay back your credits.
- Chapter 13: Chapter 13 bankruptcy creates a repayment plan that spans a 3 to 5-year period. It is usually the option for those with higher incomes, allowing you to make realistic monthly payments that go towards all of your expenses and debts. You can usually keep all of your property, and any dischargeable debts that remain after your repayment plan is completed can usually be discharged.
A bankruptcy attorney can help you determine which type of bankruptcy is the right fit for your situation.
FAQ:
How long does bankruptcy usually take in New York?
Generally speaking, you can expect a Chapter 7 case to take between four and six months. Whereas a Chapter 13 case will last 3 to 5 years.
Do I have to appear in court when filing bankruptcy?
Not usually. For the majority of cases, the only formal meeting you will have to attend is the 341 meeting of creditors.
Will bankruptcy stop collection calls immediately?
Yes, once you file for bankruptcy, an automatic stay takes effect, prohibiting creditors from reaching out to you.
Can I choose between Chapter 7 and Chapter 13?
Maybe. But this will depend on your income, as Chapter 7 bankruptcy has an income limit, so if you don’t pass the means test, you may have to file for Chapter 13 instead.
Will bankruptcy eliminate all of my debts?
This depends on the types of debts you have, as bankruptcy can usually eliminate all dischargeable debts. However, keep in mind that bankruptcy will not eliminate things like child support, alimony, and criminal fines.
New York’s Top Compassionate Bankruptcy Attorney
Now that you know how to file for bankruptcy in New York, all that’s left to do is to get started. At Grady BK, PLLC, our New York bankruptcy attorneys are here to help with every step of the process so that you can move forward with peace of mind. We treat each of our clients as though they were our only client, customizing our approach to meet your needs and goals.
At Grady BK, PLLC, our bankruptcy lawyers in New York can help you determine what type of bankruptcy is the best fit for your situation. And we will be here throughout the entire process so that you don’t have to go through this process alone.
Contact us today at 315-299-9005 to discuss your situation with a bankruptcy attorney in New York. Our team at Grady BK, PLLC, is here to help you begin the bankruptcy process so that you can move towards a better financial future.
