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Steps to Take Before Filing for Chapter 7 Bankruptcy in New York

Anxiety about your financial situation can be overwhelming and stressful. However, it’s important to recognize that you have options for obtaining debt relief. The COVID-19 pandemic has hit many individuals and families hard, and bankruptcy filings are becoming increasingly common. Filing for Chapter 7 bankruptcy relief may be the best way to achieve the fresh financial start that you need to move forward with confidence. Let’s take a look at some steps you can take as you prepare to file for Chapter 7 bankruptcy relief in New York.

Assess and Analyze Your Debt

First, you’ll need to take some time to assess and analyze your various financial debts. Chapter 7 works best for those with credit card debt, medical bills, and personal loans. However, some unsecured debts cannot be discharged through bankruptcy, such as alimony or child support. Other financial obligations, such as most tax debts and student loans, are not dischargeable through a Chapter 7 bankruptcy. Taking stock of your debts can give you a clearer picture of whether filing for Chapter 7 bankruptcy relief is your best option.

Check the Chapter 7 Eligibility Requirements

Before you file for Chapter 7 bankruptcy, you will need to add up your income over the last 6 months. If your income is lower than the New York median income level, you should qualify for Chapter 7 bankruptcy relief. However, even if your income is higher than the state’s median income, you can complete the means test that calculates your income and expenses to determine your eligibility for relief.

Reach Out to a Trusted New York Bankruptcy Attorney

Many individuals and families feel overwhelmed by the process of filing for bankruptcy. It can be challenging to find the motivation to follow through with the filing process, so enlisting the guidance of a compassionate New York bankruptcy attorney can give you the support you need to move forward. You are never alone during the bankruptcy process; your attorney will answer your questions, address your concerns, and help you take the necessary steps to obtain the fresh start you need.

If you are interested in learning more about the Chapter 7 bankruptcy filing process, call Grady BK, PLLC, today at (315) 299-9005 to speak with an experienced and empathetic attorney.