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Wage Earner Bankruptcy for Self-Employed Individuals in New York

If you are self-employed and living in Central New York, you may be interested in learning more about wage earner bankruptcy. Bankruptcy can be a great solution if you are facing a substantial amount of debt.

At Grady BK, PLLC, our goal is to provide our Central New York clients with the resources they need as they begin the bankruptcy process. We understand that this process can be challenging and overwhelming, which is why we prioritize an empathetic approach that takes into account your personal situation. We can help you every step of the way as you file for bankruptcy and address your financial situation. In this article, we will be discussing wage earner bankruptcy and how it can be beneficial for those who are self-employed.

What is Wage Earner Bankruptcy in Central New York?

If you are self-employed in Central New York, one of the best bankruptcy options you have is wage earner bankruptcy, otherwise known as a Chapter 13 wage earner plan. Chapter 13 is a repayment plan that allows you to pay off a percent of your debt over a three to five year period. At the end of the repayment period the remaining unsecured debt is discharged (wiped away). Chapter 13 is also a good option for those who do not qualify for other types of bankruptcy because they earn too much income.

When you start your wage earner bankruptcy plan, you will usually have between 3 and 5 years to repay your debts. The minimum amount you will have to pay will be dependent on your income, the amount of debt, and the type of debt.

When you file for Chapter 13, you will also be protected from any collection efforts throughout the duration of your repayment plan. This is called an automatic stay, which will also protect you from things like foreclosure or repossession.

Filing Bankruptcy When You’re Self-Employed

When you are self-employed, filing for bankruptcy can be a bit more challenging since your income may be irregular. Chapter 13 provides a suitable option for these types of situations and gives you the flexibility of paying over 3 to 5 years.

A wage earner plan can be beneficial for those who are self-employed or own their own business, as it gives you time to catch up on critical monthly payments. When your repayment plan is over, eligible debts that are remaining may be eliminated completely, depending on the type of debt.

Anyone who is considering filing for bankruptcy needs to take the additional step of hiring a bankruptcy attorney to help them with this process. This is even more important for those who are self-employed as these types of financial situations will be a bit more complex.

A bankruptcy attorney can help you evaluate your options to decide what type of bankruptcy is the right fit for your situation. They can also help you as you file and assess the aftermath of your finances when your bankruptcy repayment plan has been initiated.

Bankruptcy Benefits For Those Who Are Self-Employed

Those who are self-employed or own a small business may find bankruptcy to be the best option when they are in a substantial amount of debt. Although it can be more complex, it can provide a substantial amount of relief when it comes to personal and business debt.

Chapter 13 can protect you from aggressive creditors, preventing foreclosure, repossession, and other things that could be devastating for your business. It also provides a realistic solution for managing monthly payments and paying off debt while being able to remain self-employed. Any debt that is not paid off during the repayment plan may be dischargeable, which would allow you to have a relatively fresh financial start.

How to File For Chapter 13

There are certain documents you need to have if you plan on filing for Chapter 13 bankruptcy in Central New York as someone who is self-employed. This includes basic financial documents such as:

  • Contracts
  • Invoices
  • Payment app records
  • Copies of checks
  • Receipts of cash payments
  • Bank statements
  • Tax returns

Additional information that you need to include when you file is a list of creditors and the amounts owed, as well as information regarding your income and pay stubs from the last six months. You should also include federal and state income tax returns from the last two years, a list of your assets, and a list of your monthly living expenses.

If you are married and living with your spouse, this information also needs to include them, even if you aren’t filing a joint petition. You will also be required to go to an online credit counseling and receive a credit counseling certificate from a counseling agency that is on a government-approved list.

Be prepared to pay filing fees and administration fees when you file for bankruptcy, and make sure all of the information you provide is accurate and up-to-date. If you are approved and your wage earner bankruptcy plan is initiated, the first monthly payment will be required one month after you filed.

Central New York’s Top Compassionate Bankruptcy Attorney

Filing for a Chapter 13 wage earner plan can feel quite overwhelming as no one necessarily wants to go through the bankruptcy process. At Grady BK, PLLC, we can help you file for bankruptcy and choose the best bankruptcy option for your situation and financial goals. Having a Central New York attorney on your side can give you peace of mind and the knowledge you need as you declare bankruptcy.

At Grady BK, PLLC, we have handled hundreds of bankruptcy cases in Central New York and prioritize providing our clients with an empathetic and personalized experience. We will look at your unique financial situation so that you can choose the right bankruptcy option that sets you up for a better financial future.

Contact us today at 315-299-9005 to discuss your financial situation with a bankruptcy attorney in Central New York. Our team at Grady BK, PLLC, is here to provide you with the legal assistance you need as you start the wage earner bankruptcy process.

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