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.
But if you have no money, you can ask for a fee waiver (in Chapter 7 cases) or ask the bankruptcy judge to roll the payment in your repayment plan (in Chapter 13 cases). While in some cases you can file bankruptcy without a lawyer, there are exceptions, depending on the type of bankruptcy. Some examples include:
The company you use to complete this requirement must be pre-approved to offer it in New York State. The Office of the United States Trustee handles the approval process, and publishes a current listing of all approved providers on their website. It can be completed at any point in the 6 months before your bankruptcy filing.
Hiring a New York bankruptcy lawyer will likely cost you somewhere between $965 and $1,550, which is higher than the national average.
The following debts are not discharged if a creditor objects during the case. Creditors must prove the debt fits one of these categories: Debts from fraud. Certain debts for luxury goods or services bought 90 days before filing.
Disadvantages of Bankruptcy: A bankruptcy may impede your chances of getting a mortgage or car loan for some time. Not all debt will be discharged. Examples of debt that cannot be discharged include child support, alimony, some student loans, divorce settlements and some income taxes.
Debts not discharged include debts for alimony and child support, certain taxes, debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit, debts for willful and malicious injury by the debtor to another entity or to the property of another entity, debts for death or personal ...
In short, the answer is no. When you file for bankruptcy you must include every debt and every asset you have. As a matter of fact, providing the bankruptcy court with an incomplete petition when you file could result in dismissal of your case.
Filing Chapter 7 bankruptcy wipes out most types of debt, including credit card debt, medical bills, and personal loans. Your obligation to pay these types of unsecured debt is eliminated when the bankruptcy court grants you a bankruptcy discharge.
Bankruptcy Can Wipe Out Credit Card Debt and Most Other Nonpriority Unsecured Debts. Bankruptcy is very good at erasing most nonpriority unsecured debts other than school loans. For instance, you can discharge unsecured credit card debt, medical bills, overdue utility payments, personal loans, gym contracts, and more.
Unsecured debts wiped out by Chapter 7 bankruptcy include credit card debt, medical bills, and gasoline card debt. However, you can't wipe out all unsecured debt.
Again, there's no minimum or maximum amount of unsecured debt required to file Chapter 7 bankruptcy. In fact, your amount of debt doesn't affect your eligibility at all. You can file as long as you pass the means test. One thing that does matter is when you incurred your unsecured debt.
You'll want to open checking and savings accounts at a bank that doesn't service any of your debt and use the new account for banking purposes before filing bankruptcy. Again, you don't need to close other accounts—leave them open and report all accounts when filling out your bankruptcy paperwork.
There is no minimum debt to file bankruptcy, so the amount does not matter. Examples of unsecured debts include credit card debt, cash advance (payday) loans, and medical bills. Secured debts: If you are behind on a house or car payment, this may be a very good time to file for bankruptcy.
Can You Declare Bankruptcy on Credit Cards Only? While credit card debt is a major reason people wind up filing for bankruptcy, you cannot file for bankruptcy on credit card debt alone, as the law requires that all your debts be listed in the bankruptcy documents.
The bankruptcy process falls under federal law, not New York state law, and it works by unwinding the contracts between you and your creditors —that's what gives you a fresh start.
After Filing for Bankruptcy in New York. Your creditors will stop bothering you soon after you file. It takes a few days because the court mails your creditors the notice of the "automatic stay" order that prevents most creditors from continuing to ask you to pay them. Here's what will happen next:
When a bankruptcy exemption doesn't cover the property, you'll either lose it in Chapter 7 or have to pay for it in the Chapter 13 repayment plan. Choosing state or federal exemptions. Unlike most states, New York allows you to choose between the state exemption list and the list of federal bankruptcy exemptions.
The New York wildcard exemption allows you to protect any personal property of your choice (not real estate) or cash up to a value of $1,175. This exemption is available only if you don't use the homestead exemption. (NYCPLR §§ 5205 (a) (9).)
Your creditors will stop bothering you soon after you file. It takes a few days because the court mails your creditors the notice of the "automatic stay" order that prevents most creditors from continuing to ask you to pay them. Here's what will happen next:
The state of New York has three federal judicial districts—the Northern, Eastern, and Southern Districts of New York. Each district has a bankruptcy court with several divisions. To determine which division has jurisdiction over your case, use the Federal Court Finder page.
Keep in mind that spouses who file together in New York can double the exemption amount in each category as long as both spouses have an ownership interest in the property.
The bankruptcy process may be simple enough to handle on your own if the following are met: 1 You own few assets 2 Your household income is below your state's median 3 You haven't been accused of fraud
In general, you need to at least pay a filing fee and the credit counseling and financial management course fees to finalize your bankruptcy petition. But if you have no money, you can ask for a fee waiver (in Chapter 7 cases) or ask the bankruptcy judge to roll the payment in your repayment plan (in Chapter 13 cases).
Even though your case is relatively uncomplicated, a bankruptcy case requires you to fill out extensive paperwork and have a good knowledge of the Bankruptcy Code. Thus, it may be in your best interest to at least have an initial consultation with an attorney to make sure you are on the right course.
You'll have to attend your “ Meeting of Creditors " on the scheduled date. Although your creditors won't actually be present , the trustee will be and will ask you a number of standard questions about your case. Be sure to answer truthfully and accurately.
Yes, you can legally file for bankruptcy without a lawyer. But should you? Every year, thousands of Americans find themselves too broke to pay off their debts, yet unable to afford bankruptcy. It probably comes as no surprise that attorneys' fees make up the lion's share of bankruptcy expenses.
A Chapter 7 is what you think of as a traditional bankruptcy, where you walk away from your debt and get a fresh start. A Chapter 7 case lasts for a significantly shorter amount of time than a Chapter 13 case. A Chapter 13 can be much more complicated. A Chapter 13 involves a repayment plan that will run for three to five years.
First you will need to determine if you are eligible to file a Chapter 7 by passing the means test. If you are below a certain threshold for your state you will qualify, otherwise you need to complete both parts of the means test calculation to determine your disposable income.
There are also debts which are non-dischargeable in a bankruptcy case. Non-dischargeable debts include things like child support, alimony, most tax debt, etc. If the bulk of your debts are non-dischargeable a Chapter 7 bankruptcy may not offer the relief you are seeking.
Bankruptcy is most helpful to people with unsecured debt, like credit cards and medical bills, because these kind of debts are dischargeable. You can potentially walk away from them completely. Secured debts are those which are tied to a specific item as collateral.
You are not required to hire an attorney to file bankruptcy. You can do so for free, or with a legal aid organization. Written by Attorney Eva Bacevice. Updated October 7, 2020.
You will need to fill out a petition and schedules and be certain to list all of your assets and creditors. In order to make certain that you are properly listing all of your creditors you should get a copy of your credit report. You can request a free copy here.
If you suspect you may have a more complicated case (if you own real estate or if you believe you’re income is above the median for your state), or if filing a Chapter 13 case would be the more beneficial option for you, we recommend that you consult with an attorney who can provide you with full representation.
Corporations and partnerships must have an attorney to file a bankruptcy case. While individuals may appear “pro se” (without an attorney) in the bankruptcy court, it is recommended that you obtain the legal services of a bankruptcy attorney.
Only an attorney is authorized to give legal advice regarding a bankruptcy case or proceeding. If playback doesn't begin shortly, try restarting your device. Videos you watch may be added to the TV's watch history and influence TV recommendations.
Debtors must list all property and debts in their bankruptcy schedules. If a debt is not listed, it is possible the debt will not be discharged.
From the United States Courts website ( www.uscourts.gov ): Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in bankruptcy court. While individuals can file a bankruptcy case without an attorney or "pro se," it is extremely difficult to do it successfully.
The BNC, which is operated by a private contractor, provides notice production and mailing services for the court, but THE BNC IS NOT THE COURT. DO NOT SEND DOCUMENTS TO THE BNC. Documents related to a bankruptcy case or proceeding should be sent directly to the court.
For example, a debtor whose case is dismissed for failure to file a required document, such as a credit counseling certificate, may lose the right to file another case or lose protections in a later case, including the benefit of the automatic stay.
While individuals can file a bankruptcy case without an attorney or "pro se," it is extremely difficult to do it successfully. It is very important that a bankruptcy case be filed and handled correctly. The rules are very technical, and a misstep may affect a debtor's rights. For example, a debtor whose case is dismissed for failure ...