Want to file Chapter 7 bankruptcy in New York but have enough questions to fill a book? Well, there are some ground rules for filing New York Chapter 7 you need to be aware of, and tips you need to successfully discharge or pay back debt.
Are you eligible for bankruptcy in New York?
The two main forms of personal bankruptcy, Chapter 7 and Chapter 13 bankruptcy, have clear guidelines for whose eligible to file. In most all cases, you can file Chapter 13. It used to be the same with Chapter 7. With new bankruptcy code, you must now be at the median income or below in your state if you want to file for Chapter 7 bankruptcy.
For example, if you’re a single resident in New York, no matter what assets you have, but make less than $46, 523, you can file under Chapter 7 bankruptcy in New York. The larger your family, the larger the median income limit. If you make less than $57,000 and your family size is 2, you can file bankruptcy. It goes up from there, as in other states.
Sometimes you may not be eligible for Chapter 13 bankruptcy. If you have more than $336,900 in unsecured debt, you cannot file. If you have more than $1,010,650 in secured debt, you are not eligible. However,if you have less than those numbers in unsecured and secured debt, as most do, you are eligible for Chapter 13.
To be sure these numbers are up to date, or for different states, you can find out the median income for your state, along with current bankruptcy code for secured and unsecured debt.
What bankruptcy is better for New York bankruptcy filers?
It depends on your current income status, mainly. What’s best for you can be helped with a professional bankruptcy attorney. Here are some tips:
-If you have a lot of credit card debt, only Chapter 7 bankruptcy can eliminate it
-If you fear your home will go into foreclosure, Chapter 13 bankruptcy can delay it several years and help you keep it
-Chapter 7 bankruptcy does not eliminate tax or alimony debts
-Chapter 13 bankruptcy only buys you time: you still need money
How do you hire a bankruptcy attorney in New York?
Hiring a bankruptcy attorney comes down to many factors, including: experience, rates, and workload.
If your attorney has little experience in bankruptcy law, even if he or she is a friend, you should hire a professional. The more experience does not always mean more rates either, but some attorneys charge you higher than others. Lastly, you don’t want to hire a New York attorney who’s inundated with clients; good for him or her, but can slow the process for you.
Will there be more bankruptcy changes?
There will be more bankruptcy changes at the state level, likely every year as the median income changes. For New York residents, there are alternatives to bankruptcy, but sometimes bankruptcy is your best option. If you’re unsure, consult with a professional.
