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Bankruptcy Blog 2010 February How Much Does Bankruptcy Cost in New York?
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How Much Does Bankruptcy Cost in New York?

Posted By Price Law Group || 27-Feb-2010

The Cost of Bankruptcy in New York

Both Chapter 7 and Chapter 13 bankruptcy are rights you have under federal law to gain relief from creditors. It's a legal proceeding that can give you a fresh start. But both Chapter 7 and Chapter 13 bankruptcy have advantages and disadvantages, namely what they can help with and the time it will take.

How Much Does Bankruptcy Actually Cost?

There is also a common question, how much does filing bankruptcy cost? Filing Chapter 7 bankruptcy or Chapter 13 bankruptcy in New York is different as most states have different laws on things like exemptions. What is the same is the filing price.

The filing fee for a Chapter 7 bankruptcy in New York costs around $335 to the court (additional attorney’s fees vary). The filing fees for Chapter 13 bankruptcy in New York are about $274 to the court (additional attorney’s fees vary). Those expenses may seem small, especially if you know the benefits of Chapter 7 and Chapter 13 bankruptcy in New York.

What Can Bankruptcy Do?

  • Eliminate most debts
  • Stop foreclosure of a home
  • Stop the "Repo" men from getting your car or other property
  • Stop wage garnishments
  • Stop creditor harassment
  • Keep your utilities going
  • Get your drivers license back in many cases

Bankruptcy is a good alternative to losing all your possessions, but with the new laws making it harder to file in certain cases, hiring professional bankruptcy attorneys can save you a lot of time and money. It isn't always a good choice to file bankruptcy. Also, Chapter 7 and Chapter 13 bankruptcy have limitations in what they can do.

What Bankruptcy Cannot Do

  • Eliminate certain rights of creditors
  • Erase debts you gained after bankruptcy
  • Discharge child support, alimony, some divorce-related debts, most student loans, taxes, and others

The above info is important. Your creditors will still have rights. In terms of costs, neither Chapter 7 nor Chapter 13 bankruptcy filings are incredibly expensive. The real problem is choosing between Chapter 7 and Chapter 13 bankruptcy, and the best way to do that is with professional counsel. While filing costs little, hiring a bankruptcy attorney typically costs more. The rates are different, but a few things are clear.

New York Bankruptcy Exemptions

One of the key advantages in filing bankruptcy is making certain property exempt. New York law, for example, allows protection of your home, car, and other properties to a certain extent. But this is where it can be complicated and where the right attorney can help.

Turn to an Experienced Bankruptcy Lawyer Near You

Some bankruptcy attorneys in New York and elsewhere will charge you just for the initial consultation. This makes it important to ask questions before even the first consultation. Also, all bankruptcy attorneys are required by law to show you and the courts how much they are charging you.

Filing Chapter 7 or Chapter 13 bankruptcy in New York may not be free, but it's more than worth it if you have outstanding debts you simply cannot pay back. Instead of waiting for the creditors, call an attorney with the experience to help you at Price Law Group.

Categories: Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy

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