You may assume that if you are currently in a desperate financial situation, you can relieve yourself by filing for bankruptcy right away. However, you should not assume that the process is as simplified as this. Continue reading to learn whether there are any restrictions on who can file for bankruptcy and how an experienced Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help determine your eligibility.
What are the basic qualifications for a bankruptcy filing in New York State?
First of all, you will meet the initial requirement for a bankruptcy filing in New York State if you have never filed before. Otherwise, you will have to wait for a certain amount of time to pass before you are allowed to file again. These amounts of time are as follows:
- Chapter 7 bankruptcy and then Chapter 7 again: you must wait eight years.
- Chapter 7 bankruptcy and then Chapter 13: you must wait four years.
- Chapter 13 bankruptcy and then Chapter 7: you must wait six years or less.
- Chapter 13 bankruptcy and then Chapter 13 again: you must wait two years.
In addition, you must have been living in New York for at least 180 days before you can even consider filing for bankruptcy in this state. If you have been residing here for a lesser time, then you must resort to filing in the state that you previously lived in for more than 180 days.
Notably, one of the appeals of a bankruptcy filing is that you may be able to protect certain property that is covered by an exemption, whether it be your house, motor vehicles, or other personal property. And so, if you wish to take advantage of this exemption, you must have been living in New York for at least 730 days before filing for bankruptcy in this state. Otherwise, you would have to follow the exemption laws of the state you previously resided in.
Are there certain restrictions on who can file for bankruptcy in New York State?
Based on your family’s gross income, you may be restricted from filing for Chapter 7 bankruptcy in New York State. For example, if you are part of a household size of two and your monthly earnings are more than the median income standard of $6,732 per month, or $80,784 per year, then you may not qualify.
As for Chapter 13, you may not qualify if you cannot afford the monthly repayment plan. This is because you will have to pay a large portion of your priority non-dischargeable debt, non-exempt property, and disposable income.
As you can see, there are a lot of factors to consider even before filing. So for assistance in navigating this, contact a skilled Rockland County bankruptcy attorney today.