How do I file for Chapter 13 bankruptcy in New York?

Financial difficulties can cause people to turn to bankruptcy. This process can help them regain control over their finances and to work toward building a more successful financial future. Individual bankruptcy can be filed through Chapter 7 and Chapter 13 bankruptcy proceedings.

The process of filing for each bankruptcy process is similar to one another. Before filing for Chapter 13 bankruptcy, you will need to go through credit counseling 180 days before you file for the process. If you previously filed a petition that was dismissed within the 180 days before, you cannot file again. Once you file for bankruptcy, you should include documents that name a list of liabilities, assets and property, a statement of financial affairs, a list of executory contracts and unexpired leases, proof of credit counseling and any plan developed to handle the matter, income payments within 60 days prior to filing, monthly net income and any indication in a rise of income or expenditures and interests the debtor has in state or federally-qualified education or tuition accounts. Once the paperwork is officially filed for this bankruptcy process, the automatic stay will go into effect to give you the space you need from creditors, barring them from contacting you at all.

How is Chapter 7 bankruptcy handled?

To file for Ch 7 bankruptcy, people have to be eligible. Before filing, individuals have to go through credit counseling and attend a debtor education course to better prepare themselves. After that is done, they must pass a means test, which compares their income to the median income in the United States. In order to be eligible to claim bankruptcy, their income has to be below the median income. If you have completed the necessary eligibility demands, a petition for bankruptcy must be filled out. In this petition, you will be required to list certain aspects. You have to claim a list of all your debts, an account of your income, monthly living expenses and a list of assets. When the paperwork is completed, an automatic stay goes into effect immediately. An automatic stay bars creditors from contacting you about your debt. This can ease some stress about your financial situation and eliminate harassment from creditors. With this aid, you will be able to focus on preparing a financial plan instead of resisting creditors.

If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.