There are two different kinds of bankruptcy that individuals can file for: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is for people who have less income and primarily assets with not much value. On the other hand, a Chapter 13 Bankruptcy is for people who generate more income and have assets with equity. Under certain circumstances you may only be eligible for one type of bankruptcy filling. In most cases, debtors will choose to file Chapter 7 because it is fast, effective, easy to file, and doesn’t require payments over time. Chapter 7 bankruptcy usually takes the least time to complete. Normally around 3-5 months.
Yes, you can choose the type of bankrupty that you want to file. However, there is certain criteria that must be met and you may not be eligible for one chapter depending on your financial circumstances. Let see the criteria of filling bankruptcy in New York.
Criteria For Filing Bankruptcy in New York
In New York a Chapter 7 is usually the most common type of bankruptcy. The popularity of this bankruptcy is it does not require payments to be made over time. Instead, individuals are able to file bankruptcy and get their debt wiped out. Additionally, it’s easy to file and less expensive. However, not every person who is seeking bankruptcy protection is eligible to file under Chapter 7. To be eligible for Chapter 7 bankruptcy filling, you must meet certain criteria:
Pass New York Bankruptcy Means Test
First, You must pass the “Means Test” or Median income test. 
The means test is calculated by averaging your household income for the past 6 months and comparing it to the median income for your state. These numbers change periodically so it’s important to speak with an experienced Staten Island Bankruptcy Attorney who can help you decide if you qualify under the means test.
If you don’t qualify for Chapter 7 under the means test you may have to go to the second part of the test. This will look at you disposable income. The second part of the test allows you to subtract certain monthly expenses that are allowed. If your monthly disposable income after subtracting your expenses is under a certain amount you may be eligible to file for Chapter 7 In New York.
Chapter 13 Bankruptcy
If you do not qualify for a Chapter 7 in New York than you will need to see if you qualify for a Chapter 13 bankruptcy. Chapter 13, known as a wage earner plan, is an interest-free repayment plan where a debtor repays at least some of his or her unsecured debts with regular payments over five years.
One thing to note is that you do have to give up your tax returns if you are filing Chapter 13 and you do make payments to the bankruptcy trustee until the debt is paid off. any debt that is not paid off, is forgiven.
In Chapter 7 fillings, debtors liquidate their assets. In a Chapter 13 the debtor comes up with a plan to pay off their creditors over a 5 year plan. If you are in arrears you will also have to pay the arrears off in the plan.
Speak with A Lawyer Who Can Help File Bankruptcy
If you are looking for a Staten Island Bankruptcy Attorney give us a call today. It is important to speak to a qualified New York Attorney to help you get out of debt. An experienced bankruptcy attorney can review your options and make sure that bankruptcy is right for you. Give us a call at 973-979-9078 and check out our website.