How to File  a New York Bankruptcy

If you are overwhelmed with debt filing a Chapter 7 New York bankruptcy may be in your best interest. A Chapter 7 New York bankruptcy is a great tool that is used to eliminate your debt. In order to file bankruptcy in New York, you will first have to decide if you want to hire a New York bankruptcy lawyer. A New York bankruptcy lawyer can help analyze your case to see if bankruptcy is the right option for you.

Should I hire a New York Bankruptcy Lawyer?

There are many reasons to hire a New York bankruptcy lawyer. Bankruptcy can become complicated. If you own property, then a bankruptcy lawyer can help you determine which assets can be exempt. If you file bankruptcy and your assets are unexempt, the Bankruptcy Court can force you to sell your property to pay off your creditors.

Another reason to hire a New York bankruptcy lawyer is that they can prepare you for Court. When you file for bankruptcy you will have to go to a hearing where you will be questioned by a trustee. The trustee is an attorney that represents your creditors. The trustee’s job is to make sure that everything you listed on your petition is true. An experienced bankruptcy lawyer can prepare you for the questions that you will be asked at Court. It is important to note that lying on a bankruptcy petition or in Court can be grounds to charge you with a felony. Therefore, it is important that you tell the truth.

If you are unsure whether you want to hire a bankruptcy lawyer, you may want to consider at least speaking to one. Bankruptcy lawyers usually provide their clients with free consultations. It could be extremely advantageous to go in and at least speak to a bankruptcy lawyer to understand the process and make sure bankruptcy is the right decision for you.

The Bankruptcy Process

Once you have decided if you want to file a New York bankruptcy the next steps will be to gather all of your documents. Some of the documents that you will need to provide are:

• Two years Tax Returns
• Six Months of Paystubs
• Vehicle Title
• Vehicle Valuation
• Vehicle Pay off Statement
• Mortgage Deed
• Mortgage Payoff Statement
• Home Appraisal
• Certificate of Credit Counseling
• 401(k) Statement

(Note this is not a complete list of documents that you will have to provide)

If you hired a bankruptcy lawyer then your lawyer will take those documents and prepare a bankruptcy petition. A bankruptcy petition is a document that lists your personal information, your debts, your assets and your creditors. Once your petition is created you and your lawyer will review it. If everything is correct your bankruptcy lawyer will have you complete a bankruptcy counseling course that is required by the Bankruptcy Court. Once you have completed the course your attorney will file your case.

How Do I Know If I Qualify For a New York Bankruptcy?

In order to qualify for a New York bankruptcy, you will have to qualify under the New York Means Test. The New York Means Test is what the Court uses to determine if you qualify for a Chapter 7 bankruptcy. The New York Means Test takes your median household income and compares it with New York’s household median income. The Means Test is calculated by averaging your last six months of income. A New York bankruptcy lawyer can help you see if you pass the means test. If you fail the means test then you may have to file a Chapter 13 bankruptcy.

What Is The Bankruptcy Counseling Course?

The bankruptcy counseling course is a course that the Court makes every person complete to ensure that Chapter 7 bankruptcy is the right option for them. There are two credit counseling courses that must be completed in order to file a New York bankruptcy. Both courses can be done online at the convenience of your own home. Your bankruptcy lawyer will provide you with the information necessary to complete the course.

How Much Does a New York Bankruptcy Cost?

The filing fee for a New York  Chapter 7 bankruptcy is $335. This fee must be paid at the time of filing. However, if you make less than a certain amount of income you may be eligible for a waiver. If you are eligible for the waiver, then you will not have to pay anything. On top of the filing fee, you will have to pay for a New York bankruptcy attorney. The average price for a Chapter 7 bankruptcy attorney in New York is anywhere from $1,700 and up. Although the cost to hire a bankruptcy lawyer may seem expensive, you should look at it as an investment. You are hiring a professional to help you eliminate your debt. If you have $25,000 worth of debt then paying an attorney $2,000 to get rid of all your debt really is worth it.

What Happens After My New York Bankruptcy Case is Filed?

After your New York bankruptcy case is filed you will receive a letter in the mail advising you of the date and time for your 341 hearing. The 341 hearing is usually scheduled anywhere from three to six weeks from the date of filing.

What Can I Expect at a New York Bankruptcy 341 Hearing?

At the 341 hearing, the trustee will question you about the petition you submitted. The trustee will make sure that you have not made any false statements. If the trustee finds that you have lied or failed to list assets in your petition then he can deny your discharge. Moreover, creditors are able to object to your bankruptcy at the 341 hearing. It is important to note that creditors rarely show up to the 341 hearings to object. However, if a creditor does want to object to a bankruptcy discharge then they will have to file an adversary proceeding with the Court. An adversary proceeding is a lawsuit within the bankruptcy court.

What Happens After Court?

After Court, if you have not already done so, you will have to complete your second online bankruptcy course. This is also known as the debtor education course. The debtor education course educates people so that they do not fall into the same financial situation again.

Once the course is complete you will hopefully get your discharge within 60-90 days from the date of your 341 hearing. A bankruptcy discharge is an order entered by the Clerk of the Court that says that you no longer have to pay back your debts. If creditors still try to collect after the order is entered they may be punished.

How Long Does a New York Bankruptcy Take?

A New York bankruptcy typically takes around three months from the time your case is filed to the time you receive your bankruptcy discharge. Once you receive your bankruptcy discharge and your case is closed you can begin the process of rebuilding your credit.

Karra L. Kingston Esq. is a bankruptcy lawyer in New York and New Jersey. Karra has helped numerous clients who have been overwhelmed with debt get a fresh start. Karra L. Kingston Esq. offer a free consultation and payment plans for people who can not afford the fees upfront. Call today so that we can see what the best option is for you.

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