To determine if you should file bankruptcy in Staten Island, you will need to determine where to start. Karra L. Kingston Esq. can help you and give you an overview of the bankruptcy processs. Our bankruptcy lawyers can walk you through the process and provide you with great resources to help you get out of debt.
Do you Need to File For Bankruptcy
The first question most people wonder is if they need to file bankruptcy in Staten Island. However, if you are riddled with debt and can’t afford your basic living necessities than filing a New York bankruptcy is probably the direction you should be headed.
There are two different types of bankruptcy that consumers can file in Staten Island
Chapter 7 bankruptcy, eliminates undecured debt. Some types of unsecured debt are credit cards, personal loans. and medical debt. Individuals can file a Chapter 7 bankruptcy once every eight years. To qualify for a Chapter 7 bankruptcy in Staten Island, you must pass a means test. This test looks at your total income and family size and compares it to the household income of a similar size in New York.
Most people who file a Chapter 7 bankruptcy in Staten Island, have little to no property or equity. If you don’t own any property these are known as “no asset” bankruptcy cases.
Chapter 13 bankruptcy, is a repayment plan. In a Chapter 13 bankruptcy, your debt gets paid over three to five years. In a Chapter 13 bankruptcy in Staten Island, your interest and penalties stops accruing so you can better manage your finances. A monthly payment plan that you can afford will be structured so that you can easily pay back your creditors. In many cases individuals only have to pay a portion of their debt. This allows individuals to keep property with equity. If you can’t make the required monthly payment, the Chapter 13 bankruptcy will fail and the debts will still become due.
Chapter 13 bankruptcy in Staten Island, is commonly used by people who are behind on secured payments. (ie. mortgages, car loans) and want to keep the property.
To qualify for a Chapter 7 or Chapter 13 a mathematical formula called the “means test” was enacted by congress in 2005. The means test established the initial determination of the kind of bankruptcy your can file.
The means test looks at :
- monthly income
- the amout of debt your have
- your expenses
- IRS standard deductions
If your annual income is less than the New York median income for your household size, then you can qualify for a Chapter 7 banrkuptcy. If the income is higher you will need to go to the second part of the means test which takes into consideration your household expeneses. This will determine how much disposable income you have left over and whether you have enough to fund a Chapter 13 bankruptcy in Staten Island.
The means test is a long and complicated form. Our bankruptcy lawyers can go over the means test with you and determine if you qualify. Keep in mind that the means test is based on your last 6 months of income. This does not mean because you made 50k last year you will be under. Keep in mind, that many people get large bonuses over the holiday season and this can impact whether you qualify under the means test. If this is the case you may have to wait longer since it only takes into consideration the last 6 months.
What Will I Need to do To file a Chapter 7 Bankruptcy in Staten Island
- Speak With a Staten Island Bankruptcy Lawyer to see if you qualify. – Karra L. Kingston Esq. gives free consultations for clients. Call us so we can review your finances to determine if you qualify.
- Gather paperwork about your finances- Before calling us for a free bankruptcy consultation have readily available copies of your credit report, mortgage statement, deed, or any other financial statements
- Determine Which Property is Exempt – Our bankruptcy lawyers will go over which property is not exempt when you file bankruptcy. Make sure to tell us truthfully all of the information regarding your assets. If you fail to inform us of assets the bankruptcy court can sell the property to pay off creditors.
Talk To A Staten Island Bankruptcy Lawyer
If you are looking to file bankruptcy in Staten Island, you are probably already in fragile economic circumstances. Many individuals who have large credit card debt or are facing divorce, loss of job, injury, or uninsured medical expenses are unable to afford basic living necessities. Bankruptcy law is designed to help people who need monetary assistance. The government implemented bankruptcy laws to help people get a fresh start who have unpayable debt.
Keep in mind that if you are facing unpayable debt, there is a way out. If you are worried that your assets will be taken away, don’t. Bankruptcy exemption laws of New York 
allow individuals to file bankruptcy and keep their assets. When assets are protected unsecured creditors (like credit card companies) can’t take your stuff. Filing for bankruptcy immediately can help stop interest and penalties from accruing on your debt.
Keep in Mind, that not all debt is exempt property. For example, exemption laws typically do not protect you against collection of child support or IRS debt. Also, if you bough property and have a lien agaisnt it as collateral you will have to pay. For example, if you have a car loan or mortgage, the lender can take the property regardless of any New York exemption.
There are some kinds of debts that bankruptcy simply can’t get rid of. This includes child support, student loans and most tax debt.
Where To File For Bankruptcy in Staten Island
If you lived in New York for at least 91 of the past 180 days, or six months, you can file bankruptcy in New York. If you’ve moved from out of state recently than you may not qualify to file bankruptcy in New York.
The Bankruptcy Court for people with the 10310, 10314 and all of Richmond County aou are in the jurisdiction of the
Eastern District of New York.
Our Staten Island bankruptcy lawyers will file your forms with the courthouse. We will also attend your bankruptcy meeting with you when you will have to be there for your in person, 341 meeting of creditors with your assigned bankruptcy trustee.
The Eastern Distric of New York Courthouse for individuals filing a Staten Island bankruptcy is located in Brooklyn at 271-C Cadman Plaza East, Brooklyn, New York 11201. The courthouse phone number is (347)-394-1700.
How Much Does Filing Bankruptcy Cost in Staten Island?
The Cost for filing bankruptcy includes more than just our legal fees. Below is a list of other fees:
- Mandatory prefiling credit counseling
- Mandatory debt managment education
- Other motions or court procedures
Mandatory Pre – Filing Credit Counseling Bankruptcy Course:
Before filing a Staten Island bankruptcy, you must participate in an online credit counseling session. After you have completed the course, you will get a certificate of completetion that will need to be filed with the Court. If you are planning to file jointly with your spouse than both of you will be required to complete it.
Professional Bankruptcy Help in Staten Island
If you want to hire a Staten Island bankruptcy lawyer to help you begin this process, you can give our lawyers a call today. Be careful of petition preparers that claim they can fill out your papers for you. These petition preparers are not allowed to dot his and it violates the Bankruptcy Court’s rules and regulations. Only a bankruptcy lawyer can give you legal advice.
A good bankruptcy lawyer can advise you on the strategies to ensure that your bankruptcy case goes smoothly. If you have too much unsecured debt, and all of you assets are not exempt hiring the wrong person can put you in a much worse financial situation.
Karra L. Kingston Esq. has helped many individuals get out of debt. Call us today for a free consultation at 973-979-9078 or email us at karra@klkbankruptcylawyer.com