Things You'll Need:
- a good bankruptcy lawyer
- documentation of income
- documentation of assets
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Step 1
Consult with a bankruptcy lawyer you trust whether filing for bankruptcy makes sense for you. Many bankruptcy attorneys offer free initial consultations.
It is possible to file yourself, but the bankruptcy law is fairly complicated and mistakes in the process might be very costly. Try to find a firm in which you have direct contact with your lawyer. In many big law firms you will work with a paralegal and not the lawyer, so watch out for that. -
Step 2
Determine – together with your lawyer, whether filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy is a solution for you.
Why Chapter 7?
The most popular is chapter 7 bankruptcy– also called straight or liquidation bankruptcy. Chapter 7 bankruptcy is total elimination of dischargeable debt. Dischargeable means “legally allowed to be wiped out”. Things that are dischargeable include credit card and charge card debt, loans, some tax debt, mortgage deficiency, personal liability for business debt, deficiency on a car loan, social security over-payments and many other kinds of debts. Many people can file Chapter 7 bankruptcy and keep their houses, cars, retirement accounts, and other property.
Why chapter 13?
Chapter 13 bankruptcy is popular as well and is based on repayment plans for individuals. People generally file chapter 13 for one of two reasons.
a. they have property that would not be safe if they filed a Chapter 7 bankruptcy
b. they have a relatively high income.
Most clients use chapter 13 to save their houses and catch-up on mortgage payments.
Keep in mind that certain kinds of debts are NOT dischargeable. Things like student loans, some taxes, child support, debt from fraud, alimony and criminal penalties are NOT dischargeable. They won’t be affected by bankruptcy.
When you file a Chapter 13 bankruptcy, you go on a payment plan for 36 or 60 months. Each month you make a payment to a bankruptcy official. Once you complete your payment plan, you are forever done with the dischargeable debt you had. -
Step 3
Once you retained a lawyer, you can refer all creditors to their offices (no more harassing calls!) and the lawyer now speaks on your behalf. When your case is filed something called “automatic stay” goes into effect which will prevent creditors from contacting you in the future.
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Step 4
Your lawyer will take you through the rest of the process which includes a 15 min. meeting with the creditors from here. Keep in mind that you won’t get discharged for certain debts such as student loans and tax bills.
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Step 5
You are now on your way to a fresh financial start.
Bankruptcy laws were passed in order to give people a fresh start, and to give debt-burdened consumers an organized, systematic way of paying back creditors. The myth that filing bankruptcy ruins your credit for up to 10 years is false.
The truth is that many people who filed bankruptcy get good credit, car loans and home loans within two years of filing bankruptcy. They usually get new credit cards within months of filing bankruptcy.
Bankruptcy often helps your credit because you go from having a bad debt to income ratio (i.e. you owe a lot relative to what you earn) to having a great debt to income ratio (because you have no more debt).
"Ten years” is the maximum amount of time a bankruptcy can be listed on your credit report. Being “listed” does not mean that it destroys your credit. Many people with “bankruptcy” on their credit are able to get very high credit scores and get good rates on loans quite soon after bankruptcy. -
Step 6
If you need help or further information about how to file bankruptcy in New York, contact Waltzer Law Group. We offer fair rates and have handled 1000nds of successful bankruptcy cases.
http://www.waltzerlawgroup.com for our bankruptcy law firm serving NY and New Jersey
http://www.whiteplainsbankruptcy.com for our Bankruptcy Attorney in White Plains
http://www.manhattanbankruptcy.com for our Bankruptcy Attorney in Manhattan
We have offices in Manhattan, White Plains, Brooklyn and offer an initial free phone conversation.
Just call us at 1-888-332-8511
Law Offices of David S. Waltzer PC
Manhattan Bankruptcy Law Office
450 7th Avenue (at West 34th Street)
Suite 943 New York, NY 10123
Brooklyn Bankruptcy Law Office
16 Court Street
Suite 2600, Brooklyn, NY 11241
White Plains Bankruptcy Law Office
99 Mamaroneck Ave
Suite 2, White Plains, NY 10601
