How to File Bankruptcy in New York
Consumers who wish to file for bankruptcy in New York must undergo a year-long process made up of multiple filings and numerous meetings. New York consumer bankruptcy law is very clear when it comes to how, to what extent and under which circumstances a debtor can discharge debt. While you can file for bankruptcy in New York without an attorney, you benefit from working with one. A variety of resources are available to help you before and after filing.
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Instructions
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1
Sign up for credit counseling at least six months prior to your estimated filing date. The 2005 Bankruptcy Act Credit Counseling requires you to complete credit counseling before filing for bankruptcy relief.
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2
Contact a New York State Bar Association's Legal Referral Service (LRS) and request a referral to a New York bankruptcy lawyer who can help you navigate the bankruptcy filing process and find New York exemptions for which you qualify.
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3
Gather your paperwork, including all financial documents from the previous two years. Itemize income sources and gather receipts for large-scale financial purchases, tax returns, living expenses, debts and property, including but not limited to real estate. Ensure that property deeds and car titles are available, if necessary.
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4
Decide which filing option is right for you. File either Chapter 7 bankruptcy or Chapter 13 bankruptcy. File Chapter 7 bankruptcy to eliminate dischargeable dept, such credit card debt, home loan debt, auto loan debt and, in some cases, tax debt. File Chapter 13 bankruptcy to repay all or a fraction of your debt.
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5
File a two-page petition along with the documents you itemized in Step 4 at your local New York district bankruptcy court.
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Pay the filing fee--which as of 2010 was $274 for Chapter 7 and $189 for Chapter 13--and go into "automatic stay." Automatic stay is a period immediately following your filing in which creditors are not allowed to contact you.
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7
Meet with your court-appointed trustee, who will review your paperwork. He has the power to challenge any claims made in your filing, including those related to income and possessions.
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8
Attend a meeting with your trustee and creditors, which typically takes place approximately one month after filing. Objections from creditors may be heard at this time. If no objections are heard, your filing is complete. If objections are heard, a judge will render a final ruling. Maintain a copy of your notice from the court stating that your dischargeable debts have been discharged, which may require between three to six months for delivery.
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9
Appear before a judge for final confirmation of your repayment plan if you file a Chapter 13 bankruptcy.
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10
Enroll in a financial management instructional course. Completion of the course is compulsory.
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Tips & Warnings
If you are filing a Chapter 13 bankruptcy, propose and submit a repayment plan, which must outline in good faith how you plan to apply disposable income toward your debts. You must also agree to pay your debts within three to five years.
A bankruptcy filing can negatively affect your credit score.
References
Resources
- Photo Credit bankruptcy 2 image by Sorin Alb from Fotolia.com
