The following are the documents you will need to bring to your bankruptcy lawyer in New York. In some cases, other documents may be required. The information below should not be relied upon without consulting a bankruptcy attorney. To speak to a qualified New York bankruptcy lawyers about your specific needs, call us at (212) 748-9243.
1. Income tax returns for the past two years.
By filing bankruptcy, you can end:
When a debtor files for bankruptcy under Chapter 7, the Bankruptcy Court imposes an automatic stay on the bankruptcy estate. An automatic stay prevents creditors from attempting to foreclose or repossess any property or to collect on the debt without seeking the permission of the Bankruptcy Court. Additionally, an automatic stay prevents creditors from making collection phone calls or initiating any lawsuits against the debtor. The automatic stay remains in place until 1) the judge lifts the stay at the request of a creditor, 2) the debt is discharged, or 3) the property in question is no longer part of the bankruptcy estate.
Not if you declare a Chapter 7 bankruptcy. It does not require you to pay back now or at any time in the future.
Bankruptcy discharge stays on the individual's credit report for up to 10 years for most purposes. This may make credit less available and/or terms less favorable, although high debt can have the same effect. That must be balanced against the removal of actual debt from the filer's record by the bankruptcy, which tends to improve creditworthiness. Consumer credit and creditworthiness is a complex subject, however. Future ability to obtain credit is dependent on multiple factors and difficult to predict.
The importance of the effects of bankruptcy on creditworthiness is often overemphasized because by the time most debtors are ready to file for bankruptcy their credit score has already suffered a greater hit than one caused by a bankruptcy.
In our experience, many people who declared bankruptcy were able to loans, credit cards and mortgages. This is true even while the bankruptcy is on your record. Your interest and other terms may be different, depending on your credit score. However, a bankruptcy is often less damaging to your creditworthiness than a large debt that you can't afford to pay.
To declare a chapter 7 bankruptcy, a debtor must undergo a “means test.” The means test compares the debtor’s income in the 6 months before the filing of the bankruptcy to their state’s median income. If the debtor’s income falls below the state median, they are automatically allowed to file for bankruptcy under Chapter 7. If the debtor’s income is above their state’s median income, they may still qualify to file for Chapter 7, but it becomes more complicated process with additional tests that take their expenses and excess income into account.
Additionally, in order to be eligible for a Chapter 7 bankruptcy, the applicant must have completed credit counseling by an approved credit counseling service. You can do this in our office at Storobin & Spodek LLP.
One to three months after the bankruptcy petition is filed, the 341 creditors meeting takes place, which allows creditors the chance to gain additional information about the debtor’s finances and ability to repay his debt. While you are not required to have a bankruptcy lawyer, it is important to make sure your filing is done properly by someone with knowledge and experience in declaring bankruptcy, especially the 341 creditors meeting. If all the issues cannot be rsolved at the meeting, your bankruptcy lawyer can supplement additional information later. In some cases, a second 341 creditors meeting may be required to get your Chapter 7 bankruptcy petition approved.
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Chapter 7, and other bankruptcy chapters, is not available to individuals who have had bankruptcy cases dismissed within the prior 180 days under specified circumstances. You should be allowed to file for another bankruptcy if your previous one is over 180 days ago, provided that you would be otherwise qualified.
In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. We will go over all your assets to determine to determine what you can keep.
In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property.
Common exceptions to discharge include child support, income taxes less than 3 years old and property taxes, student loans (unless the debtor prevails in a difficult-to-win adversary proceeding brought to determine the dischargeability of the student loan), and fines and restitution imposed by a court for any crimes committed by the debtor. Spousal support is likewise not covered by a bankruptcy filing nor are property settlements through divorce. Despite their potential non-dischargeability, all debts must be listed on bankruptcy schedules.
The most important change amendments occurred within 11 U.S.C. § 707(b) and subjects most debtors who have an income above the debtor's state's median income to an income based test. This test is referred to as the "means test." The Code calculated income may be higher or lower than the debtor's actual income at the time of filing for bankruptcy. It is important to discuss the means test with your bankruptcy attorneys.
Another major change requires that all individual debtors in either chapter 7 or chapter 13 complete an “instructional course concerning personal financial management.” At Storobin & Spodek, we can help arrange for you to take this course by phone at a time of your choosing.
The above information is not intended to serve as legal advice, and should not be relied upon. No lawyer-client relationship exists or can exist based on the offering of the information in this guide. While all effort was made to avoid errors and inaccuracies, such may occur for several reasons, including but not limited to changes in bankruptcy law. To speak to a qualified NY bankruptcy lawyer, call us at (212) 748-9243.
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Storobin & Spodek LLP |
Storobin & Spodek LLP |
Storobin & Spodek LLP |