How to File for Bankruptcy in New York
Filing for bankruptcy can provide much-needed financial relief for individuals and businesses struggling with unmanageable debt. If you’re considering bankruptcy in New York, it’s important to understand the process, the different types of bankruptcy, and how a skilled attorney can help you navigate the legal requirements. This guide outlines the steps to file for bankruptcy in New York and highlights key considerations. For personalized, professional legal assistance tailored to your specific needs in the Hudson Valley, contact the Law Office of Taran M. Provost, PLLC to sit down with a skilled and experienced Poughkeepsie bankruptcy attorney.
1. Determine if Bankruptcy is Right for You
Before filing for bankruptcy, evaluate your financial situation to determine if bankruptcy is the best option. Alternatives like debt consolidation, negotiation with creditors, or seeking credit counseling may resolve your issues without the need for court intervention. A bankruptcy attorney can help assess your options and determine whether bankruptcy will provide the relief you need.
2. Choose the Appropriate Bankruptcy Chapter
Deciding what type of bankruptcy to file is critical to meeting your specific needs. The two most common types of bankruptcy for individuals are:
- Chapter 7 Bankruptcy: Also known as straight bankruptcy, Chapter 7 eliminates most unsecured debts, such as credit card debt and medical bills. It’s typically suited for individuals with little to no disposable income.
- Chapter 13 Bankruptcy: Known as reorganization bankruptcy, this option allows individuals to restructure their debts into a manageable repayment plan, typically lasting three or five years. Chapter 13 is ideal for those with a steady income who want to protect certain assets, such as a home.
3. Complete Credit Counseling
Under federal law, you must complete a credit counseling course through an approved provider within 180 days before filing for bankruptcy. This course helps determine whether bankruptcy is the right choice and provides information about alternatives. After completing the course, you’ll receive a certificate of completion to include with your bankruptcy filing.
4. Gather Required Financial Documents
To file for bankruptcy, you’ll need to provide detailed financial information, including:
- Income statements (pay stubs, tax returns)
- A list of all debts (credit card statements, medical bills, etc.)
- Asset information (property deeds, car titles, etc.)
- Monthly expenses (rent, utilities, food, etc.)
5. Complete the Means Test
If you’re filing for Chapter 7 bankruptcy, you must pass the means test, which determines if your income is low enough to qualify. The means test compares your household income to the median income in New York for a household of the same size. If your income is below the median, you may qualify for Chapter 7 without going through the complicated means test calculations.
In Chapter 13, the means test is used to calculate your disposable income and determine if your reorganization plan will be set at three years or five years. A bankruptcy lawyer can help you through the process of completing the means test accurately.
6. File Your Bankruptcy Petition
Your bankruptcy case officially begins when you file a petition with the U.S. Bankruptcy Court for your district. New York has four bankruptcy court districts: Southern, Eastern, Northern, and Western. Poughkeepsie residents typically file in the Southern District of New York. Your petition will include:
- Bankruptcy forms detailing your financial situation
- Your credit counseling certificate
- Filing fees or a request for a fee waiver
7. Attend the Meeting of Creditors
After filing, the court will appoint a bankruptcy trustee to oversee your case. You’ll be required to attend what is known as a 341 Meeting of Creditors, where the trustee and your creditors (if present) can ask questions about your finances and bankruptcy filing. Your attorney will prepare you for this meeting and ensure you understand what to expect.
8. Fulfill Additional Requirements
- Debtor Education Course: After filing, you must complete a debtor education course to receive a discharge of your debts. This course provides strategies for managing your finances and avoiding future debt problems.
- Chapter 13 Plan Confirmation: If you filed under Chapter 13, the court must approve your repayment plan before it takes effect.
9. Receive Your Discharge
For Chapter 7 cases, the court typically issues a discharge of debts within a few months of filing. For Chapter 13, the discharge occurs after you’ve successfully completed your repayment plan. The discharge legally eliminates your obligation to repay qualifying debts, giving you a fresh financial start.
How a Bankruptcy Attorney Can Help
Filing for bankruptcy involves complex legal and procedural requirements. An experienced attorney can:
- Evaluate whether bankruptcy is your best option
- Help you choose the right chapter of bankruptcy
- Prepare and file all necessary documents accurately
- Represent you in court proceedings and creditor meetings
At the Law Office of Taran M. Provost, PLLC, we are dedicated to guiding Hudson Valley residents through the bankruptcy process with care and expertise. Contact us today at 845-675-3243 to discuss your financial situation and learn how we can help you achieve a fresh start.
