You've probably landed on this blog because you are interested in learning
more about how to file a petition for bankruptcy protection in New York. A
chapter 7 bankruptcy is also know as a "liquidation". It can be filed individually,
or jointly with a spouse.
Chapter 7 bankruptcy can be a relatively quick and cost-effective method
for qualified individuals to discharge many types of unsecured debt such
as: credit cards, medical debts, and car reposession debt. However, attempting to
file bankruptcy on a student loan can be tremendously more complex as the threshold to qualify for discharge
under the is very high in New York and is in part determined based on the
brunner test. When seeking help with resolving such debts, consult with a
student loan lawyer for a full evaluation as to your potential resolution options outside
of bankruptcy.
When preparing the petition, it is important to ensure accuracy and that
the information is complete.
If you are working with a lawyer to assist you with the bankruptcy, they
will likely provide you with an questionnaire to get the basic information
they need to begin drafting the chapter 7 petition. The questionnaire
will request basic information such as: your name, address, social security
number, date of birth, and whether you have ever filed for bankruptcy
relief in the past. It will also inquire as to detailed information such
as: whether your own real estate, automobiles, and other assets, and will
require the information about the outstanding balance and the lien holder.
Upon completing the questionnaire, we request that our client's submit
this information to our office along with a copy of:
- Driver's License
- Social Security Card
- 6-months of payment advices (ie. pay stubs)
- 3-months of statements for all bank accounts
- 4-years of tax returns
- Award letter for SSI, SSD, Unemployement, and any government subsidies
such as food-stamps
- Recent statement for IRA / Pension / Retirement Accounts
- Recent life insurance statement and policy information
- Copy of automobile title and lien information
- Copy of mortgage statement and real estate closing documents
- Real Estate Appraisel
Although we obtain a 3-bureau
credit report for each of our bankruptcy client's, we also request that our client's
provide any recent collection letter and credit card statements. This
is to ensure that the creditor matrix is complete.
Furthermore, as a pre-requisite of filing for chapter 7 bankruptcy, one
must complete a credit counseling course using the certified provider
of their choice. Similarly, a filer must complete a debtors education
course prior to the court issuing a discharge. Depending on the provider,
this course may be available to be taken over the phone or online, and
may be available in multiple languages.
Part of the qualifications process is to determine whether the petitioners
household income falls within the mean-test for the respective jurisdiction.
These numbers are updated periodically. You may check the median-income
for your state at the U.S. Department of Justice
Bankruptcy Means Test website.
Filing a bankruptcy is typically done with the assistance of petition filing
software such as EZ-Filing, Legal-Pro, or Best Case, most of which require
a paid license. A bankruptcy can be filed manually, however, it can be
a tedious process.
Typically, the 341 meeting, also known as the "meeting of the creditors"
is held 3 to 6 weeks after the petition is filed. Attendance by the petitioner
is mandatory. If an attorney represents the petitioner, then the attorneys
appearance is mandatory as well. Despite being known as the meeting of
the creditors, there is typically no creditors present in most of the
meetings we have attended for our consumer debtor client's. Creditors
are more likley to appear at the hearing, and attempt to object to the
discharge, if there are allegations of abuse or fraud perpetrated by the
filing party.
TIP: One of the most common reasons we see people's cases adjourned at
the meeting of the creditors is due to having insufficient identification
information. Our bankruptcy attorneys advise our client's to be prepared
at the meeting with a valid unexpired Drivers License as well as their
social security card.
It is important to be aware that if the debtor is reaffirming a car loan
in the bankruptcy, the court will oftentimes require an additional appearance
to address the reaffirmation.
Bankruptcies are administered by the Federal Courts. In the State of New
York, there are four districts. Our lawyers practice bankruptcy law in
the Eastern and Southern Districts of New York.
The Eastern District Court has a main courthouse in New York City located
at: 225 Cadman Plaza East Brooklyn, NY 11201 and an additional courthouse
located in Suffolk County, Long Island at: 100 Federal Plaza Central Islip, NY 11722.
The Southern District Court has a courthouse in Manhattan location at:
500 Pearl Street, New York, NY 10007-1312 and an additional courthouse
located at: 300 Quarropas Street, White Plains, NY 10601-4150.
Our
Bankruptcy Lawyers in Brooklyn are experienced in assisting struggling debtors in finding solutions to
their debts to help meet their goals of attaining a financial "fresh
start". Speak to an attorney to learn more about bankruptcy debt
relief, as well as whether you may avoid bankruptcy through alternatives
such as debt settlement and debt defense.
We offer a FREE phone evaluation. Call us at 877-717-0098 to learn more.